Mobile ad firm InMobi's FY20 revenue grows 7.29% to Rs 412 crore
Revenue from advertising services jumped 17.48% to Rs 168 crore as against Rs 143 crore
InMobi Technology Services has reported a 7.29% growth in FY20 revenue at Rs 412 crore compared to Rs 384 crore in the previous fiscal, according to financial data accessed by business intelligence platform Tofler. The company earns revenue from advertising and technology and business support services.
Revenue from advertising services jumped 17.48% to Rs 168 crore as against Rs 143 crore. Technology and business support services revenue increased 1.24% to Rs 244 crore compared to Rs 241 crore.
The operations of the company comprise exports contributing approximately 54% of its revenue for FY20 compared to 63% in FY19. The management views the Indian market and export markets as distinct geographical segments.
Revenue from the Indian market stood at Rs 634 crore compared to Rs 625 crore in the previous fiscal. The company recorded negative revenue of Rs 223 crore from the Singapore market compared to Rs 241 crore in FY19. This same amount is also recognised as foreign exchange loss from technology and business support services.
Total expenses rose 15.19% to Rs 508 crore from Rs 441 crore. The company's net loss for the year widened by 43% to Rs 77 crore compared to Rs 54 crore. Trade receivables shot up to Rs 290 crore from Rs 231 crore.
InMobi is a service company, primarily rendering advertisements on mobile apps of partner publishers and also provides technology development and business support services to its Holding Company and fellow subsidiary. Accordingly, it does not hold any physical inventories.
In terms of segment profit/loss, the loss before tax and interest from advertising services stood at Rs 62 crore compared to Rs 23 crore. While profit before tax and interest from technology and business support services remained flat at Rs 24 crore in comparison to the previous fiscal.
The standalone results reflect the financials of only the Indian market. Whereas InMobi as a group earns a significant chunk of its revenue from global markets.
The company derives its revenues from advertisements in a targeted manner on partner publishers’ mobile apps. Revenue from advertisements is recognised net of volume rebates, customer discounts, agency commission, and free trial expenses on the
The company derives income by providing technology development, business, and marketing support services to its Holding Company and the fellow subsidiary. Income is based on a “cost-plus” model as per terms of the contracts entered into by the Company with its Holding Company and the fellow subsidiary respectively. The applicable costs, as per the terms of the contract are billed with a mark-up periodically.
InMobi Technology Services is a subsidiary of InMobi Pte Ltd, Singapore. The company is engaged in the business of mobile advertising on mobile apps of partner publishers. The company also has a cost-plus arrangement with InMobi Pte Ltd, Singapore, and Glance Digital Experience Private Limited (‘Fellow Subsidiary’), for the provision of technology and business support services.
