Simplilearn’s FY23 Revenue Jumps 50%, Losses Widen Due to Increased Expenses

• ByStartupStory     |    January 9, 2024

Simplilearn, the Blackstone-backed edtech firm, reported a significant increase in revenue from operations for the fiscal year 2022-23 (FY23), accompanied by a widening of losses due to rising expenses. According to its recent consolidated financial statements, the California- and Bengaluru-based company saw its revenue from operations surge by 50.2%, reaching Rs 683.9 crore in FY23, up from Rs 455.2 crore in FY22. However, its consolidated loss widened by 36.5% to Rs 244.2 crore in FY23, compared to Rs 178.8 crore in the previous financial year.

The company attributed the ballooning losses to a substantial increase in advertising promotional expenses, which amounted to Rs 301.5 crore in FY23, marking a 29% rise from Rs 233.7 crore in the previous year. Simplilearn’s total revenue, including interest income from fixed deposits and current investments amounting to Rs 16.6 crore, reached Rs 700.6 crore in FY23. Meanwhile, its expenses surged by 46.8%, totaling Rs 944.3 crore in FY23, compared to Rs 643.2 crore reported in FY22.

In FY23, Simplilearn also witnessed a significant surge of 41.8% in employee benefits expense, making it the company’s second significant cost at Rs 288.6 crore, compared to Rs 203.4 crore in the previous year. These results come amid reports indicating that the edtech firm has implemented a workforce reduction, a move similar to other companies in the industry.

In a statement, Krishna Kumar, Founder and CEO of Simplilearn, expressed the company’s strategic focus on achieving operational profitability and positive cash flow in FY24. He mentioned, “As we progress, our strategic focus includes enhancing our footprint in the US and intensifying our growth efforts in the APAC markets. Strengthening our B2B initiatives, we also remain receptive to acquisitions that align seamlessly with our business values…”

Simplilearn recently acquired Fullstack Academy, a US-based bootcamp education company, in an all-cash transaction in the current fiscal year. This move came shortly after the company raised $45 million in funding from a consortium led by GSV Ventures. In July, NYSE-listed Blackstone had acquired a majority stake in Simplilearn for $250 million, providing the edtech startup’s investors with an almost 7X return on their investments following their exit. Founded in 2010, Simplilearn offers access to work-ready training to individuals and businesses globally.

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