Rategain - Fast Growing SaaS Leader

Rategain FY2024 – (concall notes and my own extrapolation).
Filing: https://www.bseindia.com/xml-data/corpfiling/AttachLive/4fafbaa9-4bae-4b3c-8221-b7e9c18d3096.pdf

  1. Revenue growth for FY24 revised to 69% vs. earlier guidance of 65%. Margin for FY24 is guided at 19.5%.
  2. FY25-FY27 – goal is to double revenue from ~1000 crores in FY24 to 2000 crores in FY27. So, revenue guidance is 26% CAGR for next three years. EBITDA margin is likely to be 25% when revenues reach 2000 crores.
  3. Daas weak – 12% growth. Large contract signed last year, this quarter only half of the quarter reflected that. So in coming quarter full impact of the same should be visible.
  4. 1000 crore cash on balance sheet – in active conversation on M&A. goal is to become integrated provider. Pricing is not correct for acquisition.
  5. Revmax platform- good momentum going from last two months. May be a game changer in next two quarters. Rev booster?
  6. Adara is 18% EBITDA margin business from losses before acquisition by Rategain.
  7. Organic revenue growth is ~30%, Adara grew 63%.
  8. Tax rate is likely to be 20-22%.

Q4FY24 based on my calculation: Q4FY24 is likely to have revenue of ~260 crores and EBITDA of 52 crores. Management has been conservative in giving the guidance in the previous quarters.
Below is my rough calculation on how 3-years will look (number are in crores other than %)

Disclosure: own it and transacted in last 30 days. I am trimming as its now over 15% of my position.
Disclaimer: I am not a financial advisor and nor a SEBI registered Analyst. The content shared here is only for learning purpose. All the names mentioned here are for example purpose. I may buy more, exit or partly sell the stock/bonds without any prior intimation.

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