RateGain Technologies shares fell sharply after the company revised its FY25 revenue growth guidance to 15% YoY, down from the previously projected 20% YoY. The downward revision is attributed to several factors:
- Loss of a significant mid-market hotel client (~4% of revenues) in the MarTech segment due to a merger and acquisition.
- Weaker-than-expected order bookings caused by delayed decision-making among clients.
- Normalization of travel demand in the US market.
- Pricing pressures in large contracts within the Data-as-a-Service (DaaS) segment.
As of 10:47 am, the shares were trading 8.33% lower at ₹765.15 on NSE.
RateGain Travel Technologies Limited (NSE: RATEGain) reported strong financial performance in its Q2 FY25 results, though shares declined over 6% in early trading. The company’s operating revenue rose by 18.1% year-over-year (YoY) to INR 2,772.6 million, with total revenue reaching INR 2,945.8 million, marking a 23.6% increase. EBITDA was up 29.7% at INR 602.2 million, and the profit after tax (PAT) surged by 73.8% to INR 522.1 million.
The company’s positive performance was driven by consistent growth across its Daas, Martech, and Distribution segments, and it achieved an all-time high annual recurring revenue (ARR) of INR 11,090.2 million. However, management revised its FY25 growth guidance down to 15% organic growth, citing the churn of a significant Martech client, representing 4% of revenue, and a slowdown in new contract wins.
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