Softbank-backed InMobi widens losses in FY19 on higher spending
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Bengaluru-based mobile ad-tech company InMobi Technology Services has widened its losses for the financial year ended March 31 led by increased spending on payments made to its advertising partner firms. However, its revenues improved significantly across verticals during the year.
This is the company's second consecutive loss since its posted a net profit of Rs 12 crore in FY17.
The unicorn startup reported net loss of Rs 54 crore higher than Rs 35 crore in the previous year. Its total expenses grew 25% to Rs 440 crore in the reporting year mainly on account of a 87% increase in its publisher costs. InMobi makes payments to its partner publishers, mostly apps, for allowing it to display targeted mobile advertising.
Other than publishing costs, employee expenses also grew 10% to Rs 265 crore while other operational expenses increased to Rs 57 crore from Rs 42 crore in the previous year, regulatory filings showed.
Despite the losses, InMobi managed to post 20% on year increase in its revenue to Rs 384 crore led by robust sales in mobile advertising and technology and business support operations. In FY19, tts mobile advertising revenue increased to Rs 143 crore from Rs 104 crore in the previous year while technology business earned the company Rs 240 crore as against Rs 213 crore.
During the tail end of FY19, InMobi launched telecom-focused product, TruFactor which enables data analysis, improved user privacy and customer experience. The product was developed from its earlier acquisition of Pinsight Media from Sprint. The company also operates Glance, a customer facing platform which offers personalised ad-free content for smartphones, while it operates flagship mobile marketing business independently.
In November 2019, Glance acquired video content platform Roposo, allowing the former to improve its content platform. At the time of acquisition, Roposo claimed to have 42,000 users.
InMobi recently is said to have undergone a business restructuring exercise and will now focus on these three verticals. The company,which mostly competes with Google and Facebook, has recently tied up with technology firm Microsoft to benefit from its artificial intelligence-backed solutions offered by its Azure cloud software.
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