MATRIMONY - Matrimony.com Limited Share Price

Management Outlook:
Matrimony.com's management acknowledges industry-wide challenges, with an 8% YoY decline in matrimony-related search queries impacting monetization. Despite muted Q3 FY25 revenue due to weaker-than-expected marriage season traction, they remain optimistic about revival in subsequent quarters. Key drivers include:

• New product initiatives: Vernacular app launches (beyond Tamil, Telugu, Malayalam), revamped community matrimony apps, and personalized services (targeting double-digit growth).
• Pricing experiments and cost optimization (likely in Q1 FY26) to improve margins.
• Focus on profile acquisition via regional language expansion and marketing campaigns.
• Marriage services and new verticals (e.g., wedding loans, astrology) to scale cautiously.

Major Points:

1. Financial Performance:

   • Consolidated billing declined 5.9% YoY to Rs.109.4 Cr; revenue fell 5.1% YoY to Rs.111.4 Cr.
   • Matchmaking revenue dropped 4.2% YoY; average transaction value rose 5.1% YoY.
   • EBITDA margin at 12.4% (vs. 14.3% YoY); PAT declined 10.2% YoY to Rs.9.97 Cr.
   • Cash reserves at Rs.315 Cr post-buyback; operating cash flow robust.

2. Challenges:

   • Industry-wide slowdown in user registrations and search demand post-COVID normalization.
   • Competitive pressures (one rival regained traction via model shifts).

3. Strategic Measures:

   • Cost control: Marketing spend optimization without compromising visibility.
   • Market expansion: Vernacular apps for broader reach, North India focus.
   • Monetization: Experiments with pricing tiers, add-on services (e.g., astrology).
   • New verticals: Jobs portal (early stage, limited to Tamil Nadu) and wedding services (targeting breakeven).

4. Margins: Expected improvement post-revival, with EBITDA potential to exceed 25% long-term.

5. Q4 Outlook: Subdued PAT due to weak Q3 billing; Marriage Services losses (~Rs.3.8 Cr) to persist.

Management remains confident in long-term growth but expects near-term volatility amid industry headwinds.

Question 1:
"So the question was on revenue growth...where is the disconnect? And if you can throw some light...why there is this disconnect between what we can see and what the numbers are?"
Answer: Management attributed the decline to an industry-wide 8% drop in search queries per Google, affecting monetization. Competitors' growth reflected a recovery from prior business model changes (free-to-paid transition), not market share gains.

Question 2:
"On ad spends...how should we look at ad spends? Is incremental ad spends not yielding revenue?"
Answer: Elevated ad spends are partly due to competitive pressures (defending/gaining market share). Optimization plans are underway to reduce costs without compromising visibility, aiming for improved margins as business revives.

Question 3:
"Does this indicate saturation in core Southern markets? How should we look at profile growth slowing down?"
Answer: No saturation; penetration remains low nationally (~10M users vs 60M potential). Vernacular app launches, community app revamps, and personalized services are expected to drive growth.

Question 4:
"On new initiatives, will the burn rate remain INR10"“12 crores or increase?"
Answer: Losses from new initiatives (wedding loans, astrology, jobs) are expected to stay in the same range. Monetization will scale once initiatives achieve critical mass.

Question 5:
"Progress on Many Jobs? Services not working out in Marriage Services?"
Answer: Many Jobs is in early stages (limited to Tamil Nadu with free service); monetization awaits 5M resumes/10K employers. Marriage Services losses are being optimized via selective investments.

Question 6:
"Evidence of market share loss in South to Shaadi? Impact of Great India Matchmaking Fest?"
Answer: No market share loss; key metrics and engagement are improving. Community Matrimony app revamps (launching soon) will enhance cross-promotion. The Matchmaking Fest campaign had muted impact due to industry trends.

Question 7:
"Reasons for billing decline? Rise in average transaction value?"
Answer: Billing drop aligns with industry-wide registration declines. ARPU growth stems from pricing strategies, personalized services mix, and higher conversions despite lower registrations.