RateGain Travel Technologies (RATEGAIN) Q2 24/25 earnings summary

Executive summary

• Achieved record operating margin of 21.7% and robust revenue growth in Q2 and H1 FY25, driven by resilient SaaS-based models and strategic product innovation.

• Annual recurring revenue reached INR 1,109 crore, up over 18% year-over-year, with strong traction across all business segments.

• Net profit for Q2 FY25 stood at ₹522.07 million, a significant increase from ₹300.36 million in Q2 FY24.

• The company continues to focus on innovative solutions and strategic partnerships in the hospitality and travel industry.

Financial highlights

• Q2 FY25 revenue was INR 2,772.6 million, up 18.1% year-over-year; H1 FY25 revenue up 19.6% to INR 5,372.7 million.

• Q2 FY25 EBITDA grew 29.7% to INR 602.2 million (margin 21.7%); H1 FY25 EBITDA up 30.6% to INR 1,099.9 million (margin 20.5%).

• PAT for Q2 rose 73.8% to INR 522.1 million; H1 PAT up 77.6% to INR 975.8 million.

• Cash and cash equivalents as of September 30, 2024, stood at INR 2,528.46 million.

• Gross revenue retention at 91%, net revenue retention at 105%.

Outlook and guidance

• Full-year revenue growth guidance revised to 15% due to a 4% revenue loss from a major MarTech client and pricing pressure in DaaS contracts.

• Margin guidance remains intact, with expectations of 200 basis points improvement over last year.

• 100% of QIP net proceeds remain unutilised as of September 30, 2024, providing flexibility for future investments.

• Focus remains on operational excellence, product innovation, and strategic partnerships to drive sustainable growth.