Noida: RateGain Travel Technologies Limited (NSE: RATEGAIN), a global provider of SaaS solutions for the hospitality and travel industry, today announced its financial results for Q3 FY22 ending on December 31, 2021.
On a quarterly basis, the company registered a 57% YoY growth when compared to Q3 of previous fiscal. In terms of the revenue, the company has registered INR 2582 Million in Q3 FY22 vis-à-vis INR 1790 million in Q3 FY21. The company also reported EBITDA and PAT, adjusted to exclude amortization on acquisition cost for the quarter at 10.7 % (INR 106.3 Million) and 6.3% (INR 62.8 Million), showing considerable improvement compared to both YoY and QoQ levels.
The growth was driven by the addition of 778 new clients and an overall 215% growth in new contracts, compared to the previous fiscal. The company continues to have strong customer relationships that are helping in building predictive, stable and sustainable revenue streams. Recurring revenues for the quarter stood at 98% and Net Revenue Retention at 120%, which has helped in improving the LTV to CAC ratio, a key SaaS metric that calculates customer life-time value by 32.9% to 11.3 when compared to the previous fiscal.
“The last quarter was characterized by strong growth momentum, new subscriptions and overall business resilience. We are confident about our future growth as we have delivered our biggest quarter in terms of new sales and continued to improve our key performance indicators”, said, Bhanu Chopra, Founder, RateGain Travel Technologies. “The key to our growth is to effectively cater to the new use-cases in the industry, which have emerged in the post-pandemic world. Through our new AI powered products as well as our recent acquisition of myhotelshop, we are looking at expanding both our mindshare and wallet share with our customers”, he added.
Commenting on the key metrics and performance, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “Q3 FY22 has been a strong quarter for us and continues to build on the momentum we are witnessing this year. We have registered significant improvement across all our KPIs, which reasserts our commitment of creating value for our investors. Our revenue model remains highly predictable, scalable and resilient. All our business has shown healthy growth with Martech leading the way. Top Line growth and having a high gross margin business; have resulted in margin expansion both at EBIDTA and PAT level in Q3FY22.”
The Martech business unit now contributes to 34% of the revenue; which is a 140% growth when compared to the previous fiscal. New sales are now higher than FY20, which was before the pandemic. The total subscriptions increased by 65% and recurring revenue was at 99.9%.
The DaaS business unit in its airline, hotel and OTA products have registered growth both in subscription and price point volumes in the range of 120%-160%. The recurring revenue for the business continued to remain strong at 97.9%.
The Distribution business unit continued to grow with recurring revenues of 97.9% and continues to enjoy high gross margins of 92%. The company’s strength in this business continues to be its portfolio of large hotel chains and extensive network of both global and regional demand partners and is continuing to focus on connecting new demand partners to all the large chains that are its customers in the United States and Europe.
RateGain’s new AI powered products revAI, CONTENT AI, DEMAND AI launched as part of RateGain Labs are witnessing strong interest and have a healthy pipeline. The company also on boarded one of the largest franchises in the United States for Budget Rent-A-Car, Budget Las Vegas as a new customer on its revAI product.
The company added 182 Full-time employees, and 50% of all new joinees were women, improving the gender ratio in the company. The company now has 630+ Full-time employees across all of its business units with the revenue per employee at INR 6.91 Million, which increased 17% YoY.
RateGain Travel Technologies Limited is a global provider of SaaS solutions for travel and hospitality that works with over 2200+ customers in over 100+ countries helping them accelerate revenue generation through acquisition, retention and wallet share expansion. Founded in 2004 and headquartered in India, today RateGain works with Top 23 of 30 Hotel Chains, Top 25 of 30 Online Travel Agents and all the top car rentals including 8 Global Fortune500 companies. RateGain is one of the world’s largest processors of electronic transactions and price points for the travel and hospitality industry and is the largest Software as a Service (“SaaS”) company in the hospitality and travel industry in India. It offers travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (“OTAs”), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries. For more information, please visitwww.rategain.com
Forward Looking Statements
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.