One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q3 FY2023 Earnings Presentation
20 slides from One 97 Communications's earnings presentation, Feb 6, 2023
Slide 1: Exchange filing cover letter: Earnings Conference Call Presentation
February 6, 2023 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 December 2022
Earnings Presentation For quarter ending December 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: Sustained momentum in Payments & Credit business
Sustained momentum in Payments & Credit business Average Monthly Transacting Users Value of loans disbursed through Paytm (₹ Crore) (Qtr ending) 32% YoY 85 mn 80 mn 75 mn 71 mn 357% YoY 64 mn 9,958 7,313 + Brand Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 5,554 + Distribution Subscription Paying Merchants +
Slide 5: Revenue growth driven by continued platform expansion & increased monetization across businesses
Revenue growth driven by continued platform expansion & increased monetization across businesses 42% YoY ₹2,062 Cr Payments revenue2 21% YoY to ₹1,197 Cr ₹1,914 Cr 1. On a like-for-like basis, i.e. including UPI incentive, growth would be 34% YoY ₹1,680 Cr (Detailed explanation on Slide 6) ₹1,541 Cr
Slide 6: Growth in contribution profit + strong operating leverage = Improved Profitability
Growth in contribution profit + strong operating leverage = Improved Profitability Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 2% 58% 59% 60% 53% 51% 49% (9%) 43% 44% 35% 31% (16%) +53% improvement (24%) Quarter (27%) Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Ending Contribution Margin Indirect expenses as % of rev
Slide 7: Payments business: Revenue growth with improved profitability
Payments business: Revenue growth with improved profitability 21% YoY Payment revenue grew by 21% YoY to ₹1,197 Cr ₹1,188 Cr ₹1,197 Cr 1. On a like-for-like basis, i.e. including UPI incentive, growth would be 34% ₹1,075 Cr YoY ₹1,041 Cr ₹992 Cr 2. No UPI incentive recorded in this quarter (given th
Slide 8: Payment business generated ₹459 Cr of Net Payments Margin
Payment business generated ₹459 Cr of Net Payments Margin Payment Processing Margin Net Payments Margin grew 120% YoY 1. Margin on payment processing in Q3 was within the range of (in ₹ Cr) Dec-21 Sep-22 Dec-22 7-9bps (of GMV) as indicated in December 2022 Reported payments revenue 992 1,188 1,197 2
Slide 9: Acceleration in consumer & merchant credit
Acceleration in consumer & merchant credit Postpaid Loans Personal Loans Merchant Loans 1. Accepted at 17 Mn merchants 1. Cross sell opportunities continue with over 1. Device merchants accounted for more than 2. Penetration at 4.0% of MTU 40% of loans to existing Postpaid users 85% of disbursals; R
Slide 10: Better Collection Efficiency = Increased Scale & Revenues
Better Collection Efficiency = Increased Scale & Revenues Scale up driven by loan distribution Continued focus on credit quality 257% YoY 446 Indicative portfolio performance for our Personal Merchant Postpaid partners1 Loan Loan 349 • Augmented through advanced 271 machine learning models Bounce 11
Slide 11: Commerce & Cloud: Credit cards and Commerce driving growth
Commerce & Cloud: Credit cards and Commerce driving growth Cloud (including co-branded credit cards) 24% YoY ₹420 Cr 1. Co-branded credit cards continue to scale well ₹377 Cr 2. Total 4.5 Lakh activated cards as of December 2022 ₹339 Cr ₹331 Cr ₹320 Cr 3. Revenues grew 15% YoY to ₹235 Cr, with adver
Slide 12: Growth Drivers in Our Business
Growth Drivers in Our Business 1. India’s digital payments are in early days. Growth in UPI, cards and EMI-led payments are yet to reach the masses a) Launching UPI Lite, allowing instant, multiple small-value UPI payments, which will lead to increased adoption of digital payments b) Launching Credi
Slide 13: Annexure
Annexure 12 12
Slide 14: Revenue breakdown: Overall growth of 42% YoY
Revenue breakdown: Overall growth of 42% YoY Quarter Ended Change (in ₹ Cr) Dec-21 Sep-22 Dec-22 YoY QoQ Payments & Financial Services 1,117 1,522 1,599 43% 5% Payment Services to Consumers 406 549 513 26% (7%) Payment Services to Merchants 586 624 640 9% 3% Financial Services and Others 125 349 446
Slide 15: Contribution Profit up by 131% YoY
Contribution Profit up by 131% YoY Quarter Ended Change (in ₹ Cr) Dec-21 Sep-22 Dec-22 YoY QoQ Revenue from Operations 1,456 1,914 2,062 42% 8% Payment processing charges 783 746 738 (6%) (1%) As % of GMV 0.31% 0.23% 0.21% (10 bps) (2 bps) Promotional cashback & incentives 117 191 91 (22%) (52%) Oth
Slide 16: EBITDA before ESOP cost improved by ₹424 Cr YoY
EBITDA before ESOP cost improved by ₹424 Cr YoY Quarter Ended Change (in ₹ Cr) Dec-21 Sep-22 Dec-22 YoY QoQ Contribution Profit 454 843 1,048 131% 24% Contribution Margin % 31.2% 44.1% 50.8% +20% +7% Marketing 167 137 136 (19%) (1%) Employee cost (excl ESOPs) 442 573 584 32% 2% Software, cloud and d
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended (in ₹ Cr) Dec-21 Sep-22 Dec-22 (Unaudited) (Unaudited) (Unaudited) EBITDA before ESOP cost (A) (393) (166) 31 ESOP cost (B) (390) (371) (362) Initial Public Offer expenses (C) (6) 0 0 Finance costs (D) (13) (5) (5) Depreciatio
Slide 18: Operational KPIs
Operational KPIs Quarter Ended Change (in ₹ Cr) Units Dec-21 Sep-22 Dec-22 YoY QoQ GMV ₹ Lakh Cr 2.5 3.2 3.5 38% 9% Merchant Transactions million 3,477 5,752 6,284 81% 9% Total Transactions million 4,266 6,885 7,634 79% 11% MTU (avg over the period) million 64.4 79.7 84.9 32% 7% Registered Merchants
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
Slide 20: Thank You! India loves Paytm
One 97 Communications Limited (Paytm) — Q3 FY2023 Earnings Presentation on 6ix