Coda Payments’ FY 2022 profit shrinks 63%, revenue stalls

Photo credit: Shutterstock

Coda Payments, which specializes in gaming and media, has logged US$310.1 million in revenue for the 15-month period from October 1, 2021 to the end of 2022, according to its latest financial report obtained from VentureCap Insights, which tracks regulatory filings in Singapore.

This represents a modest increase compared to the US$309.5 million that the company registered in the previous financial year.

Founded in 2011, Singapore-based Coda Payments allows its users to top up their game credits and make payments through its over 300 supported payment methods. Its revenue comes from two major sources: the sale of digital goods and its transaction-processing services.

Abhi Sharma, CFO of Coda Payments, told Tech in Asia that the pent-up demand for travel from the Covid-19 pandemic and a refreshed interest in out-of-home entertainment have dampened the gaming industry’s growth.

Global consumer expenditure on mobile games was down 5% in 2022, according to a report from Data.ai. However, spending was up in markets like Indonesia, Brazil, and India in the same year.

Coda Payments’ FY 2022 profits dropped 63% to US$16.4 million – its first decline since 2018 – as expenses grew over 2x to US$68 million. Notably, employee compensation soared 96.6% to US$35.6 million.

“As a profitable company with a strong balance sheet, Coda has been investing in our products, platform, processes and people, to support our global growth ambitions,” Sharma said.

In a previous interview with Tech in Asia, Coda Payments co-founder and executive chairperson Neil Davidson said its payment service Codapay helped the company reach profitability, which was achieved after its series A round.

Now its partners in the gaming space include Activision Blizzard, Garena, NetEase, Tencent, and HoYoverse.

Last year, Coda Payments attracted US$690 million in investments from Smash Capital, Insight Partners, and GIC through a secondary deal at a valuation of around US$2.5 billion.

See also: Coda Payments’ road to profitable gaming-fintech unicorn