Why the Family Zone (ASX:FZO) share price will be on watch this morning

The Family Zone Cyber Safety Ltd (ASX: FZO) share price will be on watch following the release of its quarterly performance update.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published April 9, 2021 9:36 am AEST

The Family Zone Cyber Safety Ltd (ASX: FZO) share price will be on watch when the ASX opens. This comes after the company released its quarterly performance update.

At yesterday's market wrap, the cyber safety company's shares finished the day at 46.5 cents.

Mother and son sit on couch with son holding a tablet device. — Image source: Getty Images

How did Family Zone perform?

Family Zone shares could be on the move today after the company reported a positive set of numbers.

For the period ending at the end of March, Family Zone recorded 3,135 contracted schools, a 135% growth year-on-year. This represents an addition of 387 new contracted schools over the prior quarter.

Complimenting the result, student licences increased to a total of 1.65 million contracted students, surging 137% year-on-year. Over 210,000 student licences were added when compared against Q2 FY21.

Total value of contracts signed also rocketed to $3.6 million in the quarter, achieving a 97% year-on-year improvement. Of those contracts, the annual value represented more than $1.8 million for the company, a 92% year-on-year lift. The company noted that it encouragingly sees average licences and sales conversion rates continuing to soar.

At the end of the March quarter, approximately 2 million students and 3,627 schools were on the Family Zone platform. This equates to more than 3.5% of the United States school districts being serviced by the company.

Family Zone managing director, Tim Levy commented:

The Company has spent the past two quarters successfully building out engineering and sales capacity to prepare for the peak mid-year sales period in the US. We're very pleased with the March quarter and with more than 1 million students licenses in our pipeline we look forward to exceptional quarters ahead.

Family Zone share price review

The Family Zone share price has gained close to 200% in the past 12 months, but its relatively flat year-to-date. The company's shares reached a 52-week high of 63.5 cents in August 2020.

On valuation grounds, Family Zone commands a market capitalisation of roughly $179.7 million, with around 386.5 million shares on issue.

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