ROUTE MOBILE LIMITED has informed the Exchange about Investor Presentation
C> routemobile
communication simplified
•
Registered & Corporate Office:
Route Mobile Limited 4'" Dimension, 3"' floor, Mind Space, Malad (West), Mumbai -400 064, India +91 22 4033 7676/77-99 I Fax: +91 22 4033 7650 info@routemobile.com I www.routemobile.com CIN No: L72900MH2004PLC146323
Ref No: RML/2023-24/381
Date: July 28, 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 Unaudited Financial Results of the Company for the quarter ended June 30, 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 M. No. F12663
Encl: as above
routemobile
communication simpli'fied
Earnings Update Q1 FY23-24
Investor Presentation July 28, 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)
routemobile
communication simplified
Strong industry tailwinds: Global CPaaS market will grow to $42.9bn in 2027, from $16.6bn in 2022 (1)
₹38,076mn LTM ended 30 June 2023 Revenue 55% Revenue CAGR FY2020 - FY2023
Global footprint across 20+ locations; 2,300+ active billable clients
₹4,943mn LTM ended 30 June 2023 EBITDA 66% EBITDA CAGR FY2020 – FY2023
Infrastructure comprising 19 data centers and 6 SMSCs globally
ESG leader, rated “A” by a reputed ESG rating agency
Recognized as “Established Leader” – Juniper, “Top Tier 1 A2P SMS vendor” – Rocco, “Representative Vendor” - Gartner for CPaaS
122% Net revenue retention in Q1 FY23-24
c. 29.5bn Billable Transactions processed in Q1 FY23-24
₹14.8 Earning Per Share (EPS) in Q1 FY23-24; Board recommended ₹3 per share interim dividend
(1) Juniper - CPaaS Future Market Outlook, 2023
3
Systematic roadmap to create sustained growth momentum
'1!1!t.. routemob·1 V communicat·
ion simplified
I e
.
Won 2 Golds in Juniper Research Award for CPaaS Provider of the Year & Best SMS Firewall
Entered lucrative North American market
Successfully listed on Indian Stock Exchanges
Developed Next Gen services like RBM and OTT messaging
Became hubbing partners with top telecom operators globally
Full messaging technology stack through TeleDNA acquisition
• ~ ONAlorNtx1GeM<a NA
tlon Mobile Networks
Expanded product portfolio and geographic presence through acquisitions
Successfully accomplished Global API Challenge – Hackathon
Onboarded several blue chip customers including Global Fortune enterprises
§ SendClean 00 (::)MRM~:G--
Masiv
Raised ₹8,675mn via QIP from marquee investors
•
Buyback of ₹1,200mn completed
Launched TruSense, a digital identity and security suite
Signed Business Transfer Agreement with Teledgers to acquire DLT, trusted blockchain and AI- powered solutions*
Stage 1
Bootstrapped Profitable since first year of operations
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
Stag e2
Consummated acquisition of 365squared, Cellent Technologies, Start Corp India and Call2Connect
:11 ~ ~ --·~-· 0 START ~ l l2 ~.!~nect q
. .,......,.
ENTERPRISE
, : , .
365 squared
Opened offices in Europe, Middle East, Africa and South-East Asia Ramped up sales team in global markets
Boot strapped the company with c.US$2,000
Started as an aggregator of traffic to gain MNO access
/
/
;
/
/ /. : : . . : .
: . . , e~
':;,:1l!>
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 46
-
-
-
-
-
-
-
-
-
Americas
Direct MNO 53
Employees 227
* • •
----------- - - == •
I- - I I I I I I I
---------------
Middle East
Direct MNO 15
Employees 27
Africa
Direct MNO 64
Employees 4
*
APAC
Direct MNO 36
Employees 8
I I I I
*
*
India
Direct MNO 6
Employees 436
f)
14 Firewall deployments 2 ongoing deployments & 1 upgradation
e
19 virtualized Data Centers
18 Hubs
•
700+ Employees
•
280+ Super Network Widespread global distribution & reach
Data as on Jun 30, 2023
5
Key Developments
Key Developments since FY 22-23
Proximus Group has signed definitive agreements to acquire, through Proximus Opal, 57.56%* interest in Route Mobile
prox 1mus
$SC Much-2023 Re,utt
St.at No· A0 •u••1 Mlime H'"-AA• .. •••K
Pefcet1lile. 75: 60 Gr1de 82 $d1oollndox t409&< SI(): 2•• · ··· ··•·7 Ren · QUALIFIED F-OA SECONDARY SCHOOL CEllTlFICATE
S.bjKIMINb 01 GWARATI A. 80160 20119 100 1D78 Orade I Bl
IO SOCIAL SCCNCC so1•1 20118 100 10~? Gnode ICI
I I S'Clf.NCE 801 ◄6 20 J17 1001063 G1111dr 18'2
..
*Fully Diluted
7
Proximus acquires 57.56% of Route Mobile shares, valued at ~€643M, for~€343M net¹ in Cash and an up to 14.5% equity stake in Proximus Opal
Shareholder Structure
Route Mobile founding family
≤14.5%
≥85.5%
Proximus Opal
Public shareholders
100%
~ 58%-75%
Agreements
▪ Proximus Group acquires 57.56% of Route Mobile (fully
diluted), through Proximus Opal, for ~INR 59,224mn (~€643.0mn) cash at no premium to 10D VWAP2 of INR 1,626.4 per share.
▪ Proximus Opal will launch an MTO for up to 26% of the fully diluted outstanding shares for the same price, INR 1,626.4 per share. Total cash consideration depends upon the effective MTO take-up3.
▪ Founding shareholders of Route Mobile to re-invest ~€299.6mn in Proximus Opal, for up to 14.5%4 of the shares.
(W)telesign
..
routemobile
communication simplified
~25%-42%
▪ With the reinvestment, the net cash consideration for
Proximus prior to MTO amounts to ~€343.4mn.
1. Net cash impact for Proximus Group refers to impact post investment of the founding shareholders of Route Mobile into Proximus OPAL (~€643.0mn cash-out by Proximus; ~€299.6mn invested in Proximus OPAL by Route Mobile's founding shareholders)
▪ Transaction closure is contingent upon receipt of regulatory approvals and completion of the MTO.
▪ Transaction implies a valuation of Telesign at €1.4bn.
2.
10 Day Volume Weighted Average Price
3.
Indian regulatory body SEBI prescribes a minimum threshold of 25% of public shareholding. Final ownership of Proximus OPAL in Route Mobile could go up to 75%. Should the MTO result in exceeding this, Proximus Opal will need to sell-down the stake in Route Mobile such that the ownership is 75% within 12 months.
4. Founding shareholders ownership in Proximus OPAL to be diluted depending outcome of MTO.
▪ Transaction completion expected in 6-9 months.
Source: Proximus Presentation
8
Significant revenue growth opportunities through cross-selling highly complementary product portfolios of Telesign and Route Mobile
▪ Resell expanded verification and
fraud protection services worldwide
▪ Resell new Insights and Identity
services in markets not serviced by
Telesign today
▪ Bring new business risk
management services to customers
Group CPaaS activities will be
led by Rajdip Gupta, current
CEO of Route Mobile.
Intelligence Insights
Business Risk Management
Identity Correlation
Fraud Protection
Transaction Verification
Omnichannel Orchestration
▪ Resell omnichannel orchestration
services worldwide.
▪ Expand Intelligence, Identity
products, verification and fraud
protection services with more
insights, from more channels in
diversified markets
Group Digital Identity activities
will be led by Joe Burton, current
CEO of Telesign.
Source: Proximus Presentation
9
Strong geographical complementarity to Telesign, with enhanced exposure to higher growth geographies
Route Mobile’s presence is complementary to that of Telesign, strongly active in Europe and North America
Revenue distribution in % (FY, by termination1)
44%
25%
20%
46%
Route Mobile has global presence with strong roots in India, one of world’s largest, fast-growing and rapid digitalizing markets.
12%
12%
0%
7%
6%
7%
5%
9%
3%
5%
APAC Other
Europe
North America
Africa
LATAM
Middle East
India
■ @m telesign Telesign
Route Mobile
1 Route Mobile, top 50 countries by termination, contributing c. 94% of FY22-23 revenue from operations. Telesign based on FY 2022 revenue distribution.
Source: Proximus Presentation
10
Focus on Expanding Product Portfolio
Driving Product momentum through Dedicated SBUs
Conversational Bot
TruSense
@roubot·
,____, SendC I ea n
TruSense™
A Route Mobile Company
+
Interactive ChatBot Solutions running in WhatsApp / RCS / Telegram / Viber – offering personalized live agent support
SSC March-2023 Result
High Volume Enterprise Email solutions to support Transactional / Promotional use cases
Comprehensive Digital Fraud / Mobile Identity / Short Code / 10 DLC / Toll Free Messaging
A ******7 OB:19 ✓/
New Products Revenue (in ₹ mn)
Seat No: A******7 Name: N***A A***** K M*****I Percentile: 75.60 Grade: B2 School Index: 64.0984 SID: 2**-**-****7 Result: QUALIFIED FOR SECONDARY SCHOOL CERTIFICATE
Mumbai / Bengaluru / Jaipur / Colombia
UK (HQ) / Colombia / Mumbai
Deployed WhatsApp + Roubot to Enable Gujarat SSC Board Results
LATAM, India
India, Middle East, Bangladesh, Sri Lanka, Africa, LATAM
• 3.5 million hits in first 3 hours
• Transaction and promotion email solution for one of the largest NBFC in India
• Recognized as a benchmark for user-generated traffic by Meta
LATAM simplifies onboarding and minimises documentation
• Leading Digital Bank in
• Customer engagement and notification email solution for leading airline in UAE
• Transaction email solution for a leading corporate registry services provider
• 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
321
367
385
Q1 22-23
Q4 22-23
Q1 23-24
11
Channel Capability
Development Centre
Target Market
Use Cases
Bengaluru / Mumbai
India, Middle East, Bangladesh, Sri Lanka, Africa, LATAM
• Patient interactions for a
Subject Marks 01 GUJARATI FL 80 160 20 I 18 100 I 078 Grade I B1 • Product marketing and
leading healthcare provider
10 SOCIAL SCIENCE 80 I 41 lead management solution 20 I 18 1 oo I osg for a global automotive Grade I C1 brand
11 SCIENCE 80146 • Civil information dispersal 20 I 17 1 oo I 063 solution for Govt. bodies Grade I B2 • End-to-end e-commerce
@ Type a message
chatbot for a global consumer brand
Financial Highlights
Q1 FY23-24 Snapshot
Revenue (in ₹ mn) & Billable Transactions (# bn)
Gross Profit (In ₹ mn) & Gross Profit Margin (%)
EBITDA(1) (In ₹ mn) & EBITDA Margin (%)
29.5
27.4
22.4%
21.3%
21.4%
13.2%
12.8%
11.8%
24.8
Adj. PAT(2) (In ₹ mn) & Adj. PAT Margin (%)
11.9% b,. ,i------0-................._______ ~ 11.1%
Q
12.0%
7,290
10,087
9,673
1,632
2,144
2,071
Q1 22-23
Q4 22-23 Q1 23-24
Q1 22-23
Q4 22-23 Q1 23-24
860
1,329
1,237
872
1,203
1,075
Q1 22-23
Q4 22-23 Q1 23-24
Q1 22-23 Q4 22-23 Q1 23-24
32.7% Y-o-Y growth -4.1% Q-o-Q growth
26.9% Y-o-Y growth -3.4% Q-o-Q growth
43.8% Y-o-Y growth -6.9% Q-o-Q growth
23.3% Y-o-Y growth -10.6% 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
13
Financial Highlights for Q1 FY23-24
• Closed Q1 FY23-24 with revenue from operations of ₹9,673mn compared to ₹10,087mn in Q4 FY22-23 and
₹7,290mn in Q1 FY22-23
• Y-o-Y growth of 32.7% and sequential de-growth of 4.1% in revenue
• Recorded Gross Profit of ₹2,071mn in Q1 FY23-24 compared to ₹2,144mn in Q4 FY22-23 and ₹1,632mn in Q1 FY22-23 • Y-o-Y growth of 26.9% and sequential de-growth of 3.4% in Gross Profit • Gross Profit margin of 21.4%, 21.3%, and 22.4% in Q1 FY23-24, Q4 FY22-23 and Q1 FY22-23 respectively
• EBITDA of ₹1,237mn in Q1 FY23-24 compared to ₹1,329mn in Q4 FY22-23 and ₹860mn in Q1 FY22-23 • Y-o-Y growth of 43.8% and sequential de-growth of 6.9% in EBITDA • EBITDA margin of 12.8%, 13.2% and 11.8% in Q1 FY23-24, Q4 FY22-23 and Q1 FY22-23 respectively
• Recorded Profit After Tax of ₹917mn in Q1 FY23-24 compared to ₹1,041mn in Q4 FY22-23 and ₹711mn in Q1 FY22-23 • Y-o-Y growth of 29% and sequential de-growth of 11.9% in Profit After Tax
• Adjusted Profit After Tax of ₹1,075mn in Q1 FY23-24 compared to ₹1,203mn in Q4 FY22-23 and ₹872mn in Q1 FY22-23 • 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 ₹ 29mn (in Q1 FY23-24) • Adjusted Profit After Tax margin of 11.1%, 11.9% and 12.0% in Q1 FY23-24, Q4 FY22-23 and Q1 FY22-23 respectively
14
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
Adjusted PAT (Non-GAAP)
Adjusted PAT margin % on a Non-GAAP basis
Quarter Ended
Full Year
30.06.2023
31.03.2023
30.06.2022
31.03.2023
1,102.3
149.2
67.1
1,020.3
211.3
34.7
-
29.3
-
1,236.9
12.8%
916.9
34.7
152.7
29.3
-
1,075.0
11.1%
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%
757.4
147.9
41.7
651.1
195.7
72.0
-
58.8
-
860.2
11.8%
710.7
72.0
148.3
58.8 -
872.3
12.0%
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%
3,331.1
155.9
601.1
140.1
58.5
4,006.5
11.2%
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.
15
Key Business Metrics
Diverse Customer Base
Revenue contribution from select industries in Q1 FY23-24
Digital native
Social/ Internet; Edtech and Technology companies
FinServ
Digital communication solutions for Banking, Insurance and Payment gateways
Tier 1 CPaaS partners
Top tier 1 CPaaS partners across the globe
Ecommerce
Increasing use of communication APIs to drive customer engagement
Retail, Travel & Hospitality
Increasing use of communication APIs to drive customer engagement
Telecom & allied Services
MNOs and telecom OEMs
20%
13%
11%
10%
3%
2%
Revenue for Top 50 countries by termination(1)
48%
16%
8%
8%
6%
6%
India
Asia excl. India
Middle East
r
r
r
Europe
Africa
Americas
Revenue by customer HQ (continent)(2)
43%
29%
16%
Americas
Asia
Europe
3%
-
Africa
(1) Top 50 countries contribute c.92% of Q1 FY23-24 revenue from operations I (2) Top 150 customers - contribute c. 91% of Q1 FY23-24 revenue from operations
17
Growing number of Multi-million dollar accounts with Improving Client Diversification
Clients by Account Size
70
60
50
40
30
20
10
-
2
-
4
5
-
> $15mn
Client Concentration
FY 20-21
■
FY 21-22
■
(1)
FY 22-23 Q1 FY23-24 ■
■
(2)
65
60
41
31
3
-
5
7
> $10mn
13
7
9
21
20
> $5mn
> $1mn
80%
78%
79%
Top 1
■
Top 5
■
Top 10
■
Top 50
■
5
-
86%
59%
45%
54%
43%
48%
38%
49%
36%
15%
15%
13%
12%
100%
80%
60%
40%
20%
0%
FY 20-21
FY 21-22
FY 22-23
Q1 FY23-24
(1) Excludes MRM (one of the clients of RML) from this analysis post acquisition; (2) Q1 FY23-24 Annualized
18
Strong Recurring Revenue
Recurring Revenue(1) as % of Operating Revenue
88%
87%
88%
122%
Net revenue retention(2)
Deep Customer engagement driving high recurring revenues
FY 21-22
FY 22-23
Q1 23-24
(1) Recurring customers defined as customers that have been billed in each of the months over the respective period for FY21-22 & FY22-23; and customer billed each month over June 30 2022 – June 30 2023 for Q1 FY23-24 (2) Net revenue retention calculated based on comparison of Q1 FY22-23 revenue with Q1 FY23-24 revenue.
19
Human Resource Capital
Location wise break-up
Function wise break-up
312
748
436
India
■
International
■
68 New Employees joined in Q1 FY23-24
40 Employees left in Q1 FY23-24
21
58
72
25
294
748
278
Tech & Tech Support
■
Sales & Marketing
■
Firewall & other operator solutions
■
General & Admin
■
Strategy, Accounts & Finance
■
Corporate-Business Heads
■
As on Jun 30 2023, Employee information excludes Call2Connect
20
Awards & Rankings
, II - I " , I II I "
I I R ' '
Ranked amongst Top 6 Tier 1 Vendors in A2P SMS Messaging as per ROCCO Consulting report four times (2016 -23)
I g s
e
;L*
" R I " '
Reached the Tier One position in ROCCO's CPaaS Market Impact Report 2023
I " • R B B IJ " e '
I ' I I B B " e '
Won IMC 2022 awards for Best Digital Customer Experience Management Technology/Platform/ Solution in the Year 2022
' \ I • •
Won Future Digital Awards 2023 - Excellence in Telco Innovation by Juniper Research
e
'
Identified as an Established Leader in Juniper’s CPaaS Competitor Leaderboard 2022-2027
, I I " , \ I • a " '
~ SI
e ' ' \ •
~ SI
e
" R I ' '
'
Won ET ascent Business Leader of the Year 2023 "Best Use of Cloud Services by a Telecom Company" & "Best Enterprise Cloud Offering" (IT Sector)
\ s 11 e
Won 19th & 22nd ICSI National Awards for Excellence in Corporate Governance 2020 & 2022
'
\ s 11 e '
\ I SI B ~ , e
I I " '
R
" - " '
" R I " '
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 Golds in Juniper Research's Award for CPaaS Provider of the Year & Best SMS Firewall 2021
e ' ' \ I •
e
,,..*
~
Mr Rajdipkumar Gupta was Conferred - "CEO of the Year" & "Cloud Innovator of the Year 2023"
Identified as an Established Leader in Juniper’s CPaaS Deep Dive Strategy & Competition 2020- 2025
I 11 e
, I I " ' ,, I I I • a SI ' '
Listed in Dun & Bradstreet's premier publication - Leading SMEs of India 2023
~ ~ SI
•
e
Won 'Gold' for being 'Best RCS Provider' at the 'Future Digital Awards 2022: Telco Innovation awards hosted by Juniper Research
'
\ s I e
The only Asian company covered in Gartner’s Market Guide for CPaaS, October 2020
I SI B IJ
e
I R I " '
21
routemobile
communIca 10n s1mp 11e
I. F. d
. · t·
.
Thank You
www.routemobile.com