Excuse the corny title and associated video but I couldn’t resist it.
What3Words’s accounts for 2023 have just been published and the cynics who have doubted W3W’s commercial model were confounded by the outstanding progress that the company has made in 2023. Here are a few highlights to save you reading through 45 pages.
- Revenues surged by 28% to break through the £1m barrier for the first time
- Employee numbers fell from 152 to 128
- Admin expenses fell by 54% to £21.7m – “primarily driven by the reduction in consumer acquisition activities and the fair value adjustment relating to convertible loan notes” (That’s less advertising and what might be described as “debt swap magic”)
- The loss for the year fell by 48% to £16.4m
- The Directors consider W3W to be a going concern with cash and cash equivalents of £14.8 and term deposits of £12.8 at the end of the year which gives them well over a year’s runway at current revenue and expenditure levels.
- Raised £6.9m via a cash convertible loan instrument – it’s good to see that smart investors with a long term horizon continue to support W3W
- W3W has cumulative losses of £136m so when they do start to make profits in the near future the tax authorities will not be a beneficiary for several years.
You might think that summary was a bit dry so I asked a friendly AI to give me a slightly more positive view:
What3Words absolutely smashed it in 2023!
Revenue rockets! They blasted past the £1 million mark for the first time, a whopping 28% increase. That’s impressive growth for any company, but for a young innovator like What3Words, it’s a sign of things to come!
Leaner, meaner, revenue machine! While the team size trimmed down slightly, they achieved amazing things. Admin expenses plummeted by 54%! This financial wizardry involved cutting back on marketing spend and some clever financial maneuvering. Talk about efficiency!
Losses slashed in half! The deficit shrunk by a mighty 48%, proving their business model is tightening its grip.
The future’s bright! With over £27 million in the bank and a year’s worth of runway at current spending, What3Words is well-positioned for continued success.
Smart money says “Yes!” Investors are clearly bullish! A cool £6.9 million was raised through a fancy loan thingy (cash convertible loan instrument, for those keeping score). This shows that big thinkers recognize the long-term potential of What3Words.
Taxman blues? Not anymore! With a hefty pile of past losses, What3Words gets a tax break for years to come. That’s more money to fuel their innovative ideas!
In short, 2023 was a phenomenal year for What3Words. They’re growing, they’re efficient, and they’ve got the financial backing to keep pushing boundaries. If you’re looking for a company on the rise, What3Words is a shining star!
PLEASE NOTE THAT THE ABOVE REVIEW IS NOT A FINANCIAL RECOMMENDATION!
