In This Article:
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Matrimony.com Ltd (NSE:MATRIMONY) is launching a new version of its matrimony apps, which is expected to drive growth and engagement.
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The company is experimenting with new pricing strategies and additional monetization plans to improve revenue.
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There is a slight improvement in margins excluding marketing expenses, with matchmaking margins at 61% compared to 59% a year ago.
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The average transaction value for the matchmaking business increased by 2.4% quarter over quarter and 5.1% year on year.
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Matrimony.com Ltd (NSE:MATRIMONY) is taking steps to optimize costs, which is expected to improve margins in the coming quarters.
Negative Points
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The company experienced a decline in billing and revenue, with a 1.5% quarter-over-quarter and 5.9% year-on-year decline.
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There was a 3.1% quarter-over-quarter and 9.1% year-on-year decline in paid subscriptions.
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The EBITA margin for the matchmaking business decreased to 18.7% from 22.6% in the previous quarter.
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Marketing expenses have increased, impacting overall profitability.
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The company is facing challenges in growing its user base, particularly in non-Southern markets, and is experiencing industry-wide declines in search queries.
Q & A Highlights
Q: Why is there a disconnect between Matrimony.com's performance and its competitors, despite a strong marriage season? A: (Unidentified_3, CEO) The competitor had previously offered free services, which impacted their revenue. They have now reverted to their earlier model, which explains their growth. Matrimony.com is also optimizing costs and expects to see improvements in the coming quarters.
Q: How is Matrimony.com addressing the issue of declining revenue despite significant ad spending? A: (Unidentified_3, CEO) The company is optimizing marketing spend without compromising market visibility. They are focusing on North India and other markets to drive growth and expect to see improved margins as a result.
Q: Is Matrimony.com facing saturation in its core Southern market, and how does it plan to grow profiles? A: (Unidentified_3, CEO) The company is not limited to the South and is taking steps to grow in other regions. They are launching apps in regional languages and exploring other initiatives to increase profile acquisition.
Q: What are the plans for the new initiatives, and will they affect the burn rate? A: (Unidentified_3, CEO) Matrimony.com is cautious about cash burn and is focusing on reaching a certain base before monetizing new initiatives. They aim to drive growth without significantly increasing losses.