During Tuesday’s trading session, the shares of a global provider of AI-powered SaaS solutions for the travel and hospitality industry moved down by nearly 9.3 percent, following the company’s second revenue guidance reduction for the current financial year.
Stock Performance
With a market capitalisation of Rs. 5,769 crores, the shares of RateGain Travel Technologies Limited hit a new 52-week low at Rs. 488, down by 9.3 percent, as against its previous closing price of Rs. 538.1.
The stock has delivered negative returns of nearly 41 percent in the last six months, as well as around 31 percent returns in the last one month.
What’s the News
In its latest earnings call, RateGain Travel Technologies Limited revised its revenue guidance for the second time in FY25.
The company has updated its revenue growth forecast for FY25 to 12-13 percent, down from the previously set target of 15 percent, marking a second downward adjustment from the original 20 percent projection.
The revision was attributed to delays in deals and cautious spending by enterprises, particularly in the US and European markets.
Additionally, the company expects challenges in Q4, forecasting single-digit growth for the final quarter of FY25 due to extended decision-making cycles and a slowdown in discretionary spending.
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Financials
RateGain reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 10.6 percent, from Rs. 252 crores in Q3 FY24 to Rs. 278.7 crores in Q3 FY25, with steady growth across Martech & DaaS segments.
Similarly, its net profit increased during the same period from Rs. 40.4 crores to Rs. 56.5 crores, representing a growth of nearly 40 percent YoY.
About the company
Founded in 2004, RateGain Travel Technologies Limited is a leading global provider of Software as a Service (SaaS) solutions for the travel and hospitality sectors, as well as one of the world’s leading processors of electronic transactions and pricing data for the travel and hospitality industries.
The company offers advanced tools that help companies in various sectors – including hotels, airlines, car rentals, online travel agents (OTAs), destination management organizations (DMOs), vacation rentals, travel management companies, and package providers – optimize revenue generation through customer acquisition, retention, and wallet share expansion.
Written by Shivani Singh
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