One97 Communications (PAYTM) Q4 22/23 earnings summary

Executive summary

• FY23 revenue rose 61% YoY to ₹7,990 Cr, while the consolidated net loss narrowed to ₹1,776.5 Cr from ₹2,396.4 Cr; EBITDA before ESOP remained negative for the full year at ₹176 Cr.

• EBITDA before ESOP reached break-even in H2 FY23, three quarters ahead of the September 2023 target, supported by stronger monetization, lending mix and cost discipline.

Financial highlights

• Consolidated revenue from operations increased 61% YoY to ₹79,903 million; total income was ₹84,000 million and total expenses were ₹101,304 million.

• Consolidated loss for FY23 was ₹17,765 million versus ₹23,964 million in FY22; basic and diluted EPS were both (₹27), versus (₹38) a year earlier.

• Contribution profit grew 160% to ₹3,900 Cr; contribution margin rose to 48.8% from 30.1% of revenue from operations.

• EBITDA before ESOP improved to (₹176 Cr) from (₹1,518 Cr); margin improved to (2.2%) from (30.5%).

Outlook and guidance

• Management highlighted a long runway in payments and partner-led credit distribution, with low penetration across Postpaid, personal loans and merchant loans supporting further growth and upsell.

• The CEO expected meaningful results from investments over the next three years and reiterated the aim of building a long-term profitable business.

• A new full-stack indigenous payments platform launched in March 2023, designed for improved speed, security and success rates and capacity for 10x current transaction scale.