{"id":161585,"date":"2024-05-24T07:37:32","date_gmt":"2024-05-24T11:37:32","guid":{"rendered":"https:\/\/44.250.171.167\/?p=161585"},"modified":"2024-05-24T07:37:33","modified_gmt":"2024-05-24T11:37:33","slug":"zaggle-prepaid-ocean-services-ltd-q4-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/zaggle-prepaid-ocean-services-ltd-q4-fy24-earnings-conference-call-insights\/","title":{"rendered":"Zaggle Prepaid Ocean Services Ltd Q4 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Zaggle Prepaid Ocean Services Ltd (ZAGGLE) Q4 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Zaggle doubled its revenue over the past three years.<\/li>\n<li>Strong revenue growth of 37% QoQ and 46% YoY in Q4 FY24.<\/li>\n<li>Total revenue of INR273 crores in Q4 FY24 vs INR187 crores in Q4 FY23.<\/li>\n<li>FY24 revenue of INR775.6 crores, up 40% from INR553.46 crores in FY23.<\/li>\n<li>Gross profit up 78.5% YoY and 57.7% QoQ, gross margin at 59.1%.<\/li>\n<li>Gross debt reduced to INR736 million from INR1,210 million in FY23.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Market Opportunities<\/strong>\n<ul>\n<li>Sees massive traction in B2B SaaS industry.<\/li>\n<li>Increased adoption by corporates and government&#8217;s digitization push.<\/li>\n<li>Higher propensity for companies to pay higher SaaS fees.<\/li>\n<li>Plans to capitalize on opportunities and gain significant market share.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strategic Initiatives<\/strong>\n<ul>\n<li>Invested in Span Across IT Solutions for tax filing and financial wellness products.<\/li>\n<li>Onboarded new marquee customers like Wipro, Westcorp, MQ Pharma.<\/li>\n<li>Emphasis on cross-selling products and partner offerings.<\/li>\n<li>Exploring inorganic expansion through acquisitions and international expansion in US\/North America.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Customer Growth and Product Offerings<\/strong>\n<ul>\n<li>Added 179 new clients in Q4 FY24, taking total customer count to 3,016 as of March 31, 2024.<\/li>\n<li>Active users on platform grew 20.3% YoY to 2.73 million as of March 31, 2024.<\/li>\n<li>Zoyer accounts payable platform bundled with business credit cards drove growth.<\/li>\n<li>Multiple solutions reduce hassle of working with multiple vendors for clients.<\/li>\n<li>Monetization through platform fees, program fees, and Propel Points rewards program.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strategic Partnerships<\/strong>\n<ul>\n<li>Partnerships with public sector banks (Indian Bank, Canara Bank, Punjab National Bank) allow reach to corporate\/consumer base across geographies.<\/li>\n<li>Tie-ups with travel firms (EaseMyTrip, Yatra) enable self-booking on platform, earning commissions on bookings.<\/li>\n<li>Partnership with Axis Bank and Nishi Forex to offer forex cards bundled with expense management platform.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Revenue Opportunities<\/strong>\n<ul>\n<li>Forex card programs expected to go live in FY25 and start contributing revenues after integration period.<\/li>\n<li>Increased spend flowing through platform via travel bookings to boost revenues.<\/li>\n<li>Propel Points (gift card) revenues expected to maintain 7-10% margins going forward.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Guidance<\/strong>\n<ul>\n<li>Aims to double revenue again in the next two years (FY25, FY26).<\/li>\n<li>Expects 45-55% revenue growth in FY25.<\/li>\n<li>EBITDA margins expected to remain at current levels in near-term.<\/li>\n<li>Focus on capturing maximum market share, operating leverage benefits may kick in later.<\/li>\n<li>Highest growth expected from program fees (interchange earnings) in FY25.<\/li>\n<li>SaaS revenues also expected to grow healthily backed by investments.<\/li>\n<li>Maintained guidance of similar margins around current 11% level for next couple of years.<\/li>\n<li>Prioritizing capturing market share in hypergrowth phase over margin expansion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cash Flow Management<\/strong>\n<ul>\n<li>Increase in other receivables over last 3 years impacted cash flows due to prepaid card loadings.<\/li>\n<li>Working diligently to improve cash flow position going forward.<\/li>\n<li>Deploying cash to invest in growth and expanding business reach.<\/li>\n<\/ul>\n<\/li>\n<li><strong>ESOP &amp; Pricing<\/strong>\n<ul>\n<li>ESOP cost guidance for FY25 is around INR8 crores without any new issuances.<\/li>\n<li>Rack rates have increased significantly over last 2-2.5 years.<\/li>\n<li>Current rack rate is INR249 per user per month, up from INR99 earlier.<\/li>\n<li>Ability to command premium pricing aided by marquee customer\/bank partner names.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Revenue Streams<\/strong>\n<ul>\n<li>Three main revenue streams: SaaS fees, program fees (transactions), and Propel Points.<\/li>\n<li>Program fees up 90%, Propel up 60%, SaaS up 30% in FY24.<\/li>\n<li>Plan to drive 45%+ growth in FY25 from these existing revenue lines through cross\/up-sell.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Zoyer Performance<\/strong>\n<ul>\n<li>Accounts payable platform contributing around 30% of program fee revenues.<\/li>\n<li>Program fees from Zoyer were around INR40-42 crores in Q4 FY24.<\/li>\n<li>Take rates broadly stable but may see some compression as usage expands across categories.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Zatix Analytics Platform<\/strong>\n<ul>\n<li>New product Zatix being developed for data analytics on spend management.<\/li>\n<li>Monetized via recurring SaaS-like fees from bank partners for transaction analytics.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Costs and Margins<\/strong>\n<ul>\n<li>25-30% of cash back\/incentives line item is cost of funds for credit period.<\/li>\n<li>Cost of funds expected to reduce over time with more bank partnerships.<\/li>\n<li>Propel Points (gift cards) business has gross margins of 7-10%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Incentive Costs<\/strong>\n<ul>\n<li>Incentive costs increased by around INR50 crores in Q4, offsetting INR50 crore increase in program fees.<\/li>\n<li>Initial higher spend on incentives to drive adoption amid market opportunity from regulatory actions.<\/li>\n<li>Cost of funds component for credit cards also contributing to higher incentive costs initially.<\/li>\n<li>Expect incentive costs to stabilize over time as usage becomes more ubiquitous.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Market Entry<\/strong>\n<ul>\n<li>Plan to enter US market, seen as big opportunity.<\/li>\n<li>Investment expected to be nominal initially for marketing existing products.<\/li>\n<li>Adopting calculated, methodical approach to assess product-market fit and go-to-market strategy.<\/li>\n<li>Specific investment guidance not provided as market entry plans still being evaluated.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Zaggle Prepaid Ocean Services Ltd (ZAGGLE) Q4 FY24 Earnings Concall Financial Performance Zaggle doubled its revenue over the past three years. Strong revenue growth of 37% QoQ and 46% YoY in Q4 FY24. Total revenue of INR273 crores in Q4 FY24 vs INR187 crores in Q4 FY23. FY24 revenue of INR775.6 crores, [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[10169,1792],"class_list":["post-161585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-earnings","tag-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":163512,"url":"https:\/\/alphastreet.com\/india\/zaggle-prepaid-ocean-services-ltd-q1-fy25-earnings-conference-call-insights\/","url_meta":{"origin":161585,"position":0},"title":"Zaggle Prepaid Ocean Services Ltd Q1 FY25 Earnings Conference Call Insights","author":"Praveen","date":"August 1, 2024","format":false,"excerpt":"Key highlights from Zaggle Prepaid Ocean Services Ltd (ZAGGLE) Q1 FY25 Earnings Concall Earnings Performance Revenue grew by 113% YoY from INR118.4 crores to INR252.2 crores for Q1 FY25. Program fees contributed 50% of total revenue, driven by growth in Zoyer business. Gross profit margin expanded by 5 percentage points,\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":161429,"url":"https:\/\/alphastreet.com\/india\/tracxn-technologies-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161585,"position":1},"title":"Tracxn Technologies Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 21, 2024","format":false,"excerpt":"Key highlights from Tracxn Technologies Ltd (TRACXN) Q4 FY24 Earnings Concall Financials Q4 FY24 revenue from operations: INR 20.3 crores. Q4 FY24 total income: INR 21.6 crores. FY24 revenue from operations: INR 82.8 crores (6% YoY growth). FY24 total income: INR 87 crores (7.2% YoY growth). Q4 FY24 EBITDA: INR\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":161105,"url":"https:\/\/alphastreet.com\/india\/ce-info-systems-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161585,"position":2},"title":"CE Info Systems Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 14, 2024","format":false,"excerpt":"Key highlights from CE Info Systems Ltd (MAPMYINDIA) Q4 FY24 Earnings Concall Financial Performance Revenue from operations grew 35% to INR379.4 crores. Open order book grew 49% to INR1,372 crores. Annual new order bookings grew 63% to INR834 crores. Revenue from operations CAGR of 38% over three years. Quarterly revenue\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160516,"url":"https:\/\/alphastreet.com\/india\/cyient-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161585,"position":3},"title":"Cyient Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2024","format":false,"excerpt":"Key highlights from Cyient Ltd (CYIENT) Q4 FY24 Earnings Concall Industry Trends China Plus One strategy driving new opportunities in regions like India. Significant technology changes across sectors like EV, communications, AI, Industry 4.0. Overall EMS industry is massive ($1 trillion) with 5.4% CAGR. High-mix, low-volume segment focused on mission-critical\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":160846,"url":"https:\/\/alphastreet.com\/india\/route-mobile-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161585,"position":4},"title":"Route Mobile Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 6, 2024","format":false,"excerpt":"Key highlights from Route Mobile Ltd (ROUTE) Q4 FY24 Earnings Concall Revenue Growth and Industry Challenges Highest quarterly revenue in Q2 and Q3 FY24. Good growth in H1 FY24. Headwinds in CPaaS industry since November 2023. Enterprise cost optimization initiatives. Shift in communication channels from global OTT players. Acquisition Impact\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":161273,"url":"https:\/\/alphastreet.com\/india\/sanghvi-movers-limited-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":161585,"position":5},"title":"Sanghvi Movers Limited Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 17, 2024","format":false,"excerpt":"Key highlights from Sanghvi Movers Limited (SANGHVIMOV) Q4 FY24 Earnings Concall Financial Performance Topline grew 33% YoY to INR647 crores in FY24. Net profit after tax grew 68% YoY to INR188 crores in FY24, a new historical high. EBITDA percentage increased by 4% in FY24 compared to FY23. Average blended\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/161585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=161585"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/161585\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=161585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=161585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=161585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}