Turnover at kids audio platform Yoto, which is backed by Mark Zuckerberg and his wife, almost doubled during its latest financial year as its pre-tax loss was cut, it has been revealed.
The business, which is the creator of the Yoto Player and Yoto Mini for children, has posted a turnover of £50.9m for 2023, up from £27.6m.
Newly-filed accounts with Companies House also show that its pre-tax loss fell from £5m to £3.4m over the same period.
Yoto’s sales in North America surged from £17.7m to £36m and from £9.9m to £14.9m in the rest of the world. Its headcount also grew from 85 to 98.
The results come after the company secured an extra £1m in a round led by Mark Zuckerberg and his wife’s investment fund.
The Chan Zuckerberg Initiative was joined in backing Yoto by DNS Capital as well as its existing backers Acton Capital and Burda Principal Investments.
Zuckerberg-backed Yoto ‘strengthened for the long term’
A statement signed off by the board said: “The group has been growing and expanding its business throughout the year, with a strong emphasis on customer service and innovation.
“Even with the difficult economic situation, the group has performed well financially.
“We are very proud to report FY2023 was a year where positive adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] was generated.
“This was an improvement from £3.8m adjusted EBITDA loss last year.
“This demonstrates our commitment to long-term sustainable growth and strengthens the business for the long term.”
Yoto added: “Despite the ongoing economic uncertainties, the group remains confident in its ability to navigate any challenges that may arise, due to its strong business model, product-led strategy and customer loyalty.
“We are pleased to report that Yoto has exceeded our expectations and performed ahead of our directors’ projections in FY23.
“We remain confident that Yoto will continue to perform well in the future, continuing to provide the soundtrack of childhood and help families on their own unique adventures.”
Yoto was founded in 2017 by Ben Drury and Filip Denker and is based in London.