India’s leading payments and financial services company Paytm has announced Q4 FY2023 results, where it has surpassed analysts’ estimates and reported robust growth in the Q4FY23 and FY23 results. In Q4FY23, the company’s revenue surged by 51 per cent YoY to reach ₹2,334 crore, while the full-year revenue increased by 61 per cent YoY to ₹7,990 crore.
The company already achieved its operating profitability milestone in Q3, ahead of its September 2024 guidance, due to the increased pace of monetization, better cost management, and higher operating leverage. In Q4, Paytm’s EBITDA before ESOP costs surged to ₹234 crore, a significant jump from the previous fiscal’s Q4 figure of (Rs368 crore).
Paytm beat the estimates of analysts such as Bank of America, Goldman Sachs, Morgan Stanley, Citi, and Macquarie that forecast Q4 revenues of ₹2,231 crore, ₹2,296 crore, ₹2,189 crore, ₹2,274 crore, and ₹2,319 crore, respectively.
Paytm’s payments revenue grew by 41 per cent YoY to ₹1,467 crore in Q4FY23, with payment revenue growing 28 per cent YoY after excluding prior quarters’ UPI incentives. The company’s payment profitability improved with the Q4FY23 net payment margin expanding 158 per cent YoY to reach ₹687 crore. In FY23, the net payments margin grew by an impressive 2.9X to ₹1,970 crore, demonstrating the profitability of the payment business, despite the higher share of UPI.
Paytm significantly increased its loan distribution business with revenue from financial services and others growing 183 per cent YoY to ₹475 Cr in Q4 FY 2023 and by 252 per cent in FY 2023 to ₹1,540 crore. This was largely on account of 364 per cent increase in the value of loans disbursed through our platform.
The company continues to monetize Paytm app traffic in its Commerce and Cloud segment by providing marketing services to its merchants. In Q4 FY 2023, Paytm’s Commerce & Cloud revenue grew by 23 per cent YoY to ₹392 crore. In FY 2023, Commerce and Cloud revenue grew by 38 per cent to ₹1,520 crore.
