Route Mobile (ROUTE) Q1 24/25 earnings summary

Executive summary

• Achieved industry-leading revenue growth of 14% year-over-year and 8.5% sequentially, reaching the highest-ever quarterly revenue, driven by international strategy and integration with Proximus Group.

• Proximus Opal completed acquisition of an 83.1% stake, positioning the group as a global CPaaS leader and enabling entry into mature markets.

• Significant market share gains in India, including becoming the largest enabler of WhatsApp-based ticketing for metros.

• Largest firewall deal with Vodafone Idea went live in April 2024, resolving initial issues within the month.

• Recognized as a niche player in the Gartner Magic Quadrant for CPaaS 2024.

• Approved unaudited standalone and consolidated financial results for Q1 FY25, with board and audit committee review.

Financial highlights

• Revenue from operations for Q1 FY25 reached ₹1,103.42 crore (₹11,034 million), up 14% YoY and 8.5% sequentially.

• EBITDA for Q1 FY25 was ₹1,379 million, with a margin of 12.5%.

• PAT for Q1 FY25 was ₹931 million, with a PAT margin of 8.4%.

• Processed over 37 billion billable transactions in Q1 FY25, the highest to date.

• EPS for Q1 FY25 stood at ₹12.51.

Outlook and guidance

• FY25 revenue growth expected in the 18%-22% range, with approximately 13% EBITDA margin.

• Free cash generation and cash conversion from EBITDA projected at 50%-75%.

• Dividend payout ratio to remain up to 20% of consolidated PAT for FY25.

• Guidance incorporates current run-rate synergies with TeleSign and Proximus; further upside possible as new deals materialize.

• Aspiration to reach $1 billion revenue in 2-3 years remains intact, supported by large deals and group synergies.