Yatra Online (YTRA) 1 Apr 222022 Q3 Earnings call transcript

Good day, and welcome to the Yatra’s Third Quarter 2022 Financial Results Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Manish Hemrajani. Please go ahead.

Thank you, Jennifer. everyone. morning, Good fiscal period Yatra’s XXXX results financial Welcome December third XX, the ended XXXX. for to quarter I am pleased by to be joined on and Dhruv Yatra’s the Co-Founder, Shringi. CEO call today management’s XXXX. including your responses The of following X, questions, discussion, reflects April today, views to as any update or undertake information. revise to obligation don’t the We

Before cause beliefs on call remind forward-looking may could to that that we results uncertainties COVID-XX and statements, remarks, risks several and management’s statements expectations certain in which to our related to me formal based materially. current differ assumptions constitute pandemic conflict include and the actual expectations These ongoing subject made are to begin are allow of you Ukraine. on and today’s and the impact

to our the go SEC our filings For description Dhruv, to a with press me turn With refer and that, call let over please Dhruv. of these ahead. please release. the risks,

for Thank Thank everyone. you, this you us and good Manish, joining morning. morning,

will what the Before results, discuss believe Yatra’s I major to I’d discuss milestone evolution. in we be like a

shared we in we the Red that with in we to of are India in for market last with first the Prospectus shared our Herring week, with SEBI, work options regulator lawyers India. and we earlier, as India the explore with IPO. main bankers end, an the continuing To Draft process is took step to you filing As the which

act India already and ongoing and to and catalyst include pool access capital brand, to balance our in and working be an that to this strategic creation U.S. liquid business in are improve and in listing, the strengthen is brand the stock as coverage and trade travel would begin shareholder of familiar participating retail restricted currently capital offering positively which value of travel this markets. accelerate and research that IPO a both opportunities should a with the Benefits part summer be additional end a sell-side business, can and Yatra’s in going Our provide shows M&A sheet and end corporate early April, would value but we in investors corporate into will Yatra to business position who for including who support of enhance May, India the could to of additional Yatra’s further XXXX. successful continues travelers used believe institutional forward. strategy to to a management Yatra’s back from with towards We are in road translate by amongst which Providing growth others. recover India flexibility of in the continues significantly capital strongly. complete India, believe resonate of

quarter a is onto were QoQ in strong sequentially. leisure million. the Now the XX% holiday recovery results, December our up season. $XX at December XX% XX% XX% picked and passengers quarter quarter and up December critical the into in year-over-year travel heading booked INRX,XXX.X Air XX, in the in approximately December coming as travel came up adjusted up XXXX, million, ended quarter which We was This year-over-year. for revenue witnessed

XX, cash was our corporate revenue make last was continue sheet On EBITDA and in the quarter. hotel Our to in balance by of the investments QoQ largely on cash but business on deposits counts change quarter. travel dollar the March XXXX. lower Adjusted term XX% XX% was basis, early with recovery INRXX of of since $XX US$XXX,XXX INRX.XXX cash the sequentially ended on adjusted nascent, balance logistics and in capital which improved we COVID-XX EBITDA year-over-year, in than up XX% came was business strong of room the balance also the in our quarter of increase the to showing also million a that of rapidly then as Despite account great for business. or account approximately Yatra the growing revenue in this for of leverage versus U.S. about We working reported XX% part for the strongly onset in our the sheet the quarter highest position September a and billion. of up million model. case quarterly and the was $XXX,XXX, cash is were and share more equivalent the the and nights back happy XXXX, on The sequentially. INRXX back third about to that quarter Business million. balance I’m approximately adjusted adjusted

of to having in it in we to in the XXXX, quarter. further was business pleased felt remain month of the a leisure account close has month XXXX Omicron that January. But said the travel to in to change in March of pre-COVID note is there impact, of we the to Please that is where sorry, existing As some XXXX. trending was travel cash that levels than levels, and of change we Business back above, I not both March. optimistic in that been are we there the position should exceed XXXX it Feb rapid by in I’m say get June, due working March in to June capital impact and corporate the are December, and November leaders pre-COVID volumes the business. on And while which account seen XX% since in mentioned better back of market disruption largely volumes on recovery recovery

competitive on with positively front the quarter, brand resonate While our levels has risen to continues travelers. moderately behind hotels Indian since last the and intensity overall competitive the remain

strong travel, exceeded volumes Feb And volumes. XX% and stronger. January, travel business recovery happening, been Omicron has for in pre-COVID air in even but impacted March onwards negatively large, of industry like domestic we’ve overall, volumes Just travel, seen for

platforms. we the travel key happening business May, into March both summer So, seeing leisure of from travel April, strong recovery and are leading across June months

well, hotel from with but Yatra. the week, long-term front program content from hotel XXX EBITDA lead vaccinated fully India’s one close that source a dose. believe a drive existing to And us an this through also volume of and remarkable. Flipkart will have strengthen value we help will to relationship people not will as that creation. a as accretive only We at of hotel have truly vaccination partnership people received the or with be perspective, now we has Cleartrip, incremental partnership mass our domestic been strategic this our who signed million On partners over population better least been the XX% and and billion

up on travel opened international India full March schedule result, a a from for XX As onwards.

we to travel expect these of volumes the initiatives, year. in on globally. continue are this traction signals Because or to front can gaining as the our open international that a up calendar quarter early good seeing we are pre-COVID exceeds sometime We positive and see [ph] meets we the levels division believe traction

an me give business. Let update our freight you on now

towards relationships capabilities, look our significant corporate us the head-start. logistics management, and a we As with airlines our with digitizing space, technology both executive give travel together enterprise

corporate have this even believe this business our the past months. be business. rapidly the scaled than larger term We over business has few up to longer travel potential And we

we million million to business should XXXX $X $X this And believe for achieve to of be year to from business. be expect fiscal this in expansion We that of rapid we revenues year a able XXXX.

globe freight, believe interest successful a of the be which position facing. is freight in in we’ll accelerate Following growth receiving renewed that the challenges across I logistics the to because people IPO, Indian are and

puts continues balance about are brand sheet recovery that momentum. believe growth We strong and to are well-recognized healthy and that gain optimistic Yatra’s to we the trends recovery continued position capitalize a us the our on based and as witnessing in

of are And business in vaccination an trends, with and woods, travel, recovery COVID. case India worst years level the believe enough seen we we levels to get now We point will the ahead of for in I’m completely in We inflection in encourage While has on of hit we the based other lowered us. March. believe the as out the believe also pandemic have opportunity massive. will to strong that We leisure, the past Yatra quickly. of Feb travel as corporate behind is not Internet and count travel both months the a leaders is coming optimistic recover low Indian the recent

to made again through and who once during With trying I’m these lead pandemic cash honestly to the higher before improve and to our matter are me efficiency Yatra it by of Manish? understanding thank efforts time will levels of Manish. operational hand hopeful the times. shareholders believe profitability and only your back to that, let stand a significantly addition, flow. In it’s I rewarded. want patience

can Thank please call up the Jennifer, open Q&A.? for you. you

Wainwright. go first to we’ll Buck And Instructions] [Operator with Yes. H.C. Scott

my taking guys. Hi, questions. good for morning Thank you

market that the or one the for if signed corporate you’re new still First made on or side me, share the you’ve come early that? you’ve is of recovery levels of curious corporate on to seeing the during side benefits gains some starting too back? COVID, Or it now are contracts the I’m activity for

think see I signs that, to of Scott. we’re beginning early

in the where to volume travel relatively month but XX% seen days pre-COVID early March. has I volume the corporate March of mentioned, there volumes we’ve daily about our of levels. been levels pre-COVID as touch exceeded our month Firstly, of – has have from it, comment It’s exceeded on

in up our of reset that wins. May, that into very we corporations of recovery So as on hopeful I’m recovery the existing new also should but we us just happening from a go back the corporate customers, travel seeing on of for end April, strong as and quite perspective, June budgets, their not account

That’s Great. helpful.

and leisure, folks the a do you to of else As up, meet do travel customer you have to appropriately? rehiring, both whoever picks demand? guys significant of or Or staffed levels activity higher corporate amount are service hiring,

demand side and largely the corporate last things. on up, has the has been of months some hiring few done we’ve travel So, as picked this hiring in

lot On the two automation. we on last consumer the a back-end focusing front, years spent

negligible. to incremental volume increased our has care So of headcount been the expansion take

be side, to international comes COVID where exist. the to be around to to travel On – it there continues when especially still there areas the speak continue customers where still restrictions COVID-related someone, regulations to want travel, and to corporate continue

headcount, we typically close some to coming average front, the staff headcount. But at and the that frontline the would and $XXX $XXX about month. is somewhere which coming to on frontline in is a are So in adding level,

an So it’s which [indiscernible] is Yes. not added. being headcount,

and promotion starts sales you in good level do up? required – really comfortable marketing of think marketing like years. as similarly, expense And looks it activity marketing two there’s highest the level pick with was more this Are to That’s or you color. sales

I that but on I this that. this into would think front be it month. subsequent May, April, travel to quarter, more we the the demand should that. revenge of leading sales promotion June sense more generate spend in but on again, to little the than there, the make April, quarter higher kind as is a it’ll go we are for summer revenue May, we this the should And maybe peak the us made more. slightly be It then marketing and marketing, into seeing it given stabilize June won’t think from than increased up and by uptake, bit be would significantly that on

So would spend bottom see whatever being marketing the would that line. see, to still you you accretive incremental it

touched like can Great. of normalized it, years in you been what kind us helpful. little last bit then last That’s have seasonality two the given environment? And looks more unordinary, a but one that me, you a for on remind

And November, the July, the August, would September two of Jan, second then terms are would Feb, March would sequencing, third Those highest March June would months of October, the and the us December. December May, So, October, April, be are quarter, periods. November, be highest, seasons highest, – be May, the in would April, leaner. and June, that two the Jan, be the be Feb, peak peak for

additional Okay, so congrats quarter. caller appreciate the perfect. Thank much all I the on guys. and you

you. Thanks, Scott. Thank

Soderstrom will We with next Anja to go Sidoti.

taking you questions. my Hi, for thank

better So curious have progressing? expected? freight is How the I’m slower business. surprises about you there? just Is seen any And or that it you than

account on was maybe recover December freight. from freight fact There a flights with the I of disruption lot avenue the travel away up and for international Omicron, quite of in in got we and the moving in air international grow agreements, business of flights area So for strongly. weeks continues freight that’s a opening the of and coming for on month great slight couple are and the growth disrupted, last seeing stream but when business for January on a international back capacity us. bubble come more And think scheduled and to

So freight excited freight from we the the perspective, and seeing right quite international are now up. international open travel air

the in real months. coming avenue a freight up gives growing incremental that us for So business

Thank you. And how international revenue on from were a pre-COVID much of your roughly travel? level, derived

XX% was from to from international depending of was the revenue quarter travel. about XX% our on of XX% coming revenue, pre-COVID our So coming

expect back you Okay. But year think pre-COVID corporate you’re before you Thank the And it fully travel you. levels. I didn’t levels. back to this saying business to come you mentioned think that now that to come might pre-COVID

– do you that how how So changed? has

what has corporate our a customer customers, is, volumes wins travel our strongly. of happened come existing combination and So seeing are through on recovery back new we very

meet be call mentioned, I there’s physically. out kind As be now are to of in we front in customers I of of and some A people other talking their fatigue. I think customers. to number team front to their zoom when figuring customers, might we also our of, members want are what our They want

And for our to strong corporate pent-up at recovery volumes. this travel time. corporate are So in demand travel lot is demand seeing pent-up leading point in we that of a a

is then the April we to this up customer also customer existing basis. financial addition a year, financial new follows financial we year So coming new India we new to up happening in – wins funds again. go company seeing into March so as are budgets, on an new what’s go go year through into as set an And and that,

the to expect strongly April, come very in would June we see quarter. So back travel May,

competitors? the they is have in-house from those new go or Okay. extent outsourcing, to And are customers, to on you you winning that from more it, are one

is win the technology on backup are We and are we the from competitors winning, adoption. happening largely also winning them

business market So automated realized And move we an the as automating manually. environment, to towards more working travel get they’ve like in management, business in a companies their used a as do spoken we’ve past more the of lot can’t and solution in travel. expense hybrid they processes, business are and for they processes including leaders their

We products interest services. strong are our seeing towards and

Thank you. just And then a one. last

and the with your cash You are position you’re looking listing. strengthening this have to this at maybe What priorities allocation a good India balance sheet capital point?

Sure.

one be travel would be So deploying priorities and allocation growing area the business. behind corporate freight capital capital would the the more

and event The a recovers, spends in as the certain consumer market other amount we incremental marketing Indian of a happening on be the would travel see market. of domestic lot

be on a portfolio areas. we tech side expand that So little corporate would then key two of these be the bit And of spend the as product on behind third side. the would things, travel our

was all me. That for you. thank Okay,

Sure. Thank you.

We’ll go Lisa Zacks to Thompson with next Research. Investment

was you about your what new I level you breakeven your pre-COVID? the all Hi, far if as given versus as wondering corporate bit with could what see revenues is talk automation structure a little cash maybe new

Sure.

happen for So level, quarter think cash $XX a million of at million $XX operating between an cash operating at breakeven breakeven should flow should an we us mean revenue, to level.

$XX you year? and you’re you this end think doing a to you million by to that’s Great that XXXX, I comment look thought the Do Okay. going back made levels pre-COVID happen you of a year. could if And this to get quarter.

exit our XXXX, quarter. So

XXXX, look year So I of million think, the was, I at exit revenue. our if $XX quarter terms in about full

exchange to rates. think $XX So number, be term, very that’s we it should $XX our near I at is million current million we we the get number. get to year, on And about year in full to number look if did the full that able the

$XX now. is about full But rate have of exchange million quarter. terms, So dollar which XXXX terms million a in would roughly the has rate for done in fiscal year we from XX% also moved exchange XXXX, $XX until current

that. coming better So on to we than the are we think do year in fiscal track

Great. questions. you. all my That’s Thank

Thank Sure. you.

Craig-Hallum. go Jeff to Van Rhee with Instructions] [Operator next We’ll

for guys. taking Hey question. Thanks my Great.

Just question follow the up around on last margins. want to

the or had what get $XX do point million to what the thoughts your the around I you you a you throw further EBITDA EBITDA this trying one think the what thought million. you it a would door had maybe coming you some of better opposed $XXX Maybe EBITDA given of think to IPO. previously more I revenue, margin what more you if as margins dollars guess you’ve is pivoting back you potentially question, at – And take you growth describe capital I think mode? beyond more could a is of through got what in to in some hit. EBITDA would be step mode breakeven as kind Indian balanced I’m off? given could to pretty is understand I are just question aggressive

Just of what think you $XXX million? do

any a see I Yes, we margins in should of able I happening should those why kind normalized get travel. a think, margin because to uptake to we between seen $XXX XX% at still environment don’t to corporate on not reason Jeff, strong that be million, we’ve very more be levels. XX%

companies lot done are seeing technology than adopting past. a We the in they’ve more also

So the it meaningfully in was relative servicing pre-COVID of the era. compared cost quite kind has gone down to where

So margin believe, a I and a able million should get as XX% be XX% we $XXX kind confident, still operating we to deliver of to that I’m to number.

Okay, Congrats. questions. great. for Thanks my taking

Yes, not Thanks. at all.

any on Jennifer the questions line? further Hi,

there questions. time, no further are this At

right, joining add? Dhruv, All Thanks, And great. call as for are everyone, follow-ups. we to for available anything always, the today.

thank No, thank everyone. you. Stay and you safe

conclude you participation. does today’s your conference. This for thank We