Atlan’s SaaS Startup’s FY23 Profit Drops 19% to INR 7.74 Cr

Atlan’s SaaS Startup’s FY23 Profit Drops 19% to INR 7.74 Cr

  • PAT decreased from INR 7.74 Cr in the prior fiscal year due to higher tax expenses in FY23 and an extraordinary gain in FY22.
  • Operating revenue increased from INR 32.38 Cr in FY22 to INR 93.83 Cr in FY23, with almost 98% of it coming from outside sources.
  • Total expenses increased 203% from INR 28.19 Cr in FY22 to INR 85.53 Cr in FY23, driven mostly by staff costs.

In the financial year 2022–23 (FY23), Singapore-based data collaboration software firm Atlan recorded a profit after tax (PAT) of INR 7.74 Cr, a decrease of 18.70% from INR 9.52 Cr in FY22. The decrease in PAT for the reviewed year was caused by higher tax charges in FY23 and a remarkable gain in FY22 respectively.

Compared to INR 30.01 Lakh in FY22, Atlan’s tax expense for FY23 was INR 2.23 Cr. In the meantime, the firm settled the vested option with the employees at a price below the fair price at which the stock option obligations were established, and as a result, it also declared an extraordinary gain of INR 5.50 Cr in FY22.

Established in 2018 by Prukalpa Sankar and Varun Banka, the firm facilitates project collaboration amongst enterprise teams and aids in the creation of a unified source for all data assets on its platform.

According to Atlan’s filings with the Ministry of Corporate Affairs, operating revenue increased by 189.78% to INR 93.83 Cr from INR 32.38 Cr in FY22. The majority of the startup’s revenue comes from software development and support services because it is a SaaS platform.

During the reviewed year, the startup’s operating revenue was primarily derived from overseas sales. From INR 30.11 Cr in the previous fiscal year to INR 92.01 Cr in FY23, Atlan’s revenue from international markets nearly tripled. In the meantime, domestic income fell from INR 2.27 Cr in FY22 to INR 1.82 Cr.

With additional revenue included in, overall income increased from INR 32.50 Cr in FY22 to INR 95.51 Cr.

Peering Into Atlan’s Bills
The startup for data cooperation saw a 203.45% increase in total expenses from INR 28.19 Cr in FY22 to INR 85.53 Cr in FY23.

Employee Expenses Balloon: Atlan reported paying its staff INR 40.67 Cr in FY23, a sharp increase of 182.72% over the INR 14.39 Cr recorded in FY22. The majority of these costs were incurred by the startup for salary, pay, and incentives. In addition, the employee stock option scheme paid out INR 3.04 Cr.

Software Subscription Charges Surge: The business paid INR 23.34 Cr for software subscriptions, making it its second-largest expense for FY23. Compared to the INR 5.77 Cr it paid in the prior fiscal year, this was 304.29% more.

Decline in Advertising Expenses: For the year ending March 31, 2023, Atlan spent around INR 3.38 Cr on advertising and other promotional efforts. This is a 62.89% decrease from INR 9.11 Cr the year before.

Other Notable Entries: In FY23, the startup spent over INR 8.18 Cr on legal and professional services, which is 212% more than it did in FY22 when it spent INR 2.62 Cr. However, Atlan also revealed that travel costs increased by 563% from INR 27.03 Lakh in FY22 to INR 1.79 Cr in FY23.