Noida, November 7, 2022: RateGain Travel Technologies Limited (NSE: RATEGAIN), a global provider of SaaS solutions for the hospitality and travel industry, today announced its financial results for Q2 & H1FY23 ending on September 30, 2022, reporting consistent growth and higher margins as per expectations on the back of strong global demand for travel, and higher operational efficiency.
While the Global business environment continues to be driven by high costs and inflation, Q2FY23 saw RateGain report its highest operating margin in the last 10 quarters at 15.2%. Increased traction across marquee relationships, operating leverage, and new client additions continue to drive revenue growth and pipeline momentum.
For Q2FY23, quarter ending September 30, 2022, compared to the same quarter last year the company reported:
- Operating Revenue at INR 1,246.1 Mn v/s INR 847.6 Mn (+ 47.0% YoY)
- Adjusted EBIDTA at INR 189.5 Mn v/s INR 70.3 Mn (+ 169.6% YoY)
- Adjusted PAT at INR 195.7 Mn v/s INR 36.9 Mn (+ 430% YoY)
- Adjusted EBITDA margin at 15.2% v/s 8.3%
- Adjusted PAT margin at 15.7% v/s 4.4%
For H1FY23 compared to the same period last year, the company reported:
- Operating Revenue at INR 2,439.1 Mn v/s INR 1,597.0 Mn (+ 52.7% YoY)
- Adjusted EBIDTA at INR 313.2 Mn v/s INR 131.0 Mn (+ 139% YoY)
- Adjusted PAT at INR 344.3 Mn v/s INR 77.4 Mn (+ 344.7% YoY)
- Adjusted EBITDA margin at 12.8% v/s 8.2%
- Adjusted PAT margin at 14.1% v/s 4.8%
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 99% and the Annual Recurring Revenue continues to grow at a steady pace to INR 4,878 Mn. The LTV to CAC for H1FY23 came in at 12.2x as the company continues to give more value to customers.
Sharing his views on what helped in driving the performance this quarter, Bhanu Chopra, Founder and Chairman, RateGain Travel Technologies, said, “We continue to deliver on our promise of responsible growth and with operating leverage unfolding, we are delighted to report our highest operating margin in the past 10 quarters. This has been achieved by expansion of existing relationships while costs remained flat. Our focus on solving critical industry challenges continues with the launch of our new offering– Engage AI, that will help hotels address staff shortages while delivering guest delight. Demand continues to remain strong across the travel & hospitality space and we are seeing healthy traction across all business segments”
Commenting on the key metrics, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “The company has posted another quarter of strong performance with the expansion in Margins being the standout. The improvement in margins y-o-y & sequentially is a testament to our strong fundamentals.
Our revenue growth continues at a healthy pace with more broad-based growth across all three segments. We witnessed another quarter of healthy performance across key KPIs contributing to all round growth and margins. The growing pipeline and strong client addition despite a volatile global environment, highlights the strength of the travel industry and the adoption of tech products to drive revenue.”
With a focus on empowering the industry with latest technologies to tackle staff shortage, language barriers, query resolutions and moreover deliver guest delight, the company is pleased to announce the launch of its latest product Engage AI. This virtual concierge and upsell solution will allow hotels to stay in touch with guests throughout their guest journey leveraging chat platforms like WhatsApp, FB messenger, line and more. From the time of booking to the culmination of their stay. This will enable hotels to better engage with their guests and upsell services to them in their native language (118+), provide online check-in/check-out and make sure no query goes unresolved. Making every conversation a new possibility, digitally.
RateGain Travel Technologies Limited is a global provider of SaaS solutions for travel and hospitality that works with over 2200 customers in 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”), metasearch companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises, and ferries.
For more information, please visit https://www.rategain.com
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.