RateGain announces results for Q3 FY22

RateGain Travel Technologies Limited (NSE: RATEGAIN), a global provider of SaaS solutions for the hospitality and travel industry, has 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 recently 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 offers were made to women, improving the gender ratio in the company. The company now has 573 Full-time employees across all of its business units with the revenue per employee at INR 6.91 Million, which increased 17% YoY.

Shares of Rategain Travel Technologies Limited was last trading in BSE at Rs. 341.30 as compared to the previous close of Rs. 373.85. The total number of shares traded during the day was 95877 in over 3814 trades.

The stock hit an intraday high of Rs. 369.70 and intraday low of 339.00. The net turnover during the day was Rs. 33993445.00.

Source : Equity Bulls

Keywords

RateGainTravelTechnologies INE0CLI01024 RATEGAIN Q3FY22 FinancialResults