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Route Mobile revises revenue guidance; sees record numbers in Q2

Meanwhile, the company does not see any impact on margins despite increasing competitive intensity.

September 27, 2022 / 03:41 PM IST
 
 
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Route Mobile, a cloud communications platform as a service company, on September 27 said it sees revenue hit a record high during the September quarter and the following one will be even better.

The company also revised revenue guidance for the current year from earlier estimates.

“The way Q2 is ramping up for us, we will be clocking the largest revenue ever. It bodes well for Q3 as well. We are very buoyant about the December quarter,” said Gautam Badalia, Chief Strategy Officer, Route Mobile, speaking to CNBC TV-18.

“We have been guiding about a 50 percent growth rate for this financial year. But with the recent deal wins, we will be closer to 60 percent rather than 50 percent. That is the kind of momentum we are having at this point in time.”

Meanwhile, the company does not see any impact on margins despite increasing competitive intensity. In the first quarter, the company had to lose a client due to predatory pricing by a large telecom provider, but it sees not much impact of the same and said that incident was a one-off.

The company said it will likely also double its transaction volume during FY23 from 52 billion last fiscal.

Likely to gain from forex fluctuation

The company said it has a large exposure to the UK but the recent sharp drop in pounds will not have any significant impact on the company as most of its billings even from the UK happen in the US dollar.

Overall, 70 percent of its billings happen in the US dollar and Euro, the company said, adding that depreciation in the rupee against the dollar will benefit the company.

Moreover, Route Mobile said in fact it has some capital commitments in Euro and the depreciation in the European common currency will also benefit the firm.

“Currency depreciation per se helps us. We will likely benefit 5-6 percent due to currency fluctuations,” said Badalia.

Shares of the company traded up over 2 percent. It has fallen 27 percent so far in the current calendar year so far.

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Moneycontrol News
first published: Sep 27, 2022 03:35 pm