After a stormy 2023, Osome steers toward profitability

Osome had a tough 2023.

The online accounting firm received backlash from clients for missed filing deadlines with the authorities. It also faced a wave of employee departures starting at the tail end of 2022 and laid off dozens of employees at the close of 2023.

But Osome is turning things around. In 2024, its revenue increased more than 25% year on year, CFO William Chong tells Tech in Asia.

Victor Lysenko, founder and CEO of Osome / Photo credit: Osome

While revenue growth slowed from the previous period’s 58% year-on-year increase, Osome claims to have hit profitability in Q4 2024.

The company also says it logged a 60% improvement in annualized EBITDA in 2024. It didn’t share specifics, however.

Osome achieved this feat by focusing on its core markets in Asia, tailoring its product to Chinese speakers, doubling down on automation, and executing “robust financial management,” says Chong, who joined the firm in November 2024.

He adds that these efforts led to a “significant” reduction of Osome’s customer acquisition costs by 35%.

The company’s FY2024 filings haven’t been submitted to Singapore’s Accounting and Corporate Regulatory Authority.

Battling growing expenses

According to Osome’s latest available audited financial statements for the 12 months ending April 2023 (FY2023), the firm grew its revenue by 58% year on year to US$14.4 million in FY2023.

However, it also battled with increasing expenses.

Losses from operations widened 89% to US$19.5 million in FY2023 compared to FY2022 – a result of a rise in administrative costs, which jumped over 2x to US$15 million.

Notably, staff salaries, bonuses, and other costs – which grew 37% to US$12.1 million – fueled this surge.

Chong didn’t respond to Tech in Asia’s questions on what drove the company’s increased spending and revenue growth in FY2023.

Uncertain runway

Entering a “stabilization phase”