Veranda Learning Solutions on Saturday posted a consolidated net loss of ₹21.1 crore for Q2 FY23 as promotion and ad expenses brought down the profitability of the ed-tech firm.
The Chennai-based ed-tech company posted a consolidated net loss of ₹13.1 crore for the same quarter of the previous fiscal.
Consolidated total revenue of the company jumped nearly four-fold to ₹38.8 crore during Q2 FY23 from ₹10.8 crore for the same quarter of the previous fiscal. The company’s business promotion and ad expenditure almost doubled to ₹10.7 crore during the quarter.
“The company is investing in several advertising campaigns across all its verticals which will boost visibility and long-term value development through brand recall,” the ed-tech firm said in its earnings press release.
During the quarter, the company invested about ₹5 crore to expand its offline centres under Edureka brand and incurred an expense of ₹3.36 crore on ESOPs / restricted stock units (RSUs).
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Kalpathi S Suresh, Executive Director and Chairman, Veranda Learning Solutions, said, “We are within a striking distance of the revenue of FY22 by the first half of FY23.”
“While our expenses during the quarter surged due to ESOPs, with new business growth initiatives, and ongoing brand promotion initiatives, we believe that the operating efficiencies will improve going forward and help us turn EBITDA positive by the end of the current fiscal,” he added.