Radcom (NASDAQ:RDCM) released first-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below.
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The full earnings call is available at https://www.veidan-conferencing.com/radcom
Summary
Radcom Ltd reported significant growth in gross bookings, reaching $10.4 billion in fiscal year 2026, with a compound annual growth rate of 34% over four years due to post-pandemic recovery and rising demand from the Indian middle class.
The company is leveraging AI technology, including the Myra conversational interface, to enhance customer interaction and booking processes, resulting in higher conversion rates and engagement, especially in tier 2 and smaller cities.
Radcom Ltd remains optimistic about future growth, aiming for revenue growth in the 20s during stable periods and focusing on AI-led transformations to drive efficiency and customer satisfaction across its platforms.
Full Transcript
OPERATOR
Fiscal 2026 fourth quarter and full Year Earnings Webinar Today’s event will be hosted by Companies Leadership team comprising Rajesh Mago, our Co Founder and Group Chief Executive Officer, Mohit Kabra, our Group Chief Operating Officer and Deep Kalra, our Group Chief Financial Officer. As a reminder, this live event is being recorded by the Company and will be made available for replay on our IR website shortly after the conclusion of today’s event. At the end of these prepared remarks, we will also be hosting a Q and A session. Furthermore, certain statements made during today’s event may be considered forward looking statements within the meaning of the Safe harbor provision of the U.S. private Securities Litigation Reform act of 1995. These statements are not guarantees of future performance, are subject to inherent uncertainties and actual results may differ materially. Any forward looking information relayed during this event speaks only as of this date and the Company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements is contained in the Risk Factors and Forward Looking Statements section of the Company’s Annual report on Form 20F filed with the SEC on June 16, 2025. Copies of these filings are available from the SEC or from the Company’s Investor Relations Department. I would like to now turn over the call to Rajesh. Over to you Rajesh.
Rajesh Mago (Co Founder and Group Chief Executive Officer)
Thank you Vipul. Welcome everyone to our fourth quarter and full year call for fiscal 2026. Before we take you all through the quarter details, I would like to step back a bit and remind everyone about some fundamental structural changes that have emerged post Covid that has been shaping the travel market in India. When the world opened in 2022, the rebound that initially looked to be pent up demand coming out of the quiet phase due to pandemic soon formed a new baseline. This robust shift in demand is reflected in our reported numbers where gross bookings went from approximately 3.2 billion in fiscal year 22 to 6.6 billion in fiscal year 23 and a record 10.4 billion in fiscal year 26, compounding at roughly 34% over four years. This was a good combination of post pandemic recovery and behavior shift among Indian travelers, well supported by some key structural macro changes in the Indian economy. Major reasons for this robust demand shift are first is rising and aspirational middle class. As per a Bain study, the middle income household with annual income between $4,500 to $35,000 has been growing at a robust high single digit annual growth rate and is likely to further grow at an accelerated pace from 200 million in 2022 to 300 million in 2032, a growth of 50% in 10 years. India also added over 70 million passport holders in the last five years. Tier 2 and Tier 3 cities are now major growth drivers. A traveler from Indore or Coimbatore today has the same aspiration and increasingly the same purchasing power as one from Mumbai or Delhi five years ago. This is a massive multi year addressable market expansion and we are only in its early innings. Second, travel has shifted from occasion to habit. Our data shows booking frequency per user is rising year on year. Indians are no longer saving up for one big annual holiday. They are taking multiple trips a year. Three to six trips a year across leisure, religious and extended weekend categories is becoming the new normal for India’s connected earning class. The experiential economy is real and is a big opportunity. The cohort driving this is also the one with the longest consumption Runway ahead. As per Collingwood International’s 2024 research, Indian millennials annual travel spend was at about $6,000, making travel their single largest discretionary expense at 34% of annual spending. These millennials are not yet in their peak earning years. These millennials are not yet in their even peak earning years. The per trip wallet will only expand with time. Third, the growth of world class physical infrastructure. The demand story compounds if supply keeps pace. As we all know, new airports or routes, expressways, premium rail, train corridors, the government’s infrastructure investment is creating supply that meets this demand. Every new airport is a new market for us. Every new direct international route is a new booking opportunity. India’s expanding highway network and airport capacity are making travel faster, easier and more reliable across the country. Better road and air connectivity is opening up smaller cities and tourist destinations, reducing travel time and helping unlock tourism, local spending and regional economic growth on aviation. Operational airports have doubled from 74 in 2014 to 157 in 2024, improving access beyond major metros and making travel more affordable and widespread especially for tier 2 and tier 3 cities. This is expected to further expand to 400 airports by 2047, providing a multi decade opportunity. India’s highway network has expanded sharply with national highways rising from 91,287 km in 2014 to about 1 46,145 km in 2024, while construction speed increased to 33.8 km per day in 2324. Similarly listed hotel companies are projected to add over 70,000 keys to India’s hotel sector by fiscal year 2030, according to CBRE. Majority of new additions are being built into under supplied tier 2 markets and spiritual tourism corridors, both of which are future growth opportunities. Homestays have emerged as a flexible scalable supply addition as well. Now actively supported by governments, vacation rentals and boutique home stays are capturing outsized growth because they align with experiential itineraries that favor local immersion over standardized services. The physical infrastructure story only is half the job done in today’s digital age unless the digital infrastructure has kept pace with it. India has come a long way on digital infrastructure development as well, with Internet penetration touching about a billion people with high quality bandwidth becoming affordable, with data costs falling from rupees 269 per GB in 2014 to about nine rupees per GB in 2024. On top of this is the payments infrastructure. UPI processed 640 million transactions daily in 2025, clearing over 16 billion transactions in a single month by late 2025. The combined effect is that checkout friction, historically one of the largest causes of bookings abandonment, has largely been addressed. A traveler in a tier three city with a mid range Android device can now search, compare, book and pay in under five minutes without a credit card. We have also witnessed Indian market showing resilience to bounce back fairly quickly as the disruption starts to go away. Last year was another such year as it was impacted by many disruptions pretty much every quarter. But interesting part was that the travel demand remained resilient and robust during the unimpacted months of the year, reflecting the continued strength of underlying consumer sentiment and the structural growth trajectory of India’s travel market. We at MMIT continue to outpace industry growth despite disruptions with healthy momentum across segments. Sure, sure. Sorry. Is it fine now? Is it fine now? Yes, yes, much better. All right. While our international business started to get impacted in March due to Middle east conflict, the domestic business remains strong for the reported quarter. March was impacted due to West Asia conflict. January and February witnessed strong year …
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