Tracxn Slips Into The Red, Posts INR 4.65 Cr Loss In Q2

Market intelligence platform Tracxn Technologies slipped into the red in the quarter ended September 2024, posting a net loss of INR 4.65 Cr. The company had reported a net profit of INR 2.16 Cr in the second quarter of FY24 and a profit of INR 1.27 Cr in the June quarter of FY25.

Revenue from operations was nearly flat at INR 21.39 Cr in Q2 FY25 as against INR 21.49 Cr in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, operating revenue rose 4.18% from INR 20.53 Cr.

During the quarter under review, the company’s EBITDA declined 54% to INR 92 Lakh from INR 2.04 Cr in Q2 FY24. Sequentially, EBITDA rose 228% from INR 28 Lakh. 

EBITDA margin also halved to 4.3% during the quarter under review from 9.48% in Q2 FY24.

Total expenses were stagnant at INR 20.5 Cr during the quarter under review as against INR 20.27 Cr in the year-ago period.

Employee costs emerged as the biggest expense for Tracxn during the quarter under review. It spent INR 18.20 Cr towards employee benefit expenses in Q2 FY25 as against INR 17.67 Cr in the year-ago quarter. 

Tracxn claims to have created an organic inbound traffic tunnel, with a reported 16 Mn visits in FY24. In the first half of FY25, the company claims to have seen over 10 Mn visitors. 

A good amount of clients for Tracxn come from various global universities, with the company claiming to have acquired several top universities, including IIMs and IITs. It has also started targeting international universities as well. 

Apart from universities, the company has also started operations in new verticals such as investment banks, VCs, accelerators and incubators, among others

The company has also increased its efforts in GenAI as well. 

Founded by Abhishek Goyal and Neha Singh in 2013, Tracxn is a market research and data platform that tracks company financials and cap tables of entities worldwide. 

The company caters to a wide range of clients that includes private market investors like venture capital and private equity firms.

Currently, Tracxn covers private company financials across more than 20 countries and cap tables across more than 15 countries.

The company’s board also approved ESOP 2024, under which it would issue up to 30 Lakh stock options which will be convertible into 30 Lakh equity shares. 

“The said options will be granted to the eligible employees of the company as determined by the committee, from time to time,” the company said in the filing. 

Meanwhile, the company recently allotted 4,47,036 equity shares to the employees under its “Tracxn Employee Stock Option Plan 2016”. 

Ahead of the earnings announcement, shares of Tracxn ended today’s session 2.58% lower at INR 81.68 on the BSE.