AvenuesAI (539807) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2 FY25 gross revenue of INR 10,166 million, up 29% YoY, with PAT up 43% to INR 550 million and EBITDA up 26% to INR 854 million, driven by digital payments, AI, and international expansion.

• Integrated Rediff.com, leveraging its 70 million user base to launch Rediff Pay and Rediff Super App, targeting both consumers and enterprises.

• Expanded international presence with capital raised in UAE subsidiary, PSP license in Saudi Arabia, and new fintech subsidiary in GIFT City.

• Advanced AI initiatives through Phronetic.AI, monetized AI video models, and launched new business productivity software (RediffOne).

• Formed strategic partnerships with LazyPay, Loyalty Rewardz, Chalo, Citibank, Karnataka Bank, and ShopSe to enhance payment solutions.

Financial highlights

• Q2 FY25 gross revenue was INR 10,166 million, up 29% YoY; net revenue rose 24% YoY to INR 1,343 million.

• EBITDA margin improved to 64% of net revenue; PAT margin reached 41%.

• Transaction Processing Value (TPV) reached INR 2,038 billion, up 14% YoY.

• Payments Net Take Rate improved to 11.3 bps, up 21% YoY.

• Cash and cash equivalents stood at INR 3,202 million as of September 30, 2024.

Outlook and guidance

• FY25 gross revenue guidance: INR 39,000–42,000 million (up 23%–32% YoY); net revenue expected at INR 4,500–5,000 million (up 5%–17% YoY).

• EBITDA projected at INR 2,750–3,000 million (up 9%–19% YoY); PAT at INR 1,750–2,000 million (up 18%–35% YoY).

• International segment expected to contribute 12%-15% of net revenue in two years.

• Data center revenues expected to start contributing from FY26.

• New revenue streams from RediffPay and business productivity software expected to contribute 2-4% of total revenue this year.