Vancouver-based Thinkific Labs Inc. (TSX:THNC) is cutting 20 per cent of its workforce after its latest financials revealed the online course creation company posted a $26 million loss at the end of its latest fiscal year.
The company boasted 270 workers on its roster by the end of the first quarter last year before growing to 500 workers over the course of one year.
Following the rapid recruitment effort, the company said Tuesday it’s now cutting 100 workers “following a rigorous review of our organizational structure.”
Thinkific went public in April 2021, pricing 12.3 million shares at $13 each.
Shares have steadily fallen to just under $3 each since then.
“While it is the right decision for the business, it was not one we made lightly,” CEO and co-founder Greg Smith said in a statement.
“We are confident that the leaner team will support our fanatical focus on the success of our creators.”
Thinkific, best known for its platform that helps businesses and individuals create and distribute online courses, raised $22 million in venture capital in September 2020 as part of a funding round led by early investor Rhino Ventures — also based in Vancouver.
Smith told BIV that same year that course creation on Thinkific’s platform surged 200% at the outset of the pandemic. The company currently has 50,000 course creators on its platform and 32,000 paying customers.
Despite the economy reopening over the course of the pandemic – taking many more people from the online world and back into the physical world – Thinkific’s revenue still climbed nearly 81 per cent year over year to $38.1 million as of its fiscal 2021.
But losses have jumped dramatically — from $1.3 million to $26.4 million during that same period.
The company said it is letting go of workers in customer support, admin and management as well as going ahead with “targeted reductions” in research and development, and sales and marketing.
After posting its Q4 financials last month, Thinkific is set to deliver its first-quarter 2022 results on May 5.
“At this time it will communicate its second quarter outlook and provide a general business update, including further details on this announcement,” the company said in a release.