RateGain turns profitable in Q3FY22 driven by strong growth in new contract wins; Stock sheds 5%

14 Feb 2022 , 01:18 PM

RateGain Travel Technologies Limited, a global provider of SaaS solutions for the hospitality and travel industry, on Friday announced its financial results for Q3FY22 ending on December 31, 2021.

The company turned profitable in Q3FY22 reporting a consolidated profit at Rs0.085 crore driven by strong growth in new contract wins, against a loss of Rs1.89 crore in the previous quarter and loss of Rs11.14 crore in the year-ago period.

Revenue grew by 57% yoy to Rs99 crore during the quarter from Rs63cr as the company added 778 new clients and reported overall 215% growth in new contracts compared to the previous fiscal.

At around 1.20 pm, Rategain Travel Technologies Ltd was trading at Rs354.65 per piece down by Rs19.2 or 5.14% from its previous closing of Rs373.85 per piece on the BSE.

“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 98% and Net Revenue Retention at 120%, which has helped in improving the LTV to CAC ratio, a key SaaS metric that calculates customer life-time value by 32.9% to 11.3 when compared to the previous fiscal,” company said in a filing.

Bhanu Chopra, Founder, RateGain Travel Technologies, said, “The last quarter was characterized by strong growth momentum, new subscriptions and overall business resilience. We are confident about our future growth as we have delivered our biggest quarter in terms of new sales and continued to improve our key performance indicators.”

“The key to our growth is to effectively cater to the new use-cases in the industry, which have emerged in the post-pandemic world. Through our new AI powered products as well as our recent acquisition of myhotelshop, we are looking at expanding both our mindshare and wallet share with our customers”, he added.

Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “Q3 FY22 has been a strong quarter for us and continues to build on the momentum we are witnessing this year. We have registered significant improvement across all our KPIs, which reasserts our commitment of creating value for our investors. Our revenue model remains highly predictable, scalable and resilient. All our business has shown healthy growth with Martech leading the way. Top Line growth and having a high gross margin business; have resulted in margin expansion both at EBIDTA and PAT level in Q3FY22.”

The Martech business unit now contributes to 34% of the revenue; which is a 140% growth when compared to the previous fiscal. New sales are now higher than FY20, which was before the pandemic. The total subscriptions increased by 65% and recurring revenue was at 99.9%.

The DaaS business unit in its airline, hotel and OTA products have registered growth both in subscription and price point volumes in the range of 120%-160%. The recurring revenue for the business continued to remain strong at 97.9%.

The Distribution business unit continued to grow with recurring revenues of 97.9% and continues to enjoy high gross margins of 92%. The company’s strength in this business continues to be its portfolio of large hotel chains and extensive network of both global and regional demand partners and is continuing to focus on connecting new demand partners to all the large chains that are its customers in the United States and Europe.