The Family Zone Cyber Safety Ltd (ASX: FZO) share price has failed to rally today after the cyber safety platform provider released a record quarterly update.
The Family Zone share price is up 205.88% in the last year, while the S&P/ASX 200 Index (ASX: XJO) is down 2.73% over the same period of time.
What's affecting the Family Zone share price?
In today's update, Family Zone indicated more than 100% growth year on year (YoY) across all key metrics for the December quarter. These highlights include:
Contracted new schools: 425 (143% YoY growth)
Contracted new student licenses: 233,000 (164% YoY growth)
The company also managed to sign contracts with a total value of $4.1 million during the quarter (103% YoY), while simultaneously collecting $2.5 million from customers (101% YoY).
Family Zone now has more than 1.5 million contracted students and 1.67 million on the platform. This comes after the student-focused, cybersecurity operator entered into the US market more than 2 years ago.
Since then, Family Zone has been making a concerted effort to establish a foothold in the expansion market, comprising of 57 million students. Subsequently, the company reported it is now servicing more than 3% of US school districts.
At the end of the December quarter, Family Zone reported a 324% growth in its school trials pipeline. Additionally, the company grew the number of schools on its platform to 3,133 (153% YoY). The contracted number of schools now using Family Zone's services stands at 2,862 (145% YoY).
These results reportedly exceeded all internal expectations and targets for all regions. The company expects to update the market on its annual recurring revenue growth in the upcoming quarterly activities update.
A quick Family Zone recap
Family Zone is a leading cybersecurity solution at home, on the go, and at school. In the company's words, "Family Zone lets kids be kids – and empowers parents to be parents". Its solution provides tools for managing screen time, blocking adult content, limiting social media, managing in-app purchases, etc.
As Netflix documentaries, such as The Social Dilemma, bring the public's attention to the mental health impacts of unfettered social media use among children and teens, cyber safety is becoming a more prominent concern.
In short, Family Zone wants to be the primary solution provider to this sizeable, $64 billion, market opportunity.
At the time of writing, the Family Zone (ASX: FZO) share price is down 2.55% at 50 cents per share.
