GoCardless, a British payments startup backed by major investors including Alphabet's venture arm GV, Accel, and BlackRock, has reported a significant reduction in net losses for the full year ending June 2024. The company's net loss stood at £35.1 million ($43.8 million), marking a notable improvement as it more than halved its losses compared to previous years. Despite the losses, GoCardless achieved a 41% increase in revenue, reaching £132 million.
CEO Hiroki Takeuchi has set an ambitious target for GoCardless to achieve its first full-year profit within the next 12 to 18 months. This optimism comes on the back of strategic initiatives, including a successful restructuring effort at the end of the fiscal year in June 2023, which contributed significantly to reducing operating losses. Additionally, the company recorded its first-ever profitable month in March 2024.
GoCardless has also been proactive in optimizing operational efficiency. Salary expenses were reduced by 13% to £79.2 million during the fiscal year 2024. As Takeuchi stated,
"We're much more focused on the cost side… We want to be getting very efficient as we scale."
The company is not only focusing on cost efficiency but also expanding its product offerings. It is testing a new feature that enables clients to distribute funds directly to their customers, enhancing its service portfolio. In September, GoCardless acquired Nuapay, a platform that facilitates businesses in collecting and sending payments via bank transfers, further strengthening its market position.
Looking ahead, GoCardless is preparing for a $200 million secondary share sale with advice from investment bank Lazard. The firm was last privately valued at $2.1 billion in February 2022 and remains "actively looking" for further mergers and acquisitions as part of its growth strategy.
Takeuchi expressed confidence in the company's future, stating,
"We're seeing lots of opportunities come up."
The company’s growth is largely driven by a substantial increase in customer revenue, which amounted to £91.9 million in 2024. This growth reflects strong market demand and the effectiveness of GoCardless' strategic initiatives.
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