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
Paytm Customers & Merchants Paytm Pebble Soundbox Earnings Presentation Pocket Pebble Soundbox For quarter and year ending March 2024 (USD) 22 May 2024
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: Achieved first full year of EBITDA before ESOP profitability since IPO
FY 2024: Achieved first full year of EBITDA before ESOP profitability since IPO, at $67Mn Operating Revenue Contribution Profit and Contribution EBITDA before ESOP and Margin Margin $1,197Mn $664 Mn 208 $67 Mn $958Mn 182 240 $468 Mn 6% 56% -2% 49% 185 $597Mn -$21 Mn 132 30% 52 $337Mn 748 $180 Mn -31
Slide 4: Q4 FY 2024: Revenue of $272 Mn; EBITDA before ESOP of $12 Mn
Q4 FY 2024: Revenue of $272 Mn; EBITDA before ESOP of $12 Mn including UPI incentive Operating Revenue Contribution Profit and Contribution EBITDA before ESOP and Margin Margin $342Mn $182 Mn $35 Mn $302Mn $171 Mn $28 Mn 62 $280Mn $281Mn $26 Mn $272Mn $156 Mn 51 $154 Mn $154 Mn 47 49 73 47 $22 Mn 22
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 104 Mn • MTU growth expected with new TPAP user onboarding commences 96 Mn 89 Mn 80 Mn
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 Mn) (Qtr ending) $61 Bn $56 Bn $54 Bn 10.7 10.6 $102 Mn $49 Bn 9.2 $44 Bn $90 Mn 7.9 $82 Mn $85 Mn 35 $78 Mn 6.8 22 60
Slide 7: Financial Services: Higher focus on distribution-led model for Loan, Insurance and Equity
Financial Services: Higher focus on distribution-led model for Loan, Insurance and Equity Loan Distribution Financial Services revenue (Qtr ending) $69 Mn $73 Mn • Prudently paused certain loan products basis regulatory guidance and $63 Mn transition to TPAP model. This led to reduced disbursements
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 Monthly Loan Distribution $389 Mn • Expanding on different type of distribution-only loans where we earn only 86 distribution fees • Paused small personal loans and Postpaid loans, wh
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) $62 Mn $51 Mn $49 Mn $47 Mn $47 Mn • Merchants sell discount deals, gift vouchers and other digital goods like ti
Slide 10: Financial impact: Full EBITDA impact in Q1 FY 2025 with meaningful 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 annualized EBITDA impact of $60 Mn. Most of the impact will start from • Expect Q1 FY 2025 revenue to be in the range of $180 Q1 FY 202
Slide 11: Key Focus Areas
Key Focus Areas Governance & Compliance Commitment on Payments Expand Offerings Enhancing governance structure across Reaffirm our commitment to payments as our Focus on monetization by Cross-selling Paytm and group entities by appointing core business by focusing on recovering the financial service
Slide 12: Annexure
Annexure
Slide 13: Expected ESOP charges based on currently issued ESOPs
Expected ESOP charges based on currently issued ESOPs Expected ESOP Cost As of Mar 31, 2024 (in Mn) Q1 Q2 Q3 Q4 ($ Mn) FY 2025 45 38 32 26 Basic shares outstanding 635 FY 2026 22 21 12 12 ESOPs vested and unexercised 1 FY 2027 11 11 3 3 ESOPs granted and unvested 37 Note: ESOPs available for distrib
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 $ Mn) Mar-24 Dec-23 Mar-23 YoY QoQ Mar-24 Mar-23 Y-o-Y Payments & Financial Services 223 274 230 (3)% (19)% 975 766 27% Payment Services to Consumers 52 72 63 (17)% (27)% 260 252 3% Payment Services to Merchants
Slide 15: FY 2024 Contribution Profit up by 42% YoY
FY 2024 Contribution Profit up by 42% YoY Quarter Ended Change Year Ended (in $ Mn) Mar-24 Dec-23 Mar-23 YoY QoQ Mar-24 Mar-23 Y-o-Y Revenue from Operations 272 342 280 (3)% (20)% 1,197 958 25% Payment processing charges 86 118 94 (8)% (27)% 393 355 11% As % of GMV 0.15% 0.19% 0.22% (6) bps (4) bps
Slide 16: FY 2024 EBITDA before ESOP increased to $67 Mn
FY 2024 EBITDA before ESOP increased to $67 Mn (up $88 Mn) Quarter Ended Change Year Ended (in $ Mn) Mar-24 Dec-23 Mar-23 YoY QoQ Mar-24 Mar-23 Y-o-Y Contribution Profit 154 182 154 0% (15)% 664 468 42% Contribution Margin % 57% 53% 55% 183 bps 349 bps 56% 49% 669 bps Marketing 10 20 15 (35)% (51)%
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended Year Ended (in $ Mn) Mar-24 Dec-23 Mar-23 Mar-24 Mar-23 EBITDA before ESOP cost (A) 12 26 28 67 (21) ESOP cost (B) (39) (45) (44) (176) (175) Finance costs (C) (1) (1) (1) (3) (3) Depreciation and amortization expense (D) (23)
Slide 18: Operational KPIs
Operational KPIs Quarter Ended Change (in Bn / Mn) Units Mar-24 Dec-23 Mar-23 YoY QoQ GMV $Bn 56.0 61.3 44.0 30% (8%) Merchant Transactions Bn 9.6 10.0 6.9 40% (4%) Total Transactions Bn 11 12 8 35% (5%) MTU (avg over the period) Mn 96 100 90 7% (4%) Registered Merchants (end of period) Mn 40.6 39.3
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!
One 97 Communications Ltd. (Paytm) — Q4 FY2024 Earnings Presentation on 6ix