Bengaluru headquartered cloud media SaaS technology company Amagi has turned out to report impressive growth while losing much less compared to the past fiscal year recently closed. The company had raised over $100 million in November 2023 with a valuation of $1.4 billion. Perhaps this fact perhaps fuelled its remarkable 29% year-on-year growth for FY24.
PC: Exchange4media
Consolidated financial statements with the Registrar of Companies have reported to show Amagi’s revenue from operations hopped up at ₹879.15 crore in FY24 compared to ₹680 crore seen in the previous fiscal year. The firm also stated earning ₹63 crores in interests and investments, which pushed the total revenue up for the year to ₹942 crore. This growth is attributed to the fact that Amagi is innovatively providing solutions for content owners to launch, distribute, and monetize their live linear channels on free ad-supported television and video platforms.
The company runs its core revenue-generating business in two main products: Thunderstorm is an over-the-top (OTT) content publishers’ server-side ad insertion platform; Cloudport is a broadcast-grade channel playout for both TV and OTT markets. Of the overall revenue of Amagi, 67.3% comes from the United States followed by 13.1% generated from the United Kingdom which increased 31.1% to ₹115.5 crore during the fiscal year.
However, Amagi’s performance in India remains a concern as the local market contributed less than 1% to the overall revenue and fell 54.29% year-on-year to just ₹8 crore. It would seem like a strategic withdrawal from India as revenues from international markets except India increased by 78.95% to ₹164.1 crore.
While the sales scale continues to show an increase, Amagi has seen a rise in operational costs. Salaries, wages and employee benefit expense accounts for the largest share which has increased 10.8% at ₹66.34 crore. Depreciation and amortization expenses have zoomed 84% to ₹16.3 crore while finance costs have grown by 58% to ₹5.2 crore. Overall, total expenditure has surged 15.46% to ₹1,189 crore from ₹1,039 crore in FY23.
In FY24, the company has lowered losses to only ₹245 crore against a reduction of 23.7%. Its negative ROCE was at -24.43% and EBITDA margin at -22.86%. Unit Economics: Amagi spent ₹1.34 for every rupee of the operating revenue that it earned in fiscal year.
The company also saw a decline in cash and equivalents to ₹262.9 crore from ₹740 crore in FY23, though it still has ₹514 crore in other bank balances. Trade receivables increased from ₹204 crore to ₹252 crore, thus indicating that there is definitely growth in customer numbers despite the issues.
Having already achieved the unicorn status after securing a fund worth $95 million in March this year, Amagi continues to receive huge attention and support from investors such as Accel Partners. The company reportedly is set to mop up additional investments of $250 million under a new funding round signaling confidence in the business model and future prospects.
Amagi had a really successful pivot in 2018 from local ad solutions to a SaaS-based monetization platform. The company has been steadily growing revenue since that time, from the U.S. market. With an IPO soon around the corner, the founders and board of Amagi are well-positioned for this huge comeback and repositioning in the market by attracting more investor dollars and industry eyeballs.
