MATRIMONY - Matrimony.com Limited Share Price

Management provided an outlook indicating cautious optimism for growth following a year of decline. They reported consolidated billing for Q4 FY '25 at Rs. 114.8 crore, showing a 5% quarter-over-quarter growth but a 5.3% decline year-on-year. Revenue for the same quarter stood at Rs. 108.3 crore, down 2.8% quarter-over-quarter and 9.1% year-on-year. The full-year billing was Rs. 452.7 crore, and revenue was Rs. 455.8 crore, both reflecting a decline of approximately 5.5%.

Key forward-looking points included:

1. Initiatives for Growth: The company is focusing on various initiatives and strategies to ensure growth in the following quarters, with a positive outlook for continual growth starting March 2025, which extended into April and May.

2. Matchmaking and Wedding Services: Management expects year-on-year growth in the Matchmaking business and revenue growth in Wedding Services for Q1 FY '26, following historical declines.

3. Pausing Non-Performing Segments: The company decided to pause its wedding loan initiative due to lower-than-expected conversions while continuing to explore the AstroFreeChat service, which is generating over 1,000 downloads daily.

4. Dividends and Financial Health: A final dividend of 100% was recommended, reflecting confidence in financial stability, with a cash balance reported at Rs. 324.3 crore.

5. EBITDA Margins: For Q4, the EBITDA margin for the Matchmaking business was 17.7%, a decrease from prior quarters, signaling a need for cost optimization while maintaining growth strategies.

6. Profitability Outlook: Although Q1 FY '26 profit after tax (PAT) is expected to be better than Q4 FY '25, it remains less than the same quarter from the previous year. Management is confident that a year-on-year PAT growth will commence from Q2 FY '26 onward.

These elements highlight a strategic shift towards focusing on areas showing potential while identifying and addressing underperforming segments.

Q1: Rishabh Shah: "Were we able to gain market share in North India, which is dominated by Shaadi.com?"

A1: Yes, gaining market share in North India is crucial for us. We've optimized our marketing strategies to enhance visibility. Unlike before, we now have consistent campaigns and are leveraging both Bharat Matrimony and community brands to increase our presence. We aim for sustained visibility and engagement in the long term.

Q2: Rishabh Shah: "With advertising spends at 40-41%, why aren't we seeing revenue increases?"

A2: The industry faced degrowth after COVID-19, affecting our revenues. However, once revenue begins to rise, marketing expenses will decrease as a percentage. We expect to stabilize spend levels and only reduce them as revenues improve moving forward.

Q3: Damodaran: "Do you need to maintain high advertising spends despite low revenue growth?"

A3: We need to keep competitive amidst others with high marketing spends. Right now, our marketing strategy covers multiple brands, necessitating higher spend. If competitive intensity lessens or we see consistent revenue growth, then we will reassess advertising budgets.

Q4: Damodaran: "Are we close to breakeven in any of our new initiatives like marriage services?"

A4: Currently, initiatives like wedding services and many jobs are in investment mode. We're expecting to monetize the many jobs platform soon. Success in these areas is crucial to reducing overall losses and achieving breakeven.

Q5: Vasudev: "Will you consider acquisitions instead of distributing excess cash via dividends?"

A5: We are open to acquisition opportunities in related industries if they arise. Organic growth remains our primary focus, but we will consider inorganic growth strategies if suitable options come along.

Q6: Ankur Jain: "Are there any updates on the Google billing case? Are we making payments?"

A6: As of now, we are not required to make payments to Google due to the ongoing CCI investigation, which indicates their billing policy may be abusive. We're currently protected and not incurring costs related to this billing model at this time.

Q7: Madhur Rathi: "What were the success stories this quarter?"

A7: We celebrated 22,000 success stories this quarter. While the success rate as a ratio to paid subscriptions has dipped, we don't attribute it to platform issues; it's part of broader market dynamics during the past year.

Q8: Dinesh Kumar: "What is the revenue guidance for the next financial year?"

A8: We only anticipate continuous billing growth in the upcoming quarter. However, we will not provide specific forward guidance for the next financial year at this time, focusing instead on maintaining growth momentum.

This document consolidates the major Q&A topics from the earnings call transcript.