RateGain shares fall 10% after guidance cut; Kotak downgrades on full valuations

Shares of Rategain Travel Technologies Ltd. declined by over 10% on Tuesday, November 12, after the company reported a decent quarter but lowered its FY25 guidance.

Rategain’s second-quarter results were broadly in line with Street estimates in terms of revenue, showing robust margin expansion. However, the company has reduced its FY25 revenue growth outlook to 15% year-on-year, down from 20% growth in the same period a year earlier.

The guidance cut is a combination of the following cyclical and structural factors including:

1) loss of a large mid-market hotel chain (4% of revenues) in the MarTech segment due to M&A

(2) weak order bookings due to delayed decision-making by clients

(3) normalisation of travel demand in the US

(4) pricing…