Rategain Travel Technologies Ltd. · NSE:RATEGAIN
Rategain Travel Technologies — FY2022 Earnings Presentation
51 slides from Rategain Travel Technologies's earnings presentation, May 17, 2022
Slide 1: Filing cover letter to stock exchanges
May 16, 2022 To, National Stock Exchange of India Limited BSE Limited (NSE: RATEGAIN) (BSE: 543417) Subject: Investor Presentation on the Audited (Standalone and Consolidated) Financial Results of the Company for the Quarter and Year ended March 31, 2022 Dear Sir/Ma’am, Pursuant to Regulation 30 of
Slide 2: Investor Presentation
Investor Presentation Strictly Private and Confidential
Slide 3: RateGain's vision statement
RateGain’s vision is to be the leading revenue maximization operating system which offers an integrated technology stack that enables the travel industry to accelerate their revenue through acquisition, retention and wallet share expansion.
Slide 4: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Rategain Travel Technologies Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 5: Q4 & FY22 Highlights
Q4 & FY22 Highlights 4
Slide 6: Management Commentary
Management Commentary Bhanu Chopra Tanmaya Das Chairman and Managing Director Chief Financial Officer The singular focus of the company last Our strong fundamentals and steady year was to drive growth back to the improvement in key KPIs is a testament pre-pandemic levels and at run rate to our busin
Slide 7: Strong Demand and Stable Existing Revenue Improving Growth and Margins
Strong Demand and Stable Existing Revenue Improving Growth and Margins Q4FY22 INR 1078.8 M 50.6% YoY FY22 INR 3665.9 M 46% YoY REVENUE Adj. PAT Q4 INR 177.8 M GROWTH Q4 FY22 101% YoY Adj. PAT FY22 INR 317.9M FY22 141% YoY 25% IMPROVING NEW PROFITABILITY CONTRACT FY22 Adj EBIDTA Q4 INR 126.2M 66% WIN
Slide 8: Well-Rounded Growth Driven by Expansion of Current Business and Growth in Focus Areas
Well-Rounded Growth Driven by Expansion of Current Business and Growth in Focus Areas INR 606 4,315M Employees Annual Recurring Revenue 6% Lower than Pre-COVID Higher than Pre-COVID Levels by 8% 2,399 Customers 12.9 LTV to CAC 79% YoY Growth INR 22.4% 1,044M Employee Attrition New Contract Wins 141%
Slide 9: Outcome Driven Strategies to Adapt to the New Travel Behaviour
Outcome Driven Strategies to Adapt to the New Travel Behaviour Ease on Travel Restrictions Connect Large Hotel Chains to Increase revenue and gross boosting International Local OTAs and New Emerging margins on distribution Travel leaders Approach Outcome Trends Increasing Energy and Help hotels gene
Slide 10: We Continue to Set New Benchmarks Across All Product Lines
We Continue to Set New Benchmarks Across All Product Lines Martech Distribution DaaS New Clients Added 192 114 147 Recurring Rev. 98.6% 97.2% 97.1% Rev. mix % 33% 38% 29% (FY22) • Largest Subscription Deal of the Year in revAI • Martech division overachieved its annual • 50+ new pairings enabled for
Slide 11: Recognitions and awards in FY22
Driven by showing 360 excellence in FY22 with over 15 recognitions PARTNER RECOGNITIONS INDUSTRY AWARDS INNOVATION & EXCELLENCE SILVER PEOPLE PRACTICE NOTABLE PAST RECOGNITIONS 5 times Winner Most Innovative Recognized for 3 Years in A Row Mid-sized Company Building Healing Solutions 10
Slide 12: Industry Leaders Continue to Choose RateGain to Solve for Revenue Maximization
Industry Leaders Continue to Choose RateGain to Solve for Revenue Maximization DaaS Distribution Martech • One of the World’s Largest Hotel Chain • New OTA Pairings for all Top 5 Hotel • 11 Leading Luxury Brand Properties in using Parity Chains of the world UAE • Caesars Entertainment, Largest Gamin
Slide 13: A 360 Approach to People: Learning, Growth, Wellness and Inclusion
A 360 Approach to People : Learning, Growth, Wellness and Inclusion Building Future Health Career Path Change Opportunity to Product • Doctors Consultation Management • Web & Mobile App • Unique program to improve retention and • Lab Tests provide upskilling opportunity to talent • Order medicines •
Slide 14: Detailed Financials
Detailed Financials 13
Slide 15: Strong Financials and Profitability Metrics
Strong Financials and Profitability Metrics • Strong profitability metrics supported by positive cash generated from operating activities • Ability to drive revenue through multiple products by cross-selling to existing marquee customers Revenue From Contracts with Customers Gross Margins (INR mn) D
Slide 16: Diversified and Recurring Revenue Streams
Diversified and Recurring Revenue Streams • Diversified revenues across offerings, geographies and customers • High recurring revenues with subscription business forming a large part of customer engagement Revenue by Engagement1 Revenue by Travel Type1 Revenue by Geography1 Revenue by Customers1 Sub
Slide 17: Key Financial Metrics for the Quarter
Key Financial Metrics for the Quarter • Staggering growth registered both QoQ and YoY in Revenue, EBIDTA & PAT terms • Margins have been steadily rising as well despite multiple headwinds indicating operational efficiency Revenue Adjusted EBIDTA Adjusted PAT (INRmn) (INRmn) (INRmn) 1,078.8 126.2 177
Slide 18: Key Financial Metrics for the Year
Key Financial Metrics for the Year Revenue, EBIDTA & PAT profile for the year show significant growth, with healthy and constantly improving margins Revenue Adjusted EBIDTA Adjusted PAT (INRmn) (INRmn) (INR mn) 3,665.9 376.8 317.9 2,507.9 236.7 FY2021 FY2022 FY2021 FY2022 -54.8 FY2021 FY2022 EBIDTA
Slide 19: Consolidated Profit and Loss
Consolidated Profit and Loss (INR Mn) Q4FY22 Q4FY21 YoY Q3FY22 QoQ FY22 FY21 YoY Revenue 1,078.8 716.3 50.6% 990.1 9.0% 3,665.9 2,507.9 46.2% Employee Expenses 476.9 428.1 11.4% 507.8 -6.1% 1,913.7 1,512.6 26.5% Other Expenses 448.2 277.7 61.4% 389.7 15.0% 1,446.6 933.7 54.9% EBIDTA 153.6 10.4 1372.
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (INR mn) Mar-22 Mar-21 EQUITY AND LIABILITIES (INR mn) Mar-22 Mar-21 Non-Current Assets 2,528.56 1,725.04 Equity and Liabilities 6,191.53 2,449.21 Property, plant and equipment 65.5 79.02 Equity share capital 107.31 8.03 Goodwill 687.56 368.57 Equity attributable to
Slide 21: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement for Period ended (INR Mn) Mar-22 Mar-21 Profit before tax 108.37 (246.28) Adjustments 435.22 537.25 Operating profit before working capital changes 543.59 290.97 Changes in working capital (342.16) (62.07) Cash generated from operations 201.43 228
Slide 22: Use of Funds
Use of Funds Sr. No. Particulars Amount (INR mn) Status 1 Repayment of Debt availed by RateGain UK to Silicon Valley Bank 852.61 Repaid in 1st Week of Jan 22 2 Payment of Deferred Consideration – DHISCO 252.00 Repaid in Q4 3 Strategic Investments, Acquisitions and Inorganic Growth 800.00 Not Yet Uti
Slide 23: Company Overview
Company RateGain’s high-quality data and extraordinary team support helped us resolve issues and added to the Overview best-in-class experience. Source : Singapore Airlines Customer Success Story Published in October 2021 on www.rategain.com 22
Slide 24: RateGain is well positioned to Help the Industry Embrace this Change
RateGain is well positioned to Help the Industry Embrace this Change India’s Largest SaaS company in the hospitality and travel industry helping the industry to Improve Guest Acquisition with the Power of AI Interoperable Strong Financial Clearly demarcated Uniquely positioned Leading platform to pr
Slide 25: Our innovation DNA has helped us solve new use cases powered by AI
Our innovation DNA has helped us solve new use cases powered by AI An inter-connected suite of AI-powered products to solve critical industry challenges RateGain Goes Public Economic Times Innovation Most Innovative Start-up HSMAI Region EU 2016 - Asia Pac Tech Fast 500 2019 - India Fast 50 Best Tec
Slide 26: Product Lines
Product The user experience and service response on Lines product differentiates RateGain from everyone else Source : The Leela Palace and Resorts Press release issued in 2019 at www.rategain.com 25
Slide 27: How We are Enabling Our Global Clients to Unlock New Revenue
How We are Enabling Our Global Clients to Unlock New Revenue Business Units Aligned to our vision of Acquisition Retention and Expansion Martech Distribution DaaS • End to End Digital Marketing Suite for Mid- sized chains to target both High-intent and • Seamless connectivity between • Provide data
Slide 28: Martech: Improving Margins, Increasing Demand, Providing Control
Martech : Improving Margins, Increasing Demand, Providing Control Social media and Metasearch 24X7 Monitoring and Marketing Automation and Marketing Engagement Analytics Questions we Answer KPI Impacted for Hotels: Direct Bookings and Return on Ad spends Why we Deliver • Combine Demand insights in •
Slide 29: Distribution: Helping Hotels and OTAs Get New Demand Seamlessly
Distribution: Helping Hotels and OTAs Get New Demand Seamlessly Rate and Inventory Conversion Optimization Connect to Online Partners Distribution Questions we Answer KPI Impacted for Hotels: Increase in Online Bookings and TCO Why we Deliver • Which online channels are • Connect to Local and most u
Slide 30: DaaS: Real-time Actionable Insights that Help in Driving Expansion
DaaS: Real-time Actionable Insights that Help in Driving Expansion Competitive Rate Intelligence Rate Parity Revenue Optimization Questions we Answer KPI Impacted for Hotels : Revenue per Available Room, Bookings Why we Deliver • How is my competitor pricing • Analyses Over 6 Billion over the next t
Slide 31: Solving Challenges of Tomorrow, To Drive Recovery Today with AI
Solving Challenges of Tomorrow, To Drive Recovery Today with AI AI-first industry leading products to introduce new product lines using access to enterprise clients Problems Inability to accurately Unable to monetize Inefficient operations gauge demand disruptions demand surges hampering conversions
Slide 32: Long-Relationships with Marquee Customers Driving Growth
Long-Relationships with Marquee Customers Driving Growth Marquee customer base having relationships of over 5 years with 415 + customers Expanding our relationship with Indonesia’s Largest Hotel Chain over Five years 2020-21 Total Account 2017-2019 Value of 550K Renewal of 5 100% renew and yea
Slide 33: Industry Deep Dive
Industry The RateGain team adds expertise and Deep Dive professionalism that make them easy to do business with. Source : Customer Testimonial received from DHISCO customer and included in RateGain Corporate Presentation 32
Slide 34: Travel is Recovering Fast and Strong
Travel is Recovering Fast and Strong Positive Global Outlook & Increasing Vaccinations globally helping industry grow by 26% in the next 5 years Global Travel Bookings to reach US$1.4tn Travel Contribution to GDP to reach c.US$13.1tn2 (US$bn) (US$tn) US Europe APAC Other 1 Direct contribution Total
Slide 35: Social Media emerging as critical acquisition channel driving travel decisions
Social Media emerging as critical acquisition channel driving travel decisions Impulse travel plans influenced by social media are making acquisition difficult with existing systems A new TAM is being Driving Growth in 3rd created in the travel party spends on industry technology 12 57 10% Billion $
Slide 36: Opportunity in the Global Travel Technology Market is Massive
Opportunity in the Global Travel Technology Market is Massive US$11.5bn (CY25E) market opportunity across the travel and hospitality value chain TAM for Global Technology Third Party Spend Excluding Hardware (US$bn) Large and Growing Market Opportunity CAGR 18% 11.5 10.8 • TAM for Global Tech 3rd pa
Slide 37: Key Growth Strategies
Key Growth BCV is a true member of our team. We appreciate so much the level of service, professionalism and Strategies creativity we receive from our account team. Source : Customer Testimonial received from DHISCO customer and included in RateGain Corporate Presentation 36
Slide 38: Investing to Create Innovative AI driven SaaS Solutions
Investing to Create Innovative AI driven SaaS Solutions Focused on developing applications that use data science, artificial intelligence and machine learning In-house incubator, focused on Cross-leverage insights from in-house data developing data and AI driven products lake to make better decision
Slide 39: Clear Roadmap for Future Growth and Profitability
Clear Roadmap for Future Growth and Profitability Focus on MarTech for Scale DaaS and 1 Hospitality and Travel Sector 2 distribution offerings Significant opportunity to expand in US, UAE, Indian Ocean and parts of EU DaaS Customers include some of the largest hospitality chains % of DaaS custom
Slide 40: Clear Roadmap for Future Growth and Profitability
Clear Roadmap for Future Growth and Profitability Unique data assets to create AI Strategic investments & 3 4 acquisition opportunities product offerings (Hotel Distribution Technology company) 2018 Articulate The Problem Aggregate Data Product Launch (Marketing Technology company) 2019 (Reporting,
Slide 41: Focus on MarTech Solutions for the Hospitality and Travel Sector
Focus on MarTech Solutions for the Hospitality and Travel Sector Continue to expand offerings aimed at creating customer value with end-to-end social media management Reputation Social Media Management Advertising Social Media Influencer Social Media Engagement & Expansion of Social Monitoring Manag
Slide 42: M&A Strategy and History
M&A Strategy Our mission is to create a perfect space in every and History place and having RateGain as a strategic partner supports this vision Source : Customer Quote included as part of the approved press release issued by RateGain 41
Slide 43: M&A Alignment - Guidelines
M&A Alignment - Guidelines GUEST ACQUISITION ENTERPRISE • MARKETING • DISTRIBUTION 40,000 Hotels • • REVENUE MGMT. BI GUEST RETENTION MID-MARKET • GDP/CRM • ENGAGEMENT 250,000 Hotels • UPSELL WALLET SHARE EXPANSION LUXURY INDEPENDENTS • ANCILLARY 25,000 Hotels • PERSONALIZATION NORTH AMERICA DAAS 60
Slide 44: Strategic Investment & Inorganic Opportunities to Scale Creating Long-term Value
Strategic Investment & Inorganic Opportunities to Scale Creating Long-term Value Strategic alliance partnerships that complement the growth strategy to enrich offerings, enhance technologies and products and expand customer base (Reporting, bid management & campaign (Hotel Distribution Technology co
Slide 45: Historical Financials
> Rate Historical Financials
Slide 46: Restated Consolidated Profit and Loss
Restated Consolidated Profit and Loss INR mn FY19 FY20 FY21 Revenue Revenue from operations 2,616 3,987 2,508 Other income 111 589 133 Total income 2,727 4,576 2,641 Expenses Employee benefits expense 1,208 2,058 1,513 Finance costs 32 89 82 Depreciation and amortization expense 202 427 359 Impairme
Slide 47: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (INR mn) Mar-21 Mar-20 Mar-19 EQUITY AND LIABILITIES (INR mn) Mar-21 Mar-20 Mar-19 Non-Current Assets 1725.0 2263.5 1173.6 Equity and Liabilities 2449.2 1377.2 1432.3 Property, plant and equipment 79.0 131.1 170.5 Equity share capital 8.0 7.4 7.4 Goodwill 368.6 368.
Slide 48: Annexures
> Rate Annexures
Slide 49: Highly Experienced Management Team with Dedicated P&L Owners
Highly Experienced Management Team with Dedicated P&L Owners Bhanu Chopra Chairman & MD Tanmaya Das Chinmai Sharma Abhineet Sonkar CFO President – Americas Senior VP & GM-DaaS • Previously worked at PwC & Avaya Global • MBA from Institut De Management Hôtelier Intnl. • MBA from IIM Bangalore • 19+ y
Slide 50: A Diverse Board of Directors
A Diverse Board of Directors Management Team with Dedicated P&L Owners Bhanu Chopra Megha Chopra Nishant Kanuru Rao Chairman & MD Executive Director Non-Executive Nominee Director (Avataar) Bachelor’s degree in finance and computer Post graduate diploma in family business Bachelor’s degree in
Slide 51: THANK YOU
THANK YOU Company Investor Relations Advisors CIN: U74140MH2010PTC204285 CIN: L72900DL2012PLC244966 Mr. Thomas P Joshua Mr. Rahul Agarwal / Mr. Aakash Mehta Email: thomas.joshua@rategain.com +91 98214 38864 / +91 98191 78243 rahul.agarwal@sgapl.net / aakash.mehta@sgapl.net www.rategain.com www.sgapl
RateGain Travel Technologies — FY2022 Earnings Presentation on 6ix