RateGain Travel Technologies (RATEGAIN) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 FY25 revenue of INR 2,600.13 million, up 21% year-over-year, with balanced growth and profitability across all segments and continued focus on integrated AI-driven tech for travel and hospitality.

• Annual recurring revenue (ARR) reached INR 1,040 crore, growing over 21% year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024.

• Strong pipeline of INR 555 crore and new contract wins of INR 62 crore, with continued traction in enterprise and mid-size customers.

• Focused on AI-driven product innovation and integrated tech stack to address evolving customer needs.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was INR 2,600.13 million, up 21.2% year-over-year; EBITDA reached INR 497.7 million (19.1% margin), up 31.7% year-over-year.

• PAT for Q1 FY25 was INR 453.8 million (17.5% margin), an 82.2% increase year-over-year.

• Gross revenue retention improved to 91%, net revenue retention at 105%, and subscription revenue contributed 59.9%.

• Revenue per employee rose 10% year-over-year to INR 13.0 million.

• Net cash and equivalents as of June 30, 2024, were INR 10,799.4 million.

Outlook and guidance

• Maintains 20% revenue growth guidance for FY25, supported by a robust pipeline and large deals.

• Expects 150-200 bps margin improvement over last year, with each quarter tracking year-over-year improvement.

• Targeting INR 2,000 crore revenue in three years.

• Management remains confident in navigating global uncertainties with a resilient business model and adaptive approach.

• Cautious on North American market due to slower deal closures and some client attrition.