Urban Company (URBANCO) Q4 22/23 earnings summary

Executive summary

• FY23 revenue from operations grew 45% YoY to INR 637 Cr; pre-tax loss narrowed to INR 308 Cr from INR 514 Cr, while Adjusted EBITDA loss fell to INR 297 Cr from INR 377 Cr.

• India reached Adjusted EBITDA break-even in Q1 FY24 with negative working capital; India represented ~90% of revenue.

• FY23 customer ratings averaged 4.82/5; repeat customers contributed 77% of platform NTV, with a target to exceed 90% in coming years.

Financial highlights

• Consolidated revenue from operations rose from INR 438 Cr in FY22 to INR 637 Cr in FY23; net revenue was INR 637 Cr, comprising INR 496 Cr service revenue and INR 141 Cr product revenue.

• Consolidated loss before tax (Ind AS) narrowed to INR 308 Cr from INR 514 Cr; loss for the year was INR 312.48 Cr versus INR 514.14 Cr.

• Standalone revenue from operations grew 43% YoY to INR 424.84 Cr; standalone loss for the year narrowed to INR 161.36 Cr from INR 404.38 Cr.

• Operating cash outflow was INR 23,779.67 lakh in FY23; cash and cash equivalents ended the year at INR 6,222.01 lakh.

Outlook and guidance

• Focus remains on improving profitability through fixed-cost operating leverage, cost efficiency and strong unit economics as scale increases.

• Repeat customers’ share of NTV is expected to exceed 90% in coming years.

• Management highlighted promising years ahead for online home and beauty services, following growth investments in service quality, customer acquisition, technology and safety.