Latent View Analytics (LATENTVIEW) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was marked by the largest deal closure, robust growth in existing and new accounts, and re-engagements with former clients, with YTD FY25 revenue at INR 6,157 Mn, up 31.3% from YTD FY24.

• The company expanded to over 1,600 employees globally, serving clients across North America, LATAM, APAC, UK, and EU, and was recognized as a leader in analytics by Forrester, ISG, and CIM Research.

• 78% of revenue comes from clients served for over five years, highlighting strong client relationships.

• Board approved unaudited standalone and consolidated results for Q3 and nine months ended Dec 31, 2024, with financials reviewed and unmodified conclusions issued by Price Waterhouse Chartered Accountants LLP.

• The group operates in a single segment: analytics solutions.

Financial highlights

• Q3 FY25 operating revenue was INR 2,278 Mn (INR 228 crores), up 37.5% year-over-year and 9% sequentially, with both organic and inorganic businesses growing around 9% sequentially.

• Dollar revenue reached $27.2 million, up from $25.1 million in the previous quarter.

• Adjusted EBITDA margin was 26.1%, with adjusted EBITDA for Q3 FY25 at INR 595 Mn, up 61.7% year-over-year and 26.5% sequentially.

• PAT for the quarter was INR 426 Mn, with a PAT margin of 17.6%, affected by forex losses and loss of tax benefits.

• Cash balance exceeded INR 1,000 crores, and headcount stood at over 1,600 employees.

Outlook and guidance

• Revenue outlook for FY25 remains at $100-$105 million, with strategic planning underway for $200-$220 million over the next three years.

• Q4 revenue growth is guided at 2%-3% sequentially, with EBITDA margin expected at 24%-25% and long-term PAT margin targeted at 20%.

• FY26 growth guidance is conservatively set at 18%-20%, factoring in current market uncertainties and the impact of recent acquisitions.

• Plans to expand marketing analytics, drive scalable GenAI solutions, and enhance data engineering through Databricks partnership.

• Focus on growing nearshore centers in Canada, Mexico, and LATAM, and increasing APAC presence with GCC hubs.