- Gushcloud’s revenue soared 19% to $33.5M in 2022.
- However, losses widened 141% to $4.4M.
- Despite solid gross profit, operating cash burn increased 43%.
Singapore’s digital talent agency Gushcloud hit new heights with a staggering S$45.2 million (US$33.5 million) revenue for 2022 – a whoppin’ 19% leap from the previous year.
But hold your horses, folks, ’cause this growth party had a hangover in the form of widening losses that ballooned by a whopping 141% year-on-year to US$4.4 million.
Show me the money (but mind the potholes)
While Gushcloud’s revenue game was on fire, their cost of sales played catch-up, zooming from US$21 million in 2021 to US$25 million in 2022.
Still, they managed to rake in a decent US$8.2 million gross profit. But the real shocker? Their cash burn for operating activities revved up by 43% to US$4.5 million!
Spending spree: when growth comes at a cost
So, what’s behind this loss-making joyride? A 22% spike in administrative expenses and a mind-boggling 171% surge in finance costs put the brakes on profitability.
With a team of over 200 employees across multiple markets, Gushcloud’s administrative expenses hit US$11.4 million, and employee benefits alone gobbled up a hefty US$7.7 million slice of that pie.
To read the original article: https://www.techinasia.com/gushcloud-posts-33m-revenue-2022-losses-widen-2x
