Company remains focused on investing for
growth and executing on its strategy - supporting Creators' success
in the knowledge economy
Thinkific affirms Q1, 2022 revenue outlook,
with revenue between $11.6 and
$11.8 million; adjusted EBITDA loss
expected to be slightly better than expectations of $10.2 - $10.8
million
Thinkific reports in U.S. dollars and in
accordance with IFRS
VANCOUVER, BC, March 29,
2022 /CNW/ - Thinkific Labs Inc. ("Thinkific" or "the
Company") (TSX: THNC), a leading cloud-based software platform that
enables entrepreneurs and established businesses of all sizes to
create, market, and sell online learning products, today announced
a reduction in workforce to better reflect the areas of focus and
growth at Thinkific. The Company also confirmed its Q1 2022
outlook.
"We have made the difficult decision to reduce our workforce. We
have grown from 270 at the end of Q1 2021 to 499 today and have
concluded, following a rigorous review of our organizational
structure, that with a reduction of 100 in our workforce, we could
increase efficiency and lower costs without impacting our growth
trajectory," said Mr. Greg Smith,
Co-Founder and CEO of Thinkific. "While it is the right decision
for the business, it was not one we made lightly. Everyone at
Thinkific has played a role in the success we've had to date, and
we are immensely grateful for their contributions. We are deeply
committed to taking care of the members of our team that are
leaving. This is a difficult day for the Thinkific team, but we are
resilient. I am confident in our future.
"Our product-led growth strategy remains unchanged," continued
Mr. Smith. "As evidenced by the affirmation of our Q1
outlook, our business performance is on track. We are
confident that the leaner team will support our fanatical focus on
the success of our Creators. Initiatives like broadening and
deepening our partnerships, delivering technologies and solutions
such as Thinkific Payments and Thinkific Communities, will further
support our Creators in the growing knowledge economy."
Earlier today, Thinkific Co-Founder and CEO Greg Smith sent this letter to Thinkific
employees.
Efficiencies will be realized in general and administrative,
customer support, a reduced management layer, as well as targeted
reductions in research and development and sales and
marketing.
"Drivers of growth in 2022 continue to be Paying Customers and
ARPU," stated Corinne Hua, CFO.
"ARPU growth is expected to be significant as a result of Creators
moving to higher-tier plans as well as Thinkific Payments.
Our top-line growth remains our key focus, with a path to
profitability a key component of our mid-term plan."
Thinkific will be reporting its first quarter 2022 results on
Thursday May 5, 2022. At this time it
will communicate its second quarter outlook and provide a general
business update, including further details on this
announcement.
About Thinkific
Thinkific (TSX:THNC) makes it simple
for entrepreneurs and established businesses of any size to scale
and generate revenue by teaching what they know. Our platform gives
businesses everything they need to build, market, and sell online
courses and other learning products, and to run their business
seamlessly under their own brand, on their own site. Thinkific's
50,000+ active creators earned hundreds of millions of dollars in
direct course sales while teaching tens of millions of students.
Thinkific is headquartered in Vancouver,
Canada, with a distributed and growing team.
For more information, please visit Thinkific.com.
Forward Looking Statements
This news release
includes forward-looking statements and forward–looking information
within the meaning of applicable securities laws ("forward-looking
statements"). Often, but not always, forward–looking information
can be identified by the use of words such as "plans", "is
expected", "expects", "scheduled", "intends", "contemplates",
"anticipates", "believes", "proposes" or variations (including
negative and grammatical variations) of such words and phrases, or
state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements in this news release include statements
regarding the Company's product-led growth strategy, restructuring
plans and objectives to drive growth and long-term value creation;
the potential for realizing efficiencies, lowering costs and
decreasing operating expenses as a percentage of revenues; ARPU
growth; Creators moving to higher tier plans; plans to broaden
tools and features; growth in our industry; the adoption of
Thinkific Payments, Thinkific Communities and their features for
the Company's customers. Such statements and information are based
on the current expectations of Thinkific's management, and are
based on assumptions and subject to risks and uncertainties.
Although Thinkific's management believes that the assumptions
underlying these statements and information are reasonable, they
may prove to be incorrect. Except as required by applicable
securities laws, forward–looking statements and information speak
only as of the date on which they are made and Thinkific undertakes
no obligation to publicly update or revise any forward–looking
statement or information, whether as a result of new information,
future events or otherwise.
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SOURCE Thinkific Labs Inc.