One 97 Communications Ltd. · NSE:PAYTM
One 97 Communications — Q3 FY2023 Earnings Presentation
19 slides from One 97 Communications's earnings presentation, February 2023
Slide 1: Earnings Presentation - USD, Quarter ending December 2022
Earnings Presentation - USD For quarter ending December 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: Sustained momentum in Payments & Credit business
Sustained momentum in Payments & Credit business Average Monthly Transacting Users Value of loans disbursed through Paytm ($ Mn) (Qtr ending) 32% YoY 85 mn 80 mn 75 mn 71 mn 357% YoY 1,203 64 mn 883 + Brand 671 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 + Distribution Subscription Paying Merchants + Insight
Slide 4: Revenue growth driven by continued platform expansion & increased monetization
Revenue growth driven by continued platform expansion & increased monetization across businesses 42% YoY $249 Mn Payments revenue2 21% YoY to $139 Mn $231 Mn 1. On a like-for-like basis, i.e. including UPI incentive, growth would be 34% YoY $203 Mn (Detailed explanation on Slide 6) $186 Mn $176 Mn 2
Slide 5: 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%) +29% improvement (24%) Quarter (27%) Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Ending Contribution Margin Indirect expenses as % of rev
Slide 6: Payments business: Revenue growth with improved profitability
Payments business: Revenue growth with improved profitability 21% YoY Payment revenue grew by 21% YoY to $139 Mn 1. On a like-for-like basis, i.e. including UPI incentive, growth would be 34% $144 Mn $145 Mn YoY $130 Mn $126 Mn 2. No UPI incentive recorded in this quarter (given the timing of the ac
Slide 7: Payment business generated $55 Mn of Net Payments Margin
Payment business generated $55 Mn of Net Payments Margin Payment Processing Margin Net Payments Margin grew 120% YoY (in $ Mn) Dec-21 Sep-22 Dec-22 1. Margin on payment processing in Q3 was within the range of Reported payments revenue 120 144 145 7-9bps (of GMV) as indicated in December 2022 Paymen
Slide 8: 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 9: 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 54 Indicative portfolio performance for our Personal Merchant Postpaid partners Loan Loan 42 • Augmented through advanced 33 machine learning models Bounce 11.5%
Slide 10: Commerce & Cloud: Credit cards and Commerce driving growth
Commerce & Cloud: Credit cards and Commerce driving growth Cloud (including co-branded credit cards) 24% YoY 1. Co-branded credit cards continue to scale well $51 Mn 2. Total 0.45 Mn activated cards as of December 2022 $46 Mn 3. Revenues grew 15% YoY to $28 Mn, with advertising and credit $41 Mn $40
Slide 11: 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 12: Annexure
Annexure 12 12
Slide 13: Revenue breakdown: Overall growth of 42% YoY
Revenue breakdown: Overall growth of 42% YoY Quarter Ended Change (in $ Mn) Dec-21 Sep-22 Dec-22 YoY QoQ Payments & Financial Services 135 184 193 43% 5% Payment Services to Consumers 49 66 62 26% (7%) Payment Services to Merchants 71 75 77 9% 3% Financial Services and Others 15 42 54 257% 28% Comme
Slide 14: Contribution Profit up by 131% YoY
Contribution Profit up by 131% YoY Quarter Ended Change (in $ Mn) Dec-21 Sep-22 Dec-22 YoY QoQ Revenue from Operations 176 231 249 42% 8% Payment processing charges 95 90 89 (6%) (1%) As % of GMV 0.31% 0.23% 0.21% (10 bps) (2 bps) Promotional cashback & incentives 14 23 11 (22%) (52%) Other Expenses
Slide 15: EBITDA before ESOP cost improved by $51Mn YoY
EBITDA before ESOP cost improved by $51Mn YoY Quarter Ended Change (in $ Mn) Dec-21 Sep-22 Dec-22 YoY QoQ Contribution Profit 55 102 127 131% 24% Contribution Margin % 31.2% 44.1% 50.8% +20% +7% Marketing 20 17 16 (19%) (1%) Employee cost (excl ESOPs) 53 69 71 32% 2% Software, cloud and data center
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures EBITDA before ESOP cost Quarter Ended (in $ Mn) Dec-21 Sep-22 Dec-22 (Unaudited) (Unaudited) (Unaudited) EBITDA before ESOP cost (A) (47) (20) 4 ESOP cost (B) (47) (45) (44) Initial Public Offer expenses (C) (1) 0 0 Finance costs (D) (2) (1) (1) Depreciation and a
Slide 17: Operational KPIs
Operational KPIs Quarter Ended Change (in $ Mn) Units Dec-21 Sep-22 Dec-22 YoY QoQ GMV $ Bn 30.2 38.5 41.8 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 18: 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 19: Thank You! India loves Paytm
One 97 Communications Ltd. (Paytm) — Q3 FY2023 Earnings Presentation on 6ix