One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q3 FY2022 Earnings Presentation
23 slides from One 97 Communications's earnings presentation, February 2022
Slide 1: Earnings Presentation Quarter Ending December 2021
Earnings Presentation Quarter Ending December 2021 1
Slide 2: Disclaimer
Disclaimer By attending the presentation or by reading the presentation or advisors, as such, make no representations or warranties, slides you agree to be bound as follows: Forward-looking statements and financial projections are express or implied, as to, and do not accept any responsibility based
Slide 3: To bring Half-a-Billion Indians to the Mainstream Economy
To bring Half-a-Billion Indians to the Mainstream Economy through Technology-led Financial Services
Slide 4: Q3 FY 2022 in numbers
Q3 FY 2022 in numbers Driven by increase in processing merchant Revenue from payments through MDR bearing instruments, Operations $195 mn +89% y-o-y disbursements of loans on platform and recovery of commerce business from covid impact Contribution margin improved to 31.2% of revenue Q2 FY 2022: Con
Slide 5: Continued momentum in Revenue growth, up 89% y-o-y
Continued momentum in Revenue growth, up 89% y-o-y Payments and Financial services revenue 89% $195 mn grew by 98% y-o-y y-o-y Growth • Driven by growth in GMV of MDR 46 $146 mn bearing instruments by 77% • 366% increase in the total value of loans 33 $104 mn disbursed 28 • Increase in the device su
Slide 6: Payments and Financial Services Revenue grew 98% y-o-y
Payments and Financial Services Revenue grew 98% y-o-y driven by MDR bearing instruments GMV growth $150 mn Payment Services to Consumers 98% y-o-y Growth 17 • Revenues at $54 mn up 60% y-o-y, driven by growth in transaction volumes $113 mn of our Paytm Payment Instruments and 12 expansion of use-ca
Slide 7: Monthly Transacting Users grew 37% y-o-y
Monthly Transacting Users grew 37% y-o-y 37% y-o-y Growth 64.4 Mn 57.4 Mn • Average MTUs up 17mn over the last 12 months, and 6mn in the last quarter 47.1 Mn • The increase in MTU has been driven by both increase in new users acquisition as well as better retention of transacting users • Our custome
Slide 8: Merchant payments GMV growth accelerated to 123% y-o-y
Merchant payments GMV growth accelerated to 123% y-o-y in Q3 FY 22 $33.6 bn 123% y-o-y Growth $26.3 bn • GMV from MDR bearing instruments grew 77% y-o-y in Q3 FY 2022 $15.0 bn • GMV growth driven by increase in our online and offline merchant payments, increase in the user engagement, and impact of
Slide 9: Accelerated growth in the device subscriptions
Accelerated growth in the device subscriptions, 1.4 mn new device subscriptions in the last 12 months 2.0 mn 1.4 mn Devices Added • 1.4 mn device subscriptions in the last 12 months, and 0.7 mn in the last 1.3 mn quarter alone • Growth in EDC device subscriptions driven by new bank partnerships, bra
Slide 10: Value of loans disbursed reached $1.2 bn annualised in Dec-21
Value of loans disbursed through Paytm reached $1.2 bn annualised in Dec-21 $293 mn Performance 366% y-o-y growth • 401% growth y-o-y in number of loans disbursed in Q2 FY 2022 $169 mn • 366% growth y-o-y in value of loans disbursed $63 mn Highlights • Fully digital journey for all products • Tier 1
Slide 11: Paytm Postpaid: over 30% of new sign ups are NTC users
Paytm Postpaid: over 30% of month on month new sign ups are NTC users Value of loans $160 mn Performance 408% • 407% growth y-o-y in number of loans y-o-y growth disbursed in Q3 FY 2022 $99 mn • 408% growth y-o-y in value of loans disbursed $31 mn Highlights • Strong growth in the new user sign ups;
Slide 12: Personal Loans: Over 50% disbursed to existing Postpaid users
Personal Loans: Over 50% of loans disbursed to existing Postpaid users Value of loans $69 mn Performance 1,925% • 1,187% growth y-o-y in number of loans y-o-y growth disbursed in Q3 FY 2022 • 1,925% growth y-o-y in value of loans $33 mn disbursed Highlights $3 mn • Over 50% of loans disbursed to exi
Slide 13: Merchant Loans have healthy ticket size and repeat rates
Merchant Loans have healthy ticket size and repeat rates Performance Value of loans $64 mn • 38% growth y-o-y in number of loans 128% y-o-y growth disbursed in Q3 FY 2022 • 128% growth y-o-y in value of loans disbursed $37 mn $28 mn Highlights • Over 25% of loans disbursed to NTC borrowers • Average
Slide 14: Partners Portfolio Performance & Initiatives
Partners Portfolio Performance(1) & Initiatives Personal Merchant Postpaid Loan Loan All 3 products augmented through Paytm data and advance machine learning models Bounce 11.0% to 10.5% to NA(2) Continuous co-creation of risk models with our lending Rates 13.0% 12.5% partners – helping scale and ri
Slide 15: Commerce and Cloud Services Revenue grew 64% y-o-y
Commerce and Cloud Services Revenue grew 64% y-o-y with continued recovery in Commerce $46 mn 64% y-o-y Growth • Cloud: Revenues at $27 mn up 69% y-o-y, 18 primarily due to strong growth in the $33 mn revenue from advertising, PAI Cloud and $28 mn credit cards 11 12 • Commerce: Continued recovery in
Slide 16: Contribution Profit grew by 560% y-o-y
Contribution Profit grew by 560% y-o-y Quarter Ended Change (in $ mn) Dec-20 Sep-21 Dec-21 Y-o-Y Q-o-Q Payment processing charges reduced to Revenue from Operations 103.6 145.8 195.4 89% 34% 0.31% of GMV in Q3 FY 2022 from 0.46% in Q3 FY 2021 through optimization of our Payment processing transactio
Slide 17: EBITDA (before ESOP cost) improved by 19% y-o-y
EBITDA (before ESOP cost) improved by 19% y-o-y Quarter Ended Change (in $ mn) Dec-20 Sep-21 Dec-21 Y-o-Y Q-o-Q Contribution Profit 9.2 35.0 60.9 560% 74% Our marketing cost as % of revenue down from 13% in Q3 FY 2021 to 11% in Q3 FY 2022 Contribution Margin % 8.9% 24.0% 31.2% 2,226 bps 716 bps desp
Slide 18: Key Trends
Key Trends Trends in our Businesses Operating and Financial Performance • Growth of Payments revenues and profitability due to • Strong momentum in revenue growth to continue; growth of GMV from MDR bearing instruments 89% growth y-o-y in Q3 FY 2022 (including Paytm Payment Instruments) and payment
Slide 19: Annexure
Paytm Annexure 19
Slide 20: Reconciliation of Non GAAP Measures
Reconciliation of Non GAAP Measures EBITDA (before ESOP cost) Quarter Ended Nine Months Ended (in $ mn) Dec-21 Dec-20 Sep-21 Dec-21 Dec-20 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) EBITDA before ESOP cost (A) (52.7) (65.4) (57.1) (154.4) (165.8) ESOP cost (B) (52.3) (5.6) (2.6) (60
Slide 21: Revenue breakdown
Revenue breakdown Quarter Ended Change (in $ mn) Dec-20 Sep-21 Dec-21 Y-o-Y Q-o-Q Payments & Financial Services 75.8 113.1 149.9 98% 33% Payment Services to Consumers 34.1 47.5 54.5 60% 15% Payment Services to Merchants 36.2 53.7 78.6 117% 46% Financial Services and Others 5.6 11.9 16.8 201% 41% Com
Slide 22: Definitions for Metrics & Key Performance Indicators
Definitions for Metrics & Key Performance Indicators Metric Definition GMV is the rupee value of total payments made to merchants through transactions on our app, GMV through Paytm Payment Instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer payment servi
Slide 23: Thank you
Paytm Thank you 23
One 97 Communications Ltd. (Paytm) — Q3 FY2022 Earnings Presentation on 6ix