IT firm Xurpas experienced a deepening of its financial woes during the first quarter of 2023, with its net loss skyrocketing to P13.90 million from only P5 million in the same period a year ago.
This troubling trend can be attributed to a three percent decline in the company’s top line, which amounted to P46.31 million for the quarter. The decrease in revenues can be primarily attributed to the underperformance of Xurpas’ mobile consumer services.
Majority of Xurpas’ revenues during this period were derived from its enterprise services division, which contributed P32.83 million or 71 percent of the total. On the other hand, revenue from other services and mobile consumer services amounted to P12.08 million and P1.40 million, respectively.
Xurpas had anticipated a decline in revenues from its mobile consumer services, as the company had strategically shifted its focus towards expanding its enterprise services.
The company’s general and administrative expenses jumped 40 percent to ₱P23.84 million, owing to additional management and manpower costs, as well as increased investment in sales and marketing initiatives.
Xurpas also incurred losses from associate companies it had invested in, amounting to P3.71 million.