RateGain Travel Technologies (RATEGAIN) Q4 22/23 earnings summary

Executive summary

• FY 2022-23 revenue rose 54.2% YoY to ₹5,651.3 million; EBITDA increased 177.0% to ₹846.5 million, with operating margin expanding to 15.0%.

• Annual recurring revenue reached ₹7,745.1 million; new contract wins were ₹1,308.0 million, up 25.3% YoY, and the pipeline was ₹3,810.2 million.

• Adara was acquired in January 2023, expanding travel-intent data and Martech capabilities; the integration contributed to EBITDA-positive performance in Q4 FY 2022-23.

Financial highlights

• Consolidated revenue was ₹5,651.28 million versus ₹3,665.91 million in FY 2021-22; EBITDA was ₹846.51 million versus ₹305.55 million.

• Consolidated PAT rose to ₹684.01 million from ₹84.19 million; basic EPS increased to ₹6.33 from ₹0.84 and diluted EPS to ₹6.29 from ₹0.83.

• Adjusted PAT was ₹973.5 million with a 17.2% margin in the KPI presentation; reported EBITDA margin was 15.0%, up from 8.3%.

• Operating cash flow reached ₹519.18 million versus ₹168.05 million; cash and cash equivalents were ₹999.30 million at March 31, 2023.

• Consolidated total income was ₹5,850.60 million; profit before tax was ₹672.58 million, compared with ₹108.37 million in FY 2021-22.

Outlook and guidance

• The stated ambition is to double revenue in three years, supported by investment in talent, product capabilities, cross-selling and geographic expansion.

• Adara’s near-term objective is to restore revenue and customers toward its pre-COVID revenue level of US$100 million, with calibrated sales, marketing and hiring investment.

• Growth plans include scaling DaaS and Distribution, expanding RateHub connectivity, moving the DHISCO platform to AWS and modernizing push connectivity and product self-service.

• Industry demand outlook remained favorable: international trips were projected to grow 50% in 2023, while global travel technology demand was forecast to expand at an 8% CAGR through 2033.