Tracxn's Q3 Profits Drop 36% Amid Flat Revenue Growth
Data and research platform Tracxn has reported a significant decline in profits for the quarter ending December 2024, with net earnings falling 36% despite stable revenue. According to unaudited financial statements filed with the National Stock Exchange (NSE), Tracxn faces increased operational costs, but its revenue has remained essentially unchanged.
Financial Performance
The company's Q3 FY25 results show:
- Revenue from operations remained flat at Rs 21.39 crore, compared to Rs 21.14 crore in Q3 FY24
- Total revenue reached Rs 22.89 crore, including Rs 1.5 crore from non-operating sources
- Net profit declined to Rs 1.42 crore from Rs 2.22 crore year-on-year
Cost Structure
Employee benefits continued to dominate the company's expenses:
- Personnel costs increased 10% year-on-year to Rs 18.63 crore
- Employee benefits represented 89% of total expenditure
- Overall costs grew by approximately 9% to Rs 20.98 crore
Business Model and Market Position
Tracxn, founded by Abhishek Goyal and Neha Singh, generates its entire operating revenue through subscription sales for its data and software services. The company has established itself as a leading platform for tracking startups and private companies, serving subscribers across more than 40 countries. Notable investors include Accel Partners, Peak XV Partners, and Elevation Capital.
The company's shares were trading at Rs 69.5 in the latest session. Its market capitalization is 737.19 crores ($85 million).