Noida, India, August 12, 2024: RateGain Travel Technologies Limited (NSE: RATEGAIN), a global provider of AI-powered SaaS solutions for the hospitality and travel industry, today announced its financial results for Q1 FY2025 ending on June 30, 2024. RateGain has started FY25 on a steady note with healthy growth and improving profitability, continuing the momentum from last year’s achievements.
RateGain’s revenue grew by 21.2% YoY to INR 2,600.1 Mn, while operating margins increased from 17.6% to 19.1% in Q1FY25. PAT saw a substantial increase of 82.2% YoY, at INR 453.8 million compared to INR 249.1 million last year. Increased traction across long-standing marquee relationships, operational excellence and focused sales & marketing efforts continue to drive revenue growth, margin expansion and pipeline momentum.
For Q1 FY25, compared to the same quarter last year, the company reported:
- Operating Revenue of INR 2,600.1 Mn v/s INR 2,144.8 Mn (+ 21.2% YoY)
- Total Revenue at INR 2,782.8 Mn v/s INR 2,204.6 Mn (+ 26.2% YoY)
- EBITDA at INR 497.7 Mn v/s INR 377.9 Mn (+ 31.7% YoY)
- PAT at INR 453.8 Mn v/s INR 249.1 Mn (+ 82.2% YoY)
- EBITDA margin at 19.1% v/s 17.6%
- PAT margin at 17.5% v/s 11.6%
The company’s revenue maximization tools are highly valued by clients in the travel and hospitality sectors, who seek to enhance digitization for better omnichannel experiences to attract customers, drive operational efficiencies, and revenue optimization. With steady global travel demand, RateGain is well positioned to capitalize on this opportunity and has a healthy pipeline of INR 5,553.1 Mn.
The company continues to outperform on key operating metrics when benchmarked against other SaaS companies, the LTV to CAC for Q1FY25 came in at 15.7x and the Revenue per Employee stood at INR 13.0 Mn, highlighting healthy productivity. The Annual recurring revenue for RateGain stands at all time high of INR 10,400.4 Mn.
Sharing his views on the results, Bhanu Chopra, Founder and Chairman, RateGain Travel Technologies, said, “We have had a steady start to FY25 with balanced performance, consolidating our position from a record year gone by. Aligned with our vision of building an integrated tech stack focused on revenue maximization, leading brands across the industry continue to choose RateGain’s products to acquire more customers profitably.
Our capability to deliver at scale coupled with product innovations aimed at driving more value for our customers is helping us deepen presence across our long-standing relationships along with opening up new use cases for our AI driven solutions.
While the travel industry remains steady, we are mindful of the growing global uncertainties and are confident that our resilient business model and adaptive approach will help navigate these challenges.”
Commenting on the key metrics, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “We have delivered strong operating performance with a 150 bps improvement in our EBITDA margins YoY, even with the usual impact of annual wage increments in this quarter. This validates our efforts towards operational excellence coupled with a focused approach, we continue to see steady performance across key operating metrics.
Our land and expand strategy continue to give good results with healthy revenue growth across our key customers.
We remain focused on making the right investments in product, inorganic opportunities and talent to strengthen our return ratios and create long term value for all stakeholders.”
With a global team of 801, RateGain is committed to creating a workplace where every employee feels valued and empowered to achieve their best. The company’s attrition rate is at a record low of 10.9%, and it has been recognized for the first time as one of the Top 100 Mid-Size Workplaces in India by Great Place to Work® India for its unwavering commitment to encouraging a positive, inclusive, and employee first workplace.
About RateGain
RateGain Travel Technologies Limited is a global provider of AI-powered SaaS solutions for travel and hospitality that works with 3,200+ customers and 700+ partners in 100+ countries helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.
RateGain today is one of the world’s largest processors of electronic transactions, price points, and travel intent data helping revenue management, distribution and marketing teams across hotels, airlines, meta-search companies, package providers, car rentals, travel management companies, cruises and ferries drive better outcomes for their business. Founded in 2004 and headquartered in India, today RateGain works with 26 of the Top 30 Hotel Chains, 25 of the Top 30 Online Travel Agents, 4 of the Top 5 Airlines, and all the top car rentals, including 16 Global Fortune 500 companies in unlocking new revenue every day. For more information, please visit www.rategain.com
Forward-looking Statements
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential, and target dates for project-related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.
Media Contacts
Aastha Khurana
media@rategain.com
Director-Corporate Communications
