Paytm Q3 results, net loss reduced by 50% to Rs 392 crore for the quarter ended in December, there was a loss of 779 crores in the corresponding quarter last year. The company reported consolidated revenue from operations increased 42% YoY to 2,062 crores from 1,456 crores.
Highlights of Paytm Q3 Results:
| Segments | Q3FY23 | Q3FY22 |
| Consolidated Revenue from Operations | 2,062 crores | 1,456 crores |
| Net loss for the Quarter | 392 crore | 779 crores |
| EBITDA before ESOP expense | 31 crores | (393 crores) |
| EBITDA margin | 1.5% | -27% |
Consolidated Revenue from Operations (Paytm Q3 Results)
One97 Communications reported increased to Rs 2,062 crore (no UPI incentive recorded this quarter), a growth of 42% YoY and 8% QoQ, driven by increased adoption by consumers and subscription services by merchant partners along with sustained growth seen in loan distribution and commerce business.
Paytm stock ended nearly 4% lower on the NSE on Friday.
Net loss for the Quarter (Paytm Q3 Results)
Paytm reported net loss reduced by 50% to Rs 392 crore for the quarter ended in December, there was a loss of 779 crores in the corresponding quarter last year.
EBITDA before ESOP expense (Paytm Q3 Results)
Achieved operating profitability three quarters ahead of plan. Paytm turns profitable at the EBITDA level. The company reported EBITDA before ESOP expenses to 31 crores from a loss of 393 crores. Reported EBITDA improved by ₹452 Cr YoY.
“I am very happy to share that our company has achieved this milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself. This is three quarters ahead of our guidance,” said Chief Executive Officer Vijay Shekhar Sharma.
EBITDA margin (Paytm Q3 Results)
The company reported an EBITDA margin of 1.5% improved by 2,851 bps from -27% Year on Year.
Contribution Profit (Paytm Q3 Results)
Paytm reported Contribution Profit Improved to 51% of revenue in Q3 FY 2023 from 31% in Q3 FY 2022 and 44% in Q2 FY 2023, driven by improvement in payments profitability, and growth of high-margin businesses, such as loan distribution.
Merchant Subscriptions (Payment devices)
With a focus on creating additional payment monetization, we remain focused on subscription revenues. The number of merchants paying subscriptions increased by 1 mn QoQ and 3.8 mn YoY to 5.8 mn.
Loans Disbursed through Paytm
The number of loans at 10.5 mn, up 137% YoY. As of December 2022, 8.1 mn borrowers have taken a loan on our platform, adding 1.4 mn new borrowers this quarter. A growing borrower base offers tremendous upsell & lifecycle benefits. Our payments consumer and merchant base offer a large addressable market, thereby providing a long runway for growth. The total amount of loan was 9,958 crores up 357% YoY.
Average Monthly Transacting Users (MTU)
Average Monthly Transacting Users (MTU) continued to grow and were 85 mn for the quarter, increasing 32% YoY driven by customer acquisition through UPI and multiple use cases on our platform.
“I am very happy to share that our company has achieved this milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself. This is three quarters ahead of our guidance. With our focus on growth and keeping a tight vigil on operational risk and compliances, I am very confident that we will soon achieve our next milestone of becoming a free cash flow generating company.” said Chief Executive Officer Vijay Shekhar Sharma.
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