Matrimony.com (MATRIMONY) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue rose 3.9% YoY to Rs. 34,842.75 lakh, while EBITDA fell 27.0% and PAT fell 41.6%, primarily reflecting higher marketing investment.

• Matchmaking remained the core business, with 3.72 million active profiles, 4.08 million new free profiles and 7.31 lakh paid subscriptions.

• Billing grew 10.9% QoQ in Q4 FY19; management expected stronger growth in FY20 and increased traction in Marriage Services.

Financial highlights

• Consolidated revenue from operations was Rs. 34,842.75 lakh, up 3.9% YoY; total income was Rs. 35,008.11 lakh.

• EBITDA was Rs. 5,672.12 lakh, down 27.0% YoY; EBITDA margin was 16.2% vs. 23.1%.

• PAT was Rs. 4,311.93 lakh, down 41.6% YoY; PAT margin was 12.3% vs. 22.0%.

• Marketing expense rose 44.6% YoY to Rs. 8,103.83 lakh; excluding marketing expenses, operating margins were stable YoY.

• Operating cash flow was Rs. 5,019.03 lakh; liquid assets, including cash and investments, were Rs. 20,435.55 lakh at year-end.

Outlook and guidance

• FY20 priorities: deepen South and East market strength, monetize Tier 2/3 growth, target NRI markets by country, invest in differentiated products and build Marriage Services traction.

• Management expected a stronger growth rate in FY20 than FY19; Q4 FY19 billing growth was 10.9% QoQ.

• Product and process improvements, brand investment and emerging technologies were identified as growth enablers.