MakeMyTrip (MMYT) Reports Loss Despite Revenue Growth; Margins a Key Challenge

MakeMyTrip (MMYT) recently reported its full-year 2024 financial results, revealing a swing to a net loss despite significant revenue growth. The online travel company announced its latest annual figures on May 28, 2024, from its NASDAQ listing.

For the full year, MakeMyTrip’s revenue reached US$759.5 million, marking a 39% increase compared to the previous fiscal year. This revenue figure surpassed analyst consensus estimates by 1.1%. However, the company recorded a net loss of US$13.7 million, a stark contrast to the US$48.6 million profit reported in fiscal year 2023. This resulted in an earnings per share (EPS) loss of US$0.13, down from a US$0.47 profit in the prior year. The reported loss was significantly below analyst expectations, who had projected a profit of US$27.1 million for the period.

### Factors Behind the Loss

The primary driver behind the company’s swing to a loss was a substantial increase in operating expenses. Total operating expenses for the year climbed to US$774.9 million, representing a 46% year-on-year rise. A major contributor to this increase was share-based compensation, which surged by 142% to US$96.7 million.

Looking ahead, analysts project a positive turnaround for MakeMyTrip. They forecast an annual revenue growth of 21% over the next three years. Furthermore, earnings are expected to become profitable again, with a projected growth rate of 140% per annum. Simply Wall St’s fair value model suggests that MakeMyTrip is currently trading at approximately US$67.95, which is below its calculated fair value of US$78.29. There have been no significant share price movements in the past week, and no recent insider selling has been reported.

Key Points
* Full year 2024 revenue: US$759.5 million
* Revenue increase (FY24 vs FY23): 39%
* Net loss (FY24): US$13.7 million
* Profit (FY23): US$48.6 million
* Earnings per share (EPS) loss (FY24): US$0.13
* EPS profit (FY23): US$0.47
* Revenue above consensus estimates: 1.1%
* Analyst forecast profit for FY24: US$27.1 million
* Operating expenses (FY24): US$774.9 million
* Operating expenses increase (year-on-year): 46%
* Share-based compensation (FY24): US$96.7 million
* Share-based compensation increase: 142%
* Forecast annual revenue growth (next three years): 21%
* Forecast annual earnings growth: 140%
* Simply Wall St fair value: US$78.29
* Current share price: US$67.95

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