AvenuesAI (539807) Q1 24/25 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in net revenue, EBITDA, and profits in Q1 FY25, with a strong start to the year and positive momentum for future quarters.

• Expanded merchant base to over 10 million, with daily additions averaging over 2,550 in Q1 FY25.

• Strategic focus on execution, innovation, and AI integration, including the launch of CCAvenue TapPay and investments in AI-enabled fraud detection.

• Board approved majority stake acquisition in Rediff.com, aiming to synergize digital payments, platform business, and AI solutions, leveraging Rediff's 55 million monthly users.

• Acquired remaining 26% in Infibeam Digital Entertainment and created a new AI subsidiary, highlighting commitment to digital media and AI-driven fintech solutions.

Financial highlights

• Q1 FY25 gross revenue: INR 7,528 million; net revenue: INR 1,185 million (up 20% YoY); EBITDA: INR 698 million (up 25% YoY); PAT: INR 504 million (up 59% YoY).

• Transaction Processing Value (TPV) rose 67% YoY to INR 1,977 billion.

• Take rate in payments improved to 11.2 bps, a 33% YoY increase, surpassing previous double-digit guidance.

• EBITDA margin improved to 59% and PAT margin to 43% of net revenue.

• Other income of INR 28 crores attributed to Ind AS fair value changes in equity shares.

Outlook and guidance

• FY25 guidance: revenue growth of 25%-30%, EBITDA growth of 10%-20%, PAT growth of 20%-35%.

• FY25 gross revenue guidance: INR 39,000–42,000 million; net revenue: INR 4,500–5,000 million; EBITDA: INR 2,750–3,000 million; PAT: INR 1,750–2,000 million.

• International business targeted to contribute 12%-15% of net revenue in FY25, with a 2-3 year goal of 30%.

• Value-added services expected to contribute 2%-4% of revenue in FY25, rising to 7%-10% in coming years.

• Focus on increasing net take rate, expanding international footprint (KSA, UAE, Australia, USA), and launching new payment solutions.