One97 Communications (PAYTM) Q4 23/24 earnings summary

Executive summary

• FY24 operating revenue rose 25% YoY to ₹9,978 Cr; contribution profit increased 42% to ₹5,538 Cr, and EBITDA before ESOP turned positive at ₹559 Cr.

• Q4 FY24 revenue was ₹2,267 Cr and EBITDA before ESOP was ₹103 Cr, including UPI incentives; both declined QoQ amid regulatory disruption and softer operating activity.

Financial highlights

• FY24 revenue: ₹9,978 Cr, up 25% YoY; Q4 revenue: ₹2,267 Cr, down 3% YoY and 20% QoQ.

• FY24 contribution profit was ₹5,538 Cr, up 42% YoY; Q4 was ₹1,288 Cr, flat YoY and down 15% QoQ.

• FY24 EBITDA before ESOP was ₹559 Cr versus a ₹176 Cr loss in FY23; Q4 was ₹103 Cr versus ₹234 Cr in Q4 FY23 and ₹219 Cr in Q3 FY24.

• FY24 loss for the period was ₹1,423 Cr versus ₹1,777 Cr in FY23; Q4 loss was ₹550 Cr versus ₹168 Cr in Q4 FY23.

Outlook and guidance

• Q1 FY25 revenue expected at ₹1,500–1,600 Cr and EBITDA before ESOP at a loss of ₹500–600 Cr, including customer-acquisition marketing investment.

• Management expects meaningful improvement from Q2 FY25 as paused products restart and consumer and merchant metrics stabilize or grow.

• Payment processing margin expected at 5–6 bps of GMV, including UPI incentives; net additions of merchants are expected to recover toward prior trends by Q3 FY25.

• Merchant subscription revenue per device was ~₹90 monthly in Q4 and is expected to bottom at ~₹80 in Q1 FY25 before rising, subject to market conditions.