Tracxn's FY24 profit declines 80% to Rs 6.5 crore, revenue up by 5.9% to Rs 82.7 crore

Data and research platform Tracxn Technologies has reported a profit after tax (PAT) of Rs 1.42 crore for the quarter ending March 2024 (Q4 FY24).

This marked a sequential decline of 36% from Q3 FY24's INR 2.2 crore. However, on a year-on-year (YoY) basis, there was a 13% increase in net profits from Q4 FY23's Rs 1.25 crore.

Revenue growth

The operating revenue for Q4 FY24 decreased to Rs 20.31 crore, a 3% decline from the previous quarter's Rs 21.1 crore and slightly down from Rs 20.34 crore in the same quarter last year.

Tracxn's total expenses for Q4 FY24 rose to Rs 19.68 crore, a 2% increase from Q3 FY24's Rs 19.32 crore, but marginally down from Rs 19.70 crore in Q4 FY23.

What were the annual financial results?

For the entire fiscal year of 2023-24 (FY24), Tracxn's PAT shrank significantly to Rs 6.50 crore, marking an 80% decrease from the previous fiscal year's Rs 33.09 crore.

This sharp decline was despite a 7% increase in operational revenue, which rose to Rs 87.03 crore from FY23's Rs 81.18 crore. The total revenue, including non-operating sources, stood at Rs 87 crore.

Tracxn's expenses also saw a rise, growing by 3% to Rs 78.35 crore in FY24 from Rs 75.72 crore in FY23.

Employee benefits alone formed 88.3% of the overall expenditure, increasing by 3.39% to Rs 69.25 crore in FY24 from Rs 66.98 crore in FY23.

What contributed to the decline in profits?

The significant drop in profits can be attributed to the flat scale of revenue growth and the arrangement of deferred tax expenses.

During the quarter ending March 2023, Tracxn recognized deferred tax assets on carry-forward business losses based on future taxable profits, helping it register a profit of Rs 33.1 crore in FY23. Without this deferred tax, the profit for FY23 would have been Rs 9.94 crore.

Expanding customer base

In Q4 FY24, Tracxn acquired 88 new customers, increasing its customer base to 1,313 from the previous quarter's 1,224. This quarter also marked the first time the Indian market accounted for the maximum share of Tracxn's revenue.

Revenue from India grew by 14% YoY, making up 34% of the total revenue for FY24. Contributions from American countries stood at 32%, while the Europe, Middle East, and Africa (EMEA) region contributed 23%.

Tracxn has set up a separate team to focus on acquiring and expanding customers in the startup segment. This move is in response to a high volume of inbound leads from startups, which require differentiated use cases and workflows.

The company also introduced Tracxn Lite for Product-Led Growth (PLG), offering restricted access to the platform.

Since its launch in December 2023, Tracxn Lite has seen over 20,000 user sign-ups, with a monthly active user base surpassing 8,000.