RateGain Announces Results for Q1FY23; Continues Strong Momentum with 59% Y-o-Y Revenue Growth
Improves Profitability and Margin Growth Y-o-Y By 267% and 103% Respectively
RateGain Travel Technologies Limited (NSE: RATEGAIN), a global provider of SaaS solutions for the hospitality and travel industry, today announced its financial results for Q1FY23 ending on June 30, 2022.
RateGain continues to deliver profitability along with strong growth driven by demand for its digital solutions across the hospitality & travel industry. Expansion of existing marquee relationships across all business verticals and demand for new products drive revenue growth and pipeline momentum.
For the quarter ending June 30, 2022, the company registered a 59% Y-o-Y revenue growth with revenue from operations at INR 1,193 Million compared to INR 749 Million in the corresponding quarter last year.
The company reported strong adjusted EBITDA growth adjusted for ESOP expenses of 103% coming in at INR 124 Million in Q1FY23 over INR 61 Million in Q1FY22. Adjusted EBIDTA margin for the quarter stood at 10.4% compared to 8.1% in the corresponding quarter last year.
Adjusted PAT stood at INR 149 Million in Q1FY23 compared to INR 40 Million in Q1FY22, a growth of 267%. Adjusted PAT margin stood at 12.5% for Q1 FY23.
The company continues to have strong customer relationships that are helping in building predictive, stable, and sustainable revenue streams. Recurring revenues for the quarter stood at 99% and the Annual Recurring Revenue stands at INR 4,772 Million, an increase of 20% over pre-Covid levels. The LTV to CAC for Q1 FY23 was steady Y-o-Y at 8.9x.
Sharing his views on what helped in driving the performance this quarter, Bhanu Chopra, Founder and Chairman, RateGain Travel Technologies, said, “We are seeing a healthy demand for our products on the back of the world travelling again. We continue to deliver sustainable profitable growth resulting in margin expansion from last year coupled with a strong pipeline.
With acceleration in digitization across the industry due to labor shortages, RateGain is well positioned to capture the opportunity and remains focused on building innovative products using AI/ML to help our customers acquire guests, retain them and expand on their wallet share.”
Commenting on the key metrics, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “RateGain goes from strength to strength on the back of another robust Quarterly performance. Strong Revenue growth and margin expansion reflect the business performance in a historically challenging Quarter. Revenue diversification continues with our expanding footprint in Europe. The Global environment uncertainty continues but travel demand remains strong across key geographies reflecting the industry remains on a strong footing.”