Founder And CEO Raveendran Byju Issues A Note of Gratitude, Reveals Financial Results
"I have always believed that passion, hard work and determination can see anything through. We got through all of those challenges and have now passed this trial by fire. I’m grateful to our colleagues who worked very hard on getting our audit done," Byju Raveendran, Founder and CEO Byju's writes
Byju’s Founder and CEO of the edtech platform Raveendran Byju has issued a ‘Note of Gratitude’ for his team members while also sharing the financial results of the company.
The note read, “The last six months have been tough, humbling, and - on a positive note - a great learning experience. Yes, 2022 has not been an easy year for us. This year is not - to quote from the movie Rocky Balboa - “all sunshine and rainbows” for any start-up anywhere in the world and we have been no exception. But unlike many other startups, which have faced external challenges, our challenges have largely been internal. As you all may be aware, our FY21 audit got very delayed. With the media spotlight that is always on us, many baseless theories got floated around to explain the delays, which may have caused anxiety for some of you. If it did, I am sorry about that. But the fact is that we were not adequately prepared to handle the audit for the size of the company we have grown to, and we learnt this the hard way. We have grown in every dimension – products, business models, geographies, customer segments - very quickly, and absorbing both the large scale and scope of this transition required more time than we had earlier imagined. Additionally, we had to make a change in our revenue recognition to account for a new business model we launched during COVID. And finally, we had numerous acquisitions to account for. All of this really stressed our systems, our people and resulted in inordinate delays. But I have always believed that passion, hard work and determination can see anything through. We got through all of those challenges and have now passed this trial by fire. I’m grateful to our colleagues who worked very hard on getting our audit done. “
“While we struggled on the audit front, our business has been thriving, thanks to all of your efforts. The last financial year (FY22, ending March 2022) was our best year so far and 2022-23 is set to be an even stronger year. The comeback, as they say, is always stronger than the setback. Going forward in FY23 and beyond, we will combine growth with efficiency to ensure sustainability. We have already started shifting our focus towards profitable growth. The overall idea is to allocate resources effectively in order to maximize impact. A strong 2022 in the face of adverse macroeconomic conditions makes me even more confident that BYJU’S is built to last many generations. As the great philosopher Albert Camus said, “In the depth of winter, I finally learned that within me there lay an invincible summer.”
These are the financial and operational highlights he shared:
- Clean and unqualified audit report for FY21: We have received a clean and unqualified audit report for FY21. Around 40% of our pre-audit revenue for FY21 has been ‘deferred’ to subsequent years but the incurred costs have all been subsumed in the same year. It means this entire deferred revenue will be directly contributing to our profits in FY22 and FY23. The change in our accounting methodology and the high cost of multiple acquisitions reflected in the ₹4,500 crore loss figure for FY21.
- 4x revenue growth from FY21 to FY22: Our FY22 revenue is nearly ₹10,000 crore, or $1.3 billion. This means we are now a billion-dollar plus revenue company.
- The latest quarter was the best ever: April-June 2022 was our best ever quarter by far. In fact, we have clocked more than ₹1,000 crore in sales in each of the last five months! This means $2 billion revenue is within our sights now.
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