Thinkific, a learning technology systems provider, reported a revenue growth of 28% YoY to USD 13.8 million in Q4 2022, in line with analyst estimates. For FY2022, the company reported a revenue growth of 35% YoY to USD 51.5 million. 

Total paying customers grew 4% YoY to 33,600+ in Q4 2022 while average revenue per customer (ARPU) grew 21% YoY to USD 138 per month, primarily driven by the increasing adoption of Thinkific Payments (launched in November 2021). Annual recurring revenue (ARR) grew 18% YoY to USD 51.5 million in Q4 2022, driven by increasing ARPU, as well as total Paying Customers growth. Additionally, during the same period, gross merchandise volume (GMV) increased by 1.4% YoY to USD 106 million, with Thinkific Payments contributing USD 23.3 million (or 22%).

Thinkific’s gross margin improved 4 percentage points YoY to 78% in Q4 2022 which was driven by cost savings from the customer support team and offset by Thinkific Payments, which generated a lower gross margin.The company reported a narrowed net loss of USD 3.7 million in Q4 2022 (loss of USD 9.4 million in Q4 2021). The adjusted EBITDA loss narrowed by 50% YoY to USD 4.4 million in Q4 2022 as a result of improved operating efficiency, a lower cost structure, and continuous revenue growth. For FY2022, the company reported a net loss of USD 36.4 million (38% YoY increase). 

In January 2023, Thinkific stated its goal to achieve a positive Adjusted EBITDA run rate by the end of 2023, which will be facilitated by a reduction in workforce that aims to align the company's talent with growth initiatives and reduce expenses. For Q1 2023E the company expects revenue to range from USD  13.8 million–USD 14.0 million and adjusted EBITDA loss in the range of USD 3.3 million–USD 3.9 million.