Route Mobile Limited , a leading cloud communication platform provider, has reported its financial results for the first quarter, showcasing resilience in the face of market challenges.

Revenue and Volume

The company reported revenue from operations of INR 10,508.00 million for Q1, marking a 4.8% year-on-year decline. Despite this, Route Mobile processed 39.3 billion billable transactions during the quarter, maintaining volumes similar to the same period last year. The average realization per transaction stood at 0.27 paisa, influenced by a shift in traffic composition, particularly a higher share of domestic messaging in India.

Profitability Metrics

Despite revenue headwinds, Route Mobile demonstrated improved profitability:

• Gross profit margin expanded to 21.4% from 19.3% in the previous quarter
• Adjusted EBITDA margin increased to 11.0% from 10.2% sequentially

The company's focus on higher-margin business and cost optimization initiatives contributed to this improvement.

Key Developments

Management Change

Rajdipkumar Gupta has returned as CEO, replacing Gautam Badalia. Gupta's focus will be on growth, cost optimization, and synergies with Proximus Global.

Customer Dynamics

Route Mobile experienced the loss of a large digital native enterprise customer who moved to direct sourcing from mobile network operators. However, the company onboarded several new marquee customers through its omnichannel platform.

Product Performance

New product revenue growth slowed to low double digits, partly due to WhatsApp pricing revisions. The company secured a large firewall deal in Latin America, showcasing strength in its telecom solutions segment.

Strategic Initiatives

Route Mobile is actively engaging with global system integrators to accelerate its go-to-market approach. The company has integrated its RCS platform with one of the largest players globally and added WhatsApp voice capabilities to its platform.

Human Resources

During the quarter, Route Mobile added 26 new employees while 63 employees left the company, indicating a net reduction in workforce.

Outlook

Rajdipkumar Gupta, Managing Director & CEO, commented on the results and future strategy: "As I return to lead the company as CEO, my focus is to enhance the core strength of the company and drive the next phase of our growth story. We will double down on our core business and serve our customers with even greater rigor. Our primary focus will be revenue diversification through expansion of our global footprint for our non-SMS product portfolios."

The company is optimistic about its pipeline, particularly in telecom solutions like firewall initiatives and MapServer. Route Mobile is also leveraging its partnership with Proximus Global to create new opportunities and expand its reach in the global market.

While facing short-term challenges, Route Mobile remains committed to its long-term growth strategy, focusing on innovation, market expansion, and leveraging synergies within the Proximus Global ecosystem.

Note: All financial figures are in Indian Rupees (INR) unless otherwise stated.

Route Mobile Limited , a leading cloud communication platform provider, has successfully secured shareholder approval for the appointment of Jan Van Acoleyen as a Non-Executive Non-Independent Director. The resolution, passed through a postal ballot conducted via remote e-voting, received an overwhelming 99.96% of votes in favor.

Voting Details and Turnout

The voting period for the postal ballot ran from May 29 to June 27, with results declared on the same day. The resolution garnered strong support from shareholders, with 54,337,251 votes cast in favor and only 23,232 votes against. The total voter turnout was impressive, with 86.29% of outstanding shares participating in the voting process.

Appointment Details

Jan Van Acoleyen's appointment as a Non-Executive Non-Independent Director is effective from April 16, the date when he was initially appointed as an additional director by the company's board. In this role, Van Acoleyen will be liable to retire by rotation, as per standard corporate governance practices.

Voting Breakdown by Shareholder Categories

The LODR data provides a detailed breakdown of the voting results:

Corporate Governance and Compliance

The postal ballot process was conducted in compliance with the Companies Act, 2013, and the guidelines prescribed by the Ministry of Corporate Affairs. Dhrumil M. Shah & Co. LLP, Practicing Company Secretaries, acted as the scrutinizer for the e-voting process, ensuring fairness and transparency.

Route Mobile's Managing Director, Rajdipkumar Gupta, officially declared the results of the postal ballot. The appointment of Jan Van Acoleyen strengthens Route Mobile's board, potentially bringing new perspectives to the company's strategic direction in the competitive cloud communication sector.

This strong shareholder support for Van Acoleyen's appointment reflects confidence in Route Mobile's governance and future prospects. As the company continues to evolve in the dynamic tech landscape, the addition of new leadership could play a crucial role in shaping its growth trajectory.