Byju’s, a prominent player in the edutech sector, recently disclosed its financial performance for the fiscal year 2022, unveiling substantial revenue growth in its standalone business and notable improvements in EBITDA. Despite facing challenges and a series of acquisitions, Byju’s core business, operated under Think and Learn Private Limited (TLPL), delivered a strong financial performance in FY22.
1. Robust Revenue Growth: Byju’s posted an impressive increase in its FY22 standalone revenue, reaching ₹3,569 crore. This represents a significant surge compared to the previous fiscal year when the company reported ₹1,552 crore, marking a remarkable 2.3x growth.
2. EBITDA Progress: Notably, Byju’s managed to reduce its EBITDA loss for the core business, which decreased from ₹2,406 crore to ₹2,253 crore on a year-on-year basis (YoY). This reduction in loss was accompanied by an improved EBITDA margin, moving from -155 percent to -63 percent from FY21 to FY22.
3. Reflection on Challenges: Byju Raveendran, the Founder and Group CEO of Byju’s, acknowledged the challenges faced during the year, including managing nine acquisitions. He highlighted the valuable lessons learned from this uniquely demanding period.
4. Future Growth Plans: Raveendran emphasized the growth potential of the edtech industry in India, one of the world’s fastest-growing major economies. Byju’s is committed to sustainable and profitable growth in the upcoming years, building on the successes of the core business.
5. Delayed Financial Results: Byju’s faced criticism for the delay in announcing its FY22 financial results, which made shareholders impatient. The company’s cash crunch and missing payment on a $1.2 billion term loan also raised concerns.
6. Regulatory Scrutiny: The prolonged delay in announcing financial results attracted regulatory scrutiny and resulted in Deloitte Haskins & Sells resigning as the company’s auditor earlier in the year.
7. Previous Results: In FY21, Byju’s reported a widened loss of ₹4,588.75 crore compared to ₹231.69 crore in the previous year. This was primarily due to changes in accounting standards affecting revenue recognition. Byju’s was last valued at $22.6 billion.
Byju’s has demonstrated remarkable growth in standalone revenue for FY22, indicating the substantial potential of the edtech sector in India. Despite challenges, the company’s core business exhibited strong performance, with reduced EBITDA loss and improved margins. Byju’s commitment to sustainable growth and its expanding portfolio of learning programs reflect its dedication to shaping the future of education.