One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q2 FY2025 Earnings Presentation
18 slides from One 97 Communications's earnings presentation, November 2024
Slide 1: Earnings Presentation
Earnings Presentation For the quarter ending September 2024 (USD)
Slide 2: Q2 FY 2025: Revenue jumps to $197 Mn on Growth in Payments and Financial Services
Q2 FY 2025: Revenue jumps to $197 Mn on Growth in Payments and Financial Services; EBITDA improved by $47 Mn QoQ Revenue grew by 11% QoQ Contribution Profit up 18% QoQ EBITDA has improved by $47 Mn QoQ (Qtr ending) Contribution Margin at 54% (Qtr ending) (Qtr ending) Jun-24 Sep-24 11% QoQ $197 Mn 18
Slide 3: Operating metrics across businesses shows improving trends
Operating metrics across businesses shows improving trends Merchant Subscription, including devices Gross Merchandise Value - Continued Number of Key Financial Services (Qtr ending) business (Qtr ending) Customers (Qtr ending) 11.2 Mn 0.81 Mn 10.7 Mn 10.9 Mn 0.77 Mn 0.79 Mn 10.6 Mn $52.3 Bn $51.0 Bn
Slide 4: Payment Services: Net payment margin of $56 Mn, up 21% QoQ
Payment Services: Net payment margin of $56 Mn, up 21% QoQ Net Payment Margin = Payment Processing Margin + Merchant Subscription Revenue (Qtr ending) Payment Processing Margin = Gross • Charges merchant pays for various 9% QoQ $117 Mn fees charged to the merchant – monthly services including device
Slide 5: Financial Services: Cross sell of loans, wealth and insurance products to the payment customers
Financial Services: Cross sell of loans, wealth and insurance products to the payment customers Revenue from financial Services Large opportunity to monetise our payment customers by cross selling financial services (Qtr ending) Loan Distribution: Better asset quality trend helps to expand lending p
Slide 6: Marketing Services: Additional monetization from merchants
Marketing Services: Additional monetization from merchants Revenue from Advertising & Deals & Credit Cards Marketing Services Loyalty Services Vouchers We enable merchants to do more commerce activities and these various offerings are consolidated under marketing services In Q2 FY 2025, Marketing Se
Slide 7: Key Focus Areas
Key Focus Areas Compliance First: Stringent focus on a compliance-first approach across our businesses Customer acquisition Merchant payment innovations Cross-sell Committed to aggressively acquire UPI Continue to be a market leader with merchant Increase high margin financial services customers pay
Slide 8: Annexure
Annexure 8
Slide 9: Expected ESOP charges based on currently issued ESOPs
Expected ESOP charges based on currently issued ESOPs Expected ESOP Cost ($ Mn) Q1 Q2 Q3 Q4 As of October 18, 2024 (in Mn) FY 2025 29* 26* 32 25 Basic shares outstanding 637 FY 2026 22 21 12 12 ESOPs vested and unexercised 2 FY 2027 12 11 3 3 ESOPs granted and unvested 35 * Q2 FY 2025 ESOP cost was
Slide 10: Operating Revenue
Operating Revenue Quarter Ended Change (in $ Mn) Sep-24 Jun-24 Sep-23 YoY QoQ (Unaudited) (Unaudited) (Unaudited) Payments & Financial Services 157 140 248 (36)% 13% Payment Services 113 106 179 (37)% (81)% Financial Services and Others 45 34 69 (34)% 34% Marketing Services 36 39 51 (29)% (6)% Other
Slide 11: Contribution Profit and Contribution Margin
Contribution Profit and Contribution Margin Quarter Ended Change (in $ Mn) Sep-24 Jun-24 Sep-23 YoY QoQ (Unaudited) (Unaudited) (Unaudited) Revenue from Operations 197 180 302 (35)% 11% Payment processing charges 61 62 98 (37)% (0)% As % of GMV 0.12% 0.12% 0.18% (7) bps (1) bps Promotional cashback
Slide 12: EBITDA before ESOP
EBITDA before ESOP Quarter Ended Change (in $ Mn) Sep-24 Jun-24 Sep-23 YoY QoQ (Unaudited) (Unaudited) (Unaudited) Contribution Profit 106 91 171 (37)% 18% Contribution Margin % 54% 50% 57% (276) bps 356 bps Marketing 15 21 22 (30)% (29)% Employee cost (excl ESOPs) 73 85 97 (24)% (13)% Software, clo
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended (in $ Mn) Sep-24 (Unaudited) Jun-24 (Unaudited) Sep-23 (Unaudited) EBITDA before share based (22) (65) 18 payment expenses (A) Share based payment expenses (B) (26) (30) (46) Finance costs (C) (0) (0) (1) Depreciation and amor
Slide 14: Operational KPIs
Operational KPIs Quarter Ended Change Units Sep-24 Jun-24 Sep-23 YoY QoQ (Unaudited) (Unaudited) (Unaudited) GMV $ Bn 53.6 51.1 54.0 (1)% 5% GMV – Continued Business* $ Bn 53.6 51.1 45.8 17% 5% Merchant Transactions Bn 9.9 9.0 9.1 9% 10% Total Transactions Bn 11.1 10.2 10.9 2% 8% MTU (avg over the p
Slide 15: Breakup of available Cash and investable balance (Net Cash Balances)
Breakup of available Cash and investable balance (Net Cash Balances) Particulars (in $ Mn) Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Cash and Bank Balances in Current Accounts (Net of Borrowings) 220 225 477 279 268 Deposits with banks 504 533 279 418 430 Current Investments (Mutual Funds and Commercial Pa
Slide 16: 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 Instruments or GMV through our payment solutions, over a period. It excludes any consumer-to-consumer payment servi
Slide 17: Paytm
Paytm
Slide 18: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides the opinions and estimates of management at the date the whatsoever for any loss, howsoever, arising from any use or reliance you agree to be bound as follows: statements are made and are subject to a variety of risks and
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