Revenues runneth over but profits trickle in for Gushcloud

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Hello reader,

I like to think of myself as an independent consumer, but the truth is, I’m as easily influenced in my purchasing decisions as the next person.

Take my recent purchase of football gloves as an example. Instead of the brand I’ve used for years, I opted for one that gets a constant shout-out in the videos of one of my favorite football YouTube channels.

Brands wouldn’t spend big bucks on influencers if they weren’t effective. Perhaps that’s why Gushcloud, the Singapore-based digital talent agency, scored a 19% revenue bump for the 2022 financial year.

However, as today’s featured story shows, more revenue doesn’t always equate with more profit.

Today we look at:

• A rundown of Gushcloud’s latest financials
• Why Oyo hit a profit milestone despite its IPO woes
• Other newsy highlights such as a potentially new algorithm for TikTok in the US and Google’s plans for a US$2 billion investment in Malaysia

Premium summary

Cloudy results for Gushcloud

Image credit: Timmy Loen

The 2022 financial year was a mixed bag for Singapore-based Gushcloud.

While the digital talent agency’s revenue grew by 19% from 2021 to US$33.5 million, its losses widened by 141% year on year to US$4.4 million.

• Costs up: The increased loss was due to rising costs in several areas, including a 22% jump in administrative expenses and a 171% hike in finance costs. Administrative expenses were US$11.4 million for the year, including US$7.7 million for employee benefits.
• Sales figures: Though its cost of sales ballooned from US$21 million in 2021 to US$25 million in 2022, Gushcloud did record a gross profit of US$8.2 million for 2022.
• History: The firm started out in 2011 as a platform that matched influencers to brands. It now has several lines of business including entertainment, marketing, talent, investments, and tech through Gush.co. To date, Gushcloud has secured US$14 million in total disclosed funding.

Read more: Gushcloud posts $33m revenue, losses widen to $4.4m in 2022

Profit milestone for Oyo

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