Zoho reports Rs 8,703 crore of revenue in FY23, PAT crosses Rs 2,800 crore

Zoho Reports FY23 numbers

Bootstrapped Software-as-a-Service unicorn Zoho on February 1 reported consolidated revenue of Rs 8,703 crore in the financial year 2023 (FY23), up nearly 30 percent year-on-year despite an overall slowdown in demand for the software industry across the globe.

Zoho's consolidated net profit came at Rs 2,836 crore which rose marginally at 3 percent year-on-year on account of a rise in expenses, showed RoC filings sourced from data and research firm Private Circle.

In FY22, Zoho reported a consolidated a consolidated revenue of Rs 6,710 crore.

Out of the total revenues, the company's enterprise IT management division ManageEngine, reported a revenue of Rs 4,327 crore

Zoho's North America business continues to be the biggest revenue driver for the firm which reported a revenue of Rs 3,988 crore, followed by Asia which includes SEA and India at Rs 2,283 crore and  Europe at Rs 1,952 crore.

During FY23, Zoho's total expenses were around Rs 5,392 crore which jumped 51 percent YoY compared to Rs 3,571 crore in FY22 due to a rise in the firm's employee benefit expense.  Zoho's employee benefit expense rose 49 percent to Rs 2,721 crore as against an expenditure of Rs 1,826 crore in the previous year.

Muted Demand Year for SaaS

India's SaaS industry is facing a demand slowdown caused by the impacts of macroeconomic pressures. Several companies were adopting various strategies to wade through the slowdown.

Also Read: Indian enterprise SaaS firms adopt novel strategies to survive macroeconomic pressure

Zoho's co-founder and CEO Sridhar Vembu wrote on X in October of 2023 that Zoho witnessed a slowdown in its business in September across countries and its products on the back of tight macroeconomic pressure.

However, Zoho has been entering newer markets and stepping into newer businesses like Gen AI and hardware.

The firm was investing and betting big on manufacturing hardware devices like tech-enabled medical equipment, data center-focused hardware devices and augmented reality (AR) equipment.