Thread by @ValueEducator

#Paytm Q3 2022 Concall Highlights

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Financial Update.

1. Revenue from operations ₹1,456 Cr 89% growth Y-o-Y.

2. EBITDA (Before ESOP cost) ₹-393 Cr vs ₹-488 Cr in Q3 FY 2021.

3. EBITDA margin improved to -27% of revenues in Q3 FY 2022 from -63% of revenues in Q3 FY 2021, and -39% of revenues in Q2 FY 2022.

4. ESOP charges of ₹366 Cr recorded in Q3 FY 2022 pertains to grant of 26.6 mn Employee Stock Option (ESOPs) in this quarter.

5. Net Loss for Q3 was ₹778.5 Cr.

6. Net Cash, Cash Equivalent and investable balance of ₹10,215 Cr, as of December 2021.

Business Update

1. Revenue growth was driven by increase in merchant payments processed through MDR (Merchant discount rate )bearing instruments (Paytm Wallet, Paytm bank account, etc), disbursements of loans on platform and recovery of commerce business from covid impact.

2. Average Monthly Transacting Users (MTU), has grown by 37% Y-o-Y to 64.4 mn in Q3 FY 2022.

3. Merchant Payment GMV ₹2.5 lakh Cr 123% growth Y-o-Y.

4. Number of consumers on the platform is now over 350 mn and their merchant base has expanded to 24.9 mn from 20mn a year ago. Company continues to rapidly expand their customer and merchant base.

5. Company earns MDR on the transactions where payment is made through MDR bearing instruments. GMV (Gross merchandise value) from processing payments through MDR bearing instruments grew 77% Y-o-Y.
6. Revenue from payments made by consumers on Paytm App ₹406 Cr 60% YoYgrowth

7. Revenue from Payment Services to Merchants was up 117% YoY and 46% QoQ to ₹586 Cr driven by MDR-bearing payment GMV growth.

8. Revenue from enabling commerce for merchants offerings such as mini apps, advertising and commerce on Paytm App was ₹339 Cr 64% YoY growth.

9. Total Number of Loans Disbursed in Q3 on platform was 4.4mn 401% YoY growth.

10. Value of loans disbursed by their partners using their platform was ₹2,181 Cr 366% YoY growth.

11. Number of Personal Loans disbursed grew 1,187% YoY in Q3 FY22. Personal loans average ticket size ranged from ₹80,000-90,000 with average tenure of 12-14 months.

12. Number of Merchant Loans disbursed grew 38% Y-o-Y in Q3 FY22. Average ticket size continues now at ₹120,000-140,000 with average tenure of 12-14 months. Repeat loans were up, 25% of merchants having taken a loan more than once

13. Company says All of their lending products, Paytm Postpaid (Buy Now Pay Later), Personal Loans and Merchant Loans, have strong market acceptance and are seeing great traction.

14. Company sees great potential in our focussed segments of Wealth, Insurance and Gaming which are growing rapidly in their respective segments.

15. During the quarter, the company launched a new credit card in partnership with HDFC Bank.

16. In January, the company also announced a partnership with Fullerton India to further enhance their credit offerings for their consumers and merchants.

17. RBI has also granted an approval to Paytm Payments Bank to operate as a Scheduled Payments Bank.

18. Paytm Payments Bank launched the Paytm Transit Card, which can be used for travel (metro, railways etc.) to pay toll & parking charges and for online shopping and more.

19. Paytm Payments Bank recorded 926 mn UPI transactions in December 2021.

20. Company also onboarded some large merchants, including a leading ride-sharing company, India’s largest life insurance company, and a leading e-commerce company.

21. Marketing expenses (excluding promotional cashback and incentives) of ₹166 Cr in Q3 FY22, were 11% of revenues.