Share of Route Mobile Ltd had touched the Life Time High of Rs. 2225 on 14th October 2021, since then the stock price has corrected ~ 40% while the EPS has gone up by ~ 82%. Not only this, the Stock of Global CPaaS and CXPaaS Leader is presently trading at near to its all time Low PE Ratio of ~ 27.5!
What’s even more Strange is the fact that the Route Mobile has not only been posting Consistent Growth in Past 7 Quarterly Results, but has also Surpassed the Pre-IPO FY (19-20) audited Revenue and PAT in Q3FY23 and Q1FY23 respectively!
Given that the Industry Analysts Expect Global CPaaS Market to continue growing at a CAGR of over 30% between (2021-26) and a Popular Data Survey has simultaneously shown that, many organizations are now adopting Cloud-Hosted Solutions to Streamline Data Delivery and Utilize a Single Supplier for Voice & Message Services* – To know more about Tailwinds in the Digital Space and Disruption Technologies read*: (https://jyadareturn.com/why-ltimindtree-could-be-the-multibagger-story-for-the-next-decade/ and https://jyadareturn.com/tata-elxsi-and-happiest-minds/)
Therefore there are Higher prospects for Growth, Increased Innovation, and Numerous Opportunities for Cloud Communications Platform Service Providers, like Route Mobile Ltd.
If that is the case, stock of this company is Not only offering a Clear Visibility of Higher Earnings Growth for at least Next 3 years, but is also available at a Dirt Cheap Throw Away Price, given that the Stock’s IPO PE was 66.4, whereas it has also traded at an All Time High PE of 131.6 in the past!
How Route Mobile Ltd Could Be Your Multibagger Opportunity To Invest In?
“Powering the Connectivity and the Future of Mobility & Transaction” – Route Mobile is the Leading Cloud Communications Platform Service Provider, offering Communication Platform as a Service (CPaaS) Solutions.
Company caters to Enterprises, Over-the-Top (OTT) Players, and Mobile Network Operators (MNO) and its Portfolio comprises of Solutions in Messaging, Voice, e-Mail, SMS Filtering, Analytics, and Monetization.
Company Delivers an Entire Communication Product Stack, based on a CPaaS principal, infusing Conversational AI across a Broad range of Industries including Social Media companies, Banks and Financial institutions, e-Commerce entities, and Travel aggregators.
Route Mobile is headquartered in Mumbai, India with a Global presence in the Asia Pacific, Middle East, Africa, Europe, and the Americas.
Since 2004, Route Mobile has focused on Building Mutually Beneficial Relationships, Product Innovation, and Geographical Expansion to Serve Enterprise Clients – with an Aim to Emerge as a Globally Integrated Network of Communication Channel Transcending National Boundaries & Time Horizons!
Due to Management’s Believe in its ability to remain Resilient, Relevant, and Resolute through all the Business Cycle, Route Mobile today has become One of the Leading Global Messaging and Voice API Company!
Since the Global CPaaS Market is Expected to be growing at ~ +30% CAGR between FY21 to FY26, so the same has also been demonstrated by the Route Mobile as the company’s Revenue has grown at ~ 33% CAGR and PAT at ~ 43%, in Last 3 years, on the back of Strong Execution, Robust Customer Adoption, Clients Trust in the company’s Innovative Solutions, and the Key Strategic Acquisitions which has Accelerated the Route Mobile Growth Momentum Further.
As a results, company’s Revenue and PAT has Grown at 59% and 63% respectively, in TTM!
Route Mobile has Created a Robust Omni-channel Cloud based CPaaS Platform, which Comprehensively addresses the Digital Communication requirements of the Enterprises. In addition, the Strong Industry Tailwinds Created Conducive Market Environment for the Differentiated Players like Route Mobile Ltd, to Sustain their Growth and Enhance the Profitability.
The Structure Behind The Route Mobile Organic Growth & How The Strategic Acquisitions-Led Inorganic Growth, Accelerated The Overall Growth Momentum?
Management Boot Strapped the company in 2004 and Started Operations in India to cater to the Global Markets, later the company also started as an aggregator of Traffic to Gain MNO access. Following this, the company has also undergone Transition to an Enterprise Business and Global Expansion with Differentiated Acquisitions like 365Squared, Cellent Technologies, Start Corp India and Call2Connect.
By 2018, company has developed Next Gen services like RBM and OTT Messaging and later, On-boarded Several Blue Chip Marquee Clients including Global Fortune 500 Enterprises!
Just before getting listed on the Indian Stock Exchanges in Sept.’20, company has enabled itself to develop “Full Messaging Omni-channel Technology Stack”, through TeleDNA Acquisition. As a result, the IPO proved to be a Blockbuster Success!
Motivated by this success, company not only became hubbing partner with the Top Telecom Operators Globally but also kept on Expanding its Product Portfolio and Geographical Footprints, while launching the Developer Program simultaneously.
The Rise Of Route Mobile And Its Transformation From MNO Traffic Aggregator To A Globally Integrated Network Of Communication Channel
Digitization has helped to bridge the gap between consumers and the businesses very effectively and with robust digital platforms in place, one can purchase an insurance policy Past Midnight and also can effectively resolve troubleshooting issues with the customer care, While Working Out on a treadmill. That’s how converged our lives have become with the advent of Technology.
If research is to be believed, then the Majority of Purchase Decisions are being made Before Even talking to the supplier! This proves that Virtual or Online Transformation is of Paramount Importance, if the Businesses Wish to Serve the Consumers in the Best Possible Way and hence Sustain their Operations.
Therefore, Businesses must embrace technology and provide their customers with an Experience that is Unmatched and Immersive in Nature!
That’s why the Cloud Communication Platforms kicks in, to Change the way the Telecom Industry used to Operate, by enabling their businesses to Establish and Connect with their Target Audience through the Unique Communication Services.
How Route Mobile Is Helping The Enterprises To Win In The Digital Revolution, Through Its Integrated Cloud Communication Platforms?
1. Speed: Cloud Communication Platforms are known for being Agile and Flexible, as they helps Enterprises to Connect with their Existing and Potential Customers, at Any Time and Place. With such features, they can Share Information Easily and Generate Online Traffic at a Quick pace.
2. Easy Analysis: With Cloud Communication Platforms, Enterprises can Easily Analyse and Scale the Performance of the Cloud Services and Business Operations.
3. Seamless Collaborations: These Platforms can provide Seamless access to Data and Enhance Collaborations, if any.
Hence Cloud Communication Platforms Empower the Enterprises, to make their Customers Feel Special, by sending them Timely and Personalized Recommendations. Here, businesses get the Opportunity to Connect Directly with their customers and thereby Understand their Preferences and hence Build the Brand Loyalty Organically!
For instance – consider a female customer who has recently shopped for a formal shirt. After Tracking her Behaviour and Monitoring her Purchase History, you can Deliver Personalized Recommendations and Offers for Trousers, Denim via Whatsapp Business Solutions. The motive is to ensure that, you have Enough Data to Target her Interests by Delivering Personalized, Impactful, Real-time Offers and Messages. Hence Increasing the Consideration-Value of your Enterprise.
Similarly, Cloud Communication Platforms like RCS Business Messaging makes it Easier for Customers as well as for the Brands by getting Faster Payment and Retaining their Existing customers. Here MNO’s provide a Wide Range of Payment Options and Offer customers to Choose Alternative Payment methods such as DCB, Mobile Money, and other e-payment Options.
It is Important for the business to provide Authentic, Genuine and Trustworthy Content through their Messages, Notifications and Calls, with greater Conviction.
To help enterprises in doing that, Cloud Communication Platforms Providers (like Route Mobile) offer Enhanced business communication platforms like Verified SMS and Verified Calls. These platforms, Transform SMS and Dialer into a Communication Channel that Delivers Greater Brand Authenticity and Higher Customer Engagement.
Omnichannel Seamlessly Integrates the various communication channels, that enterprises uses to Communicate with its customers. CPaaS Enabled Omnichannel Solutions allows the retailers to provide the Ultimate and Holistic Shopping Experience.
When Delivered by an AI-powered social chatbot, Speed and Consistency comes hand-in-hand with Streamlined Communication. Chatbots Reduce Wait Time from minutes to seconds and Upgrades your CX to its Optimum level.
No matter how mundane the text/query is, chatbots can provide helpful answers, thus, Increasing the Chances of Converting First-Time Visitors into Loyal Long Term Customers!
While the companies’ uses their Online platforms like their website, email, and Facebook Messenger to great effect, there was a need to Upgrade its Reachability through not just Automation, but providing a Holistic Mobile Experience to their Customers.
With over 90 operators Adopting and Launching RCS in 60 countries, Rich Communication Service (RCS) has garnered an Immense Global Presence. Since the world is Shifting its gears towards “Conversational Commerce” and more than 50% of the world’s population is using smartphones for their daily needs from Shopping to Online Banking, and 66% of the consumers are Already Interacting with brands through a Chatbot, for their Initial Queries.
RCS, thus, Drives a Similar Experience through the native message app.
“Conversational Commerce” – has paved the way for significant Innovations in business communications. Conversations are 2-way, Automated, and Personalized through rich Messaging channels. These conversations look more Natural and are often deployed along with Artificial Intelligence or Machine Learning, as well as supported by the Simple Input Fields or Option Buttons.
While many businesses are using A2P Messaging via SMS regularly to communicate with their customers, P2A messaging is evolving with the advent of RCS Business Messaging.
Route Mobile offers Omnichannel Digital Communication Solutions, including Messaging (A2P SMS, OTT Messaging, and RCS amongst others), Enterprise Voice and e-Mail, to Enterprise clients across the Globe.
Route Mobile clients include some of the World’s Largest and Well-known Organisations, including a number of Fortune Global 500 companies. Further, company also offer SMS Filtering, Analytics, SMS Firewall, SMSC, MMSC and SMS monetization solutions to Mobile Network Operators globally.
Route Mobile have been Consistently ranked amongst the Tier 1 Application-to-Peer (“A2P”) SMS Messaging Service providers, 4 times over (2018-2021) and scored High rankings across the metrics including Reliability, Customer Service, Technical Expertise, Understanding of the Industry and Quality of Service, amongst others – Source: ROCCO Report.
Route Mobile is the Only Asian Company covered in the Gartner’s Market Guide for SaaS (October 2020). Further, company have also been identified as an Established Leader in CPaaS Deep Dive Strategy & Competition (2020- 2025) study, published by Juniper.
Route Mobile Latest Acquisitions – Inorganic Growth Drivers
Company’s Past Investments has reshaped Route Mobile to lead in the Emerging and High-Value segments of the CPaaS Market including Analytics, Artificial Intelligence, Cloud, Security, Blockchain and Distributed Ledger Technology (DLT).
Route Mobile Strategic and Continued Investment in Innovative Technology Drove its Improved Competitive Position and Profit Dynamics, and continuing with that philosophy, company in FY22 has Steered it’s Focus on building Capabilities around DLT and partnered with Teledgers Technology Private Limited (“Teledgers”).
Its Blockchain based DLT platform has enabled telecom operators globally to address guidelines issued by respective Telecom Regulatory Bodies , in order to ensure Spam-Free Commercial and Transactional Communication (A2P SMS / Voice Calls originated by the Enterprises) with the Mobile Subscribers.
In FY22, company concluded three key acquisitions viz. Masivian S.A.S., (Colombia), Interteleco International for Modern Communication Services, (Kuwait) and M.R Messaging FZC, (UAE, Malta and South Africa).
These acquisitions Augmented company’s End-to-End Enterprise CPaaS and CCaaS Capabilities and will help it to become a global leader in CXPaaS.
The Consolidated Full Impact of these acquisitions would be reflected over the next (15-24) months, as the company rebuild its Europe and LATAM Market Strategy. During FY22, company beefed up its Product Stack with the e-mail platform acquisition from Sarv Webs.
Sarv provides an AI Enabled Cloud-based e-Mail Platform, which Enables Enterprises to Transmit Transactional and Promotional e-Mails to their clients.
Further, Send Clean would Enable an AI Enabled Cloud-based e-Mail Platform. Through this acquisition and by Integrating Sarv’s e-Mail Communication Technology with Route Mobile’s CXPaaS (Customer Experience Platform as a Service) Platform, Route Mobile would be enabled to Deliver Unified and Unparalleled Cloud based Digital Communication Solutions to global enterprise clients.
Factors Which Will Drive The Route Mobile Growth Momentum In FY24
Primary Factors Driving the Route Mobile’s Robust Growth Momentum are:
1) – Enterprises willing to Transform Several Business Processes to Extensively Leverage CPaaS Solutions;
2) – Omni-channel Capabilities of CPaaS Platforms has Created Strong Value Proposition for Enterprises – Ability to Communicate with End-Customers through Multiple Channels (SMS, IP based Messaging, Voice and Email) with a Single Platform offered by the CPaaS Solution Provider;
3) – Augmenting CPaaS Platforms with Technologies such as Chatbots, Data Analytics which can Deliver Higher Value Add to Enterprises.
Company’s Deep Customer Engagement is Driving its High Recurring Revenues. Besides, Revenue from the Next Gen Products is growing at ~ 53.5% YoY, which may continue to grow at that pace on the back of 900+ MNOs (Super Network), 19 Data Centres & 6 SMSCs Globally across 20+ Locations, with 3,000+ Active Billable Clients.
Route Mobile’s Organic Revenue Growth, even after Excluding Revenue from the Entities acquired during FY22, was ~ 34% on a YOY basis and 17.2% on a Sequential basis, which shows that the company have “Multiple Engines and Multiple Levers” of Growth, across the Multiple Geographies.
Further, Management is very Bullish about LATAM’s Growth Trajectory which likely to remain very Strong in the days to come, as the company will Continue to Expand its Footprint Deeper into GCC Countries like Saudi Arabia and Kuwait, besides UAE, from where Lots of Growth is likely to come in FY24 & Beyond!
Regarding its Business in India company is making not only its presence felt Strongly, but is also Confident to Gain a lot of Market Share from the Competition in the Near future.
