Job cuts at GoCardless are helping the bank payment company on its path to profitability.
London-based GoCardless saw net losses shrink by 55% from £78m to £35.1m in FY24, with revenues climbing 38% to £126.8m. It hopes to be profitable by the middle of 2026.
The accounts, published on Companies House and covering 1st July 2023 to 30th June 2024, show that the firm has reduced its staff headcount from 764 to just over 600.
As well as cutting around a fifth of its workforce, GoCardless also moved several of its first line operational support teams to a subsidiary in Riga, Latvia.
The company said that its international revenues continue to grow, increasing by 47% to £30.8m in FY24. In particular, revenues in Europe and North America increased by roughly 50% in each market. International now accounts for 24% of its total revenues.
Revenue in the UK & Ireland grew by 35% over the same period to £96m, fuelled by new signings and renewals with customers like Topps Tiles and JustGiving.
GoCardless also hit key milestones in open banking, including becoming an approved open banking supplier to central and local governments.
Globally, GoCardless expanded its indirect channels, extending strategic relationships with key partners including Xero, Sage and Quickbooks, as well as signing new partners like Celigo. The company also saw success with GoCardless Embed -its white-labelled solution that allows payment service providers to integrate GoCardless’ global bank payment network into their platform through a single API – with new customers Ecommpay and UNIPaaS.
In the year ending 30 June 2024, the group and its sister company, GoCardless, Inc. processed £39.6bn billion worth of transactions, a rise of 28% year-on-year, for over 94,000 organisations globally.
In September 2024 GoCardless completed its acquisition of Sentenial Ltd, operating under the Nuapay brand, from EML Payments Limited.
“The FY24 results show strong revenue growth and a sustainable cost base, both of which point to a clear path to profitability,” said Hiroki Takeuchi (pictured), co-founder and CEO. “To post these kind of numbers in a tough macroeconomic environment is not easy and I’m incredibly proud of what the team has achieved.
“I’m excited about the opportunities ahead as we push into FY25 and beyond. We’re continuing to see the results of our increased focus on international markets and our indirect channels. Our data services remain popular with customers, from helping them prevent fraud and improve conversion rates to powering essential business operations through open banking data.
“And with the integration of Nuapay providing the capability to send as well as collect payments, we’re well on our way to becoming a full-service bank payment provider.”