Paytm announces 39 % growth in Q1 FY24
The company monetises Paytm app traffic in its commerce and cloud segment by providing marketing services to its merchants
Hyderabad: One97 Communications Limited (OCL)-brand Paytm, India’s leading payments and financial services company and the pioneer of QR and mobile payments, announced its Q1 FY24 results. Paytm’s revenue from operations has seen a growth of 39 per cent Year over Year (YoY) to Rs 2,342 crore and its earnings before interest, taxes, depreciation, and amortization (EBITDA) before Employee stock ownership plan (ESOP) costs grew to Rs 84 crore as compared to Rs 52 crore in Q4 FY23 (excluding UPI incentives). On a yearly basis, the company posted a massive improvement of Rs 359 crore in EBITDA before ESOP costs.
Driven by an increase in merchant subscription revenue, a jump in gross merchandise value (GMV), and growth in loan disbursements has led to, the company’s revenue growth momentum continues. Paytm’s EBITDA before ESOP margin stood at 4 per cent of revenues on account of consistent improvement in profitability due to strong revenue growth, increasing contribution margin, and operating leverage. In the stock exchange filing, the company said that it has managed to increase EBITDA while investing for growth and it expects a continued topline growth and operating leverage to drive an increase in profitability despite investments.
In the first quarter of FY24, Paytm's Payment Services Revenue grew by 31 per cent YoY to Rs 1,414 Crore, led by an increase in GMV and higher subscription revenue. During the quarter under review, the revenue for financial services and others grew 93 per cent YoY to Rs 522 Crore.
The company continues to monetise Paytm app traffic in its commerce and cloud segment by providing marketing services to its merchants. In Q1 FY24, its commerce & cloud revenue grew by 22 per cent YoY to Rs 405 crore. The commerce GMV grew 10 per cent YoY to Rs 2,537 crore while revenue grew by 12 per cent YoY to Rs 156 crore. Similarly, the cloud business grew by 29 per cent YoY to Rs 249 crore on account of growth in the credit card distribution and advertising business.
