Key highlights

For the quarter ended September 2016, sales have increased by 10% to Rs 180.32 crore. OPM decreased by 688 bps to 12.4%. The net profit decreased by 27% to Rs 29.62 crore due to fall in margin

As of September 30, 2016, the company is conducting approximately 4,08,800 campaigns for our paid advertisers as compared to 3,49,800 campaigns as of September 30, 2015 representing a Y-o-Y growth of 17%. The database consisted of approximately 16.9 million listings as compared to 15.8 million listings as of September 30, 2015 representing a Y-o-Y growth of 7%. The Company currently has over 30 search plus services live on the platform

As of September 30, 2016 the company had 11,799 employees

Growth is search business is driven by Tier 2 and 3 cities.

Top 11 cities contribute to ~85% of revenues

Rs 8 crore EO expenses impacted OPM. Out of Rs 8 crore, Rs 3 crore is due to ad shoot and another Rs 5 crore due to certain user engagement initiative.

JD Omni - the decision to stop sales of the product was done to make certain improvements in the product. Most improvements are done, and sales should pick up shortly. Omni had 9000 customers on Sep 2016, of whom 7000 were billed during Q2FY17. The company will not be able to meet its earlier guidance of 25000 Omni merchants by the end of FY17.

It will now offer Omni with a two month trial period to new customers, subsequent to which it will charge a monthly fee. The upfront fee model will be largely phased out.

The company intends to add 2000 employees for FY17 and FY18 respectively to drive growth ahead.

Search plus ad campaign – don't expects high decidable campaign as the mgmt want to move cautiously.

The ad film is ready, but the company will air it in a measured way. The Rs 100 crore of advertising budget indicated earlier would be spent only if initial response to promotions is positive.

Ad spends will bring services a step closer to monetization. Considering the, employee additions and ad spends, margins will be under pressure in FY17.

The company believes that the departure of the CTO should not have any major impact on future product development. The company has three additional technology officers in the company, who can handle the current product development, including improvements being done to Omni

Customer churn remains at earlier levels of 42-43%

Deferred revenue stood at Rs 245 crore.