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Simplilearn cuts losses by 56% in FY24, revenue growth stagnates

Entrackr · 1d

Upskilling-focused edtech platform Simplilearn reduced its losses by over 56% year-on-year in the last fiscal year. However, the company's operating scale showed only single-digit growth, remaining largely flat. We will explore the expense pattern that significantly reduced losses later. For now, let's focus on the revenue streams and their growth. Simplilearn's revenue from operations grew by 9.6% to Rs 749.77 crore in FY24, from Rs 683.98 crore in FY23, according to its consolidated financial statement sourced from the Registrar of Companies (RoC). Simplilearn is a digital upskilling platform that provides training in cyber security, cloud computing, project management, digital marketing, and data science, among others. It offers post graduate programs, master's programs, and certification courses. The company's revenue was steered by its online self-learning programs, which surged by 7.8X to Rs 451.45 crore. Revenue from live virtual classes, however, declined by 51.97% to Rs 341.50 crore. Simplilearn also accounted for Rs 43.17 crore in discounts. The company made additional Rs 23 crore from interest income which pushed its total income to Rs 773 crore in FY24. On the expense side, the cost of materials (tutoring material and fees paid to educators) decreased by 13.27% to Rs 183 crore in FY24. Advertising expenses saw a significant reduction of 32.08%, amounting to Rs 204.79 crore. However, employee benefit costs rose by 12.66% to Rs 325.17 crore, whereas depreciation expenses nearly doubled to Rs 69.63 crore. Additionally, other expenses stood at Rs 96.91 crore. Overall, Simplilearn's total expenses decreased by 6.87% to Rs 879.50 crore in FY24, from Rs 944.40 crore in FY23. Due to significant cost cutting across advertising and educator fees, the Bengaluru-based company managed to reduce its net loss by 56% to Rs 106.7 crore in FY24. Its ROCE and EBITDA margin stood at -42.45% and -3.75%, respectively. On a unit basis, Simplilearn spent Rs 1.17 to earn a rupee in FY24. As of March 2024, the firm reported Rs 323 crore of current assets including Rs 235 crore of cash and bank balance. According to startup data intelligence platform TheKredible, Scaler has raised over $80 million to date and was valued at around $600 million in its Series E round led by GSV Ventures with participation from Clal Insurance, and DisruptAD, ADQ's venture platform. It majorly competes with Knowledgehut by upGrad, Scaler, Coursera, Great Learning, among others.