Cuemath, backed by Google, reported a 5% increase in operating revenue for the fiscal year ending March 2024, following a slight dip in FY23. The 11-year-old company also successfully reduced its losses by nearly 43% during the same period.
According to its recent financial disclosures, Cuemath’s operating revenue reached Rs 126.42 crore, up from Rs 120.45 crore in FY23. The company, focused on math education for the K-12 segment, supports students with school curriculum and competitive exam preparation.
Revenue from teaching services rose 5.5% year-over-year to Rs 125.63 crore. However, income from franchise fees fell by 38.3%, reaching Rs 79 lakhs, while revenue from teacher onboarding fees and book sales remained steady. Non-operating income, derived from investments and other sources, recorded a slight decline of 2.68%, totaling Rs 5.45 crore.
Employee benefits remained Cuemath’s largest expense, though these costs were reduced by 34.2%, totaling Rs 114.2 crore. Additional savings were seen in business support, foreign exchange, and office expenses, contributing to an overall cost reduction of 29.9%, with total expenses falling to Rs 252.6 crore in FY24 from Rs 360.38 crore in FY23.
Despite revenue gains, Cuemath closed FY24 with a 42.7% reduction in losses, now at Rs 134.47 crore. The company’s return on capital employed (ROCE) and EBITDA margins remained negative, at -178.79% and -100.12%, respectively, with Cuemath spending Rs 2 for every rupee of revenue generated.
Having raised approximately $126 million across several funding rounds, Cuemath’s recent restructuring included workforce adjustments, with 200 employees affected. During this period, former CEO Manan Khurma resumed his role as chief executive, while Vivek Sundar continued as co-founder.
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