Exotel Reports Flat Growth in FY24 but Improves Financial Health
Bengaluru-based cloud telephony platform Exotel has reported flat growth for the fiscal year ending March 2024. Despite stagnant revenue, the company significantly improved its financial health, narrowing losses by more than 60% through various initiatives like cost-cutting measures.
Key Highlights:
- Revenue from operations increased 5.7% to Rs 444 crore in FY24.
- Consolidated revenue, including interest on deposits and investments, stood at Rs 460 crore in FY24.
- Losses shrank by 60.6% to Rs 43 crore in FY24.
- EBITDA losses stood at Rs 16 crore in FY24.
Cost-Cutting Measures:
Exotel managed to keep its employee benefits in check, which saw a reduction of 24% in FY24 to Rs 186 crore. The company also reduced its advertising, legal, payment gateway, traveling, information technology, and other overheads.
Workforce Reduction:
Exotel went through a layoff during FY24, reducing its workforce by 15%.
Financial Performance:
Exotel's expense-to-revenue ratio was recorded at Rs 1.12, with ROCE and EBITDA margins of -8.9% and -3.48%, respectively. The company's total current assets were registered at Rs 379 crore, with cash and bank balances of Rs 206 crore as of March 2024.
Funding:
Exotel has raised over $100 million, including a $40 million Series D round led by Steadview Capital in 2022. A91 Partners is the largest external stakeholder with a 25.7% stake, followed by Blume Ventures.
Competition:
Exotel directly competes with Gupshup-owned Knowlarity, MyOperator, Ozonotel, and Tata Communications, among others.