RateGain announces results for Q2 & H1FY25

RateGain a global provider of AI-powered SaaS solutions for the hospitality and travel industry, announced its Q2 & H1FY25 financial results ending on September 30, 2024. RateGain delivered broad based revenue growth with strong margin expansion contributing to improved profitability, capturing the inherent strength of the SaaS-based model.

RateGain’s recorded revenue growth of 18.1% YoY to INR 2,772.6 Mn for Q2FY25, with steady growth across all three segments. Operating margins increased from 19.8% in Q2FY24 to 21.7% in Q2FY25, with a continued focus on sustainable growth and operating leverage playing out. Profit after Tax grew by 73.8% YoY, coming in at INR 522.1 million compared to INR 300.4 million last year.

For Q2 FY25, compared to the same quarter last year, the company reported:

• Operating Revenue of INR 2,772.6 Mn v/s INR 2,347.2 Mn (+ 18.1% YoY)

• Total Revenue at INR 2,945.8 Mn v/s INR 2,383.8 Mn (+ 23.6% YoY)

• EBITDA at INR 602.2 Mn v/s INR 464.2 Mn (+ 29.7% YoY)

• PAT at INR 522.1 Mn v/s INR 300.4 Mn (+ 73.8% YoY)

• EBITDA margin at 21.7% v/s 19.8%

• PAT margin at 18.8% v/s 12.8%

For H1 FY25 compared to the same period last year, the company reported:

• Operating Revenue of INR 5,372.7 Mn v/s INR 4,492.0 Mn (+ 19.6% YoY)

• Total Revenue at INR 5,728.7 Mn v/s INR 4,588.4 Mn (+ 24.9% YoY)

• EBITDA at INR 1,100.0 Mn v/s INR 842.1 Mn (+ 30.6% YoY)

• PAT at INR 975.8 Mn v/s INR 549.5 Mn (+ 77.6% YoY)

• EBITDA margin at 20.5% v/s 18.7%

• PAT margin at 18.2% v/s 12.2%

Driven by changes in consumer behavior and an evolving landscape, the industry’s need for data and insights continues to increase to achieve higher profitability, enhance returns from marketing campaigns, and boost productivity through AI. Given this backdrop, technology spending is expected to hold steady as demand for user-friendly, AI-powered solutions continues to grow across all industry segments.

RateGain continues to focus on customer excellence and meeting this demand of the industry through strategic investments and partnerships contributing to a healthy pipeline of INR 4,691.0 Mn.

Operationally, the company posted a LTV-to-CAC ratio of 15.1x and Revenue per Employee at INR 13.4 Mn, indicating high productivity. RateGain’s Annual Recurring Revenue reached an all-time high of INR 11,090.2 Mn. The company witnessed improved revenue diversification with well balanced growth across key geographies and top 10 customers contributing to 28.6% of total revenue in H1FY25.

Sharing his views on the results, Bhanu Chopra, Founder and Chairman, RateGain Travel Technologies, said:  “We continue to show resilience and consolidate our position as the leading technology partner for marquee brands, in an evolving market. Solutions that drive profitability and deliver better returns are a key priority for the industry and RateGain continues to be the preferred choice for industry leaders to achieve their goals.

We are committed to deliver customer excellence and sharpen our focus on growth through product, GTM innovation as well as strategic partnerships that will yield results in the future and help RateGain gain a strong foothold in new markets.”

Commenting on the key metrics, Tanmaya Das, Chief Financial Officer, RateGain Travel Technologies, said: “We are pleased to report a healthy operating performance for Q2, marked by a steady well-rounded growth and robust operating margin expansion of 190 bps YoY. This demonstrates the strength of our SaaS based business model with its resilient and predictable revenue streams. We maintain a focus on operational excellence while investing strategically to drive sustainable value for our customers and stakeholders. This balanced approach enables us to deliver strong results and build a solid foundation for long-term success.”

RateGain’s global workforce now numbers 830 team members, reflecting the company’s commitment to a sustainable, inclusive, and development-focused workplace that has contributed to a reduced attrition rate of 10.3%.