One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q2 FY2023 Earnings Presentation
25 slides from One 97 Communications's earnings presentation, Nov 8, 2022
Slide 1: Earnings Conference Call - Presentation (exchange cover letter)
November 8, 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 Confe
Slide 2: Earnings Presentation for quarter ending September 2022
Earnings Presentation For quarter ending September 2022
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 • Merchant Loan Business Monthly Merchants Transacting Users 30 Mn • Co-branded Cr
Slide 5: Revenue from Payments and Commerce & Cloud Services at ₹1,550 Cr in Q2 FY 2023
Revenue from Payments and Commerce & Cloud Services at ₹1,550 Cr in Q2 FY 2023 (up 55% YoY) Services merchants use Revenue Model Revenue (Q2 FY 2023) Commerce and Advertising, selling gift Advertising revenues and Cloud Enabling commerce vouchers and tickets commission ₹ 377 Cr for merchants 55% YoY
Slide 6: Loan Distribution and Collection: ₹7,313 Cr of Disbursements in Q2
Loan Distribution and Collection: ₹7,313 Cr of Disbursements in Q2 Paytm Paytm Revenue Personal Merchant Paytm In Q2 FY23 Strengths Model Loans Loans PostPaid • Loan Sourcing: 1 Loan from Paytm’s large Amount ~₹110,000 ~₹150,000 ~₹4,500 consumer and & Tenure for ~14 months for ~12 months Monthly bil
Slide 7: Revenue growth of 76% YoY, EBITDA before ESOP cost improved by 61% YoY
Revenue growth of 76% YoY, EBITDA before ESOP cost improved by 61% YoY Financial Highlights Operational Highlights Revenue from Contribution EBITDA Value of Loans Merchant Operations Profit before ESOP cost Disbursed Subscriptions (Payment Devices) ₹1,914 Cr ₹843 Cr ₹(166) Cr ₹7,313 Cr 4.8 Mn 44% of
Slide 8: Revenue growth led by platform expansion and increased monetization across businesses
Revenue growth led by platform expansion and increased monetization across businesses 76% YoY ₹1,914 Cr ₹1,680 Cr ₹1,541 Cr ₹1,456 Cr Payment 56% YoY, 9% QoQ 1,173 Services ₹1,086 Cr 1,075 1,041 992 754 Financial Services & 293% YoY, 29% QoQ 349 Others 271 125 168 89 Commerce & 55% YoY, 14% QoQ 377
Slide 9: Contribution Profit expansion led by growth in net payments margin and loan distribution revenues
Contribution Profit expansion led by growth in net payments margin and loan distribution revenues Contribution profit and margin Indirect cost (as % of revenue) ₹686 Cr ₹847 Cr ₹907 Cr ₹1,001 Cr ₹1,010 Cr 224% YoY ₹843 Cr 63% 59% 60% 10% improvement 58% ₹726 Cr 10% Contribution 7% 7% 8% 53% Profit O
Slide 10: 61% YoY improvement in EBITDA before ESOP cost
61% YoY improvement in EBITDA before ESOP cost EBITDA before ESOP Cost EBITDA before ESOP cost margin (9%) (₹166 Cr) (16%) (24%) (₹275 Cr) (27%) ₹259 Cr +30% margin improvement (₹368 Cr) (₹393 Cr) (39%) (₹426) Cr Quarter Quarter Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 E
Slide 11: Continued Payments Services revenue growth with higher profitability
Continued Payments Services revenue growth with higher profitability 58% YoY ₹1,188 Cr Payment Services to Consumers revenue ₹1,075 Cr ₹1,041 Cr (up 55% to ₹549 Cr) ₹992 Cr a. Continued growth in MTU and GMV 549 ₹754 Cr 469 519 Payment Services to Merchants revenue 406 (up 56% to ₹624 Cr) a. Subscri
Slide 12: Momentum in Payments key operating metrics driving revenue growth
Momentum in Payments key operating metrics driving revenue growth Average Monthly Transacting Users GMV (in ₹ Lakh Cr) Merchant Subscriptions (Payment (in Million) Devices) (in Million) 3.5 Mn Devices 4.8 39% YoY 79.7 63% YoY 3.2 74.8 3.0 70.9 64.4 2.6 3.8 2.5 57.4 2.0 2.9 2.0 1.3 Quarter Sep-21 Dec
Slide 13: Led by Lending, Financial Services revenue has grown 4x YoY
Led by Lending, Financial Services revenue has grown 4x YoY Revenue from Financial Services & Others Lending Lender’s Scope Paytm Scope Products • Customer’s • Loan Sourcing Paytm Postpaid 4x YoY ₹349 Cr KYC (Consumption • Deep Insights BNPL) ₹271 Cr • Capital • Small-ticket deployment • Fully Digit
Slide 14: Offering small ticket credit disbursement and collection in partnership with lenders
Offering small ticket credit disbursement and collection in partnership with lenders Postpaid Loans Personal Loans Merchant Loans • Accepted at 15 Mn merchants; total base of • Cross sell opportunities continue with over • Device merchants accounted for more than over 6 Mn signed up users 40% of loa
Slide 15: Sustained trends in Loan Collections
Sustained trends in Loan Collections 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 12.5% NA(2) 11.0% to 13.0% Continuous co-creation of risk models with our l
Slide 16: Steady growth in high margin Commerce & Cloud revenue
Steady growth in high margin Commerce & Cloud revenue 55% YoY ₹377 Cr Commerce Services: up 49% to ₹125 Cr ₹339 Cr ₹331 Cr ₹320 Cr a. Travel merchants sold more tickets QoQ 125 Commerce driven by resurgent demand 135 103 b. Entertainment merchants had a seasonally ₹244 Cr 139 weak quarter 84 Cloud S
Slide 17: Improvement in EBITDA before ESOP costs while continuing investments in scale and growth
Improvement in EBITDA before ESOP costs while continuing investments in scale and growth Quarter Ended YoY (in ₹ Cr) Sep-21 Sep-22 Growth MTU (mn) 57.4 79.7 39% Platform Expansion = Devices deployed (mn) 1.3 4.8 +3.5 mn Higher Monetization Capacity Value of loans disbursed 1,257 7,313 482% Revenue f
Slide 18: Annexure
Annexure 17
Slide 19: Revenue Growth of 76% YoY
Revenue Growth of 76% YoY Quarter Ended Change (in ₹ Cr) Sep-21 Jun-22 Sep-22 YoY QoQ Payments & Financial Services 843 1,346 1,522 81% 13% Payment Services to Consumers 354 519 549 55% 6% Payment Services to Merchants 400 557 624 56% 12% Financial Services and Others 89 271 349 293% 29% Commerce &
Slide 20: Contribution Profit up by 224% YoY
Contribution Profit up by 224% YoY Quarter Ended Change (in ₹ Cr) Sep-21 Jun-22 Sep-22 YoY QoQ Revenue from Operations 1,086 1,680 1,914 76% 14% Payment processing charges 670 694 746 11% 8% As % of GMV 0.34% 0.23% 0.23% (11 bps) (0 bps) Promotional cashback & incentives 83 143 191 128% 33% Other Ex
Slide 21: EBITDA before ESOP cost improved by ₹108 Cr QoQ
EBITDA before ESOP cost improved by ₹108 Cr QoQ Quarter Ended Change (in ₹ Cr) Sep-21 Jun-22 Sep-22 YoY QoQ Contribution Profit 261 726 843 224% 16% Contribution Margin % 24.0% 43.2% 44.1% +20% +1% Marketing 102 175 137 34% (22%) Employee cost (excl ESOPs) 367 553 573 56% 4% Software, cloud and data
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended (in ₹ Cr) Sep-21 Jun-22 Sep-22 (Unaudited) (Unaudited) (Unaudited) EBITDA before ESOP cost (A) (426) (275) (166) ESOP cost (B) (19) (359) (371) Initial Public Offer expenses (C) (8) 0 0 Finance costs (D) (10) (6) (5) Depreciat
Slide 23: Operational KPIs
Operational KPIs Quarter Ended Change (in ₹ Cr) Units Sep-21 Jun-22 Sep-22 YoY QoQ GMV ₹ Lakh Cr 2.0 3.0 3.2 63% 8% Merchant Transactions million 2,692 5,124 5,752 114% 12% Total Transactions million 3,316 6,126 6,885 108% 12% MTU (avg over the period) million 57.4 74.8 79.7 39% 7% Registered Mercha
Slide 24: 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
Slide 25: Thank You
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