The Janison Education Group Ltd (ASX: JAN) share price edged higher in trading today. This comes after the educational technology company released its full-year results for the 2021 financial year.
At the final bell today, Janison shares were up 0.6% to 84.5 cents.
Janison share price climbs after revenue growth of 38%
The Janison share price finished the day in positive territory after the company delivered its FY21 results for the 12 months ending 30 June 2021. Here are some of the highlights:
- Total group revenue of $30.2 million, up 38% on the prior corresponding period (FY20 $21.9 million);
- Gross margin of 55%, up 9 percentage points (FY20 46%);
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $3 million, up 21% (FY20 $2.5 million);
- Net loss after tax (NPAT) of $3.2 million, down 49% (FY20 $2.2 million);
- $23 million cash on hand with no debt
What happened to Janison in FY21?
Janison said FY21 has proven to be a successful year operationally, with group revenue expanded through its three main drivers. This includes the PISA for Schools rollout (available in 15 countries, up from 7 in FY20), ICAS growth of $6 million in new revenue, as well as capturing acquisition and expansion opportunities.
The Programme for International Student Assessment (PISA) is an online platform that measures a 15-year-old's ability in mathematics, science, and reading.
Annual recurring revenue (ARR) surged by 117% to $18.3 million, weighted heavily towards new clients and products.
In addition, the sales mix continued to improve as customers opted for the company's standardised assessment platform. In turn, this led to Janison achieving a more efficient business with higher gross profit margins.
The company also said it is continuing to invest in its core assessment platform to maintain its market-leading position.
What this means for the Janison share price going forward remains to be seen.
What's next for Janison in FY22?
Looking ahead, Janison expects sales momentum and revenue growth to run into FY22. It sees education, and assessments, continuing to be digitised post-COVID-19, further expanding the company's footprint.
The global education technology market is currently worth approximately US$268 billion, and is forecast to rapidly increase.
Janison noted school lockdowns have the potential to delay revenue but also present opportunities, such as its remote exams.
The company however did not provide a sales or profit guidance for FY22.
