Matrimony.com (MATRIMONY) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a year-over-year revenue decline for the first time in many years, with flattish quarter-to-quarter growth due to fewer auspicious wedding days and stagnant top-of-funnel profile acquisition.

• Market leader in Indian online matchmaking with 1.07 million paid subscriptions in FY24 and a strong offline presence through 110+ retail stores.

• New business initiatives are being explored beyond matrimony, leveraging consumer internet experience and user reach, including launches like MeraLuv.com for Indian Americans and the upcoming Love.com app.

• Zero debt, strong free cash flow, and robust return ratios; market cap as of June 30, 2024, is INR 13,846 million.

• Consolidated revenue from operations for Q1 FY25 was ₹12,059 lakhs, with net profit at ₹1,397 lakhs and total comprehensive income at ₹1,380 lakhs.

Financial highlights

• Q1 FY25 consolidated revenue was INR 1,206 million, up 1.1% sequentially but down 2.2% year-on-year; matchmaking revenue at INR 1,186 million, up 0.8% sequentially.

• Profit after tax for Q1 FY25 was INR 140 million, up 19.1% quarter-over-quarter but down 1.4% year-on-year; PAT margin at 11.6%.

• Q1 FY25 EBITDA at INR 202 million, margin 16.7%, up 250 bps sequentially.

• Cash balance as of Q1 FY25 is INR 3,820 million, with robust cash generation.

• Earnings per share (EPS) for Q1 FY25 was ₹6.28 (basic) and ₹6.27 (diluted) on a consolidated basis.

Outlook and guidance

• Q2 revenue is expected to dip due to seasonality and lower Q1 billing, with growth anticipated from Q3 onwards.

• Focus on customer segmentation, micro-market strategy, and continued investment in technology, data analytics, and AI to drive growth.

• Expansion of marriage services platform and vendor network across 40+ cities.

• Management continues to monitor legal and regulatory developments, especially regarding digital platform fees.

• Profit after tax in Q2 is expected to be slightly lower than Q1.