Key Takeaways from our Earnings Call for Q1FY24 

byPreeti VermaJuly 22, 2023

We have posted a resounding revenue growth momentum and achieved a massive improvement in EBITDA before ESOP cost this quarter. We registered a 39% YoY revenue growth to ₹2,342 Cr in Q1FY24. This was due to an increase in GMV, merchant subscription revenues, and the growth of loans distributed through our platform. Similarly, our EBITDA before ESOP costs grew to ₹84 Cr as compared to ₹52 Cr in Q4FY23 (excluding UPI incentives).

Upbeat about the new technologies coming in, our Founder, CEO & MD Vijay Shekhar Sharma said: “I am very happy to see the amount of technology and opportunity coming up and there’s an incredible amount of business we could do in the next few years.” 

Addressing the analysts at the Earnings Call, he said: “We have registered a growth of 39% in revenue, driven by our payments and loan distribution business.” He further added that the company remains committed to generating free cash flow by the year-end. “You must have seen we have already started adding to our cash reserves,” Vijay said.

Here is our Earnings Presentation for the quarter ending June 2023 and you can also read the full Q1FY24 financial results report here

Our leadership in payment monetisation continues with both Soundbox and Card Machines deployed. We also witnessed robust growth in the subscriber base which has nearly doubled in the last one year and our merchant base has grown to 3.6 Cr. Sharing an overview of how our business is growing, our President and Group CFO Madhur Deora mentioned: “Payment business continued to scale up very nicely with improved profitability. MTU has gone up 23%, and merchant subscriptions have more than doubled. Last quarter, we added 11 lakh merchant subscriptions, all this contributed to net payment margin improving considerably.”

Regarding the credit distribution business, Madhur said: “We continue to remain focussed on improving credit quality. The penetration is still low, there is still a huge addressable market and the portfolio performance of partners continues to improve.”

For our Commerce and Cloud segment, he shared that “Our co-branded credit cards business has scaled very well, and we have 7.5 Lakh activated cards. We recently launched a co-branded credit card with SBI Card. We also continue to see growth in our ads business. He also added that we have the opportunity for growth for superior credit quality for our partners.” Last quarter, we had mentioned that we were targeting to onboard 3-4 lending partners, and we announced the onboarding of Shriram Finance this quarter.

Talking about the growth drivers in our business, Madhur added, “We have announced a number of innovations recently – from UPI Lite, UPI on RuPay credit cards, to UPI SDK for online merchants. Paytm Money recently launched a new bond trading platform, very early and small but directional for us, we are proud to be early players in this field.”

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