Noida, May 19, 2023: 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 Q4 & FY23 ending on March 31, 2023, reporting record revenues and profitability with robust growth and operational efficiency contributing to higher margins.
In an environment where most technology companies are dealing with both growth and cost pressures, RateGain continues to show robust revenue growth at 54.2% YoY to INR 5,651.3 Mn and substantial improvement in operating margins to 15.0% for FY2023, up from 8.3% in the prior year; on the back of operating leverage playing out and driving cost efficiencies across different businesses.
As the travel industry gets ready to move away from legacy technology and tap into the AI revolution powered by cloud, RateGain, one of the pioneers of AI and cloud technologies in travel and hospitality is emerging as a trusted partner for leading hotel chains and travel brands to leverage AI to transform their existing revenue management, distribution ecosystem as well as drive better outcomes from their marketing efforts.
With the advent of new LLM models and the increasing demand for hyper-personalization, travel and hospitality brands would need more data than ever before to deliver a seamless experience while controlling costs and improving ROI on their marketing and distribution efforts.
RateGain is well-positioned to capture this opportunity with over 370 billion data points consisting of travel intent, searches, and rate updates across 700+ partners including leading hotel chains, OTAs, airlines, and car rentals. The variety, volume, and scale of data processing as well as its reliable technology with up to 99.9% uptime makes RateGain ready to help the travel and hospitality industry leverage AI with accurate insights and unlock new revenue through seamless guest acquisition, retention, and wallet share expansion.
The company’s ability to innovate and consistently drive outcomes at scale for customers has helped in recording new contract wins of INR 1,308.0 Mn in FY2023 and has a healthy pipeline of INR 3,810.2 Mn as it goes into the new year.
For Q4FY23, the quarter ending March 31, 2023, compared to the same quarter last year the company reported:
- Operating Revenue at INR 1,829.3 Mn v/s INR 1,078.8 Mn (+ 69.6% YoY)
- EBITDA at INR 322.1 Mn v/s INR 153.6 Mn (+109.7% YoY)
- PAT at INR 337.9 Mn v/s INR 116.1 Mn (+ 191.0 YoY)
- EBITDA margin at 17.6% v/s 14.2/li>
- PAT margin at 18.5% v/s 10.8%
For FY23 compared to the same period last year, the company reported:
- Operating Revenue at INR 5,651.3 Mn v/s INR 3,665.9 Mn (+ 54.2% YoY)
- EBIDTA at INR 845.6 Mn v/s INR 305.6 Mn (+177.0% YoY)
- PAT at INR 684.0 Mn v/s PAT of INR 84.2 Mn (8.1x YoY)
- EBIDTA margin at 15.0% v/s 8.3%
- PAT margin at 12.1% v/s 2.3%
The company continues to have strong customer relationships that are helping in building predictive, stable and sustainable revenue streams. The Annual Recurring Revenue stands at an all-time high of INR 7,745.1 Mn and the LTV to CAC for FY23 came in at 21.3x which is 7x higher than the benchmark for SaaS companies.
Sharing his views on what helped in driving the performance this quarter, Bhanu Chopra, Founder and Chairman, RateGain Travel Technologies, said, “As we complete our first full year of listing, I would like to commend and congratulate the entire RateGain family on a record year. We continue to use AI capabilities to advance our mission of building an integrated tech stack that allows our customers to acquire guests, engage & retain them and have a wallet share expansion. The travel industry continues to witness strong demand across key geographies, we are well positioned to capture and partner with our clients to deliver innovative solutions to optimize their revenue strategy. With continued momentum across all business lines along and our continued investments into RG Labs specially in areas of AI and now Generative AI — we continue to lead digitization of the industry”
Commenting on the key metrics, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, It has been a standout year for the company in terms of performance across all key areas contributing to record revenue with commendable margin improvement. This is a validation of the underlying business fundamentals and the value we continue to drive for our customers. We witnessed balanced growth across our three verticals with an improvement across all key metrics contributing to a stellar year, which is a true reflection of the efforts of the entire team. Adara integration continues on track, and we are pleased with this new addition to the RateGain ecosystem. With a strong pipeline across verticals, we are well positioned to deliver value to our customers and stakeholders.”
The company continues to add to its headcount and saw a 17.7% increase YoY with a total headcount of 713. With the expansion of the headcount, the company has also been able to reduce its attrition rate which currently stands at 21.1% by leveraging unique upskilling and learning programs to create new opportunities for existing employees.
RateGain also ended the year on a high by increasing its award tally to 13 for the year, being recognized across its people, products, and marketing practices. RateGain was recognized by SaaSBOMi, the leading community of SaaS founders in India as the SaaS Startup of the Year, as well as received recognition by Entrepreneuer.com for its founder, Bhanu Chopra as Founder of the Year.
RateGain Travel Technologies Limited is a global provider of SaaS solutions for travel and hospitality that works with 2800+ 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 Top 23 of 30 Hotel Chains, Top 25 of 30 Online Travel Agents and all the top car rentals including 8 Global Fortune 500 companies in unlocking new revenue every day. For more information, please visit rategain.com.
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.