Rategain Travel Technologies Ltd. · NSE:RATEGAIN
Rategain Travel Technologies — Q3 FY22 Earnings Presentation
52 slides from Rategain Travel Technologies's earnings presentation, Feb 11, 2022
Slide 1: RateGain Travel Technologies Limited
RateGain Travel Technologies Limited (Formally Known as QateGain Travel Technologies Pvt, Ltd.) February 11, 2022 To, National Stock Exchange of India Limited BSE Limited (NSE: RATEGAIN) (BSE: 543417) Subject: Investor Presentation on the Unaudited (Standalone and Consolidated) Financial Results of
Slide 2: Investor Presentation
Investor Presentation Strictly Private and Confidential
Slide 3: RateGain's vision: leading revenue maximization operating system
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: Q3 & 9M FY22 Highlights
Q3 & 9M FY22 Highlights 4
Slide 6: Management Commentary
Management Commentary Bhanu Chopra Tanmaya Das Chairman and Managing Director Chief Financial Officer We are confident about future growth as RateGain reported improvement on all we ended the quarter with a significant of it’s KPIs displaying our commitment increase in new contract wins while of cre
Slide 7: Strong Demand and Stable Existing Revenue Improving Growth and Margins
Strong Demand and Stable Existing Revenue Improving Growth and Margins Q3FY22 57% YoY 9MFY22 44% YoY 9MFY22 REVENUE Adj. EBIDTA 9.7% GROWTH Q3 FY22 215% YoY Adj. PAT 5.4% 9MFY22 131% YoY LTV to CAC 11.3 25% STRONG NEW 9MFY22 MARGIN CONTRACT 9MFY22 Subscription Revenue 75% WINS Net Worth : INR 6,269
Slide 8: Travel and Hospitality Well Positioned For Sustained Growth In FY23
Travel and Hospitality Well Positioned For Sustained Growth In FY23 Revenge Travel to Fully Vaccinated Reduced Impact High Leisure Drive Fast Growth Adult Population of COVID19 Demand 26% 70% Projected CAGR for World’s leading tourism 4X Reduction in impact on 82% Majority of travel is comprised Tra
Slide 9: Well-balanced Portfolio Witnessing Healthy Growth Across All Product Lines
Well-balanced Portfolio Witnessing Healthy Growth Across All Product Lines Martech DaaS Revenue Cont. 34% Revenue Cont. 36% (FY21 14%) (FY21 37%) 136 New Clients added 67 New clients added 97.9% Recurring New Sales Higher than FY20 Revenue 65% Increase in Properties 160% Growth in BI subsc
Slide 10: New Products and Acquisitions to Address Post-COVID Use cases
New Products and Acquisitions to Address Post-COVID Use cases DEMAND AI CONTENT AI New Product targeting all segments in travel An offering targeting mid-market chains that and hospitality industry that Combines airline have little bandwidth in managing content capacity, COVID-19 cases, vaccination,
Slide 11: Detailed Financials
Detailed Financials 10
Slide 12: 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 13: 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 14: Consolidated Profit and Loss
Consolidated Profit and Loss (INR mn) Q3FY22 Q3FY21 YoY Q2FY22 QoQ 9MFY22 9MFY21 YoY Revenue 990.1 629.1 57.4% 847.6 16.8% 2,587.1 1,791.6 44.4% Employee Expenses 507.8 436.7 16.3% 460.2 10.3% 1,436.8 1,084.5 32.5% Other Expenses 389.7 228.5 70.5% 347.7 12.1% 998.4 656.0 52.2% EBIDTA 92.6 -36.1 39.8
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (INR mn) Dec-21 Mar-21 EQUITY AND LIABILITIES (INR mn) Dec-21 Mar-21 Non-Current Assets 2,530.5 1,725.0 Equity and Liabilities 6,269.4 2,449.2 Property, plant and equipment 56.8 79.0 Equity share capital 106.8 8.0 Goodwill 677.3 368.6 Equity attributable to owners o
Slide 16: Use of Funds
Use of Funds Sr. No. Particulars Amount (INR mn) Status Repayment of Debt availed by RateGain UK to Silicon 1 852.61 Repaid in 1st Week of Jan 22 Valley Bank 2 Payment of Deferred Consideration – DHISCO 252.00 Will be repaid in Q4 Strategic Investments, Acquisitions and Inorganic 3 800.00 Not Yet Ut
Slide 17: 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 16
Slide 18: 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 Leading platform to Interoperable Uniquely positioned Strong Financial Clearly demarcated ma
Slide 19: Awards
Awards Hotel Tech Awards 2 Years in a Row Continuous Innovation in HR Strategy 2020 Runner Up in Building Healing Solutions for Asia MOST INNOVATIVE The Most Innovative Startup of 2020 COMPANY Learning Strategy of the Year Award 2019 Deloitte Fast50- 5 times Winner 18
Slide 20: Over 2200 Customers Trust RateGain to Unlock New Revenue Everyday
Over 2200 Customers Trust RateGain to Unlock New Revenue Everyday RateGain provides an end-to-end platform that optimizes the travel acquisition journey to help customers unlock new revenue opportunities everyday 19
Slide 21: 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 22: 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 • Single source provider of social media • Seamless connectivity between • Provide data and information to suppliers management accommoda
Slide 23: Product Lines
Product The user experience and service response on product differentiates RateGain from everyone else Lines Source : The Leela Palace and Resorts Press release issued in 2019 at www.rategain.com 22
Slide 24: Helping Hotels Engage the Tech-Savvy Traveller through Social Media
Helping Hotels Engage the Tech-Savvy Traveller through Social Media Improving Acquisition and Retention through Proprietary Tech Enabled platform that delivers ROI Martech Distribution DaaS Problems Social Media plays an Inability to drive customer Inability to target and engage important role in tr
Slide 25: Powering Hotels Unlock Direct Revenue
Powering Hotels Unlock Direct Revenue Improving Acquisition and Retention from Meta and Demand partners Martech Distribution DaaS In-Direct Acquisition through Demand Partners Meta and Search Channel connectivity for ARI, Market Intelligence CRS P a r i t y or d e m a n d . a i PMS Direct Acquisitio
Slide 26: Helping Hotels and OTAs solve for recovery with our connectivity solutions
Helping Hotels and OTAs solve for recovery with our connectivity solutions Solve for Scale, Agility and showing the best content to convert the tech-savvy traveler anywhere Martech Distribution DaaS Limited Scale DHISCO Switch - Cost-prohibitive to build Connecting hospitality chains direct connecti
Slide 27: Real-time Actionable Insights that help in driving expansion
Real-time Actionable Insights that help in driving expansion Our BI-layer powered by Data Lake plays a critical role in building new inter-operable products Martech Distribution DaaS Problems Understand market position Maintaining consistent prices Implementing the right against competitors and acro
Slide 28: 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 29: Long-Standing Relationships
Long-Standing We want to distribute our hotels correctly and efficiently, and without RateGain we would not only Relationships have a hard time, it would be impossible. Source : Success Story with Archipelago International Hotels, Resorts and Residences released in October 2018 28
Slide 30: Long Term Relationship with Marquee Customers
Long Term Relationship with Marquee Customers Marquee customer base having relationships of over 5 years with 415 + customers Long-standing Relationship with Marquee Customers Growing Customer Base Enterprise Focus1 +1,074 Enterprise 2,264 Others 79% 21% Long-standing relationship of All 1,274 1,337
Slide 31: 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 30
Slide 32: 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 33: 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 34: 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 35: 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 34
Slide 36: Well Placed to Capture Growth across the entire Travel Value Chain
Well Placed to Capture Growth across the entire Travel Value Chain Airline Passenger (Gross Bookings) Global Car Rental (Gross Bookings) (US$bn) (US$bn) 29% 571 14% 53 36 266 2021E 2024E Car 2021E 2024E Airline Rentals Global Hospitality (Gross Bookings) (US$bn) Global Vacation Rental (Gross Booking
Slide 37: 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 38: 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 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 place and having RateGain as a strategic and History 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 \y Annexures
Slide 49: Experienced Management Team
Highly Experienced Board of Directors and Management Team Mr. Bhanu Chopra Ms. Megha Chopra Mr. 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 c
Slide 50: Corporate Social Responsibility (CSR) - Philosophy and Vision
Corporate Social Responsibility (CSR) - Philosophy and Vision Philosophy We, at RateGain, recognize the impact of business on the community per se and the society as a whole. Hence, we believe that it is our responsibility to contribute to society in return for the societal resources that have been
Slide 51: Employee Wellness Programs
Employee Wellness Programs RG Health Plus (DoctorInsta) Established COVID Task-Force • Doctors Consultation • Support & Supplies During COVID • Web & Mobile App • Doctor on Call • Lab Tests • Vaccination Drive • Order medicines • Health Tips Work From Home • Started Work from home for location
Slide 52: 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
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