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

Executive summary

• Achieved record annual recurring revenue (ARR) of INR 1,040 crore, with Q1 FY25 revenue at INR 2,600.13 million, up 21% year-over-year, and strong performance in DaaS and MarTech segments.

• Maintained balanced growth and profitability, with a robust sales pipeline of INR 555 crore and continued focus on AI-driven solutions and product innovation.

• Employee attrition improved to 10.9%, and recognized among India's Great Mid-Sized Workplaces 2024.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with new appointments for secretarial, statutory, and internal auditors.

• 12th Annual General Meeting scheduled for September 16, 2024.

Financial highlights

• Q1 FY25 consolidated revenue 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% increase year-over-year.

• Gross revenue retention at 91%, net revenue retention at 105%, and customer base at 3,299.

• Revenue per employee reached INR 13.0 million, up 10% year-over-year.

• 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, targeting INR 2,000 crore revenue in three years, with 150-200 bps margin improvement expected.

• 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, but expects Q3/Q4 to be stronger.