Thinkific Labs Inc. (TSX: THNC) turned a corner in the last quarter of 2023, posting a small net profit for the first time since going public in 2021.
Thinkific Labs provides a platform that allows businesses and educators to develop online courses and tutorials. The company raised $160 million in an initial public offering in 2021.
The company posted net losses of $26.4 million in 2021, $36.4 million in 2022, and $9 million in 2023, according to annual audited financial statements.
But in the last quarter of 2023, the company netted a profit of $301,000, compared to a $3.7 million loss in the final quarter of 2022, according to year-end financials posted today.
Thinkific’s total revenue increased 13 per cent year-over-year in 2023 to $15.6 million, and the company’s total paying customers grew by four per cent in the fourth quarter of 2023 compared to the prior year.
Last year, the company announced 75 layoffs, with Thinkific CEO Greg Smith saying the job cuts were needed to make the company profitable. That was on top of 100 layoffs in 2022. Prior to the two rounds of layoffs, the company had 500 employees.
"Thinkific delivered a solid Q4 to end what was truly a milestone year for the company," Smith said in a news release. “In 2023 we achieved our cost efficiency and productivity targets, while continuing to grow the top line in double digits.
“We also released more new and innovative products and features in the past twelve months than in any other time in our history.”
"Our commitment to a strategy of profitable growth resulted in our second consecutive quarter of positive adjusted EBITDA and cash flow from operations while still maintaining double digit growth," said Thinkific CFO Corinne Hua.
"In 2024, we plan to take advantage of our strong financial position and make targeted investments in areas we believe will result in an acceleration of revenue growth."
-- With files from Tyler Orton