Voice-to-text business SpinVox is cost cutting to become profitable by the end of the year. SpinVox is offering staff shares in the company instead of salary payouts in July and August and claimed over 50 per cent of its staff have agreed to the option. It said employees own a 40 per cent stake in the company.
SpinVox has also cut 60 per cent of its staff in its North American office due to “underperformance” at the beginning of July. The company has been unprofitable since launch in 2003. “Everyone is finding it difficult right now,” said founder and chief Christina Domecq (pictured).
“We are stretching supply payment time from 40 days to 90 days because the networks have had to stretch theirs as well. It’s a knock-on effect. As for offering shares instead of salaries, it’s not the first time we’ve offered this, and it’s not the last time it will be offered.”
Domecq said: “We aim to be profitable by the fourth quarter of the year with revenue of £60 million.”
In its last filed accounts, for 2007, SpinVox reported a loss of £27.47 million, from £9.23 million in 2006. Domecq said SpinVox will report a five-fold increase in revenue for 2008 (to £10 million) and another five-fold increase for this year (to £50 million).
SpinVox has 70 million active customers, up from 30 million in 2008. It aims to bring another 10 million on board through its Latin America Telefónica roll out. Said Domecq: “Everyone is in the storm and is experiencing difficulties, but we’re crossing the profitability line right now. There are always funds available if we need them; we’re not experiencing shortages.”
She denied its technology platform was being heavily supplemented with manpower, by staff manually transcribing voicemail.