Matrimony.com Limited — Call Transcript 2022

Feb 18, 2022

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matrimony.com

February 18, 2022

National Stock Exchange of India Ltd ' orporate Relationship Department Exchange Plaza, 5th Floor BSE ., Plot No: C/1, G Block Phiroze Jeejhee ewers Sandra Kurla Complex, Sandra (E) Dalal Street, Mumbai - 40 Mumbai-400 051

Dear Sir/Madam,

Sub: Call transcript of Investor/Analyst conference call under regulation 30(6) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Ref: BSE Scrip code: 540704 / NSE Symbol: MATRIMONY

Pursuant to Regulation 30(6) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the call transcript of Investor/Analyst Conference call with the Company held on 10[th ] February 2022 is attached herewith.

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The aforesaid information is also being hosted on the website of the Company viz., www.matrimony.com.

Submitted for your information and records.

Thanking you

Yours faithfully,

For Matrimony.com Limited

�· S.Vijayanand Company Secretary & Compliance Officer ACS: 18951 No.94, TVH Beliciaa Towers, Tower II, 5[th ] Floor, MRC Nagar, Raja Annamalaipuram, Chennai - 600028

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matrimony.com ltd. ( CIN: L63090TN2001PLC047432) Corporate & Registered Office : No. 94 TVH Beliciaa Towers, Tower 2, 5th Floor, MRC Nagar, Raja Annamalai Puram, Chennai, Tamil Nadu - 600 028. Phone: 044 - 4900 1919, 044 - 3095 3095

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"Matrimony.com Limited Q3 FY2022 Earnings Conference Call"

February 10, 2022

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C H O R L L K
ANTIQUE
A
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ANALYST:

MR. PRA TEEK KUMAR- ANTIQUE STOCK BROKING

MANAGEMENT: MR. MURUGA VEL JANAKIRAMAN - CHAIRMAN & MANAGING DIRECTOR, MATRIMONY.COM MR. SUSHANTH PAI - CHIEF FINANCIAL OFFICER, MATRIMONY.COM

For Matrimony.Com Limited

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Page 1 of 17

Matrimony. com Limited February I 0, 2022

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Moderator:

Good day, ladies and gentlemen, and welcome to the Matrimony.com Q3 FY2022 Earnings Conference Call hosted by Antique Stock Broking. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity to ask questions later during the conference. Should you need assistance during the conference call, please signal an operator by pressing '*' and then 'O' on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Kumar from Antique Stock Broking. Please go ahead, Sir.

Prateek Kumar:

Thanks Chris, and good afternoon everyone. Hope everyone is staying safe and healthy. On behalf of Antique Stock Bro'.dng, we welcome today the management of Matrimony.com Mr. Murugavel - Chainr�iill and Managing Director and Mr. Sushanth Pai - CFO. Without wasting much time, \ hand over the call to Mr. Murugavel for his opening remarks and then we will move t<� the Q&A session. Over to you, Sir .

M Janakiraman:

Thank you So much, good evening, evef)'Cne. I hope all of you are continuing to stay safe and healthy. I would also like to wish ll very happy and successful 2022.

This quarter we have reported a reasonably �ood growth year-on-year on billings and a double digit year-on-year growth in revenu�. This is due to strong execution, our ·1 strategic priorities is backed up by investmedt in the right areas. In quarter three on a consolidated basis we have achieved a billing of Rs.107.4 Crores a growth of 0.5% quarter-over-quarter and 7.3% year-on-year. Revenue was at Rs.108.5 Crores a decline of 1.3% quarter-over-quarter and a growth of 12.2% year-on-year.

For matchmaking the key highlights are as follows: In quarter three the billing was at 106.1 Crores a flat quarter-over-quarter and a growth of 6.3% year-on-year. Revenue at . .[. ] Rs.107.2 Crores a decline of 1.8% quarter-over-quarter and the growth of 11.4% year­ on-year. We had 2.15 lakh paid subscriptions during the quarter a decline of 5.4% year­ on-year. ATV Average Transaction Value for the matchmaking business increased by 12.2% year-on-year and also this is due to good growth in our premium services. We continue to track the impact we create for customers we are happy to state that we have created 25500 plus success stories in quarter three.

,·-.

Now coming to the marriage services business: Revenue was Rs.1.3 Crores a growth of 67.8% quarter-over-quarter and 194.4% year-on-year. This includes the consolidation of ShaadiSaga for the full quarter. Losses for the g�arter was Rs.2.86 Crores against 1.5 Crores in quarter two this was due to consolidations, the costs have increased.

I[., ]

On the billing and revenue outlook for quarter four: Matchmakiyg billings we expect to bounce back to a double digit growth both on the quarter-ov�r-ctuarter and also year-.., on-year basis. Wedding services expected to continue the current revenue momentum and losses will be in the similar range of quarter three.

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Let me now pass' on tl• Sushanth to comment-on the key profitability highlights.

Sushanth Pai:

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Thanks Muruga. Let me also wish a very happy a,,d successful 2022. Due to subdued billings in September and October in matchmaking business our revenue declined marginally on a quarter-on-quarter basis and therefore this has an impact on EBITDA margins.

Our EBITDA margin in quarter three was at 24.5% as compared to 29% in quarter two; however was better than 23.6% a year ago. Marketing expenses are· at 41.6 Crores as compared to 39.9 Crores in quarter two. Excluding marketing expenses, our margins in matchmaking are at 63% in quarter three as compared to 66% in quarter two and 63% a year ago. The margins declined due to increase in employee cost and technology expenses.

On a consolidated basis our EBITDA margins in Q3· are at 18.6% as compared to 24% in quarter 2 and 19.1% a year ago. Apart from matchmaking, marriage services had an increase in employee cost due to ShaadiSaga consolidation. On an absolute basis EBITDA declined by 23.6% quarter-on-quarter and grew 8.9% year-on-year. Tax rate is at 25.3% for the quarter. PAT profit after tax excluding Astra which is our associate company is at Rs.11.6 Crores a decline of 30.6% quarter-on-quarter and growth of 4.9% year-on-year. Share of loss from Astra is Rs.15 lakhs. Our operating cash flow generation for the quarter has been robust at about 18 Crores and our cash balance is at 318 Crores. ROCE is at 18%.

On the outlook for Q4 margins we expect EBITDA and PAT to be at similar levels of quarter three.

I would like to end with the customary safe harbor statement. Certain statements during this call could be forward-looking statements on our business. These involve a number of risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. We do not undertake to update any such forward­ looking statements that may be made from time-to-time by or on behalf of the company unless it is required by law.

Over to you Prateek.

Prateek Kumar:

Moderator:

Thank you Sir. Chris you can open the line for question and answers.

Thank you very much Sir. Ladies and gentlemen we will now begin the question and answer session. Our first question is from Prakash Kapadia of Anived Portfolio Managers. Please go ahead.

Prakash Kapadia:

Thanks for the opportunity. A couple of questions, ifl look at nine month sales they are Page 3 of! 7 up around 17% at 3.23 billion. Ad spends in the same period are up around 21 % at 1.18 For M atrimontrn � ited .. ' .. Com":'�sof,C�\j ; ,,,, 0,et~•v

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billion. So when does this change, will it be more price increases going forward, so absolute sales value decreases or there will be some reduction in ad spends which could happen in the medium-term what is happening at an industry level what are we sensing any visibility, clarity on some of the ad spends which are still higher than what we would have wanted it to be. So if you could give some color on that.

M Janakiraman:

Thank you for asking the question. In terms of the outlook on marketing, the marketing continues to be at a higher level because in this category there is no stopping or no decrease in the ad spend of the competitor. Since there will be marketing spend by the competitor who is spending at a certain level, we also need to step up our marketing efforts in some of the area so that we set to the marketing spend at a better level.

In terms of the growth on almost last five quarters, except the last quarter we had a continuous double digit growth. The last quarter was another quarter we are at a single digit growth, however we now will come to double digit growth this quarter. We will expect our growth to continue on a double digit basis. So we look forward to grow and continue to widen the gap between us and other players in this field probably we will be at a certain level, the marketing spend may come down further. However I do not know when because it is very difficult for us to say that in this category whether today's competitive spend would contribute for the short-term or long-term it is very difficult for us to predict but however as an organization our outlook is good, our growth prospects are good so we continue to market it, build the growth and probably at certain point of time the marketing spends come down. We continue to drive the growth and over a period when the margin continue to improve even then the marketing spend will continue to remain at higher levels. Again it depends on the growth profitability for us because the market can be further more positive.

Prakash Kapadia:

And we do not see a scenario of the earlier case of absolute sales value increasing or pricing changes to negate or counter these higher ad spends.

M Janakiraman:

Again you look at our ARPU if you see that it has gone up by almost year-on-year growth at 12.2% you continue to figure out what are the ways to optimize the price. So price increase is one thing that we have not done. We can look at the optimizing various segments and continue to drive other segments. So we look at the various ways to cover the ARPU but the price increase is one of the things that is something we have got and we will do it at a certain point oft:me.

Prakash Kapadia:

Sure that is helpful. Secondly if I look at data since our IPO in September 2017. We have generated around 270 odd Crores operating cash flow in the last four years currently also on an annualized basis we will generate around 80 Crores of operating cash flow so that is 350 Crores of operating cash flow in the last four, four and a half years since IPO plus there is a cash balance of over Rs.3 billion but for some reason our market cap is down 18%, 20% from IPO price why not consider a buyback and '"'"" �filu, o,oation ;::::,::� :• m�k,t ili= is • /."6r"M��HRi"8hljrited

CompJy Secretary

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Matrimony. com Limited February 10, 2022

why I am trying'l'to make this point here i's[;;] 'i.mlike some of the new age businesses which have.no cash flow, no earnings we have a genuine business model, genuine cash flow, genuine profits over the years and as a promoter if you do not participate your stake further increases so that is just an observation.

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M Janakiraman:

Sushanth Pai:

Prakash Kapadia:

Moderator:

Vivekanand S:

M Janakiraman:

Vivekanand S:

That is a good suggestion and we appreciate that. So you have rightly said that this is a strong cash flow generating company. The entire entity was built with limited capital and since the people are paying advance, our EBITDA to cash generation has been very healthy. We continue to generate more cash but we know that we are undervalued. If you look at the Company's performance in Q4 as you are talking about the double digit growth I mean double digit growth quarter-over-quarter even year-on-year basis, I am talking about getting close to around 120 Crores that is the company is getting almost close to around 480 to 500 Crores annually. When we talk about the cash balance and assets we are definitely considered undervalued. However you know that as a company, we will continue to drive and execute things. We have started growing well this year for the entire year we will have double digit growth both on the billing as well as on the revenue side. We continue to grow, continue to drive cash, continue to improve our market share and we hope that at a certain point the market will realize and evolve sufficiently. However on the question about buyback, it is the board that has to decide to take a call on that.

Yes, so capital allocation is definitely that we would continuously consider along with the board so obviously buyback, dividend they are all form of capital allocations and we will have to evaluate at an appropriate time when the timing is right when we believe it may be a good idea to do something like that. So that is the way to look at it.

Sure I will join back the queue if I have more questions. Thank you.

Thank you. The next question is from Vivekanand of Ambit. Please go ahead.

Thank you very much for the opportunity. Can you please talk about the market response to the new products that you launched as well as foray into new markets.

See we are still in a very early stage in the launch of new product it has been a very just a few months it is too early to comment on those things and Bangladesh finally we are able to get the operation going and we just launched our TV promotion it just launched off yesterday again this both are in a very, very nascent stage so it might take sometime for us to understand and how the whole things is going to pan out.

Okay I am curious to understand this Jodi App which is Tamil language app and last time also you had said it was very early but any color that you can provide I guess it was launched in early November so you probably are in the third month how many, are there any metrics that you can share or any sort of color that you can provide on the

kind of traction that it is getting and how are you promoting this are you aggressively For Matrimon�Com Limited Page 5 of 17 Cornp� i (1Jv iy Se:;retary

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doing TV ads in Tamil channels or is it primarily online marketing what is the pathway for acquiring users in that app.

M Janakiraman: I think since it is has been launched few months before, in November and it is just three months old so it is still early to comment. I am getting customer's f dback and I am trying to understand how to get the product marketing and trying to look at that, get out working right. In terms of the segment wise details, we do not give the segment wise breakup for various matrimony sites as a policy. We do not give the breakup and we talk about overall on a consolidated basis. I said still it is very early and we did launch TV commercial in Tamil Nadu. Just one or two campaigns, it is in very early stages and nothing specific to share at this point of time. Vivekanand S: Sir next question is on the strategy that we had embraced say end of 2020 which is segmented pricing which allowed us to pursue a lot more users to transact persuade a lot more users to transact are we kind of going back to the original strategy of premiumization now I mean we are seeing that the transactions on matchmaking the paid transactions they have remained stagnant for the last four, five quarters so is there a change in stance as far as the segmented pricing strategy goes. M Janakiraman: We consider various strategies and see what the right mix of our progresses. So we continue to experiment on segment pricing and try to maximize I think our strategy has been on both sides. So there are quarters we see the ARPU moving up and there are quarters where you see that the volume moves up. We will continue to execute those strategies to drive the revenue. The ultimate thing is about driving the revenues. Vivekanand S: And what gives you the confidence of sustaining double digit growth in 4Q and going ahead what are you seeing in the market that convinces you of double digit growth now. M Janakiraman: We are good at this stage we continue to gain market share continued executing well and we are definitely very confident of double digit growth not in this quarter and but continue to kind of give the double digit growth. Vivekanand S: Second set of questions for Sushant mainly so Sushant you said that 4Q EBITDA, PAT will be similar to 3Q levels why this guidance given that there is a high chance of double digit revenue growth are your costs going up can you give us some color on the A WS migration that you had dor.e are those costs in your base and how should one think about the fixed cost now. Sushant Pai: So what has happened is there are two three factors so one is if you look at our Q2 the billings did slow down a bit in Q2 or rather Q3 I meant so which is November, December sort of a time frame it did slow down and therefore the revenue for that the GAAP revenue becomes slightly smaller than expected when the billing slow down the

previous quarter which is the quarter three. So that is one rp<l§9�WWi:rYPd\l;'fif.e.eJo:n Limited t• Page 6 of I 7 ;{;.A.. Co�;Y Secretary

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flattish EBITDA and PAT. The second thin'g ·is marketing will move up slightly so that can also cause a bit of an impact from where it is and the third is yes in quarter three I did allude to that the technology cost did increase a bit, migration is going on so that some more costs will come in Q4 as well because it accumulates over a period of time so all three reasons the quarter three billing which did slow down a bit which causes an impact on revenue for the next quarter which is quarter four slight increase in marketing and as well as some expenses increase in technology cost.

M Janakiraman:

Yes just to add to what Sushant said if you look at the billing with the revenue the difference will be at least more than probably around $1 million or maybe 7 plus Crores that kind of difference also will be there and we expect that to happen so in quarter four because that time Sushant had mentioned so there is a gap of at least 7 plus Crores we see that possibility and all so that is the kind of thing basically the billing and the revenue we see that the quarter gap because of the reasons that Sushant had explained so that is one of the reasons.

Vivekanand S:

So Sushant just to understand the margin evolution better ex of marketing will we get back to those 65%, 66% levels that we had reached quite some time I mean just recently right.

Sushant Pai:

Yes, so I think as we make up our plans for next year I think we will have a clearer picture on margins and profitability because we need to look at the full year in to picture but for the next quarter I believe it will be at a sort of similar sort of a level because ifl said overall EBITDA and PAT are similar level and if marketing has slight increase which also means excluding marketing also will be at very similar sort of levels as per Q3, but how it will pan out for next year we need to see the overall growth trajectory what are the sort ofinvestments that we will be doing and we will have more clarity on this when we come back at the year-end results.

M Janakiraman:

Well I just want to add that we will have better clarity in next year. But again the nature of the business is such that marketing is the biggest cost definitely getting back to our 66% in a year as the revenue increases that would happen automatically. Marketing cost this quarter and cost is going up on account of A WS migration and other things but as we progress of definitely getting back to the margin of 66% higher. Marketing will going to be a single largest cost and I do not think definitely the slightly better things in next year but if you look at the outlook definitely they are getting back to the margin it can happen.

Vivekanand S:

Right just one last small data point what is the cash balance, cash and liquid investments in the current quarter.

Sushant Pai:

It is 318 Crores.

Vivekanand S:

And you have made all payments for the ShaadiSaga acquisition right.

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Sushant Pai: Yes we have done all the payments. Vivekanand S: Thank you very much and all the best. Moderator: Thank you. The next question is from Khush Gosrani of lncred AMC. Please go ahead. Khush Gosrani: Thanks for the opportunity hope you guys are doing well. I just wanted to understand what is the quantum of price increase that we have taken in this quarter. M Janakiraman: No we have not done any price increase. So some other questions whether that it also drive the business we have not done any price increase for a long time. Khush Gosrani: Will we be taking any price increase is going ahead since the advertisement costs are inching up for the next few quarters as well. M Janakiraman: We have nothing on the cost im�rease for next few quarters. Khush Gosrani: That is l:ielpful and in terms of advertisement cost how do you measure that these increase cost is getting the ROI on the spend that we do. M Janakiraman: See most of the advertisement is on TV channels and while we definitely see some impact of the profile acquisition going up and do the TV advertisement but again very difficult to fully quantify the ROI on the TV advertisement. So TV advertisement is more of brand building and ensure that the brand has a continuous visibility and also ,, reaching the market also considering that the increased competitive activity you generally fix a certain threshold of the marketing spend, you know that some other market definitely spending much· more of what they required because the competition in the market are spending much more than what we think it is required and that spend�ng is also required just to give a bit more of brand building and sustaining and it will contribute to the profile acquisition to some extent. So if you take a pure ROI onto your advertisement we cannot measure that way so TV advertisement is it necessary y�. It is important to us whether there is some of the few advertisements it has to, yes, may not be the case, but however at this point of time it is significant that. So but look at digital we do measure the ROI because digital marketing is very easy to measure the ROI because you can directly link the effect of that advertisement also the TV is very difficult but we definitely have mechanics to measure what kind of impact does it have but you cannot fully link ROI with the TV advertisement. The TV advertisement now is for brand building on long-term not a particular quarter.

Khush Gosrani:

And could you also highlight on in terms of the wedding services business could we see the run rate now increasing to 1 Crore per quarter post the acquisition, can marriage services sustain the I Crore revenue per quarter post the acquisition as well.

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M Janakiraman:

Yes, that definitely'should move up iri'fact we'have taken a goal of possibly taking that to 100 Crores revenue in two to three years. However lot need to be done on that space while the integrations is not completed. Post integration of shaadi saga, we will be able to tell much better numbers as well.

Khush Gosrani:

And in the last year's level you back to 2 Crores which we have had 1.62 Crores in the Q2 am I right.

M Janakiraman: Yes, we have to get to that kind of numbers. We continue to drive the growth and wedding services should grow because we have an internal goal to get to 100 Crores in the next three years. That is the kind of goal we are talking and again at this point of time still the integration has not been done. We hope we will able to continue to execute and try well on the setbacks so that we see there is an opportunity and we hope we will be able to continue to do it able to maintain this kind of growth.

Khush Gosrani:

Sure thank you and all the best.

Moderator:

Thank you very much. The next question is from Alroy Lobo of Kotak Investment Advisors. Please go ahead.

Alroy Lobo:

My question is more to do with the growth of the industry everybody seems to be spending a lot on marketing we also seen recently you have put out something on your annual metrics on what is happening in the matrimony market everything seems to be moving in the positive direction the market is pretty big but yet the industry in terms of size is still in the region of around 700, 800 Crores so I am just trying to understand what is constraining this industry to grow at about 20% or 25% despite all the efforts made by all the players to step up marketing spend what is constraining the growth of the industry from being much higher than it is today.

M Janakiraman:

See marketing is just one of the levers for the growth. Marketing alone cannot drive the growth. Our endeavor is to move to a much higher growth as we progress we definitely move to a consistent double digit growth and we are working towards taking to that level. We believe that as we progress we definitely able be to move to a much better growth in terms of growth percentage. So because it is not just marketing we continue to execute well on various dimension, conversion and other things. So we believe that as an organization as we progress we will be able to move to much higher growth percentage.

Alroy Lobo:

So do you envisage that in the near future you could actually see growth rates being much higher than what you are reporting right now at least moving up like a hockey stick or is it going to be more gradual in terms of the scale up in terms of growth rate because whenever we look at this industry the opportunity seems to be pretty big and also we are seeing significant amount of penetration I think these days even the youngsters want to choose their own partners so everything_ see� to b.e moving in

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favor so I am not able to understand why this industry cannot grow at about 20%, 25% and what efforts being a market leader have you made to grow the market.

M Janakiraman: Yeah definitely we continue to make efforts and taking steps to move to that kind of growth rate not sure whether it will happen immediately or not. We are in the right trajectory since we are being there for long years, I do not see the growth in one quarter suddenly but I see this happen immediately in the coming quarters and coming in the couple of order down the line but definitely we see there is a growth trajectory at this point and moving towards double digit growth. I am talking not about Q4, Q4 definitely get a double digit growth we definitely �nd to move in the right direction we definitely see that as a company we will move into the much higher growth percentage. Alroy Lobo: Also one of your competitors that recently got private equity investment do you see any behavioral change in terms of pricing that has happened because of that and given the fact that your other competitor is also bleeding when do you think pricing is going to move up because everybody except yourself is basically not making money in this business so are we at an inflection point where you will see players yielding and prices going up.

M Janakiraman: I think our pricing has been sort of independent of the competitors because if you look at the market we are strongly placed and our pricing is much better than the competitor price since we have a strong reach, strong network effect and strong brand. Look at our ARPU also sort of considerably moving up and all that because we do also have some discount on some segments so in fact our pricing (s indepf;ndent of competitor except some markets. I have to call North India where we have to get some into a bit of discounting because of these competitors. North India is one part of the market but again there also we are gaining market share. So for us as a company again our outlook is that we see that our growth momentum will continue to increase our gross margin excluding marketing. We continue to invest also to tie the·growth that we are definitely looking at and so we are going to focus on our gro\'-;th, our outlook ,our future and continue to differentiate between us and other players.

Alroy Lobo: And the last question I have is on the NRI market when yo� think that you will achieve leadership in that market one of your competitors is ahead, ?f y0u and how big is that market right now.

M Janakiraman: India is obviously a much bigger market than the NRI market: It is not a very large market however NRI market is only divided, South India being a better market. We are obviously strong in south and east. Also in NRI market, we have a strong leadership in North, Gujarat and Punjab where there is only competitors is in north. So in net-net I think NRis we may be equal level of the others, more like certain segment we are obviously strong reach and in certain segment obviously our competition is in better position. NRI market has a much better reach now.

For Matri mo"). C�z..tmited

C�1y Secretary

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Alroy Lobo:

Okay thank yori� · ·

Moderator: Thank you. The next question is from Mohit Bhagwani of HDFC Securities. Please go ahead.

Mohit Bhagwani: Hi! Thanks for the opportunity. I have two questions so one is on the ad spend we are doing about 160 Crores annual ad spends so you mentioned that most of the spend is on TV channel advertisements now I just want to ask like what are your thoughts on shifting this budget towards digital channels where most of the individuals are especially considering that the young individuals are spending more time on smart phones and social media so do you believe that if you deploy other strategies like the influencer marketing for example do you believe that you will shift to that strategy and increase your spends on that front that is my first question.

M Janakiraman:

Basically directly the budget kind of shifting towards the digital side however at this point of time TV constitute large segment or large percentage of our ad spend so TV at this point of time continue to be a major part of our marketing spend however we look at the year-on-year basis over a period of time definitely our increasing spend on our digital side which has been growing at a much higher percentage compared to the money was invested on the TV side. So basically TV form large part of marketing spend however digital the growth marketing spend on digital side is much higher so this will continue to shift our budget to digital side.

Mohit Bhagwani:

So do you believe that this allocation between TV advertisement and digital will change in the next two to three years do you believe that shift will happen say if it is 60/40 will it become the other way around will it become more of digital in the next few years and you will be able to target more users via that.

M Janakiraman:

Yes, digital will continue to grow however it is very difficult for me at this point of time whether it is going to be other way around in this two three years it all depends on how the whole thing will evolve and is going to be evolved and how the competitors spend on this category there are multiple factors however it is directly digital is going to take more share of our marketing pie however I will see that in the coming years TV is continue to going to be a large form of market.

Mohit Bhagwani:

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So my next question is on paid subscription side so we are doing about 0.22 million of paid subscriptions in a quarter so just want to understand if you can give us a sense of how many of these are fresh additions what I mean by this is like for the sake of simplicity if you assume one user one paid user coming in quarter two and taking a monthly basis package of three months and if he does not find a match then he comes again and pays again for the third quarter so he is actually a repeat customer of yours so out of this 0.22 million in a quarter how many of these would be kind of fresh additions paying for the first time on your platform if you can give any sense of this.

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M Janakiraman: Especially within around 55/45, 60/40 that is a mix between the first time payments and anywhere so.

Mohit Bhagwani:

So you are saying 60% would be like the first time paying and 40% is on a renewal kind of users right.

M Janakiraman: Again it is between you can assume 55% to 60% first time payment 40% to 45% renewal that is a broad mix.

Mohit Bhagwani: Thank you so much Sir.

Moderator: Thank you. Next question is from Nilesh Shah of Envision Capital. Please go ahead.

Nilesh Shah: Hi! Thanks for the opportunity. Just wanted to understand you mentioned initially that billings were a bit soft in this quarter why would that be would not this be like pretty much a normal quarter there was really no significant disruption or anything in terms of socializing so why would billings have been soft in the quarter gone by.

M Janakiraman: Well it is a bit of testing time for us, for a short period of time one thing plus the festival impact like Diwali and other festivals. We definitely saw while normally the Q2 is especially is a weak quarter and some bit of it is having an impact on quarter three normally for us. Q3 I think normally will be a little soft quarter. So Q4, QI are ' . the best quarters for the whole financial year actually. While it is not to a larger extent in quarter tqree but again some market like say Tamil Nadu and Andhra in the mid . . December, the ma iage period stops, it is called margazhi in Tamil Nadu and something in Andhra. So there is a bit of inauspicious periodiplus certain festivals have impacted and Q2 again is another. So Q2, Q3 since are going little softer and Q4, QI are the best quarters.

Nilesh Shah: Second is ShaadiSaga you spoke about an aspiration get to I 00 Grores of re·venues in the next th�ee years do you think by that point of time ShaadiSaga would essentially be profitable by then or it would still kind of be in an investment mode and it would still be incurring losses then.

M Janakiraman:

When we reach that kind of revenue I think hopefully it is become profitable and we always said it is aspirational number let us say we are seeing that in next three years we get to the number we set in a direction to get to the number and be aggressive to that happen. However you have to understand that the revenue is hardly kind of 50 lakhs a month and all that we definitely have a long way to go to get to the number. But there is opportunity and I believe that we are able to execute well and able to move to the 1 · revenue and while we are doing that kind of thing no reason we should be losing money I am sure that level of revenue should be profitable.

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Nilesh Shah: And do you think'getting to this aspiration we can do this organically or you think we will still have to kind of pursue inorganic growth even to get to this first aspiration of 100 Crores in revenues.

M Janakiraman:

I think we can do it organically so because I think with integration of shaadi saga, I think we can do.

Nilesh Shah:

And the last one is essentially what one of the participants mentioned about buyback and I strongly urge you to basically consider a buyback given the kind of cash that we are sitting on the market cap that we have the cash that we have is probably in terms of high teens in terms of our market cap so I strongly urge you to consider that you are the principal shareholder you are the CEO you are the Managing Director I am quite sure the board is going to be guided by what you think iµ1d what you suggest so you would strongly suggest that we get there especially ifwe do not have any significant plans for inorganic growth.

M Janakiraman:

Thanks appreciate your suggestion.

Nilesh Shah:

Thanks good luck.

Moderator:

Thank you. The next question is from Sona) Minar of Prescient Capital. Please go ahead.

Sona) Minar:

Hi! Sir, this is Sona! Minar, I had two questions first one was just wanted to get some sense from a three four year perspective on the average age of a user on your platform which direction has this gone by to and just wanted to understand that a little bit more secondly on your marketing spend even a gentlemen before me have asked some questions just wanted to understand as digital becomes more and a higher percentage of your overall spend do you see your marketing spend tapering do you see your overall spend tapering because those are more performance-led and more directly attributable to the users who sign up on your platform. So I have these two questions. Thanks.

M Janakiraman:

See the average age, if I understood your question rightly the average age of maybe around sort of 26 to 29 that forms a major sort of base for the male, females will be around say 23 to 25 that forms a large chunk of our the base however if you see that any growing economy every IO years or 15 years the average age of people getting married slightly more because people tend to have ideas really towards their personal growth and all that, normally that is a trend globally what you are seeing as a country progresses the people delay the marriage that tend to happen. In terms of the spend at the point of time the TV is continue going to be a large part of our market spend definitely a shift slowly happening to the digital side that the growth is happening whether this digital is going to be a large part would not get at this point of time TV is definitely our large part of our marketing spend. Again the marketing spend today is not in again and again some market obviously we have to spend more than what is For Matrimo . Com Limited ' v\/ Page 13 of 17 Corri,- c: n�/ ;:e::.:retary �

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equal because of the competitors spending more than what we think that it is required

to spending out but again so sometimes you have to respond to the competitive marketing spend so things should continue to grow and protect our market share. So again if the competitive intensity reduces obviously our TV marketing spend would not be so much look at three years ago, at the time of IPO, our marketing spend for the entire year was at the time was 50 Crores now it completed almost like 160 Crores for the year spend so yes today actually we are spending more than what is required but that is an unfortunate situation but we will again I will say that we continue to invest and they continue to grow and I think in the future sometimes we see that the marketing spend at that point of time I may get the benefits of the reduced marketing expenses.

Sona! Minar: On a steady state basis like if you go back to time of your IPO or let us say otherwise 15% to 20% of your top line spend on marketing is like a steady state stable kind of a marketing plan for this category just trying to understand that.

M Janakiraman: Again ifthere was similar level of competition what we are at the time ofIPO and what we could spend. That I think can manage with I 00 Crores marketing spend. Sona! Minar:

Sorry 100 Crores as of now.

M Janakiraman: Yes, 140, 160 Crores probably maybe if you can manage it on 100 Crores now.

Sona! Minar: And sir just trying to understand the first part of the question you mentioned that the average age of users is going based on the economy on your platform have you seen like as the average age has also gone up the preference of u'sers for a particular feature or for a particular aspect of service has also changed I am just asking from a longer three, four year perspective or it is largely remain the same just trying to understand what a consumer is needing as the age goes up basically on that do they need more physical interaction do they need better features do you need other data about the likely partner they want to look at what is it that is changing in terms of behavioral aspects there.

M Janakiraman: Yes, the core need is to find a life partner and get married. They have to see the right number of matches and then connect with them. So but again as we need to continue to innovate, continue to make it easy for user to discover and get connected. So the core marketing platform continues to be part of a large share of our revenue and as I said we recently launched a separate product feature and we are the first one to launch it that it shows the people, the most relevant matches. Usually the users gets more number of matches however with the launch of this new product feature the number of matches may come down to the users but the user end up seeing the relevant matches only. So we are continuing to innovate so that they are able to get better matches and get connected and get married. However three to four years is too shorter timing till to be •= �w[fu ] Howev p op[le ] [b] �ome =[re ] :.:� �: : 1:en p[e] �@fuO�O�V�::�:

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this year and an ·other things but again it may not happen in the next two years, but again maybe the longer possibly that may happen.

Sona! Minar:

Sure Sir okay thanks a lot this is from my side. Thank you.

Moderator:

Thank you very much. Next question is from Deep Shah ofB&K Securities. Please go ahead.

Deep Shah:

Thank you for the opportunity. Sir looking at the numbers of one of our other competitors it seems clear that even with these numbers we have gained market share so could you just elaborate a bit on what is happening in the northern market and where do we see ourselves there that was the first question. Sir, second question is you earlier said that we are trying various strategies to mix pricing and number of transactions but the transactions seem to be flattish now for the five, six quarters so if you could give some more idea about what is happening on that front that will be very helpful.

M Janakiraman:

See we have continued to gain our growth across the market. our growth is not committed to any particular geography or markets that is a point number one. In terms of the paid volume because we definitely expect the growth momentum to continue so when the growth momentum continues obviously you can reflect in either on two aspects whether the volume will move up or ARPU will move up. So we continue to carry both so when the growth increases definitely it reflects either in terms of volume moving up or the ARPU moving up at this point of current revenue the current mix is ARPU with certain percentage and volume in certain percentage but the outlook for the coming years when they move up obviously you will see that the volume to move up as well.

Deep Shah:

Right Sir this is very helpful. Thank you.

Moderator:

Thank you. Next question is from Sameer Pardikar ofICICI Direct. Please go ahead.

Sameer Pardikar:

Thank you for the opportunity. Sir what is the revenue breakup of our marketing spend on our TV and digital is it 70 on TV 30 on digital or it is on a higher percentage.

M Janakiraman: We are not doing breakup but major spending is on TV.

Sameer Pardikar:

But any ballpark number will be really helpful.

M Janakiraman: I think that maybe around 70%, 80% I do not know exact thing but majority of TV spending.

Sameer Pardikar:

Second thing is we have any premium or paid subscribers for us.

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Sushanth Pai: We do not disclose any premium paid subscribers, but the only thing is we can say that one of the reasons for ARPU increases we have seen good growth in the premium services segment as well. Sameer Pardikar: And one of the competitors on the call said that consolidation is the way forward for the Matrimony market to grow in India so any comment from your side. M Janakiraman: I think we are just focused on driving our growth and I think yes we are so focused super focused on our growth anything in the future we may consider in fact for us we can continue to execute our strategy, priorities and plans were in front of us I think we are able to have growth. If at all anything in the future we may consider. Sameer Pardikar: Anything on the mind. M Janakiraman: No at this point of time we are focused on our growth. Sameer Pardikar: Thank you that is all from my side. Moderator: Thank you. The next question is from Vivekanand of Ambit. Please go ahead. Vivekanand S: Thank you for the follow-up opportunity. A couple of them so one how much money have you earmarked for new product launches as well as investment in Bangladesh, Sri Lanka and Muslim matchmaking that is one. Secondly we have seen that you invested in ShaadiSaga you have invested in Astro also and essentially you have been making these small acquisitions in the last few years since you got listed are there similar such acquisitions available which can supplement the current offering that we have where you would want to deploy your capital or given that now we are heading into a scenario where startups may not get funded as easily as they did in 2021. Thank you.

M Janakiraman: In terms of the any acquisition, we continue to explore any opportunity which can add value to our offering. The ShaadiSaga was definitely a good acquisition because it has enhanced our growth so definitely one of the offerings of match making that has improved our strategy and we can strengthen our operating capacity. It depends on the need and the opportunities and we allocate within the marketing part so because the things are dynamic in nature very difficult to fix it for various segments as well but that is a broad number but somehow you tend to change depends on opportunity, depends on the competition it depends on how they have formed some of our offerings as well. So now that will be some of the new avenue so it is very difficult to put the fixed numbers for various segments at this point ohime.

Vivekanand S:

And just one last follow-up so for the international foray I mean versus what you had outlined some time ago versus where you are now I guess there are a few products that you are still to launch internationally right so by when we can expect you to do those

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�· � launches in a full-fledged manner I am referring specifically to the product on the Muslim match in international markets.

M Janakiraman:

Muslim match is already there we continue to make progress on that market and we are definitely looking at some other offering as well so probably sometime this quarter we will be able to launch something.

Vivekanand S:

Okay great thank you.

M Janakiraman:

If there are no more questions we can close the call, Chris.

Moderator:

Yes sir we have no further questions and I would like to ask you to just make some closing comments.

Sushanth Pai:

Thanks Prateek and thank you for hosting this call thanks Chris. If you have any further questions please do get in touch with us. Thank you once again.

Prateek:

Thank you for your interest in Matrimony.com and I look forward to staying in touch. Thank you very much.

Moderator:

Thank you very much. Ladies and gentlemen, on behalf of antique stock broking that concludes this conference. Thank you for joining us and you may now disconnect your lines.

(This document has been edited for readability)

Vijayanand S Company Secretary Matrimony.com Ltd.

No: 94, TVH Beliciaa Towers, Tower 2, 5th Floor, MRC Nagar, Raja Annamalaipuram, Chennai- 600028, Tamil Nadu, India. Phone: 044-49001919, 044-3095 3095 Email: investors@.matrimony.com, CIN: L63090TN2001PLC047432

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