Vancouver-based EdTech firm Thinkific managed to increase its revenues by 152 percent year-over-year in the first quarter of 2021, according to the company’s recently released financial results.
“The company’s strong financial results this quarter are a testament to the success of our customers.”
Thinkific’s Q1 2021 results are the first fiscal update provided by the company since it closed its initial public offering (IPO) and began trading on the Toronto Stock Exchange (TSX) on April 27. The Q1 results do not include Thinkific’s proceeds from the listing as it occurred after the end of Q1, March 31.
With gross profit, revenue, and gross merchandise volume all up from the same quarter last year, the Q1 2021 results indicate a quarter of marked growth for Thinkific leading up to the company’s exit.
Founded in 2012 by CEO Greg Smith, COO Miranda Lievers, CTO Matt Payne and chief strategy officer Matt Smith, Thinkific’s offering is a cloud-based software designed to help entrepreneurs and businesses launch, grow, and diversify their businesses.
According to the firm’s Q1 2021 results, Thinkific earned $8.3 million in revenue over the three-month period ending March 31, 2021. The company’s annual recurring revenues also grew by 134 percent year-over-year to $34.8 million.
Thinkific’s gross profit for Q1 2021 reached more than $6.6 million compared to more than $2.6 million for the same period last year, representing a 60 percent year-over-year increase. Gross merchandise volume (GMV) grew by 156 percent to $107.1 million over Q1. Thinkific attributed this growth in GMV to an increase in course creators on its platform and these creators’ ability to monetize their courses.
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The firm managed to grow its user base by 115 percent last quarter to 27,500 paying customers. In a statement, Thinkific said this growth is reflective of Thinkific’s platform and user experience, as well as its targeted marketing efforts.
“Thinkific was founded with the goal of empowering entrepreneurs and businesses of all sizes to create and sell online courses,” CEO Smith said. “The company’s strong financial results this quarter are a testament to the success of our customers and our focus on building a robust platform that continues to expand to meet the needs of course creators.”
Thinkific filed for its IPO in late March, and completed the transaction in late April. Initially setting out to raise $160 million, the firm managed to close its IPO at $184 million after an over-allotment option was exercised in full by the deal’s underwriters. Thinkific now trades under the symbol ‘THNC’ and its stock trades at $13.90 as of Tuesday afternoon.
“Our recent IPO, raising $184 million CAD in total, will serve to accelerate our growth, by allowing us to invest in our people, products and brand,” Smith added.
Thinkific also provided its fiscal outlook for the second quarter of 2021. The company expects revenue in the range of $8.7 to $8.9 million, which would indicate a year-over-year growth of between 91 and 96 percent.