Amagi revenue jumps 29% to Rs 880 Cr in FY24, collects 67% income from US

Amagi, a cloud media SaaS technology firm, showed strong growth and managed to reduce its losses in the last fiscal year. In November 2023, Amagi raised over $100 million at a valuation of $1.4 billion, which appears to have contributed to its over 29% YoY growth in FY24.

Amagi’s revenue from operations spiked to Rs 879.15 crore during the last fiscal year from Rs 680 crore in FY23,  its consolidated financial statements filed with the Registrar of Companies (RoC) show. 

The  Bengaluru-based firm earned additional Rs 63 crore from interests and investments which took its total revenue to Rs 942 core in FY24.

Amagi provides content owners with solutions to launch, distribute, and monetize live linear channels on free, ad-supported television and video service platforms. The company makes money through two key products: Thunderstorm, a server-side ad insertion platform for over-the- top ( OTT) content publishers, and Cloudport, a broadcast-grade channel playout platform for both TV and OTT.

Globally, the United States remains the largest market for the Accel Partners-backed company which accounted for 67.3% of its total revenue or Rs 591.5 crore during the last fiscal year. Collections from the United Kingdom formed 13.1% of total income which increased 31.10% to Rs 115.5 crore in the fiscal year ending March 2024.

Meanwhile, India contributed less than 1% of its total collection which  dropped by 54.29% year-on-year to Rs 8 crores. This decline indicates that the local market is the least preferred one for Amagi. Revenue from other geographies spiked 78.95% to Rs 164.1 crore in FY24.

With Rs 66.34 crore, employee benefit expenses were the largest component which increased by 10.8% in FY24. 

Depreciation and amortization expenses rose by 84% to Rs 16.3 crore whereas finance costs also grew 58% to Rs 5.2 crore in the last fiscal year. Other operational costs such as information technology (IT), legal and professional stood at Rs 49.33 crore. In the end, its total expenditure increased 15.46% to Rs 1,189 crore in FY24 from Rs 1,039 crore in FY23.

Note: Amagi's FY23 financial statements have been restated with Rs 100 per share recorded as share capital and the rest as securities premium. 

Amagi managed to reduce its losses by 23.7% to Rs 245 crore in FY24. Its ROCE and EBITDA margin stood at -24.43% and -22.86%, respectively. On a unit basis, the company spent Rs 1.34 to earn a rupee of operating revenue in FY24. 

Amagi reported cash and cash equivalents of Rs 262.9 crore in FY24, down from Rs 740 crore in FY23. The company held Rs 514 crore in other bank balances in the last fiscal from zero in FY23. Meanwhile, trade receivables increased to Rs 252 crore in FY24 from Rs 204 crore in the previous year.

Amagi achieved unicorn status after securing $95 million in a new funding round led by existing investor Accel in March 2022 along with an additional $110 million in November. According to media reports, it was in discussions to raise $250 million in a forthcoming round.

Amagi has emerged as a rare comeback story in the B2B SaaS space. The company pivoted in 2018 from providing advertising solutions for local businesses on television channels to a SaaS-based monetization platform for TV networks and content owners. After the pivot, Amagi remained out of the public eye and media attention for four years, but the shift proved successful, with revenue from the U.S. market beginning to flow in. During FY21, the company reported an operating revenue of Rs 219 crore along with a profit of Rs 20.7 crore. 

This remarkable turnaround attracted its early backer Accel, leading a $95 million funding round at a valuation of over $1 billion in March 2022. Amagi’s continued growth and reduction in losses year-on-year suggest that its founders and board may be preparing for an IPO in the near future. Although the company has discussed potential listings since July 2022, no concrete roadmap has yet been outlined.