Thinkific, a learning technology systems provider, reported revenue growth of 14% YoY to USD 14.4 million in Q2 2023, surpassing the upper end of the revenue guidance of USD 14.1 million–14.3 million provided in Q1 2023.

The total number of paying customers grew 3% YoY to 34,300 in Q2 2023, while average revenue per customer (ARPU) grew 12% YoY to USD 141 per month, driven by the increasing adoption of Thinkific Payments (launched in November 2021) by 120% YoY, as well as the expansion of revenue from features like its mobile apps. Annual recurring revenue (ARR) grew 6% YoY to USD 53.3 million in Q2 2023, driven by the improvement in ARPU and customer count. Additionally, during the same period, Thinkific Payments represented 30% of gross merchandise volume (GMV), which grew by 8.3% YoY to USD 106 million in Q2 2023. 

Thinkific’s gross margin was 75% in Q2 2023, slightly lower than the 76% recorded in Q2 2022, and this was driven by the increase in Thinkific Payments revenue, albeit tempered by non-recurring customer support costs. The company reported a net loss of USD 2.1 million in Q2 2023, compared to a net loss of USD 10.1 million the previous year. The adjusted EBITDA loss was USD 1.2 million, which is a significant improvement of 83% compared to the previous year, on account of revenue growth and efficiency improvements. 

The company’s Q3 2023 revenue guidance ranges from USD 14.5 million–14.7 million. It estimates an adjusted EBITDA loss ranging from USD 0.6 million–1.2 million.