Route Mobile (ROUTE) Q4 23/24 earnings summary

Executive summary

• FY23-24 revenue reached ₹40,233mn, up 12.7% YoY; EBITDA was ₹4,949mn and billable transactions totaled 126bn.

• Processed billable activity and customer retention remained strong: net revenue retention was 106%, and recurring revenue was 92% of operating revenue in FY23-24.

Financial highlights

• FY23-24 gross profit was ₹8,605mn vs ₹7,867mn; gross margin was 21.4% vs 22.0% in FY22-23.

• FY23-24 EBITDA was ₹4,949mn vs ₹4,566mn, up 8.4% YoY; non-GAAP EBITDA margin was 12.3% vs 12.8%.

• FY23-24 PAT, excluding specified exceptional items, was ₹3,720mn vs ₹3,331mn, up 11.7% YoY; PAT margin was 9.2% vs 9.3%.

• Q4 FY23-24 revenue was ₹10,170mn, up 0.8% YoY and down 0.7% QoQ; gross profit was ₹2,216mn, up 3.3% YoY and 2.2% QoQ.

• Q4 EBITDA was ₹1,204mn, down 9.4% YoY and 2.9% QoQ; PAT excluding specified exceptional items was ₹934mn, down 10.3% YoY and 5.3% QoQ.

Outlook and guidance

• Proximus, through Proximus Opal, targeted deal closing in May 2024; integration preparation included a phased transition plan ready for implementation after closing.

• Combined CPaaS and Digital Identity initiatives target at least $100mn in third-year exit annual run-rate EBITDA synergies; initiatives include cross-sell, platform consolidation, scale benefits and cost efficiencies.

• Product expansion and emerging-market growth initiatives were positioned to support a longer-term ambition to reach $1bn in revenue.