How CFOs review Revenue vs. costs change year over year!
The Financial Controller • 7 days ago
What This Video Is About
The video discusses the company's revenue growth analysis, highlighting a slowdown in growth from 92% in 2023 to 49% in 2024, and the implications of this trend on the company's financial health.
Major Ideas Discussed
- The revenue growth slowdown is a common trend for startup companies as they mature, but it is essential to address potential issues.
- The cost of sales grew by 80% year-over-year, outpacing revenue growth, with hosting and platform fees increasing by 145%.
- The vertical analysis shows that hosting and platform fees have increased from 7% of revenue to 12% in 2024, a substantial jump that needs to be addressed.
- The company experienced a net loss in 2024 despite revenue growth, due to overspending in areas like cost of sales and general and administrative expenses.
- The analysis highlights weaknesses in these areas, contributing to the net loss.
What to Watch Next
The company needs to address the weaknesses in cost of sales and general and administrative expenses to ensure financial health and sustainability, and monitor the trend of hosting and platform fees to prevent further increases.