PB Fintech (POLICYBZR) Q4 22/23 earnings summary

Executive summary

• FY23 combined insurance and credit marketplace growth lifted consolidated revenue 79.51% YoY; adjusted EBITDA from core businesses was positive for five consecutive quarters.

• Asset-light marketplace model combines online comparison, assisted sales, servicing and claims support; no insurance underwriting or retained credit risk.

• Consumer reach expanded through Policybazaar, Paisabazaar, PB Partners, PB for Business and UAE operations.

Financial highlights

• Consolidated revenue from operations was ₹255,784.71 lakh, up 79.51% YoY; total income was ₹281,683.92 lakh, up 81.70%.

• Consolidated EBITDA loss narrowed to ₹40,260.89 lakh from ₹77,694.63 lakh; net loss narrowed to ₹48,793.92 lakh from ₹83,291.30 lakh.

• Consolidated employee share-based payment expense was ₹54,239.97 lakh versus ₹60,720.84 lakh; excluding this expense, reported earnings would differ materially.

• Consolidated other income was ₹25,899.21 lakh, including ₹21,588.81 lakh interest income on bank deposits.

• No dividend was recommended for FY23, reflecting the loss for the year.

Outlook and guidance

• Management expects core adjusted EBITDA to improve by about ₹50 crore per quarter YoY, implying ₹200 crore incremental adjusted EBITDA annually; it sees no reason for the trend to slow.

• Positive contribution margin on new business and growing renewals are expected to support profitability as new-initiative investment and ESOP charges reduce over time.

• Co-created personal-loan and credit-card products are expected to contribute over one-third of Paisabazaar business volume, supported by trail revenue.

• PB Partners and PB for Business are expected to scale while balancing investment and growth.