Payments fintech GoCardless halved pre-tax losses, according to financial results published Monday, as CEO Hiroki Takeuchi drives the 14-year-old company to the green by next year.
Founded in 2011, London-based GoCardless has raised more than £500m from investors including Passion Capital, Accel and Balderton. The UK payments fintech primarily makes money from facilitating direct debit payments for businesses, taking a transaction fee of around 1% depending on the jurisdiction and pricing plan.
In financial results covering the year ended 30 June 2024, GoCardless reported a pre-tax loss of £34.5m compared to £77.6m the year prior. Turnover at the UK company also grew 41% year-on-year to £132m.
GoCardless’s Increasing revenues
In an interview with Sifted, Takeuchi says a combination of revenue growth and cost-cutting had helped the fintech bring losses down.
“We continue to maintain a clear discipline on costs and making sure that we’re driving our growth and revenue whilst maintaining as strong control on costs as much as possible,” he says.
The results note a “restructuring activity” at the end of the financial year of 2023, contributing to reduced operating losses. GoCardless cut 15% of its workforce in June 2023 amid a tough funding environment for fintechs.
Takeuchi says the results are a strong basis for the company to hit profitability in 2025, after hitting its first month of profitability last year.
“We’re feeling very bullish about getting there,” he says. “And on a runway basis, we’re already very close to profitability.”
Read the orginal article: https://sifted.eu/articles/gocardless-halves-losses-news/
