Paytm Q1 results: Net loss widens 69% Year on Year, revenue jumps 89% YoY

Paytm consolidated loss widened to Rs 644.4 crore in the quarter ended June 2022 against a net loss of Rs 380.2 crore a year ago. This was a jump of 69% year on year (YoY) and a 15% decline on a quarter on quarter (QoQ) basis.  

Paytm contribution profit, which excludes taxes and marketing expenses but includes promotional incentives, grew over three-fold to Rs 726 crore in June 2022 quarter from Rs 245 crore in the year-ago period. 

Meanwhile, Digital financial services giant One97 Communications that operates the brand Paytm on Friday said it saw a massive jump in revenue from operations driven by strong monetization in payments, device subscriptions and accelerated adoption of high-margin businesses such as lending.   

In addition to 89% Y-o-Y revenue growth to Rs 1,680 crore, the company also saw EBITDA (Before ESOP) reduce to Rs 275 crore, an improvement of Rs 93 crore Q-o-Q. As a result, the company’s contribution profit grew 197% Y-o-Y to Rs 726 Cr, leading to an increase in contribution margin to 43% of revenues in comparison to 35% in Q4FY22.  

Paytm’s payments services revenue grew by 69% Y-o-Y (3% Q-o-Q), supported by rapid growth in user engagement, merchant base, use cases on the Paytm super app and subscription revenue from payment devices.   

The company’s user engagement, measured by monthly transacting users (MTU), grew 49% Y-o-Y to 74.8 million during the quarter, while the merchant base expanded 30% Y-o-Y to 28.3 million. This has resulted in a 101% Y-o-Y jump in Gross Merchandise Value (GMV), which stood at ₹2.96 lakh Cr during the quarter.   

"Paytm continues to dominate the offline payments segment, with a total of 3.8 million total devices deployed, of which 2.8 million were added in the past 12 months and 0.9 million during the quarter," said the company.    

The company’s revenue from financial services grew 393% Y-o-Y during the quarter, led by massive growth in Paytm’s loan distribution business. During the quarter, Paytm disbursed 8.5 million loans, representing a growth of 492% Y-o-Y and 30% Q-o-Q.  

The value of the loans disbursed stood at ₹5,554 Cr, marking a growth 779% Y-o-Y of 56% Q-o-Q. Moreover, the company has now reached an annualised run rate of approximately ₹24,000 Cr of loan disbursements through its platform, with higher demand for Paytm Postpaid (BNPL), personal loans and merchant loans.