ROUTE MOBILE LIMITED has informed the Exchange about Investor Presentation
Registered & Corporate Office: Route Mobile Limited, ;:;~~d(W~~~)~'J:~lg~r +912240337676/77-99 Fax: +9122 4033 7650 info@routemobile.com www.routemobile.com CIN No: L72900MH2004PLC146323
~~g'odoStt.T~dia
Ref No: RML/2021-22/176
Date: January 27,2022
To, BSE Limited Scrip Code: 543228
Dear Sir/Madam,
National Stock Exchange of India Limited Symbol: ROUTE
Sub: Errata to the Letter dated January 27,2022 Ref.No.RML/2021-22/174
Ref: Investors Presentation
This is in furtherance to our letter dated January 27,2022 wherein the Company had submitted its Unaudited Standalone and Consolidated Financial Results ("Results") of the Company for the Third Quarter and Nine Months ended December 31,2021.
Page Nos.9 & 23 of the Investors Presentation, attached to the Results, were not placed/uploaded appropriately; hence a revised version (ver. 1) is being uploaded. There is no other change, content or otherwise.
We regret the inconvenience caused and request you to kindly take the above on record.
Yours truly, For Route Mobile Limited
Rathindra Das Group Head Legal, Company Secretary & Compliance Officer
End: a/a
Q3 FY21-22 Investor Presentation
January 27, 2022
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
270+ direct MNO connects, overall access to 900+ MNOs (Super Network)
Global footprint across 20+ locations 2,500+ active billable clients; 250+ new customer onboarded in Q3 FY 21-22
Infrastructure comprising 13 data centers and 6 SMSCs globally
Strong industry tailwinds: Global CPaaS market will grow to $34.2bn in 2026, from $8.7bn in 2021 (1)
₹17,384mn LTM Dec 2021(2) Revenue 29% Revenue CAGR FY2019 – FY2021
₹2,395mn LTM Dec 2021 EBITDA 42% EBITDA CAGR FY2019 – FY2021
125% Net revenue retention in 9M FY21-22
ESG leader, rated “A” by a reputed ESG rating agency
Raised ₹8,675mn via QIP in Q3 FY21-22
Recognized as “Established Leader” – Juniper, “Top Tier 1 A2P SMS vendor” – Rocco, “Representative Vendor” - Gartner for CPaaS
663 employees spread across 5 continents c. 20% attrition rate in 9M FY21-22
(1) Juniper -CPaaS Future Market Outlook, 2021 | (2) LTM Dec 2021 refers to 12 months period from Jan 1, 2021 to Dec 31, 2021
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
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
Successfully accomplished Global API Challenge – Hackathon
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
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
Hosted SMSCs in India and UK
Stage 2
Started operations in India to cater to the global market
Transition to an Enterprise Business, Global Expansion with differentiated acquisitions
Product line expansion – Acquired business email technologies re-branded as SendClean Geographical expansion - Acquired Masivian in LATAM and InterTeleco in Kuwait
Onboarded several blue chip customers including Global Fortune enterprises
Stage 3
Omni-channel Stack Marquee Clients Blockbuster IPO Sep’20
Stage 4
Expanding Product and Geographical footprint Launched Developer Program
4
Global Diaspora - Footprint & Super Network
Americas
Direct MNO 53
Employees 217
Europe
Direct MNO 103
Employees 12
APAC
Direct MNO 34
Employees 7
Middle East
Direct MNO 14
Employees 19
Africa
Direct MNO 62
Employees 4
Revenue for Top 50 countries by termination
4%
5%
9%
14%
9M FY2022
51%
17%
India
Asia excl.India
Africa
Middle East
Americas
Europe
Revenue by customer (Top 150) HQ by continent
7%
10%
9M FY2022
49%
34%
India
Direct MNO 6
Employees 404
8 Firewall deployments
13 virtualized Data Centers
14 Hubs
Data as on December 31, 2021
650+ Global Employees base
Americas
Asia
Europe
Africa
270+ Super Network - Widespread global distribution & reach
5
Systematic Roadmap to Create Sustained Growth Momentum
Marketing research & data capture
Identity & verification
Event-driven marketing
Payments & collections
Campaigns
2 Way Messaging
Route OTP
A2P
Route Connector
Lead conversion
Promotions
Customer loyalty
Call Patching
IVR
Missed Call
Click2Call
OBD
Route Mailer
CPaaS
Mail2SMS
Number Lookup
RCS
WBS
Viber
GBM
Verified Calls
Verified Messages
Acculync
Truecaller
Brandi5
MIDaaS
Business process management
Internal communication
Alert
Notification
Messaging
Enhanced Business Messaging
Identity & Verification
Customer support
Field service & conversation
Voice
Emergency communications & alerts
IVR & bots
Customer notifications & reminders
Contact center
6
Key Developments
Key Developments in Q3 FY21-22
Payment as a Service
ESG Rating
QIP
●
●
●
Raised ₹ 8,675 mn through Qualified Institutional Placement (‘QIP’) in Nov’21
Several global marquee investors onboarded
Deployment towards organic & inorganic initiatives
● ● ●
360o seamless payment experience Multiple Payment gateways supported Integration with UPI
Rapid (Developer Programme)
Inorganic Initiatives
Participation: 7,250+ Developers
Geographies: 100+ Countries
45+ Innovative Prototypes using SMS, Email, RBM, WhatsApp, Voice APIs
Expansion of Geographical Footprint through acquisitions in LATAM and Kuwait
Assigned an overall rating of ESG-RISK A, indicating that Route Mobile is an ESG leader based on its strength in data privacy & security, community support & development, board independence and ethical business practices.
Rating framework applied is in sync with the recent SEBI consultation paper
8
Bank of Maharashtra Digitized Customer Engagement through WhatsApp
Route Mobile’s WhatsApp Capabilities enable seamless banking experience and provides basic banking facilities, information about bank products and services with a simplified integration.
Solution:
Easy access and faster resolution of balance inquiries, mini statement, cheque book status, branch/ ATM locator, contact us information and more Compatible with Android and iOS devices
●
●
9
Brand Factory Improved Customer Engagement by using Voice & Messaging APIs
Solution:
● Optimized and automated coupon distribution to
verified customers Improved customer engagement by using Route Mobile’s Voice & Messaging APIs
●
Outcome:
Significant reduction in coupons misuse
Improved efficiency in database management
Substantial increase in footfall
Higher ROI for the brand
10
PaisaBazaar Generates Quality Leads with RCS Business Messaging (RBM)
Solution:
Customer conversations through RBM
● ● Multiple RBM rich cards enabled in a single message ●
Call-to-action buttons like URL redirection, application documents, and promotional content generated leads for personal loans Instant online loan approval, interest rates, and quick disbursement within 48 hours in carousel formats
●
Outcome:
40% less Cost per lead
17.6 mn submissions
via RCS
95% handset delivery on compatible handset
31% read status
Improved Clickthrough rate for the campaign
11
Masivian - Client Testimonials
Masiv is a provider that meets our
Masiv's good relationship and
needs for direct communication
prompt attention reflects the
with our stakeholders in a timely
commitment it has towards its
efficient and dynamic manner,
clients. Every time they have an
always handling very good service
UPGRADE in their services we are
and good technical, commercial
part of what is new, it is good to
and billing processes.
have a company that is constantly
changing every day.
Having the Professionalism and support of Masiv from the commercial team to the customer service support has been really valuable for me and the company, they are reliable and always willing to give their best.
I recommend Masiv from the heart because its support has been an important piece in my campaigns.
12
Selected by a leading operator in Southeast Asia to deploy CPaaS-enabled SMS Hub Solution
Reduces Complexity
Supports Different Protocols
Provides Wider Reach
Provide MIS Reports
Post/Prepaid Model
DND Complaint
13
Southeast Asian Operator
Financial Highlights
Q3 FY21-22 – Snapshot
Revenue from Operations (in ₹ mn)
Gross Profit (In ₹ mn) and Gross Profit Margin (%)
46% Y-o-Y growth 29% Q-o-Q growth
Revenue from operations (₹ mn)
21.2%
18.0%
21.1%
71% Y-o-Y growth 29% Q-o-Q growth
Gross Profit (₹ mn)
Gross Profit %
694
923
1,185
Q3 20-21
Q2 21-22
Q3 21-22
3,848
4,357
5,628
Q3 20-21
Q2 21-22
Q3 21-22
EBITDA(1) (In ₹ mn) and EBITDA Margin (%)
Adjusted PAT(2) (In ₹ mn) and Adjusted PAT Margin (%)
14.2%
13.7%
11.6%
74% Y-o-Y growth 25% Q-o-Q growth
10.9%
10.4%
10.6%
42% Y-o-Y growth 31% Q-o-Q growth
EBITDA (₹ mn)
EBITDA %
Adj. PAT (₹ mn)
Adj. PAT %
445
617
772
421
454
596
Q3 20-21
Q2 21-22
Q3 21-22
Q3 20-21
Q2 21-22
Q3 21-22
(1) Net loss on FX transactions and translation is excluded from EBITDA, amounting to ₹70m, ₹57mn and -₹2mn for Q3 FY21-22, Q2 FY21-22 and Q3 FY20-21 respectively. For Q3 FY21-22, ESOP benefit
expenses (non cash) were adjusted from EBITDA amounting to ₹93mn
(2) PAT has been adjusted for ESOP benefit expenses (net of tax) and non-cash amortization associated with the intangible assets added as a result of purchase price allocation for acquisitions.
15
Financial Highlights for Q3 FY21-22
• Closed Q3 FY21-22 with revenue from operations of ₹5,628mn compared to ₹4,357mn in Q2 FY21-22and ₹3,848mn in Q3 FY20-21
• Y-o-Y growth of 46.2% and sequential growth of 29.2% in revenue
• Recorded Gross Profit of ₹1,185mn in Q3 FY21-22 compared to ₹923mn in Q2 FY21-22 and ₹694mn in Q3 FY20-21
• Y-o-Y growth of 70.9% and sequential growth of 28.5% in Gross Profit
• Gross Profit margin of 21.1%, 21.2%, and 18.0% in Q3 FY21-22, Q2 FY21-22 and Q3 FY20-21 respectively
• EBITDA of ₹772mn in Q3 FY21-22 compared to ₹617mn in Q2 FY21-22 and ₹445mn in Q3 FY20-21
• Y-o-Y growth of 73.5% and sequential growth of 25.2% in EBITDA
• EBITDA margin of 13.7%, 14.2% and 11.6% in Q3 FY21-22, Q2 FY21-22 and Q3 FY20-21 respectively
• EBITDA margin declined sequentially owing to increase in sales & marketing cost and hiring of developers related to Rapid initiative
• Recorded Profit After Tax of ₹483mn in Q3 FY21-22 compared to ₹421mn in Q2 FY21-22 and ₹376mn in Q3 FY20-21
• Y-o-Y growth of 28.3% and sequential growth of 14.8% in Profit After Tax
• Adjusted Profit After Tax of ₹596mn in Q3 FY21-22 compared to ₹454mn in Q2 FY21-22 and ₹421mn in Q3 FY20-21
• Adjusted for ESOP benefit expenses (net of tax) and non-cash amortization associated with the intangible assets added as a result of
purchase price allocation for acquisitions
• Adjusted Profit After Tax margin of 10.6%, 10.4% and 10.9% in Q3 FY21-22, Q2 FY21-22 and Q3 FY20-21 respectively
• Interim dividend of ₹3 per share approved by the Board of Directors
16
Inorganic initiatives in Q3 FY21-22
Completed the acquisition of 100% equity in Masivian S.A.S (“Masiv”), w.e.f. November 11, 2021
Masiv’s differentiated cloud communication platform offerings for enterprises create a springboard for growth in Latin America
Total purchase consideration, including adjustments and earnout, of US$51.3mn (₹3,813mn)
~63.16% paid upon closing while the second, third and fourth instalments, each equivalent to 12.28% will be paid upon completion of
12, 18 and 24 months from the date of closing
Completed the acquisition of Interteleco w.e.f. 1 December 2021. Acquired 49% equity stake and 90% economic and beneficial interest
The acquisition will further strengthen Route Mobile’s presence in Middle East, through expansion into a new region - Kuwait
Total purchase consideration of KWD 652,500 (₹163mn)
Q3 FY21-22 Revenue Bridge (in ₹ mn)
964
270
37
5,628
4,357
4,357
5,321
Q2 FY21-22
Organic
Masivian…
Interteleco…
Q3 FY21-22
17
9 months ended FY21-22 – Snapshot
Revenue from Operations (In ₹ mn)
Gross Profit (In ₹ mn) and Gross Profit Margin (%)
Y-o-Y growth 32%
18.9%
20.9%
Revenue from operations (₹ mn)
10,437
13,760
9M 20-21
9M 21-22
1,976
2,877
9M 20-21
9M 21-22
Y-o-Y growth 46%
Gross Profit (₹ mn)
Gross Profit %
EBITDA(1) (In ₹ mn) and EBITDA Margin (%)
Adjusted PAT(2) (In ₹ mn) and Adjusted PAT Margin (%)
13.7%
Y-o-Y growth 51%
11.9%
EBITDA (₹ mn)
EBITDA %
1,242
1,880
9M 20-21
9M 21-22
Y-o-Y growth 32%
Adj. PAT (₹ mn)
Adj. PAT %
10.4%
10.4%
1,084
1,427
9M 20-21
9M 21-22
(1)
(2)
Net loss on FX transactions and translation is excluded from EBITDA, amounting to ₹163mn for 9M FY21-22.. For 9M FY21-22, ESOP benefit expenses (non cash) were adjusted from EBITDA amounting to ₹93m
PAT has been adjusted for ESOP benefit expenses (net of tax) and non-cash amortization associated with the intangible assets added as a result of purchase price allocation for acquisitions.
18
Financial Highlights for 9M FY21-22
• Closed 9M FY21-22 with revenue from operations of ₹13,760mn compared to ₹10,437mn in 9M FY20-21
• Y-o-Y growth of 31.8% in revenue
• Recorded Gross Profit of ₹2,877mn in 9M FY21-22 compared to ₹1,976mn in 9M FY20-21
• Y-o-Y growth of 45.6% in Gross Profit
• Gross Profit margin of 20.9%, 18.9% in 9M FY21-22 and 9M FY20-21 respectively
• Recorded EBITDA of ₹1,880mn in 9M FY21-22 compared to ₹1,242mn in 9M FY20-21
• Y-o-Y growth of 51.4% in EBITDA
• EBITDA margin of 13.7%, 11.9% in 9M FY21-22 and 9M FY20-21 respectively
• Recorded Profit After Tax of ₹1,247mn in 9M FY21-22 compared to ₹973mn in 9M FY20-21
• Y-o-Y growth of 28.2% in Profit After Tax
• Adjusted Profit After Tax of ₹1,427mn in 9M FY21-22 compared to ₹1,084mn in 9M FY20-21
• Adjusted for ESOP benefit expenses (net of tax) and non-cash amortization associated with the intangible assets added as a result of purchase
price allocation for acquisitions
• Adjusted Profit After Tax margin of 10.4% and 10.4% in 9M FY21-22 and 9M FY20-21 respectively
19
Diverse customer base
Revenue contribution from select industries in 9M FY21-22
Revenue for Top 50 countries by termination (1)
Digital native
Social/ Internet; Edtech and Technology companies
21%
51%
Ecommerce
Increasing use of communication APIs to drive customer engagement
16%
Tier 1 CPaaS partners
Top tier 1 CPaaS partners across the globe
FinServ
Digital communication solutions for Banking, Insurance and Payment gateways
Telecom & allied Services
MNOs and telecom OEMs
15%
11%
6%
Retail
Travel
Increasing use of communication APIs to drive customer engagement
4%
Digital Solution for travel industry, particularly to airlines. and its allied services
1%
17%
13%
9%
5%
4%
India Asia excl. IndiaAfrica Middle EastAmericas Europe
Revenue by customer HQ (continent) (2)
7%
10%
9M FY21-22
49%
34%
Americas
Asia
(1) Top 50 countries contribute c.92% of 9M FY21-22 revenue from operation I (2) Based on Top 150 customers - contributes c. 94% of 9M FY21-22 revenue from operation
20
Growing number of Multi-million dollar accounts with Improving Client Diversification
Clients by Account Size
40
30
20
10
-
1
2
2
4
1
2
3
5
3
4
7
10
> $15mn
> $10mn
> $5mn
> $1mn
FY18-19
FY19-20
FY20-21
9M FY21-22
(1)
37
31
21
16
Client Concentration
100%
50%
0%
81%
82%
54%
43%
23%
54%
44%
19%
86%
59%
45%
83%
54%
43%
15%
12%
FY18-19
(2)
FY19-20
FY20-21
9M FY21-22
Top 1
Top 5
Top 10
Top 50
(1) 9M FY21-22 annualized (2) FY18-19 excludes the discontinued wholesale voice business
21
Strong Recurring Revenue
Recurring Revenue(1) as % of Operating Revenue
85%
91%
90%
FY19-20
FY20-21
LTM Dec 21
125% Net revenue retention(2)
Deep Customer engagement driving high recurring revenues
(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 January 1, 2021 – December 31, 2021 is a recurring customer for LTM Dec 2021 (2) Net revenue retention calculated based on comparison of 9M FY20-21 revenue with 9M FY21-22 revenue
22
Unit Economics – Revenue
Revenue from operations and Total Billable Transaction(1)
25
30
32
34
8,447
9,563
14,062
13,760
FY18-19
FY19-20
FY20-21
9M FY21-22
Revenue from operations (₹ mn)
Total Billable Transactions (# bn)
Revenue per transaction (in ₹)
0.466 0.405
0.435
0.338
0.315
FY18-19
FY19-20
FY20-21
9M FY21-22
Revenue per transaction excl. email
Revenue per transaction (consolidated)
(1) FY18-19 includes the discontinued wholesale voice business revenue of INR 1,008mn
Robust growth momentum 32% Y-o-Y growth in 9M FY21-22 31% CAGR over past 5 years (FY15-16 to FY20-21)
Improving unit economics Higher revenue per transaction (excluding email)
23
Improving Unit Economics – EBITDA
EBITDA (In ₹ mn) and EBITDA Margin (%)
12.5%
13.7%
10.5%
12.5%
1,000
1,756
1,880
FY19-20
FY20-21
9M FY21-22
EBITDA (In ₹) per transaction
EBITDA (₹ mn)
EBITDA %
0.054
0.055
0.035
0.033
FY18-19
FY19-20
FY20-21
9M FY21-22
Non-linear business model creates high operating leverage
EBITDA as % of Gross Profit increased from 52% in FY19-20 to 63% in FY20-21 and 65% in 9M FY21-22
(1) Net loss on FX transactions and translation and ESOP benefit expenses (non-cash) are excluded from EBITDA for respective periods
24
New Product Revenue Momentum across Geographies
Colombia & Peru
Turkey
India
Saudi Arabia
Bangladesh
Kuwait
Quarterly New Product Sales (₹ mn)
108
130
113
166
277
Nigeria
UAE
Sri Lanka
Philippines
Indonesia
Q3 FY20-21 Q4 FY20-21 Q1 FY21-22 Q2 FY21-22 Q3 FY21-22
Voice
TrueCaller
Viber
GBM
RCS
Brandi5
FB Messenger
Q3 FY21-22 growth 156% Y-o-Y 67% Q-o-Q
Revenue from new products in LTM Dec’21
₹ 686mn
25
Human Resource Capital
Location wise break-up(1)
Function wise break-up(1)
Attrition analysis (2)
259
663
India
International
404
19
46
57
26
232
Tech & Tech Support
Sales & Marketing
283
Firewall & other operator solutions General & Admin
Strategy, Accounts & Finance Corporate-Business Heads
11%
20%
FY2021
9M FY2022
Annualized Attrition
(1) As on Dec 31 2021, Employee information excludes Call2Connect (2) Attrition analysis excluded C2C, Interteleco & Masivian
26
Glossary
2FA
A2P
API
Two-Factor Authentication
MNO
Mobile Network Operator
Application to Person
OBD
Out-Bound Dialling
Application Programming Interface
rapid
Route Mobile API developer
AI / ML
Artificial Intelligence / Machine Learning
RBM
RCS Business Messaging
CPaaS
Communication Platform as a Service
CRM
Customer Relationship Management
RCS
RML
Rich Communication Services
Route Mobile Limited
CxPaaS
Customer Experience Platform as a Service
ROCE
Return on Capital Employed
DLT
ESG
GBM
IVR
ME
Distributed Ledger Technology
Environmental, Social, and Governance
Google Business Messaging
ROE
SIs
SMS
Return on Equity
System Integrators
Short Message Service
Interactive Voice Response
SMSC
Short Message Service Center
Middle East
UCaaS
Unified Communications as a Service
MIDaaS
Market Insights Data as a Service
MMSC
Multimedia Messaging Service Center
VBM
WBS
Viber Business Messaging
WhatsApp Business Solution
27
Thank You
www.routemobile.com