Simplilearn cuts Ebitda losses by 75% as FY24 revenue reaches Rs 773 crore

Enhanced consumer experience, as well as demand from corporates for onboarding new hires, drives better numbers for the digital upskilling firm

Simplilearn, the Blackstone-backed digital upskilling firm, reported a 75 per cent reduction in Ebitda losses even as revenue for the fiscal year 2024 rose to Rs 773 crore. In FY23, the firm’s revenue was Rs 701 crore with an Ebitda loss of Rs 208 crore, which has been reduced to Rs 51 crore. 

This reflects a strategic focus on operational efficiency and market expansion, aligned with mindful and sustainable growth. The firm stated that it is well-positioned to achieve Ebitda profitability within the current financial year. 

Sharing his views on the company’s growth, founder and CEO Krishna Kumar said, “As we work toward profitability, we’re focused on strengthening our products to meet industry needs, driving growth in the US and worldwide, and, above all, delivering an outstanding customer experience. Our steady growth reflects our commitment to building a profitable, sustainable business model that prioritises growth and learner success in today’s changing digital world. We’re excited about the future and optimistic about reaching Ebitda profitability in FY25.” 

 

The company said that a key factor contributing to this momentum was enhanced customer experience. An initiative in early FY24 focused on overall customer experience, which has proven highly effective. This effort has underscored the impact of delivering a superior experience with high-quality products, resulting in increased customer retention, higher referral rates, greater course completion, and significantly improved learning outcomes, the company said. 

At an organisational level, the emphasis has been on fostering organic growth, developing a more robust learner “shopping” experience, and reducing customer acquisition costs. The company said it has also strengthened its performance marketing strategy by refining campaign targeting to better match each course's target learner persona and enhancing website content, design, and overall user experience. These initiatives have yielded improved outcomes, doubling the return on ad spend (ROAS), it noted. 

The company's strategic emphasis on high-demand products within key growth markets has also addressed the evolving skill enhancement needs of professionals. Simplilearn said it has increased course enrolment by prioritising top-performing products and programmes essential across diverse markets. This growth has been further propelled by focusing on three lucrative avenues: the group’s university partnerships, boot camps, and certification training programmes, each presenting substantial expansion opportunities. 

Additionally, the commercial business at Simplilearn has served as a vital growth pillar. With enterprises increasingly focused on digitisation and a robust demand for skilled professionals, FY24 marked a growth phase for the commercial business. India's GCCs and IT services companies have shown keen interest in onboarding programmes for new hires, primarily in AI, ML, data, and cloud technologies, Simplilearn said. It added that it has intensified efforts in the commercial segment, particularly in the US, by forging strategic partnerships with leading platforms and collaborating with major government bodies in the Europe, Middle East, and Africa (EMEA) region.