One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q1 FY2023 Earnings Presentation
24 slides from One 97 Communications's earnings presentation, Aug 6, 2022
Slide 1: Paytm cover letter to stock exchanges
PaYtm August 6, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services, The Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 543396 Symbol: PAYTM Sub.: Earnings C
Slide 2: Earnings Presentation for quarter ending June 2022
Earnings Presentation for quarter ending June 2022 1
Slide 3: Disclaimer
Disclaimer By attending the presentation or by reading the presentation on the opinions and estimates of management at the date the correctness of any information or opinions contained herein and slides you agree to be bound as follows: statements are made and are subject to a variety of risks and a
Slide 4: Our Core Business is to Acquire Payment Customers and Distribute Loans
Our Core Business is to Acquire Payment Customers and Distribute Loans Payments Services Loan Distribution & Collection Business + Brand • Paytm Postpaid + Distribution + Insights • Personal Loan Payments + Technology Business • Merchant Loan Monthly Merchants Transacting Users 28 Mn • Co-branded Cr
Slide 5: Revenue Model for Payments Business
Revenue Model for Payments Business Merchants use our app to collect Payment services to payments consumers Merchants use our app 1. Merchants pay us MDR ₹519 Crore 73% to collect payments & Enable commerce 2. Select Customers pay platform fee Online / omni-channel merchants use our Online Payment s
Slide 6: Revenue Model for Loan Distribution and Collection Business
Revenue Model for Loan Distribution and Collection Business Personal Merchant Paytm Lender’s Scope Paytm Scope In Q1 FY23 Loans Loans PostPaid • Customer’s 1 Loan KYC, bureau Amount ~₹100,000 ~₹140,000 ~₹4,000 reporting and & Tenure for ~14 months for ~12 months Monthly billing underwriting Loan Sou
Slide 7: Strong improvement in revenues and profitability in Q1
Strong improvement in revenues and profitability in Q1 Financial Highlights Operational Highlights Revenue from Contribution EBITDA Value of Loans Payment Operations Profit (before ESOP cost) Disbursed Devices ₹1,680 Cr ₹726 Cr ₹(275) Cr ₹5,554 Cr 3.8 Mn 43% of revenue (16%) of revenue 89% 197% ₹57
Slide 8: Sustained Momentum in Payments Key Operating Metrics
Sustained Momentum in Payments Key Operating Metrics Average Monthly Transacting Users GMV (in ₹ Lakh Cr) Payment Devices Deployed (in Million) (in Million) 49% YoY 101% YoY 2.8 Mn Devices 74.8 3.0 3.8 70.9 64.4 2.5 2.6 57.4 2.9 50.4 2.0 1.5 2.0 1.3 0.9 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Sep-
Slide 9: Payments Service Revenue Grew 69% YoY; Net Payments Margin Doubled
Payments Service Revenue Grew 69% YoY; Net Payments Margin Doubled YoY to 35% from 17% 69% YoY Payment Services to Consumers: 73% to ₹519 Cr ₹1,075 Cr Revenue for merchant payments collected on Paytm App. ₹1,041 Cr ₹992 Cr eg. Bill payments and top-ups Payment a. GMV growth driven by MTU growth Serv
Slide 10: Net Payments Margin has Expanded with Focus on Profitable Growth
Net Payments Margin has Expanded with Focus on Profitable Growth and Cost Rationalisation Net Payments Margin (₹ Cr) 382 growing rapidly Drivers of margin improvement a. Higher MTU growth driving revenue from Payment 266 Services to Consumers 209 b. Subscription revenue for payment devices continues
Slide 11: Distribution at Annualized Run-rate of ~₹24,000 Cr
4x YoY growth in Financial Services Revenue, Loans Distribution at Annualized Run-rate of ~₹24,000 Cr Revenue from Financial Services & Others Value of Loans disbursed 4x YoY 8x YoY ₹271 Cr ₹5,554 Cr ₹168 Cr ₹3,553 Cr ₹125 Cr ₹2,181 Cr ₹89 Cr ₹55 Cr ₹1,257 Cr ₹632 Cr Jun-21 Sep-21 Dec-21 Mar-22 Jun-
Slide 12: Strong Growth across Loan Distribution
Strong Growth across Loan Distribution: Significant Upside Potential from Increasing Penetration Value of Postpaid Loans Value of Personal Loans Value of Merchant Loans (in ₹ Cr) (in ₹ Cr) (in ₹ Cr) 7x YoY 11x YoY 10x YoY 827 3,383 1,344 565 2,183 805 474 1,190 516 273 738 246 447 111 73 Jun-21 Sep-
Slide 13: Our Collections Business Continues to Trend Better
Our Collections Business Continues to Trend Better: Meaningful Performances Bonuses Starting to Come Through Indicative portfolio performance for our partners (1) Personal Loan Merchant Loan Postpaid All 3 products augmented through Paytm data and advanced machine learning models Bounce 11.5% to 12.
Slide 14: Commerce and Cloud Services Revenue Grew 64% YoY
Commerce and Cloud Services Revenue Grew 64% YoY 64% YoY Commerce Services: 168% to ₹139 Cr ₹339 Cr a. Travel merchants sold more tickets QoQ ₹331 Cr ₹320 Cr driven by resurgent demand b. Entertainment merchants had a seasonally strong quarter driven by big movie releases, ₹244 Cr with significant g
Slide 15: Contribution Profit up by 197% YoY
Focused on Profitable Revenue Growth: Contribution Profit up by 197% YoY 197% YoY Drivers of contribution margin improvement ₹726 Cr a. Significant improvement in net payments margin (as explained above) b. Improvement in margins across businesses as ₹539 Cr well as change in mix of higher margin bu
Slide 16: EBITDA (before ESOP cost) Improved by ₹93 Cr QoQ
EBITDA (before ESOP cost) Improved by ₹93 Cr QoQ; Focus on Cost Rationalisation while Investing for Growth Quarter Ended Change (in ₹ Cr) Jun-21 Mar-22 Jun-22 YoY QoQ A Increase in Marketing costs almost entirely due to Contribution Profit 245 539 726 197% 35% seasonal sponsorship spend Contribution
Slide 17: Key Trends in Our Business
Key Trends in Our Business 1. Continued strong growth in users and merchants 2. Government incentives have now made UPI P2M GMV profitable; we believe Non-UPI GMV is not a relevant metric to focus on going forward 3. Loan disbursals through our platform have scaled to an annualized run rate of ₹24,0
Slide 18: Annexure
Annexure 17
Slide 19: Reconciliation of Non GAAP Measures
Reconciliation of Non GAAP Measures EBITDA (before ESOP cost) Quarter Ended (in ₹ Cr) Jun-21 Mar-22 Jun-22 (Audited) (Audited) (Unaudited) EBITDA before ESOP cost (A) (332) (368) (275) ESOP cost (B) (39) (362) (359) Initial Public Offer expenses (C) 0 0 0 Finance costs (D) (10) (7) (6) Depreciation
Slide 20: Revenue Breakdown
Revenue Breakdown Quarter Ended Change (in ₹ Cr) Jun-21 Mar-22 Jun-22 YoY QoQ Payments & Financial Services 689 1,209 1,346 95% 11% Payment Services to Consumers 301 469 519 73% 11% Payment Services to Merchants 334 572 557 67% (3%) Financial Services and Others 55 168 271 393% 61% Commerce & Cloud
Slide 21: Operational KPIs
Operational KPIs Quarter Ended Change (in ₹ Cr) Units Jun-21 Mar-22 Jun-22 YoY QoQ GMV ₹ Lakh Cr 1.5 2.6 3.0 101% 14% Merchant Transactions million 2,287 4,142 5,124 124% 24% Total Transactions million 2,785 5,029 6,126 120% 22% MTU (avg over the period) million 50.4 70.9 74.8 49% 6% Registered Merc
Slide 22: Focused on profitable revenue growth: Contribution Profit up by 197% YoY
Focused on profitable revenue growth: Contribution Profit up by 197% YoY Quarter Ended Change (in ₹ Cr) Jun-21 Mar-22 Jun-22 YoY QoQ Revenue from Operations 891 1,541 1,680 89% 9% Payment processing charges 526 774 694 32% (10%) As % of GMV 0.36% 0.30% 0.23% (12 bps) (6 bps) Promotional cashback & i
Slide 23: 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
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