RateGain Travel Technologies Limited a global provider of AI-powered SaaS solutions for the hospitality and travel industry, today announced its financial results for Q1 FY24 ending on June 30, 2023, reporting robust revenue growth and improving profitability as the companies continue to build on a record year last year.
RateGain continues to witness strong revenue growth 79.8% YoY to INR 2,144.8 Mn and substantial improvement in operating margins to 17.6% for Q1FY24, up from 10.0% in the same period last year: on the back of operating leverage playing out with improved operating metrics driving performance across different verticals.
The revenue maximization solutions provided by the company continue to find favour with its key clients across the travel and hospitality space, who are looking to drive digitization to provide their guests with a better omnichannel experience, drive efficiencies and optimize their revenue.
In the backdrop of an evolving global environment, the travel demand continues to hold strong and this will further propel investments in the space as RateGain also looks to capitalise on the opportunity and double its revenue in the next three years.
As companies look to adopt AI, one of the constraints that limit them is the cost of developing any solution at scale as well as getting accurate data to ensure the results provided are useful for their internal as well as external stakeholders. RateGain’s ability to provide this at scale in real-time across pricing and travel intent is helping generate interest in its offerings for digital marketing and competitor intelligence.
The company continues to deepen relationships with existing clients and add new logos, helping it grow its new contract wins by 3.1x to INR 593.2 Mn. With the recent investments into expanding its sales teams and presence in key geographies, the company has a healthy pipeline of INR 3,612.8 Mn and is focused to drive value for its customers.
For Q1FY24, the quarter ending June 30, 2023, compared to the same quarter last year the company reported:
- Operating Revenue at INR 2,144.8 Mn v/s INR 1,193.0 Mn (+ 79.8% YoY)
- Total Revenue at INR 2,204.6 Mn v/s INR 1,270.5 Mn (+ 73.5% YoY)
- EBITDA at INR 377.9 Mn v/s INR 119.3 Mn (+ 216.8% YoY)
- PAT at INR 249.1 Mn v/s INR 84.2 Mn (+ 195.8 YoY)
- EBITDA margin at 17.6% v/s 10.0%
- PAT margin at 11.6% v/s 7.1%
The company continues to outperform on key operating metrics when benchmarked against other SaaS companies, the LTV to CAC for Q1FY24 came in at 13.4x and the Revenue per Employee stood at INR 11.8 Mn highlighting healthy productivity. The Annual recurring revenue for RateGain stands at all time high of INR 8,579.1 Mn
Sharing his views on what helped in driving the performance this quarter, Bhanu Chopra, Founder and Chairman, RateGain Travel Technologies, said, “We saw another great quarter with tremendous growth basis addition of new clients and expansion within our key accounts. With people’s attitudes changing towards having more experiences, travel industry at macro level continues to witness robust demand.
RateGain is at the forefront of digitizing this industry and in a great place to capitalize on the tailwinds our industry is witnessing. We are now focusing on our next big goal of doubling revenues in the next three years as we continue to witness robust traction with key clients and add new logos to propel our future growth. We have already started building the organization we need to accelerate RateGain towards that goal and are excited about the future.”
With a key focus on expanding its business further in the Americas region and penetrating further into large enterprises, RateGain also announced the appointment of Peter Strebel, the Ex-Chairman and CEO of Omni Hotels as well as Ex-CEO of Wyndham Hotels with over 30 years of industry experience as the new President of Americas to lead RateGain’s DaaS, Distribution and Martech offerings for the region.
Commenting on the key metrics, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “Our focus of driving deeper relationships with enterprises has helped us deliver strong revenue growth with healthy margin expansion in a seasonally soft quarter. With operating leverage playing out and cost optimization measures starting to bear fruit, we continue to build on the path of sustainable growth.
Adara continues to build on its momentum and delivered a strong quarter across growth and margins, underlining the strength of the platform. Our inorganic growth approach continues to be a key pillar of our growth strategy as we focus to build a comprehensive revenue maximization solution to further our goal of doubling revenue in the next three years.“
The company continues to add to its headcount with a global team of 727. RateGain is focused on building a sustainable workplace environment that promotes employee development, inclusivity and diversity. The above combination has enabled the company to reduce its attrition rate to 17.7%. In line with the above, RateGain was recognized by Comparably as the Best Company for Diversity and Career Growth.