Tech firm DFNN Inc., led by Raymond Garcia, experienced a 21 percent decline in its net income for the first quarter of 2023, despite higher revenues.
The company’s net profit fell to P56.1 million during the three-month period, compared to P71.3 million in the same period last year.
While DFNN achieved an 11 percent growth in revenues, amounting to P314.6 million, higher expenses overshadowed this positive performance.
The increase in commission income played a significant role in driving revenue growth, attributed to the company’s customized interactive technology platform.
During the first quarter, DFNN also saw a 239 percent surge in service fee income, reaching P43.6 million. This was primarily driven by revenue generated from the development and maintenance of software solutions.
However, the company’s consolidated costs and expenses expanded by 29 percent to P253.8 million, largely due to rising variable costs and expenses associated with DFNN’s ongoing development of its interactive technology platforms.
DFNN’s financial results reflect the delicate balance between revenue growth and expense management.
The company continues to navigate the evolving landscape of interactive technology platforms while working to optimize its cost structure.
As DFNN moves forward, it will be crucial for the company to implement effective strategies to control expenses and enhance profitability, ensuring a sustainable path for long-term success in the dynamic business environment.
