Google-funded Cuemath posts flat revenue in FY24, shrinks losses by 43%

After witnessing a fall in its revenue in FY23, Google-backed Cuemath has managed over 5% growth in its operating revenue in the fiscal year ending March 2024. However, the 11-year-old firm reduced its losses by nearly 43% in the same period.

Cuemath’s operating revenue grew 5% to Rs 126.42 crore from Rs 120.45 crore in FY23, according to the firm’s annual financial statements filed with the Registrar of Companies (RoC).

The company provides Math classes for the K-12 segment and helps students prepare for school and competitive tests. 

Collection from teaching services increased 5.5% year-on-year to Rs 125.63 crore in the last fiscal year. Collection from franchise fees shrank 38.3% to Rs 79 Lakhs in FY24 whereas revenue from teacher onboarding fees and book sales remained steady.

The company's other income (from non-operating activities), comprising investments and miscellaneous sources, declined slightly by -2.68% to Rs 5.45 crore during the last fiscal year.

Employee benefits expense was the largest cost center for Cuemath, which decreased by 34.2% to Rs 114.2 crore. The company also reduced costs in business support services, foreign exchange, and office expenses. Overall, Cuemath’s total expenses declined by 29.9% to Rs 252.6 crore in FY24 from Rs 360.38 crore in FY23.

To check complete Expense Breakdown visit thekredible.comView full data

For a complete expense breakup, head to TheKredible.

Despite its revenue growth, Cuemath ended the last fiscal year with a 42.7% reduction in its losses which stood at Rs 134.47 crore. Its ROCE and EBITDA margins remained negative at - 178.79% and -100.12%, respectively. On a unit basis, the company spent Rs 2 to generate every rupee of operating during the last fiscal year.

According to startup data intelligence platform TheKredible, Cuemath has raised approximately $126 million over multiple rounds and was last valued at around $400 million during its most recent equity raise. In August last year, the company laid off 200 employees in two phases, citing a restructuring effort. During this period, Cuemath brought back former CEO Manan Khurma to lead the company as chief executive, while then-CEO Vivek Sundar retained his position as co-founder.