One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q4 FY2024 Earnings Presentation
20 slides from One 97 Communications's earnings presentation, May 22, 2024
Slide 1: Earnings Presentation, quarter and year ending March 2024
Payim Earnings Presentation For quarter and year ending March 2024 22 May 2024 Pioneering & Innovating for The All-New Paytm Pebble Soundbox Paytm Customers & Merchants paimeLine —a= Siow The All-New Pocket Pebble Soundbox SPIN LI
Slide 2: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides the opinions and estimates of management at the date the express or implied, as to, and do not accept any responsibility or you agree to be bound as follows: statements are made and are subject to a variety of risks and l
Slide 3: FY 2024: First full year of EBITDA before ESOP profitability since IPO
FY 2024: Achieved first full year of EBITDA before ESOP profitability since IPO, at ₹559 Cr Operating Revenue Contribution Profit and Contribution EBITDA Before ESOP and Margin Margin ₹9,978 Cr 1,738 ₹5,538 Cr ₹7,990 Cr ₹559 Cr 1520 2,004 ₹3,900 Cr 56% 6% -2% ₹4,974 Cr 1,540 49% 1105 ₹(176) Cr 30% 4
Slide 4: Q4 FY 2024: Revenue of ₹2,267 Cr; EBITDA Before ESOP of ₹103 Cr
Q4 FY 2024: Revenue of ₹2,267 Cr; EBITDA Before ESOP of ₹103 Cr including UPI incentive Operating Revenue Contribution Profit and Contribution EBITDA Before ESOP and Margin Margin ₹2,850 Cr ₹2,519 Cr 514 ₹1,520 Cr ₹288 Cr ₹2,334 Cr ₹2,342 Cr ₹1,426 Cr ₹234 Cr ₹2,267 Cr 423 ₹219 Cr ₹1,283 Cr ₹1,304 C
Slide 5: Payment Services: Merchant business has started to grow, MTUs have stabilized
Payment Services: Merchant business has started to grow, MTUs have stabilized Monthly Transacting Users Paytm App Consumers (Month ending) • April MTU lower by 24% as compared to January and has stabilized in May 10.4 Cr 9.6 Cr 8.9 Cr • MTU growth expected with new TPAP user onboarding commences 8.0
Slide 6: Payment Services: To focus on UPI, Cards and EMI payments
Payment Services: To focus on UPI, Cards and EMI payments Gross Merchandise Volume (GMV) Merchant Subscriptions (including Devices) Net Payment Margin (Qtr ending) (Qtr ending) (in Lakhs) (Qtr ending) 5.1 L Cr 107 ₹853 Cr 106 4.7 L Cr 4.5 L Cr ₹748 Cr 4.0 L Cr 92 ₹687 Cr ₹707 Cr 288 3.6 L Cr ₹648 Cr
Slide 7: Financial Services: Higher focus on distribution-led model
Financial Services: Higher focus on distribution-led model for Loan, Insurance and Equity Loan Distribution Financial Services revenue (Qtr ending) ₹607 Cr • Prudently paused certain loan products basis regulatory guidance and ₹571 Cr transition to TPAP model. This led to reduced disbursements of ₹5
Slide 8: Loan distribution business: Additional opportunity of distribution only loans
Loan distribution business: Additional opportunity of distribution only loans by adding new partners Consumer Loans ₹3,245 Cr Monthly Loan Distribution • Expanding on different type of distribution-only loans where we earn only 720 distribution fees ₹2,009 Cr • Paused small personal loans and Postpa
Slide 9: Marketing Services: Travel, advertising revenues impacted due to lower MTUs
Marketing Services: Travel, advertising revenues impacted due to lower MTUs Advertising & Deals & Credit Cards Revenue from Marketing Services Gift Vouchers Loyalty Services (Qtr ending) ₹514 Cr ₹423 Cr ₹405 Cr ₹395 Cr ₹392 Cr • Merchants sell discount deals, gift vouchers and other digital goods li
Slide 10: Financial impact: Full EBITDA impact in Q1 FY 2025 with recovery from Q2
Financial impact: Full EBITDA impact in Q1 FY 2025 with meaningful recovery from Q2 FY 2025 • On account of embargo on PPBL products, we communicated Overall Impact EBITDA impact of ₹500 Cr. Most of the impact will start from Q1 FY 2025 • Expect Q1 FY 2025 revenue to be in the range of ₹1,500 - as t
Slide 11: Key Focus Areas
Key Focus Areas Governance & Compliance Commitment on Payments Expand Offerings Enhancing governance structure across Reaffirm our commitment to payments as Focus on monetization by cross- Paytm and group entities by appointing our core business by focusing on selling financial services, in line sub
Slide 12: Annexure
Annexure 12
Slide 13: Expected ESOP charges based on currently issued ESOPs
Expected ESOP charges based on currently issued ESOPs Expected ESOP Cost (₹ Cr) Q1 Q2 Q3 Q4 As of Mar 31, 2024 (in Cr) FY 2025 376 316 269 213 Basic shares outstanding 63.5 FY 2026 182 178 101 97 ESOPs vested and unexercised 0.1 FY 2027 92 89 23 21 ESOPs granted and unvested 3.7 Note: ESOPs availabl
Slide 14: Revenue breakdown: FY 2024 revenue growth of 25% YoY
Revenue breakdown: FY 2024 revenue growth of 25% YoY Quarter Ended Change Year Ended (in ₹ Cr) Mar-24 Dec-23 Mar-23 YoY QoQ Mar-24 Mar-23 Y-o-Y Payments & Financial Services 1,858 2,285 1,918 (3)% (19)% 8,132 6,385 27% Payment Services to Consumers 438 598 524 (17)% (27)% 2,168 2,105 3% Payment Serv
Slide 15: FY 2024 Contribution Profit up by 42% YoY
FY 2024 Contribution Profit up by 42% YoY Quarter Ended Change Year Ended (in ₹ Cr) Mar-24 Dec-23 Mar-23 YoY QoQ Mar-24 Mar-23 Y-o-Y Revenue from Operations 2,267 2,850 2,334 (3)% (20)% 9,978 7,990 25% Payment processing charges 715 982 780 (8)% (27)% 3,280 2,958 11% As % of GMV 0.15% 0.19% 0.22% (6
Slide 16: FY 2024 EBITDA before ESOP increased to ₹559 Cr
FY 2024 EBITDA before ESOP increased to ₹559 Cr (up ₹734 Cr) Quarter Ended Change Year Ended (in ₹ Cr) Mar-24 Dec-23 Mar-23 YoY QoQ Mar-24 Mar-23 Y-o-Y Contribution Profit 1,288 1,520 1,426 0% (15)% 5,538 3,900 42% Contribution Margin % 57% 53% 57% 183 bps 349 bps 56% 49% 669 bps Marketing 83 169 12
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended Year Ended (in ₹ Cr) Mar-24 Dec-23 Mar-23 Mar-24 Mar-23 EBITDA before ESOP cost (A) 103 219 234 559 (176) ESOP cost (B) (326) (378) (363) (1,466) (1,456) Finance costs (C) (5) (5) (7) (24) (23) Depreciation and amortization ex
Slide 18: Operational KPIs
Operational KPIs Quarter Ended Change (in ₹ Cr) Units Mar-24 Dec-23 Mar-23 YoY QoQ GMV ₹ Lakh Cr 4.69 5.1 3.62 30% (8%) Merchant Transactions Cr 962 999 685 40% (4%) Total Transactions Cr 1,129 1,185 835 35% (5%) MTU (avg over the period) Cr 9.6 10 9.0 7% (4%) Registered Merchants (end of period) Cr
Slide 19: 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, through Paytm Payment GMV Instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer payment servi
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