Route Mobile, Ltd. · NSE:ROUTE
Route Mobile — Q3 FY2021 Earnings Presentation
31 slides from Route Mobile's earnings presentation, Jan 28, 2021
Slide 1: Cover letter to stock exchanges
Registered Office: Route Mobile Limited 4·• D,mens,on 3' Floor Mind Space 11/alad (West) 11/urnba, - 400 06A India .g, 22 4033 767otn-99 Fax •91 22 4033 7650 1nfo@routemornle com 111'\vw routemoolle com (,IN No U72<J00Mr'2004PLC146323 Ref No: RML/2020-21/43 Date: January 28, 2021 To, The Manager The
Slide 2: Quarterly Update Q3 FY2021
Route Mobile Limited Quarterly Update Q3 FY2021 January 28, 2021
Slide 3: Business Overview
O courerctie communication simplified Business Overview
Slide 4: Company at Glance
Company at Glance Route Mobile is a leading Cloud Communication Platform provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). Our range of enterprise communication services includes smart solutions in A2P Messaging, Voice, Email, and SMS Filtering, Analyt
Slide 5: Route Mobile – A Leading CPaaS Solution Provider
Route Mobile – A Leading CPaaS Solution Provider Systematic approach towards creating sustained growth momentum Strong differentiation created through global reach and comprehensive product 3 4 Strong Industry Recognition capabilities Established Leader In Clearly defined, focused Global CPaaS Space
Slide 6: Systematic roadmap to create sustained growth momentum
Systematic roadmap to create sustained growth momentum 2004 2013 2014 2017 2018 STAGE I STAGE II STAGE III Scale-up of A2P Business Next Gen Offering + + Global Expansion & Telco scale-up Voice & Operator Services Marquee Clients ▶ Boot strapped the company with ₹ 1,00,000 ▶ Successful transition fr
Slide 7: Omni-Channel Digital Communication Platform
Omni-Channel Digital Communication Platform Route Mobile offers reliable, unified digital communication solutions that enable enterprises provide a superior customer experience globally Route Mobile limited 6
Slide 8: Critical role in Digital Communication and Customer Experience Value Chain
Critical role in Digital Communication and Customer Experience Value Chain Route Mobile limited 7
Slide 9: Route Mobile Is An Established Leader In Global CPaaS Space
Route Mobile Is An Established Leader In Global CPaaS Space Disruptors & Emulators Leading Challengers Established Leaders Route Mobile CM.com Infobip Extensive Breadth, Depth Kaleyra Sinch Plivo iMImobile Product and Position Comviva Mid-market or Segment OpenMarket Syniverse focused Soprano Design
Slide 10: Differentiation through Technology Expertise & Geographical Reach
Differentiation through Technology Expertise & Geographical Reach Capacity & Capability Product & Positioning Future Business Size of Operations Experience in CPAAS Geographical Reach Service Innovation Industry Coverage Products High Low Source: Juniper Research, CPAAS Deep Dive Strategy & Competit
Slide 11: Strong Recognition by Industry Experts
Strong Recognition by Industry Experts Identified as an Ranked in Top 6 Tier 1 Vendors The only Asian company Established Leader in in A2P SMS Messaging as per covered in Gartner’s Juniper’s CPaaS Deep ROCCO Consulting report Market Guide for Dive Strategy & thrice CPaaS, October 2020 Competition 20
Slide 12: Key Growth Drivers and Future Growth Strategy
Key Growth Drivers and Future Growth Strategy Key Growth Drivers Growth Strategy Strong industry tailwinds Farm existing customer relations ▶ Accelerated adoption of digital communication ▶ Increase share of wallet from existing customers by solutions by enterprises serving them in larger number of
Slide 13: Investment Proposition - Competitive advantage
Investment Proposition - Competitive advantage Omni-channel Global Scalable delivery Experienced cloud connectivity platform Promoters and communication through supported by leadership team platform established robust provider with relationships infrastructure diversified MNO focused with MNOs Diver
Slide 14: Financial Highlights
Financial Highlights • Q3 FY2021 and 9m FY2021
Slide 15: Q3 FY2021 - Snapshot
Q3 FY2021 - Snapshot Quarterly revenue and profitability 9 months ended December 31, 2020 revenue and profitability 14.7% 12.5% 12.8% 12.5% 11.1% 8.9% 11.9% 10.1% 10.6% Revenue Growth 10.3% Revenue Growth Y-o-Y: 46% Y-o-Y: 52% Sequential: 11% Adj. PAT Growth Adj. PAT Growth Y-o-Y: 30% Y-o-Y: 72% Seq
Slide 16: Financial Highlights Q3 FY2021
Financial Highlights For the Quarter ended December 31, 2020 (Q3 FY2021) ● Closed Q3 FY2021 with revenue from operations(1) of ₹3,899mn compared to ₹3,516mn in Q2 FY2021 and ₹2,662mn in Q3 FY2020 ○ Sequential growth of 11% and Y-o-Y growth of 46% in revenue ● Recorded EBITDA of ₹498mn in Q3 FY2021 c
Slide 17: Financial Highlights 9m FY2021
Financial Highlights For the 9 months ended December 31, 2020 (9m FY2021) ● Closed 9m FY2021 with total revenue from operations of ₹10,511mn compared to ₹6,925mn in 9m FY2020 ○ Y-o-Y growth of 52% in revenue ● Recorded EBITDA of ₹1,315mn in 9m FY2021 compared to ₹769mn in 9m FY2020 ○ Y-o-Y growth of
Slide 18: Growing Number Of Multi-Million Dollar Accounts With Improving Client Diversification
Growing Number Of Multi-Million Dollar Accounts With Improving Client Diversification Clients by Account Size 35 30 30 25 21 20 15 15 11 10 7 3 3 3 4 5 1 2 1 2 - - - - > $15mn > $10mn > $5mn > $1mn FY2018 FY2019 FY2020 FY2021E Client Concentration 100% 88% 81% 82% 80% 61% 60% 54% 54% 54% 43% 44% 48%
Slide 19: Enterprise customers contributing to growth
Enterprise customers contributing to growth Growth trend witnessed in top 15 enterprise customers (based on 9m ended December 31, 2020 revenue) 7,000 Customer CAGR (FY2018-FY2021*) 6,000 Customer 1 248% Customer 2 86% 5,000 Revenue in ₹mn Customer 3 43% 4,000 Customer 4 113% Customer 5 NA 3,000 Cust
Slide 20: Strong recurring revenue
Strong recurring revenue 59% growth in recurring revenue in 9m ended Dec 31, 2020 (annualized) 93% 85% Net revenue(1) retention of 142% Zero Churn in top 50 customers in 9 months ended FY2020 9m ended Dec 31, 2020 December 31, 2020 FY2020 9m ended Dec 31, 2020 Deep Customer engagement driving high r
Slide 21: Top countries (in terms of revenue contribution)
Top countries (in terms of revenue contribution) Top 10 countries (as per 9m FY2021 revenue), in terms of A2P revenue generated by termination of communication 14,000 Country CAGR (FY2018-FY2021*) 12,000 Country 1 (APAC) 48% 10,000 Revenue in ₹mn Country 2 (MEA) 62% 8,000 Country 3 (APAC) 209% 6,000
Slide 22: New Product Revenue Momentum
New Product Revenue Momentum • Pandemic has led to accelerated adoption of next generation messaging channels, including enterprise voice solutions, IP based messaging and unified communication solutions, amongst others, by enterprises Quarterly New Product Sales (₹ mn) 108 89 49 Q1 FY2021 Q2 FY2021
Slide 23: Snapshot – 9 months ended December 31, 2020
Snapshot – 9 months ended December 31, 2020 Revenue and Total Billable Transactions EBITDA and EBITDA Margin 30 14.1% 12.5% 38% revenue CAGR 25 24 10.3% 10.5% 21 5,049 8,454 9,563 10,511 714 871 1,000 1,315 FY2018 FY2019 FY2020 9m FY2021 FY2018 FY2019 FY2020 9m FY2021 Revenue from operations (₹ mn)
Slide 24: Operating Leverage
Operating Leverage EBITDA as % of Gross Profit – Quarterly Analysis EBITDA as % of Gross Profit – 9 month period analysis 64.2% 66.9% 52.2% 62.8% 61.8% Q3 FY2020 Q2 FY2021 Q3 FY2021 9m FY2020 9m FY2021 ▶ EBITDA/Gross profit shows margin excluding MNO charges ▶ Volume growth does not require proporti
Slide 25: Income Statement
Income Statement Quarter ended 9 months ended Year ended Profit & Loss Statement (in INR mn) Y-o-Y growth Dec 31, Mar 31, Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 Dec 31, 2020 2019 2020 Total revenue from operations(1) 3,899 3,516 2,662 46% 10,511 6,925 9,563 Expenses -Purchases of messaging services
Slide 26: Human Resource Capital
Human Resource Capital Location wise break-up1 Function wise break-up1 14 26 Sales 27 97 Technology 28 Tech Support India Firewall 40 International General & Admin Finance & Accounti ng 40 66 Marketi ng 331 Corporate 47 Tenure with Route Mobile Key Developments Key additions at Leadership positions
Slide 27: Annexure
O courerctie communication simplified Annexure
Slide 28: Stock Information
Stock Information Shareholding Pattern (as on December 31, 2020) Stock Data (as on January 27, 2021) (Source – NSE) Market Cap (₹ mn) ₹ 73,406 mn 14% Stock Price ₹ 1,269.65 Promoters 16% Mutual Funds 52 Week (High / Low) ₹ 1,305.00/625.00 FPI NSE / BSE - Symbol ROUTE / 543228 4% 66% Others No. of Sh
Slide 29: Leadership Team
Leadership Team Andy Folwell Elsa Shibu Gautam Badalia Grier Graham Milind Pathak COO - 365squared Vice President & HR Head Chief Strategy Officer (CSO) VP Americas Chief Business Officer Mujahid Rupani Rahul Pandey Ramesh Helaiya Rathindra Das Sammy Mamdani Group CTO - Route Mobile and Chief Credit
Slide 30: Board of Directors
Board of Directors Sandip Gupta Rajdip Gupta Chandrakant Gupta Chairman & Non-Executive Director Managing Director & Group CEO Non-Executive Director Arun Gupta Ramachandran Sivathanu Sudha Navandar Nimesh Salot Independent Director Independent Director Independent Director Independent Director Rout
Slide 31: Thank You
O courerctie communi ication simplified a Thank You cr