RateGain Travel Technologies Limited (NSE: RATEGAIN), a global provider of SaaS solutions for the hospitality and travel industry, today announced its financial results for Q4 FY22 and Annual Results for the Year ending March 31st, 2022.
Driven by the reopening of international travel in major travel markets and a surge in travel demand across the world, RateGain registered broad-based growth across all its businesses due to increasing demand for technology-enabled solutions in its key markets, building upon its strong performance previous quarter.
On an annual basis, the company registered a 46% YoY growth in revenue at INR 3665.9 Million in FY22 vis-à-vis INR 2507.9 million in FY21. The company also reported PAT adjusted for amortization on acquisition at INR 317.9 Million and EBITDA adjusted for ESOP and FX costs at INR 376.8 Million for FY22.
For the Quarter ending March 31st, 2022, the company registered a 50.6% YoY growth in revenue at INR 1078.8 Million and strong growth in adjusted PAT at INR 177.8 million, and adjusted EBITDA at INR 126.2 Million.
The growth was driven on the back of new contract wins growing by 141% YoY to INR 1044 Million, and Annual Recurring Revenue going higher than Pre-COVID levels at INR 4315 Million. The company continues to strengthen its enterprise relationships by expanding its wallet share and improving the key SaaS metric of LTV to CAC TO 12.9. Recurring revenues for the year continue to stay strong at 98% with Net Revenue Retention at 114%.
“Our focus last year was to drive growth back to the pre-pandemic levels and at a run rate basis, we have exceeded the same. New Product Innovation, Partnerships, and Strengthening our Technology layer all contributed significantly to this growth. Our goal for FY23 is to build on this momentum and execute to expand our market share. We continue to stay optimistic about our growth and committed to delivering on the promise we have made to our shareholders.” said, Bhanu Chopra, Founder, RateGain Travel Technologies.
Commenting on the key metrics and performance, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said, “The results for Financial Year 2022 are a matter of pride for the entire organization. Our efforts to recover and re-energize the organization are seen across almost all KPIs and are a testament to our culture, our business model, and the commitment of our leadership team. RateGain’s performance showcases how new-age tech companies can drive growth as well as profitability in a tough macro environment. We continue to stay optimistic about the future as the industry goes resilient to ongoing h macroeconomic uncertainty. ”
The Distribution business unit continued to grow with recurring revenues of 97.2%. In FY22, 50+ new pairings between existing supply partners and demand partners helped in driving growth, which included connecting the Top Five Hotel Chains of the world to regional leading OTAs such as Rakuten as well as new emerging OTAs such as Hopper.
The Martech business unit with recurring revenue of 98.6% continues to see considerable demand for its metasearch offering as more hotels try to optimize costs, improve ROI and generate direct revenue through metasearch platforms to reduce the cost of customer acquisition. The immediate focus of the company is to increase penetration of Martech in its existing client base and building the end-to-end digital marketing platform allowing hotels to acquire customers, deliver brand engagement to deliver ROI improve retention and drive wallet share expansion.
The DaaS business unit registered strong growth in its airline and OTA products on the back of acquiring marquee customers as well as expanding volumes with existing customers. We continued to engage leaders across product segments such as Caesars Entertainment in the United States, One of the largest hotel chains in Latin America, One of the Top 10 Airlines in the United States, and others who selected RateGain’s products for real-time and accurate insights. The recurring revenue for the business continued to remain strong at 97.1%.
RateGain’s new AI-powered products revAI, Content AI, and Demand AI launched as part of RGLabs have bagged leaders in their respective segments. Content AI and Demand AI have been selected by one of the largest operators of hotels in Germany and one of the largest hotel chains in Spain respectively. revAI continues to onboard car rental operators to solve the problem of automation and revenue maximization.
The effort of every employee in delivering this successful year was recognized by the industry accolades RateGain received in the year. A total of 15 awards and recognitions were won across all product lines and functions including the top Honors at Hotel Tech Awards, Premier Connectivity and Partner Status with Expedia and Booking.com, Technology Innovation and Customer Excellence at HSMAI Adrian awards as well as Great Place to Work certification amongst many other.
The company’s diversity ratio continued to move forward reaching the 31% mark. The company now has 606 Full-time employees across all of its business units with the revenue per employee at INR 6.91 Million, which increased 17% YoY.