FY24 Concall
Financials
- Doubled their revenue and have been doing so for a while now.
Business details
- Scaled up skill arbitrage well and the cost of acquisition is very low. It has a bigger TAM and can expect faster growth than LawSikho
- they have been able to expand geographically as they have been able to sell in North America, UK and Canada. it is a very nascent stage but the promoter expects a big chunk of revenue can come from this.
- doubled their engineering team! which they have earlier struggled with. they create new products and features and reduce costs
- Making courses AI friendly to adapt with the current world. It will also be a big differentiator as no one else is doing it
- process of building app as well so that they can bypass other websites and search engines.
- Rapidly scaled up content creation from the proceeds of IPO
- they could not meaningfully scam the sales team which they plan to do.
- Auto funnels are being made which help sell products. IN US, businesses don’t do calls for products below 10,000 dollars and hence use auto funnels.
- On reducing CAC: companies like google and Meta are gatekeepers of your audience. they will charge you to contact these audience. Most of the CAC goes to these guys. Companies need to build things that brings long term users. For example, a blog which I write should have a lot of subscribers so that I don’t need to advertise them
- Other methods of reducing CAC are like building content and making it so good that people wait for it. eg: SOIC
- team size: 600+
- No immediate plan to monetize opportunities platform. It will be free until it is the go to model
Industry
- Ed-tech had the worst year last year. there was a funding winter and only they got listed. However, they have not been worried and IPO gave them good funds to work with while the rest don’t! so helped capture market share.
- 7 states they have seen produce lawyers, judges etc. a lot of success was seen! Also had success in NCA Canada, Solicitor qualification in London and soon success will come in California BAR where results will come in June/July. this success will help with marketing strategies.
Outlook
- TAM without new products being added: 1200 crores
- launched a new platform called loss eco opportunities. 3000 visitors per day and 300 applicants per day.
- currently have 80 sales which they want to scale to 300 in one year.
- PBT should be 25% in the long run. that’s their target. rn they are targeting growth so they aren’t chasing this margin but it is possible.
- Because of increasing TAM by skill arbitrage geographical expansion, They think they can double their revenue for 2-3 years. Category, TAM and geography isn’t an issue. 65-130 won’t be easy and 130-260 will be a bit difficult but possible
- When they reach 100 cr per month, then he will be worried in doubling it.
- Over the next 2 financial years, Goal is 20 crores per month
- they want to go offline but they don’t have expertise on it
Risks
- more like Risk aversion: Slowdown in the economy does not effect them at all. During slowdowns when people lose jobs, they want to take up new skills and find jobs so they invest in education such as their platforms.
- Risk in AI: They have to keep up with AI because new stuff keeps coming up, this way the cost of course goes up because the learning is already outdated.
- If people raise a lot of money, then their competition can do a lot of marketing then CAC increase for Addictive learning as well.
- Hiring remote eliminated problem of finding good employees
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