Helped By Deferred Tax, Exceptional Items, Tracxn Posts Profit Of INR 33 Cr In FY23

Market intelligence startup Tracxn Technologies reported a profit after tax (PAT) of INR 33.09 Cr in the fiscal year 2022-23 (FY23) as against a loss of INR 4.85 Cr in the previous year on the back of deferred tax and exceptional items.

Tracxn gained INR 23.26 Cr from deferred tax expense during the year under review, while it recovered INR 4.78 Cr, which was earlier recognised as IPO expense, in December 2022 quarter from shareholders who sold their shares during the company’s public offering.

Excluding the IPO expense and deferred tax, Tracxn’s profit stood at INR 5.34 Cr in FY23 as against a loss of INR 36 Lakh in the previous year.

Revenue from operations rose 23% to INR 78.11 Cr in FY23 from INR 63.45 Cr in FY22 on the back of continued growth in large accounts and increased uptake of products globally, especially in India, the Americas, and Asia Pacific, the company said.

Nearly 80% of the market intelligence platform’s revenue came from existing customers, even as annual growth in revenue from current clients slowed in comparison to new users. While existing customers contributed INR 63.5 Cr to the company’s kitty in FY23, new users added INR 13.2 Cr. 

Tracxn’s high-value clients, contributing revenue in excess of INR 40 Lakh, doubled during the fiscal year. India contributed 32% to Tracxn’s revenue tally, while the Americas accounted for 31% of the revenue. On the other hand, Europe, Middle East and Africa (EMEA) contributed 27% to the total revenue. 

EBITDA profit, excluding both IPO expenses and deferred tax, rose to INR 2.6 Cr in FY23 compared to EBITDA loss of INR 1.9 Cr in FY22. On similar lines, EBITDA margin, sans exceptional items, expanded to 3.3% in FY23 from 3% in FY22. 

Meanwhile, Tracxn’s total expenses surged 15.5% to INR 75.72 Cr in FY23 from INR 65.51 Cr in FY22. 

The startup’s free cash flow, discounting the IPO expenses and deferred tax, stood at INR 11.9 Cr, while its total cash and cash equivalents hovered around the INR 60.3 Cr mark at the end of FY23. 

During the quarter ended March 2023, Tracxn’s PAT, excluding IPO expenses and deferred tax, rose to INR 1.25 Cr from INR 32 Lakh in the corresponding quarter of FY22. Sequentially, PAT fell more than 12% from INR 1.43 Cr.

Revenue from operations rose to INR 20.34 Cr in Q4 FY23 from INR 17.15 Cr in the year-ago quarter. Operating revenue stood at INR 20.25 Cr in Q3 FY23. 

Tracxn’s Operational Metrics See Uptick

The market intelligence company scaled up its customer count by 12.6% year-on-year (YoY) to 1,230 as of March 31, 2023. In Q4 FY23, it saw a net addition of 43 new customer accounts.

The number of users on its platform also rose 10% YoY to 3,420 in FY23, while organic search traffic to the company’s website rose 41.5% YoY to 9.2 Mn in the period under review. 

The company also claimed to have built a large organic inbound traffic funnel through which it expects the traffic to further increase in the near future.

As per Tracxn, its customers spanned more than 50 countries, with India, the US, Singapore, the UK and Germany accounting for the biggest chunk of accounts. Similarly, revenue from non-India countries contributed 68% to the company’s total revenue. 

Founded in 2012 by Neha Singh and Abhishek Goyal, Tracxn’s SaaS-based market intelligence solution tracks company financials and captables of entities across the globe. 

Shares of Tracxn closed 2.26% lower at INR 67.98 on the BSE on Thursday (May 11). The company released its financial results after market hours.

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