One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q2 FY2023 Earnings Presentation
24 slides from One 97 Communications's earnings presentation, November 2022
Slide 1: Earnings Presentation
Earnings Presentation For quarter ending September 2022
Slide 2: 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 3: 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 30 Mn • Co-branded Cr
Slide 4: Revenue from Payments and Commerce & Cloud Services at $190 Mn in Q2 FY 2023
Revenue from Payments and Commerce & Cloud Services at $190 Mn 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 $46 Mn for merchants 55% YoY, 14
Slide 5: Loan Distribution and Collection: $894 Mn of Disbursements in Q2
Loan Distribution and Collection: $894 Mn of Disbursements in Q2 Paytm Paytm Revenue In Q2 FY23 Personal Merchant Paytm Strengths Model Loans Loans PostPaid • Loan Sourcing: 1 Loan from Paytm’s large Amount ~$1,300 ~$1,800 ~$55 consumer and & Tenure for ~14 months for ~12 months Monthly billing merc
Slide 6: 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) $234 Mn $103 Mn $(20) Mn $894 Mn 4.8 Mn 44% of reve
Slide 7: Revenue growth led by platform expansion and increased monetization across businesses
Revenue growth led by platform expansion and increased monetization across businesses 76% YoY $234 Mn $205 Mn $188 Mn $178 Mn Payment 56% YoY, 9% QoQ 143 Services $133 Mn 131 127 121 92 Financial Services & 293% YoY, 29% QoQ 43 Others 33 15 21 11 Commerce & 55% YoY, 14% QoQ 46 Cloud 41 39 40 30 Othe
Slide 8: 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) $84 Mn $103 Mn $111 Mn $122 Mn $123 Mn 224% YoY $103 Mn 63% 59% 60% 10% improvement 58% $89 Mn 10% Contribution 7% Profit 7% 8% 53% Other i
Slide 9: 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%) ($20 Mn) (16%) (24%) ($34 Mn) (27%) $32 Mn +30% margin improvement ($45 Mn) ($48 Mn) (39%) ($52 Mn) Quarter Quarter Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Ending
Slide 10: Continued Payments Services revenue growth with higher profitability
Continued Payments Services revenue growth with higher profitability 58% YoY $143 Mn Payment Services to Consumers revenue $131 Mn $127 Mn (up 55% to $67 Mn) $121 Mn a. Continued growth in MTU and GMV 67 $92 Mn 57 63 Payment Services to Merchants revenue 50 (up 56% to $76 Mn) a. Subscription and MDR
Slide 11: Momentum in Payments key operating metrics driving revenue growth
Momentum in Payments key operating metrics driving revenue growth Average Monthly Transacting Users GMV (in $ Billion) Merchant Subscriptions (Payment (in Million) Devices) (in Million) 3.5 Mn Devices 4.8 39% YoY 79.7 63% YoY 38.9 74.8 36.1 70.9 64.4 31.7 3.8 30.6 57.4 23.9 2.9 2.0 1.3 Quarter Sep-2
Slide 12: 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 • Loan Sourcing Paytm Postpaid • Customer’s 4x YoY $43 Mn KYC (Consumption • Deep Insights BNPL) $33 Mn • Capital • Small-ticket deployment • Fully Digital
Slide 13: 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 14: 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 15: Steady growth in high margin Commerce & Cloud revenue
Steady growth in high margin Commerce & Cloud revenue 55% YoY $46 Mn Commerce Services: up 49% to $15 Mn $41 Mn $40 Mn $39 Mn a. Travel merchants sold more tickets QoQ 15 Commerce driven by resurgent demand $30 Mn 16 13 17 b. Entertainment merchants had a seasonally weak quarter 10 Cloud Services: u
Slide 16: 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 $ Mn) 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 154 894 482% Revenue from
Slide 17: Annexure
Annexure 17
Slide 18: Revenue Growth of 76% YoY
Revenue Growth of 76% YoY Quarter Ended Change (in $ Mn) Sep-21 Jun-22 Sep-22 YoY QoQ Payments & Financial Services 103 165 186 81% 13% Payment Services to Consumers 43 63 67 55% 6% Payment Services to Merchants 49 68 76 56% 12% Financial Services and Others 11 33 43 293% 29% Commerce & Cloud Servic
Slide 19: Contribution Profit up by 224% YoY
Contribution Profit up by 224% YoY Quarter Ended Change (in $ Mn) Sep-21 Jun-22 Sep-22 YoY QoQ Revenue from Operations 133 205 234 76% 14% Payment processing charges 82 85 91 11% 8% As % of GMV 0.34% 0.23% 0.23% (11 bps) (0 bps) Promotional cashback & incentives 10 18 23 128% 33% Other Expenses 9 14
Slide 20: EBITDA before ESOP cost improved by $13 Mn QoQ
EBITDA before ESOP cost improved by $13 Mn QoQ Quarter Ended Change (in $ Mn) Sep-21 Jun-22 Sep-22 YoY QoQ Contribution Profit 32 89 103 224% 16% Contribution Margin % 24.0% 43.2% 44.1% +20% +1% Marketing 13 21 17 34% (22%) Employee cost (excl ESOPs) 45 68 70 56% 4% Software, cloud and data center 1
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended (in $ Mn) Sep-21 Jun-22 Sep-22 (Unaudited) (Unaudited) (Unaudited) EBITDA before ESOP cost (A) (52) (34) (20) ESOP cost (B) (2) (44) (45) Initial Public Offer expenses (C) (1) 0 0 Finance costs (D) (1) (1) (1) Depreciation and
Slide 22: Operational KPIs
Operational KPIs Quarter Ended Change (in $ Mn) Units Sep-21 Jun-22 Sep-22 YoY QoQ GMV $ Billion 23.9 36.1 38.9 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 Mer
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, through Paytm Payment GMV Instruments or through our payment solutions, over a period. It excludes any consumer-to-consumer payment servi
Slide 24: Thank You! India loves Paytm
One 97 Communications — Q2 FY2023 Earnings Presentation on 6ix