Navan posts 40% revenue jump, lifts profit outlook
The corporate-travel platform swung to a $22 million non-GAAP profit in the quarter.
The corporate-travel and expense-software provider Navan (NAVN) reported first-quarter revenue that rose 40% from a year earlier, accelerating growth and driving a sharp rebound in profitability.
The results marked a turnaround for the company, which had previously focused on scaling its platform at the expense of margins. Navan’s non-GAAP operating margin expanded to 11% from 2% a year earlier, while non-GAAP net income swung to $22 million from a $7 million loss.
Revenue climbed to $220 million in the quarter, up from $157 million in the same period last year. Usage-based revenue, which includes transaction fees, grew 41% to $202 million, outpacing the 26% increase in subscription revenue, which reached $18 million. Gross booking volume surged 50% to a record $3.1 billion, while payment volume rose 29% to $1.3 billion.
The company attributed the growth to broader adoption of its platform and new product integrations. Navan disclosed direct connections with Scandinavian Airlines under the New Distribution Capability standard, a first for a travel-management company, and rolled out AI-powered tools including an expense-administration companion and an audit engine.
Gross margins also improved, with GAAP gross margin expanding to 74% from 71% a year earlier, while non-GAAP gross margin rose to 75% from 72%. Non-GAAP income from operations jumped to $24 million from $3 million in the prior-year period.
Navan raised its full-year revenue guidance to a midpoint of 30% growth, up from 24% previously, and increased its non-GAAP operating-profit outlook to a range of $76 million to $80 million, implying a 9% margin. The company said the revised outlook reflects continued momentum in bookings and payment volumes.
Cash and cash equivalents declined to $518 million at the end of April from $584 million at the end of January, despite the strong operating performance. Stock-based compensation rose to $37.3 million from $17.3 million a year earlier.