Release Date: May 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Matrimony.com Ltd (NSE:MATRIMONY, Financial) celebrated its 25th anniversary, marking a significant milestone in its journey.
- The company reported a year-on-year growth in paid subscriptions starting from March, continuing into April and May.
- Matrimony.com Ltd successfully completed its second buyback in the last two years, indicating strong financial health.
- The company is generating over 1,000 organic downloads per day, showing strong user engagement.
- Matrimony.com Ltd is focusing on expanding its market share in North India, a region dominated by competitors, by optimizing its marketing strategy.
Negative Points
- The company reported a decline in revenue by 9.1% year-on-year for Q4 and a 5.3% decline for the full year.
- EBITDA margin for the matchmaking business decreased significantly from 18.7% in Q3 to 7.7% in Q4.
- Marketing expenses remain high, accounting for a significant portion of revenue, yet revenue growth has not kept pace.
- The Marriage Services business saw a decline in billing by 46.4% for the full year, with continued losses.
- The company faced challenges in the North Indian market, where it has been trying to gain market share against established competitors.
Q & A Highlights
Q: We have entered the North Indian market, which is dominated by Shaadi.com. Have we been able to gain market share, and what steps are we taking to win market share there?
A: Murugavel Janakiraman, CEO, explained that Matrimony.com is focusing on maintaining continuous visibility in the North Indian market, which was not the case in previous years. They are optimizing their marketing campaign strategy and plan to continue regular advertising to gain market share in the long term.
Q: Last year, advertising spends were a significant portion of our top line. Despite efforts, revenue isn't increasing at the same pace. Why is this happening?
A: Murugavel Janakiraman, CEO, noted that last year saw an industry-wide degrowth due to post-COVID normalization. He expects marketing spend as a percentage of revenue to decrease as revenue increases, and they do not plan to increase marketing spend from current levels.
Q: Are any of the new business initiatives close to breakeven, and what is the outlook for capital spending on these initiatives?
A: Murugavel Janakiraman, CEO, stated that while wedding loans have been paused, they are preparing to monetize their "many jobs" initiative soon. Wedding services are also seeing some positive developments, and they expect losses to decrease as they pause certain initiatives.
Q: With excess cash, why not pursue acquisitions and mergers instead of dividends and buybacks?
A: Murugavel Janakiraman, CEO, mentioned that they are open to acquisition opportunities in related industries and are not solely focused on organic growth. They are keeping options open for potential growth opportunities through acquisitions.
Q: Is there a structural change in the online matchmaking market causing profile declines, or is it due to market saturation in the South?
A: Murugavel Janakiraman, CEO, attributed the decline to post-COVID normalization rather than market saturation or structural changes. He emphasized that the degrowth was industry-wide and not limited to specific regions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
