Thread by @ValueEducator

#RateGain Q3 ConCall Highlights

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1. RateGain is a company that provides SaaS solutions to Hotels, travel agencies and Car rentals.

Numbers Update-
1. The revenue for the Quarter was up by 57.4% YoY stood at 99 cr

2. The EBITDA stood at 10.6 cr and the margins were 10.7%

3. PAT margins was 6.3%

4. RateGain has gross margins of 80%

- The company repaid a loan of 900 million rupees to Silicon Bank

- Revenue per employee stands at 6.91 million per employee which is up by 17% YoY

- My Hotel Shop contributed 20 cr of revenue in Q3

- 22% of the revenues are from transactions

- 99.9% revenues of the company are recurring

Business Updates-

1. Green shoots have been seen by the company in the past couple of quarters, the company expects travel to resume soon in 2022.
2. 96% of the company revenues comes from leisure travel

3. The company added over 182 employees during this quarter, more than 50% of it are women

4. Attrition levels for the company are as same as for any IT company it was more than 20%

5. This quarter had an organic growth of 35% and 22% of inorganic growth.

6. In this Quarter added 778 customers with over 600 customers came in from My Hotel Shop (RateGains latest acquisition in Germany)

7. My Hotel Shop’s revenue to be recognised under the Martech segment.

8. RateGain to maintain its growth by ramping up sales and marketing

9. Company gave discounts to its clients during the pandemic, the OTA business is already at a pre pandemic levels and car rentals will reach that level soon

10. RateGain targets mid tier to high tier luxury hotels

11. Martech has comparatively lower margins than other two business segments.

Business Segments -

1. The Company is divided itself in three segments- Distribution, Martech and DaaS (Data as a Service)

Distribution -

1. Distribution business is the one where the company provides the content i.e. the images and the description on the websites such as booking .com and also changes a fixed cost every transaction.

2. The distribution business saw a dib by 55% due to covid and company expects it will improve going forward

3. Content AI (AI enabled content management) is also seeing traction

Martech -

1. Here the company offers the complete digital marketing package to its customers, It handels social media on behalf of the hotels.

2. Martech comprises of 34% of the revenues and it has grown over 110% YoY

3. My hotel shop revenues to be consolidated under martech

4. The management foresees a good demand in this segment of the business and also investments are being made here

DaaS (Data as a Service)

5. In DaaS business the company helps to find the hotels what the other hotels in same category are pricing and it also gives automated reports

6. DaaS & Martech are asset light business

7. There was growth in volumes seen in this business due to resumed international travel opening up.

8. It boarded one of the largest rental car franchise in the US

Guidance -
The company says martech will do better in the coming years
It gives a guidance to maintain a healthy double digit margins