ROUTE MOBILE LIMITED has informed the Exchange about Investor Presentation
.
C> routemobile
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Ref No:
Date:
RML/2023-24/433
January 23, 2024
BSE Limited To, Scrip Code: 543228
Dear Sir/Madam, Sub: Investor Presentation
Registered & Corporate Office: Route Mobile Limited 4th Dimension,3"'floor, Mind Space, Malad (West), Mumbai - 400 064, India +91 22 4033 7676t77-99 I Fax: +91 22 4033 7650 info@routemobile.com I www.routemobile.com CIN No: L72900MH2004PLC146323
National Stock Exchange of India Limited NSE Symbol: ROUTE
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 (Standalone and Consolidated) of the Company for the quarter and nine months ended December 31, 2023.
You are requested to take the above information on record.
Thanking you, For Route Mobile Limited Yours truly,
_________________________________________________________________________ Rathindra Das Group Head Legal, Company Secretary & Compliance Officer
M. No. F12663 Encl
: as above
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Earnings Update Q3 & 9M FY23-24
Investor Presentation January 23, 2024
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)
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Strong industry tailwinds: Global CPaaS market will grow to $84.6bn in 2028, from $56.2bn in 2023 (1)
₹40,149mn LTM ended 31 Dec 2023 Revenue 55% Revenue CAGR FY2020 - FY2023
Global footprint across 20+ locations; 3,000+ active billable clients
₹5,074mn LTM ended 31 Dec 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
Major Provider in CPaaS Magic Quadrant 2023 – Gartner Key Vendor in four Hype Cycle Reports – Gartner Recognized as “Established Leader” – Juniper “Top Tier 1 A2P SMS vendor” – Rocco
(1) Juniper - CPaaS Future Market Outlook, 2024
110% Net revenue retention in 9M FY23-24
c.92bn Billable Transactions processed in 9M FY23-24
₹45.9 Basic Earning Per Share (EPS) in 9M FY23-24; Board recommended ₹3 per share interim dividend
3
Systematic roadmap to create sustained growth momentum
Entered lucrative North American market
Won 2 Golds in Juniper Research Award for CPaaS Provider of the Year & Best SMS Firewall
Successfully listed on Indian Stock Exchanges
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Became hubbing partners with top telecom operators globally
Full messaging technology stack through TeleDNA acquisition
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Developed Next Gen services like RBM and OTT messaging
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Onboarded several blue chip customers including Global Fortune enterprises
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
Boot strapped the company with c.US$2,000
Started as an aggregator of traffic to gain MNO access
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Hosted SMSCs in India and UK
Started operations in India to cater to the global market
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Expanded product portfolio and geographic presence through acquisitions
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Raised ₹8,675mn via QIP from marquee investors
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 :11 ·· ~ -~·---· 0 START ~ l l2 ~.!!!."ect q
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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
*Transaction closure is contingent upon receipt of regulatory approvals and completion of Mandatory Tender Offer (MTO)
4
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Launched TruSense, a digital identity and security suite
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Proximus to acquire 57.56% of Route Mobile shares, for ~ ₹59bn cash at ₹1,626.4 per share *
-- •
• •
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•
• •
Buyback of ₹1,200mn completed
Successfully accomplished Global API Challenge – Hackathon
Global Diaspora - Footprint & Super Network
Europe
Direct MNO 110
Employees 43
,- - - - - - - - - -
Americas
Direct MNO 53
Employees 224
* • •
__________ _. _ _ _ = •
I I I I I I
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Middle East
Direct MNO 15
Employees 30
Africa
Direct MNO 64
Employees 3
*
APAC
Direct MNO 36
Employees
10
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*
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India
Direct MNO 6
Employees 502
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16 Firewalls deployed 1 contract won
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19 virtualized Data Centers
18 Hubs
•
800+ Employees
•
280+ Super Network Widespread global distribution & reach
Data as on December 31, 2023
5
Key Developments
Key Developments since Q2 FY 23-24
Exclusively showcased 'RCS Business Messaging' at India Mobile Congress 2023
Route Mobile Ltd awarded as 'Enterprise MarTech Vendor of the Year 2023’ by e4m
ri~m MARTl:C:1•1 INDIA -~
CONFERENCE & AWARDS 2023
M Mobavenue .........
GROWTH PARTNER
Route Mobile completed the deployment of ILD SMS Hub on Vi Network in record time
Awarded 'Best Mobile Authentication Solution – Platinum Winner' by Juniper Research
.JUNIPER®
RESEARCH
7
Proximus transaction update – Indicative Timelines
• Proximus Group to acquire 57.56% of Route Mobile (fully diluted), through Proximus Opal, for ~ ₹59,224mn cash at ₹1,626.40 per share
• Proximus Opal will launch an MTO for up to 26% of the fully diluted outstanding shares at ₹1,626.40 per share
• Founding shareholders of Route Mobile to re-invest ~€299.6mn in Proximus Opal, for up to 14.5% of the shares.
• Rajdip Gupta (CEO of Route Mobile) will lead the CPaaS activities and Christophe Van de Weyer (CEO of Telesign) will lead the Group Digital Identity activities
Expect to receive all the required statutory approvals, complete the MTO process and close the underlying transaction in Q1 CY2024
July’23
Start/mid Q1 CY2024
Expected Deal Closing Around end Q1 CY2024
0
-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 0
·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-· 0
Regulatory approvals
Mandatory Tender Offer (MTO)
• The underlying transaction and MTO are subject to regulatory approvals:
• Committee for Foreign Investment in the United States (CFIUS), • Belgian Inter-Federal Service Commission (Belgian ISC), and • Merger-control related approvals in 9 countries, Kuwait, UAE, Saudi Arabia, Nigeria,
~ ~
Morocco, Cyprus, Ireland, Albania and Colombia 2 (Two) Approvals pending
•
•
Regulatory
The Draft Letter of Offer (DLoF) for the MTO was filed by the Acquirer (Proximus Opal) on 31 July 2023 and is currently under review with SEBI
The MTO process would begin post receipt of all requisite statutory approvals
• The process to obtain the regulatory approvals for the closure of the underlying transaction is
currently ongoing
Integration Preparation activities
Preparation activities
Integration Governance Proximus, Route Mobile & Telesign
High-level Operating Model defined ≥ $100mn synergies* confirmed
Detailed Design & value sizing completed for all synergy initiatives
Interim analysis captured in the next slide
Fully prepared with detailed, phased transition plan finalized and complete readiness to start implementation on “Day 1” after closing
* Estimated 3rd year exit annual run rate total EBITDA synergies
8
Value Sizing for Synergies – Interim analysis
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.
Increase combined revenue for CPaaS and DI through footprint expansion and cross-sell opportunities
OPEX savings from consolidation of CPaaS platform
Cross sell
CPaaS platform
OPEX synergies due to scale benefits and improving Group’s cost base
Scale benefits
Platform volume efficiencies – COGS for voice/messaging delivery
COGS
Leverage Telesign’s Digital Identity (DI) platform in EM(1)
Drive EOS(2) by consolidating cloud infra, software licenses & vendors across the group
Make inroads into untapped large global accounts through Telesign to service their requirements in EM
Create a state-of- the-art product innovation lab to focus on new product initiatives, auto- mation, AI / ML capabilities
Work towards a low cost operating model ✓ Shared service
center
✓ Leverage the capabilities of Call2Connect
Expand exclusive MNO connects & drive higher EOS
Estimated 3rd year exit annual run rate total EBITDA synergies
at least $100mn
(1) (2)
EM – Emerging Markets viz. Indian subcontinent, Middle East, Africa and LatAm EOS – Economies of Scale
&
9
+ @telesign
These initiatives will help Route Mobile accelerate its journey towards a Billion Dollar revenue and achieve the 15% EBITDA margin target by 2027
Focus on Expanding Product Portfolio
Driving Product momentum through Dedicated SBUs
Conversational Bot
TruSense
New Products Revenue (in ₹ mn)
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• TruSense™
A Route Mobile Compdny
Channel Capability
+
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
• 36 Million Messages sent
Development Centre
Target Market
Bengaluru / Mumbai
India, Middle East, Bangladesh, Sri Lanka, Africa, LATAM
Mumbai / Bengaluru / Jaipur / Colombia
UK (HQ) / Colombia / Mumbai
Government in India.
in 24 hours for a State
India, Middle East, Bangladesh, Sri Lanka, Africa, LATAM
• One of the largest
LATAM, India
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• Patient interactions for a
leading healthcare provider
• Product marketing and
Wishing everyone a Happy Diwali! May this special festival bring joy, prosperity and wonderful health to everyone's lives.
campaigns proving the
• Leading Digital Bank in
platform capability and
LATAM simplifies onboarding and minimises documentation
Use Cases
lead management solution for a global automotive brand
• Civil information dispersal solution for Govt. bodies • End-to-end e-commerce
® Message
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
6:32 PM
reliability
• Transaction email solution for a leading corporate registry services provider
n
• 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
425
589
673
Q3 22-23
Q2 23-24
Q3 23-24
10
Financial Highlights
9M FY23-24 Snapshot
Revenue (in ₹ mn) & Billable Transactions (# bn)
Gross Profit (In ₹ mn) & Gross Profit Margin (%)
EBITDA(1) (In ₹ mn) & EBITDA Margin (%)
92
22.4%
21.3%
12.6%
12.5%
PAT (In ₹ mn) & PAT Margin (%)
9.3%
9.0%
79
25,606
9M 22-23
30,063
9M 23-24
5,723
6,390
9M 22-23
9M 23-24
3,237
3,745
9M 22-23
9M 23-24
2,291
2,786
9M 22-23
9M 23-24 (2)
17.4% Y-o-Y growth
11.7% Y-o-Y growth
15.7% Y-o-Y growth
21.6% Y-o-Y growth
1. Refer Slide 14 for calculation of EBITDA (Non GaaP) 2. PAT excludes Exceptional item of ₹ 150.4mn represents the fair value gain, as at 31 December 2023 ,of the contingent consideration payable towards the acquisition of the 100% equity stake in M.R Messaging FZE
12
Q3 FY23-24 Snapshot
Revenue (in ₹ mn) & Billable Transactions (# bn)
Gross Profit (In ₹ mn) & Gross Profit Margin (%)
EBITDA(1) (In ₹ mn) & EBITDA Margin (%)
PAT (In ₹ mn) & PAT Margin (%)
31.3
31.2
22.4%
21.2%
21.2%
13.0%
12.5%
12.1%
9.6% _____________ -6
8.7% Qi,.....-----0-
8.7%
27.7
9,857
10,146
10,243
2,203
2,150
2,169
Q3 22-23
Q2 23-24
Q3 23-24
Q3 22-23
Q2 23-24
Q3 23-24
1,283
1,268
1,240
Q3 22-23
Q2 23-24
Q3 23-24
854
884
986
Q3 22-23
Q2 23-24
Q3 23-24 (2)
3.9% Y-o-Y growth 1.0% Q-o-Q growth
(1.6)% Y-o-Y growth 0.9% Q-o-Q growth
(3.3)% Y-o-Y growth (2.2)% Q-o-Q growth
15.5% Y-o-Y growth 11.6% Q-o-Q growth
1. Refer Slide 14 for calculation of EBITDA (Non GaaP) 2. PAT excludes Exceptional item of ₹ 150.4mn represents the fair value gain, as at 31 December 2023 ,of the contingent consideration payable towards the acquisition of the 100% equity stake in M.R Messaging FZE.
13
EBITDA – Non GAAP
Particulars (In ₹ mn)
(1)
EBIT
(+) Depreciation and amortisation expense
(+) Employee stock option expense (non cash)
(+) Net loss on foreign currency transactions and translation
(-) Intangible assets under development
(+) One time consultancy fee (Africa) / Retainer fee (Masivian) paid for market
expansion
(2)
(+) MRM's Bad debt written-off pertaining to pre-acquisition period
Quarter Ended
Nine Months Ended
31.12.2023
30.09.2023
31.12.2022
31.12.2023
31.12.2022
1,035.7
1,067.0
1,025.9
3,214.2
2,518.1
216.3
(9.8)
-
31.8
29.9
-
214.4
219.6
642.0
603.7
(74.4)
(36.0)
(49.4)
91.4
30.6
-
-
38.5
23.7
-
58.4
-
91.7
29.9
-
121.7
53.4
118.8
-
58.4
EBITDA (Non-GAAP)
1,240.4
1,267.8
1,282.7
3,745.1
3,236.5
EBITDA margin % on a Non-GAAP basis
12.1%
12.5%
13.0%
12.5%
12.6%
(1) EBIT = Profit before exceptional item minus (-) Other income plus (+) Finance cost. (2) Retainer fees (Masivian) to be paid over Oct, 2023 to June, 2024.
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.
14
Key Business Metrics
Diverse Customer Base
Revenue contribution from select industries in 9M FY23-24
Digital native
Social/ Internet; Edtech and Technology companies Social/ Internet; Edtech and Technology companies
FinServ
Digital communication solutions for Banking, Insurance and Payment gateways
Ecommerce
Increasing use of communication APIs to drive customer engagement
Tier 1 CPaaS partners
Top tier 1 CPaaS partners across the globe
Retail, Travel & Hospitality
Increasing use of communication APIs to drive customer engagement
Telecom & allied Services
MNOs and telecom OEMs
22%
13%
11%
10%
2%
2%
Revenue for Top 50 countries by termination(1)
47%
16%
10%
7%
6%
6%
India
Asia excl. India
r
r
r
r
Europe Middle East Americas
Afric
Revenue by customer HQ (continent)(2)
44%
30%
13%
r
Americas
Asia
Europe
3%
-
Africa
(1) Top 50 countries contribute c. 93% of 9M FY23-24 revenue from operations I (2) Top 150 customers - contribute c. 90% of 9M FY23-24 revenue from operations
16
Growing number of Multi-million dollar accounts with Improving Client Diversification
Clients by Account Size
■
FY 20-21
80 70 60 50 40 30 20 10 -
2
4
5
4
-
> $15mn
7
11
5
3
-
-
> $10mn
21
22
7
-
9
> $5mn
41
31
> $1mn
■
FY 21-22
(1)
■
FY 22-23
■
9M 23-24
(2)
67
60
Client Concentration
100%
80%
60%
40%
20%
0%
86%
59%
45%
80%
78%
76%
■
Top 1
■
Top 5
■
Top 10
■
Top 50
54%
43%
48%
38%
45%
34%
15%
15%
13%
10%
FY 20-21
FY 21-22
FY 22-23
9M FY23-24
(1) Excludes MRM (one of the clients of RML) from this analysis post acquisition; (2) 9M FY23-24 Annualized
17
Strong Recurring Revenue
Recurring Revenue(1) as % of Operating Revenue
88%
87%
90%
110%
Net revenue retention(2)
Deep Customer engagement driving high recurring revenues
FY 21-22
FY 22-23
LTM Dec 23
(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 customers billed each month over January 1 2023 – December 31, 2023 for LTM Dec 2023 (2) Net revenue retention calculated based on comparison of 9M FY22-23 revenue with 9M FY23-24 revenue.
18
Human Resource Capital
Location wise break-up
Function wise break-up
310
812
502
■
India
■
International
35 New Employees joined in Q3 FY22-23
29 Employees left in Q3 FY22-23
20
66
335
812
78
29
284
■
■
Tech & Tech Support Sales & Marketing Firewall & other operator solutions General & Admin Strategy, Accounts & Finance Corporate-Business Heads
■
■
■
■
As on Dec 31 2023, Employee information excludes Call2Connect
19
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