ROUTE MOBILE LIMITED has informed the Exchange about Investor Presentation
Ref No: RML/2023-24/359
Date: May 19, 2023
To, BSE Limited Scrip Code: 543228
Dear Sir/Madam,
National Stock Exchange of India Limited
NSE Symbol: ROUTE
Sub: Investor Presentation
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we are enclosing herewith the Investor Presentation, that will be presented today to the Analysts in connection with the Audited Financial Results of the Company for the quarter and year ended March 31, 2023
You are requested to take the above information on record.
Thanking you, Yours truly, For Route Mobile Limited
_________________________________________________________________________ Rathindra Das Group Head Legal, Company Secretary & Compliance Officer Membership No: A24421
Encl: as above
Earnings Update Q4 22-23 & FY 22-23
Investor Presentation May 19, 2023
Safe Harbor
Certain statements mentioned in this presentation concerning our future growth prospects are forward looking statements
(the “Forward Statements”) and are based on reasonable expectations of the management, which involves a number of
risks, and uncertainties that could cause actual results to differ materially from those in such Forward Statements. The risks
and uncertainties relating to these Forward Statements include, but are not limited to, risks and uncertainties regarding
fluctuations in our earnings, fluctuations in foreign exchange rates, revenue and profits, our ability to generate and manage
growth, competition in CPaaS globally, wage increases in India, our ability to attract and retain highly skilled professionals,
time and cost overruns on fixed-price and fixed time frame contracts, industry segment concentration, our ability to
manage our international operations, our revenues being highly dependent on clients in the United States of America,
reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our
ability to successfully complete and integrate potential acquisitions,
liability for damages on our service contracts,
withdrawal of fiscal governmental incentives, political instability, adverse impact of global pandemics (including COVID-19
impact), war, legal restrictions on raising capital or acquiring companies, unauthorized use of our intellectual property(ies)
and general economic conditions affecting our businesses and industry. We may, from time to time, make additional
written and oral Forward Statements . We do not undertake to update any Forward Statements that may be made from
time to time by us or on our behalf, unless required under the law.
2
Route Mobile - Industry Leading Global CPaaS Platform
RML offers a scalable and flexible Omnichannel CPaaS platform to enterprises across industry verticals, globally
280+ direct MNO connects, overall access to 900+ MNOs (Super Network)
Global footprint across 20+ locations; 3,000+ active billable clients
Strong industry tailwinds: Global CPaaS market will grow to $42.9bn in 2027, from $16.6bn in 2022 (1)
₹35,692mn FY 22-23 Revenue 55% Revenue CAGR FY 2020 - FY 2023
₹4,566mn FY 22-23 EBITDA 66% EBITDA CAGR FY 2020 – FY 2023
Infrastructure comprising 19 data centers and 6 SMSCs globally
124% Net revenue retention in FY 22-23
ESG leader, rated “A” by a reputed ESG
rating agency
₹8,799mn Cash and Cash equivalent ₹7,737mn Net Cash as on Mar 31, 2023
Recognized as “Established Leader” – Juniper, “Top Tier 1 A2P SMS vendor” – Rocco, “Representative Vendor” - Gartner for CPaaS
₹52.3 Earning Per Share (EPS) in FY 22-23 ₹2 per share final dividend proposed, in addition to interim dividend of ₹9 per share paid ₹1,200mn Buyback completed in FY 22-23
(1) Juniper - CPaaS Future Market Outlook, 2023
3
Systematic roadmap to create sustained growth momentum
Won 2 Golds in Juniper Research Award for CPaaS Provider of the Year & Best SMS Firewall
Buyback of ₹1,200mn completed
Entered lucrative North American market
Successfully listed on Indian Stock Exchanges
Successful transition from an aggregator model to a direct enterprise model
On boarded marquee clients across industry verticals including new age tech, banking & financial services and travel and transport, amongst others
Developed Next Gen services like RBM and OTT messaging
Became hubbing partners with top telecom operators globally
Full messaging technology stack through TeleDNA acquisition
Expanded product portfolio and geographic presence through acquisitions
Opened offices in Europe, Middle East, Africa and South-East Asia Ramped up sales team in global markets
Consummated acquisition of 365squared, Cellent Technologies, Start Corp India and Call2Connect
Onboarded several blue chip customers including Global Fortune enterprises
Launched TruSense, a digital identity and security suite
Successfully accomplished Global API Challenge – Hackathon
Signed Business Transfer Agreement with Teledgers to acquire DLT, trusted blockchain and AI- powered solutions*
Raised ₹8,675mn via QIP from marquee investors
Stage 1
Bootstrapped Profitable since first year of operations
Started as an aggregator of traffic to gain MNO access
Boot strapped the company with c.US$2,000
Hosted SMSCs in India and UK
Started operations in India to cater to the global market
Stage 2
Stage 3
Transition to an Enterprise Business, Global Expansion with differentiated acquisitions
Omni-channel Stack Marquee Clients Blockbuster IPO Sep’20
Stage 4
Expanding Product Portfolio and Geographical footprint
*Closure subject to completion of condition precedents including outcome of an ongoing arbitration proceeding
4
Global Diaspora - Footprint & Super Network
Europe
Direct MNO 110
Employees 47
APAC
Direct MNO 36
Employees 8
Americas
Direct MNO 53
Employees 213
Middle East
Direct MNO 15
Employees 28
Africa
Direct MNO 64
Employees 4
India
Direct MNO 6
Employees 422
12 Firewall deployments 2 ongoing deployments
Data as on Mar 31, 2023
19 virtualized Data Centers
18 Hubs
700+ Employees
280+ Super Network Widespread global distribution & reach
5
Key Developments
Key Developments in FY 22-23
7
Focus on Expanding Product Portfolio
Driving Product momentum through Dedicated SBUs
Conversational Bot
TruSense
New Products Revenue (in ₹ mn)
Channel Capability
Development Centre
Target Market
Use Cases
Interactive ChatBot Solutions running in WhatsApp / RCS / Telegram / Viber – offering personalized live agent support
High Volume Enterprise Email solutions to support Transactional / Promotional use cases
Comprehensive Digital Fraud / Mobile Identity / Short Code / 10 DLC / Toll Free Messaging
Bengaluru / Mumbai
Mumbai / Bengaluru / Jaipur / Colombia
UK (HQ) / Colombia / Mumbai
India, Middle East, Bangladesh, Sri Lanka, Africa, LATAM
India, Middle East, Bangladesh, Sri Lanka, Africa, LATAM
LATAM, India
• Patient interactions for a
leading healthcare provider
• Product marketing and
lead management solution for a global automotive brand
• Civil information dispersal solution for Govt. bodies • End-to-end e-commerce
chatbot for a global consumer brand
• Transaction and promotion email solution for one of the largest NBFC in India • Customer engagement and notification email solution for leading airline in UAE
• Transaction email solution for a leading corporate registry services provider
• Leading Digital Bank in
LATAM simplifies onboarding and minimises documentation
• Leading healthcare service
provider in LATAM minimises account takeovers and secures their clients
• Frictionless OS
authentication solution for a global tech giant in India and LATAM
852
FY 21-22
1,472
FY 22-23
8
Key Business Metrics
Diverse Customer Base
Revenue contribution from select industries in FY 22-23
Revenue for Top 50 countries by termination(1)
46%
Digital native
Social/ Internet; Edtech and Technology companies
20%
Tier 1 CPaaS partners
Top tier 1 CPaaS partners across the globe
Ecommerce
Increasing use of communication APIs to drive customer engagement
FinServ
Digital communication solutions for Banking, Insurance and Payment gateways
Telecom & allied Services
MNOs and telecom OEMs
Retail, Travel & Hospitality
Increasing use of communication APIs to drive customer engagement
13%
12%
12%
4%
2%
15%
12%
9%
7%
6%
India
Asia excl. India
Europe
Middle East
Americas
Africa
Revenue by customer HQ (continent)(2)
46%
26%
16%
4%
Americas
Asia
Europe
Africa
(1) Top 50 countries contribute c.94% of FY 22-23 revenue from operations I (2) Top 150 customers - contribute c. 91% of FY 22-23 revenue from operations
10
Growing number of Multi-million dollar accounts with Improving Client Diversification
Clients by Account Size
70
60
50
40
30
20
10
-
2
2
4
5
2
3
5
7
7
9
4
> $15mn
> $10mn
> $5mn
> $1mn
FY 19-20
FY 20-21
FY 21-22
(1)
FY 22-23
60
41
31
21
21
Client Concentration
82%
86%
Top 1
Top 5
Top 10
Top 50
80%
78%
54%
44%
19%
59%
45%
54%
43%
48%
38%
15%
15%
13%
100%
80%
60%
40%
20%
0%
FY 19-20
FY 20-21
FY 21-22
FY 22-23
(1) Excludes MRM (one of the clients of RML) from this analysis post acquisition
11
Strong Recurring Revenue
Recurring Revenue(1) as % of Operating Revenue
91%
88%
87%
124%
Net revenue retention(2)
Deep Customer engagement driving high recurring revenues
FY 20-21
FY 21-22
FY 22-23
(1) Recurring customers defined as customers that have been billed in each of the months over the respective period. For instance, a customer billed each month over April 1, 2022 – March 31 2023 is a recurring customer for FY22-23 (2) Net revenue retention calculated based on comparison of FY21-22 revenue with FY22-23 revenue., M.R Messaging (MRM) and Masivian customers are not included for like for like comparison
12
Financial Highlights
FY 22-23 Snapshot
Revenue from Operations (in ₹ mn)
Gross Profit (In ₹ mn) & Gross Profit Margin (%)
EBITDA(1) (In ₹ mn) & EBITDA Margin (%)
Adj. PAT(2) (In ₹ mn) & Adj. PAT Margin (%)
21.0%
22.0%
12.9%
12.8%
11.2%
10.4%
20,020
FY 21-22
35,692
FY 22-23
4,195
7,867
FY 21-22
FY 22-23
2,576
4,566
FY 21-22
FY 22-23
2,085
4,007
FY 21-22
FY 22-23
78.3% Y-o-Y growth
87.5% Y-o-Y growth
77.2% Y-o-Y growth
92.2% Y-o-Y growth
1) Net loss on FX transactions and translation , ESOP benefit expenses (non cash) and Intangible assets under development were adjusted from EBITDA 2) PAT has been adjusted for ESOP benefit expenses; non-cash amortization associated with the intangible assets added as a result of purchase price allocation for acquisitions; and Intangible assets under development
14
Financial Highlights for FY 22-23
• Closed FY 22-23 with revenue from operations of ₹35,692mn compared to ₹20,020mn in FY 21-22 • Y-o-Y growth of 78.3% in Revenue
• Recorded Gross Profit of ₹7,867mn in FY 22-23 compared to ₹4,195mn in FY 21-22 • Y-o-Y growth of 87.5% in Gross Profit • Gross Profit margin of 22.0% and 21.0% in FY 22-23 and FY 21-22 respectively
• EBITDA of ₹4,566mn in FY 22-23 compared to ₹2,576mn in FY 21-22 • Y-o-Y growth of 77.2% in EBITDA • EBITDA margin of 12.8% and 12.9% in FY 22-23 and FY 21-22 respectively
• Recorded Profit After Tax of ₹3,331mn in FY 22-23 compared to ₹1,701mn in FY 21-22 • Y-o-Y growth of 95.9% in Profit After Tax
• Adjusted Profit After Tax of ₹4,007mn in FY 22-23 compared to ₹2,085mn in FY21-22 • Adjusted for ESOP benefit expenses; non-cash amortization associated with the intangible assets added as a result of
purchase price allocation for acquisitions and Intangible assets under development of ₹140mn (in FY 22-23)
• Adjusted Profit After Tax margin of 11.2% and 10.4% in FY 22-23 and FY 21-22 respectively
15
Sustainable revenue expansion driven by robust organic growth and increasing contribution from recent acquisitions
Split by Organic and Inorganic revenue
FY 21-22 revenue (in ₹ mn)
FY 22-23 revenue (in ₹ mn)
Organic revenue
Inorganic revenue
Masivian (acquired wef Nov 12, 2021)
MR Messaging (acquired wef Mar 1, 2022)
Interteleco (acquired wef Dec 1, 2021)
Consolidated
18,721
1,299
638
532
129
20,020
26,349
9,343
2,169
6,816
358
35,692
Revenue growth (%)
(1)
41%
Not comparable
78%
Revenue Growth Analysis (in ₹ mn)
6,284
229
7,628
1,531
9,343
1,299
18,721
26,349
Inorganic Revenue Organic Revenue
FY 21-22 Revenue
Incremental Organic Revenue - FY22-23
Masivian - Incremental revenue FY22-23
MRM - Incremental revenue - FY22-23
Interteleco - Incremental revenue - FY22-23
FY 22-23 Revenue
16
Sustained Growth in Revenue and Adjusted PAT
Sequential Revenue growth
15%
29%
11%
16%
16%
17%
2%
Sequential Adj. PAT growth
20%
37%
2%
38%
6%
10%
19%
9,857
10,087
7,290
8,458
27
28
27
1,203
1,010
921
872
6,261
25
5,628
16
18
4,357
3,775
11
7
620
634
454
377
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Q4 FY23
Revenue from Operations (in ₹mn)
Billable transaction volume (in bn)
Adj. PAT (in ₹ mn)
17
Q4 FY 22-23 Snapshot
Revenue from Operations (in ₹ mn)
Gross Profit (In ₹ mn) & Gross Profit Margin (%)
EBITDA(1) (In ₹ mn) & EBITDA Margin (%)
Adj. PAT(2) (In ₹ mn) & Adj. PAT Margin (%)
21.1%
22.4%
21.3%
13.0%
13.2%
11.9%
10.2%
11.1%
10.1%
6,261
9,857
10,087
1,319
2,203
2,144
697
1,283
1,329
634
1,010
1,203
Q4 21-22
Q3 22-23
Q4 22-23
Q4 21-22 Q3 22-23 Q4 22-23
Q4 21-22
Q3 22-23 Q4 22-23
Q4 21-22 Q3 22-23 Q4 22-23
61.1% Y-o-Y growth 2.3% Q-o-Q growth
62.6% Y-o-Y growth -2.7% Q-o-Q growth
90.7% Y-o-Y growth 3.6% Q-o-Q growth
89.7% Y-o-Y growth 19.2% Q-o-Q growth
1. Net loss on FX transactions and translation , ESOP benefit expenses (non cash) and Intangible assets under development were adjusted from EBITDA 2. PAT has been adjusted for ESOP benefit expenses; non-cash amortization associated with the intangible assets added as a result of purchase price allocation for acquisitions; and Intangible assets under development
18
Financial Highlights for Q4 FY 22-23
• Closed Q4 FY 22-23 with revenue from operations of ₹10,087mn compared to ₹9,857mn in Q3 FY 22-23 and
₹6,261mn in Q4 FY 21-22
• Y-o-Y growth of 61.1% and sequential growth of 2.3% in revenue
• Recorded Gross Profit of ₹2,144mn in Q4 FY 22-23 compared to ₹2,203mn in Q3 FY 22-23 and ₹1,319mn in Q4 FY 21-22 • Y-o-Y growth of 62.6% and sequential de-growth of 2.7% in Gross Profit • Gross Profit margin of 21.3%, 22.4%, and 21.1% in Q4 FY 22-23, Q3 FY 22-23 and Q4 FY 21-22 respectively
• EBITDA of ₹1,329mn in Q4 FY22-23 compared to ₹1,283mn in Q3 FY 22-23 and ₹697mn in Q4 FY 21-22 • Y-o-Y growth of 90.7% and sequential growth of 3.6% in EBITDA • EBITDA margin of 13.2%, 13.0% and 11.1% in Q4 FY 22-23, Q3 FY 22-23 and Q4 FY 21-22 respectively
• Recorded Profit After Tax of ₹1,041mn in Q4 FY 22-23 compared to ₹854mn in Q3 FY 22-23 and ₹474mn in Q4 FY 21-22 • Y-o-Y growth of 119.4% and sequential growth of 21.9% in Profit After Tax
• Adjusted Profit After Tax of ₹1,203mn in Q4 FY 22-23 compared to ₹1,010mn in Q3 FY 22-23 and ₹634mn in Q4 FY 21-22 • Adjusted for ESOP benefit expenses; non-cash amortization associated with the intangible assets added as a result of
purchase price allocation for acquisitions and Intangible assets under development of ₹ 21mn (in Q4 FY22-23)
• Adjusted Profit After Tax margin of 11.9%, 10.2% and 10.1% in Q4 FY 22-23, Q3 FY 22-23 and Q4 FY 21-22 respectively
19
EBITDA and Adjusted PAT – Non GAAP
Particulars (In ₹ mn)
Profit before tax (Ind AS)
(-) Other income
(+) Finance costs
EBIT
(+) Depreciation and amortisation expense
(+) Employee stock option expense (non cash)
(+) Net loss on foreign currency transactions and translation
(-) Intangible assets under development
(+) MRM's Bad debt written-off pertaining to pre-acquisition period
EBITDA (Non-GAAP)
EBITDA margin % on a Non-GAAP basis
Profit for the period (Ind AS)
(+) Employee stock option expense (non-cash)
(+) Amortization related to intangibles identified on account of acquisitions
(-) Intangible assets under development
(+) MRM's Bad debt written-off pertaining to pre-acquisition period
(-) Tax refund for prior period - 365sqaured
Adjusted PAT (Non-GAAP)
Adjusted PAT margin % on a Non-GAAP basis
Quarter Ended
Full Year
31.03.2023
31.12.2022
31.03.2022
31.03.2023
31.03.2022
1,203.6
146.0
49.8
1,107.4
212.3
34.2
(3.5)
21.4
-
1,329.1
13.1%
1,040.5
34.2
149.9
21.4
-
-
1,203.2
11.9%
1,031.3
77.5
72.1
1,025.9
219.6
(36.0)
38.5
23.7
58.5
1,282.7
13.0%
853.6
(36.0)
157.3
23.7
58.5
-
1,009.6
10.2%
468.1
84.1
33.9
417.9
145.3
95.4
38.3
-
-
697.1
11.1%
474.2
95.4
102.6
- - 37.8
634.4
10.1%
3,815.0
394.0
204.5
3,625.5
816.0
155.9
49.9
140.1
58.5
4,565.6
12.8%
1,952.2
200.6
51.6
1,803.1
383.2
188.7
201.3
-
-
2,576.3
12.9%
3,331.1
1,700.8
155.9
601.1
140.1
58.5
-
188.7
233.1
-
-
37.8
4,006.5
2,084.8
11.2%
10.4%
Management uses the non-GAAP financial information, collectively, to evaluate its ongoing operations and for internal planning and forecasting purposes. Non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with Indian Accounting Standard (Ind AS), and may be different from similarly-titled non-GAAP measures used by other companies.
20
Normalized Cash Flow
(₹ in million)
Profit before tax (Ind AS)
Adjustments for non-cash and non operating items
Adjustments for working capital
(Increase) in trade receivables
(Increase) in financial assets and other assets
Increase/(decrease) in trade payables, provisions and other liabilities
Direct taxes paid (net)
Net Cash generated from Operation Activities (Ind AS)
(+) Adjustment for Security deposit for a strategic business initiatives
(exclusive Firewall deal, expected to go live in Q1 FY23-24)
(+) GST Payment for prior period (FY19-20)
Normalized Cash Flow from Operation (Normalized CFO)
EBITDA (Non-GAAP)
Normalized CFO/EBITDA
H2 FY22-23 (6M ended 31 Mar 2023)
H1 FY22-23 (6M ended 30 Sep 2022)
Year ended 31 Mar 2023
2,234.9
377.6
(1,378.8)
(736.6)
264.7
(268.9)
493.0
1,173.9
161.0
1,827.9
2,611.8
70%
1,580.1
641.5
(616.3)
(830.7)
(469.7)
(65.4)
239.7
-
-
239.7
1,953.8
12%
3,815.0
1,019.1
(1,995.1)
(1,567.4)
(205.0)
(334.4)
732.1
1,173.9
161.0
2,067.0
4,565.6
45%
21
Robust growth momentum
Revenue from operations & Total Billable Transaction
32
14,062
FY 20-21
52
20,020
FY 21-22
107
35,692
FY 22-23
Revenue from operations (₹ mn)
Total Billable Transactions (# bn)
EBITDA and EBITDA margin
12.9%
12.8%
12.5%
1,756
FY 20-21
2,576
FY 21-22
4,566
FY22-23
EBITDA (₹ mn)
EBITDA %
Robust growth momentum 78% Y-o-Y growth in FY 22-23 48% CAGR over past 5 years (FY 17-18 to FY 22-23)
Non-linear business model creates high operating leverage
EBITDA as % of Gross Profit stood at 58% in FY 22-23
22
ROE and Working Capital Trend
Adj. PAT, Adj. PAT Margin and ROE(1)
Working Capital Trend
77.3%
47.2%
47.1%
10.5%
1,483
FY 20-21
10.4%
2,085
FY 21-22
11.2%
4,007
FY 22-23
55
80
57
86
62
62
FY 20-21
FY 21-22
FY 22-23
Adj. PAT (₹ mn)
Adj. PAT Margin (%)
ROE (%)
Days Sales Outstanding
Days Payable
(1) ROE calculated using average Equity (less cash and cash equivalent) and Adj. PAT
23
Ageing Analysis
Trade Receivables Ageing
Trade Payables Ageing
8%
1%
15%
21%
1%
3%
10%
55%
Not due
< 1 month
1 - 2 months
2 - 3 months
> 3 months
27%
59%
Not due
< 1 month
1 - 2 months
2 - 3 months
> 3 months
Trade Receivables as on March 31, 2023: ₹ 7,015mn
Trade Payables as on March 31, 2023: ₹ 4,670mn
24
Human Resource Capital
Location wise break-up
Function wise break-up
300
722
422
India
International
49 New Employees joined in Q4 FY 22-23
56 Employees left in Q4 FY 22-23
21
60
66
28
284
722
263
Tech & Tech Support Sales & Marketing Firewall & other operator solutions General & Admin Strategy, Accounts & Finance Corporate-Business Heads
As on Mar 31 2023, Employee information excludes Call2Connect
25
Awards & Rankings
Won Future Digital Awards 2023 - Excellence in Telco Innovation by Juniper Research
Won ET ascent Business Leader of the Year 2023 "Best Use of Cloud Services by a Telecom Company" & "Best Enterprise Cloud Offering" (IT Sector)
Mr Rajdipkumar Gupta was Conferred - "CEO of the Year" & "Cloud Innovator of the Year 2023"
Listed in Dun & Bradstreet's premier publication - Leading SMEs of India 2023
Reached the Tier One position in ROCCO's CPaaS Market Impact Report 2023
Identified as an Established Leader in Juniper’s CPaaS Competitor Leaderboard 2022-2027
Route Mobile Limited Won 19th & 22nd ICSI National Awards for Excellence in Corporate Governance 2020 & 2022
Ranked in Top 6 as Tier 1 Vendors in A2P SMS Messaging as per ROCCO Consulting report thrice (2016 -22)
Identified as an Established Leader in Juniper’s CPaaS Deep Dive Strategy & Competition 2020- 2025
Win 'Gold' for being 'Best RCS Provider' at the 'Future Digital Awards 2022: Telco Innovation awards hosted by Juniper Research
Win IMC 2022 awards for Best Digital Customer Experience Management Technology/Platform/ Solution in the Year 2022
Top 3 fastest growing Indian Companies in UK by ‘India Meets Britain’ Tracker 2022
Business Mobility Award by Etisalat at Etisalat SMB Awards 2021 in Dubai
Won 2 Gold in Juniper Research's Award for CPaaS Provider of the Year & Best SMS Firewall 2021
The only Asian company covered in Gartner’s Market Guide for CPaaS, October 2020
26
Thank You
www.routemobile.com