Yes Twilio might have acquired something that Route was after. I believe there could be one more on the cards.
2 Likes
The Pie is quite big and growing.
1 Like
same players make the market huge & competitive, that will create a gateway for new trend & pull those stock ahead
Some not so good news.
Not sure what impact this will have on RM’s credibility (if at all…)
A quick response from the RM legal team !
Disc : Invested
2 Likes
Route Mobile acquires Phonon Communications
3 Likes
In future, will companies send the OTP and other information over Whatsapp. One of the portal offered me to send details over whatsapp instead of SMS.
If WhatsApp becomes mainstream communication channel for companies, will it affect route mobile revenue?
Does route mobile provides support for whatsapp business
2 Likes
Even if OTP’s are not sent thru whatsapp, chains like barbecue nation and even cred send notifications to whatsapp. Route mobile provides omnichannel API so yes their services will be available to brands targeting customers thru whatsapp or viber. If OTP’s are sent thru whatsapp then it would lead to margin expansion as route has to pay part of the revenue to telecom providers when otp is sent thru SMS
They are already providing WBS (Whatsapp Business Solution) for some clients like Gulf Oil, Kotak, etc. In fact WBS, Viber, etc being value added services facilitating interactive communication, offer them better margins as well.
Virtual contact centre, conversational AI were the missing elements in their product suite. Phonon has a good presence in Virtual Contact Centre - 1.82 bn+ calls . Not so much in messaging (845 mn messages). Source - https://www.phonon.io/#phonon
Strong presence in Aviation (4 of top 5 airlines as clients) & BFSI. Will be interesting to know from management how much overlap is there in clientele… I believe there would be enough scope for cross sell and upsell.
Company has reported growth of 35-40% from FY 18 to FY 20. 29 cr seems to be a decent deal. They had earmarked 83 cr from IPO proceeds for acquisitions. So there is some leeway for 1 more acquisition , I believe. (which the mgmt. had also indicated in the past)
Disc: Invested
8 Likes
Route mobile has now been added to MSCI Smallcap Index
2 Likes
John Owen, the erstwhile Mastek CEO has joined RML as the group CEO for Europe & Americas. John brings a stellar track record and this appears to be a great addition to the leadership team.
Including announcement.
2 Likes
The appointment of a seasoned CEO dedicated for Europe and NA operations demonstrates the strong intent of management ( I recall they did commit to address the developed markets in the coming quarters).
Also in the recent Monitoring report,they have disclosed cash in books to be around 30 crores ( i.e Even after acquisition of phonon)
They are also yet to utilize the 65 crores for the new office facility. RM being a debt free company has significant headroom to punch above its weight IF it wants to make an overseas acquisition…
The new CEO talks about transforming RM from an Indian success story to a global one.
Would be very interesting to see how they go about this given they have some decent cash in their kitty!
4 Likes
They had also announced a 20 million pound investment in UK creating 50 jobs recently, and now the appointment.
They seem determined in their foray into the west.
3 Likes
Internet companies (Google, etc) and social media companies that they service across multiple countries - billing happens in UK. Has to be read in that lens
2 Likes
Route Mobile-Earnings Con Call Q4FY21
(1180) ROUTE Stock | Route Mobile Ltd Q4 FY21 Earnings Call - YouTube
3 Likes
Whatever Route had guided for FY21 it has beaten.
For FY22 the company has guided for 20% revenue growth. I personally think growth can be higher closer to 25%.
EBIDTA Margins could also also expand 100bps as they have passed through DLT charges in 4QFY21 (apparent from 4Q margins expansion).
This could lead to 28-30% EPS growth in FY22
2 Likes
Route Mobile Q4FY21 Earnings Call Transcript
