Janison (ASX:JAN) share price up after strong FY21 financial scorecard

We break down the educational technology company's full-year results

| More on:
two kids in a classroom using an electronic device

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Janison Education Group Limited. The Motley Fool Australia has recommended Janison Education Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

Miner standing at quarry looking upset
Resources Shares

This ASX All Ords mining stock sinks 13% after a rocky quarter

Investors continue unloading shares in the precious metals company.

Read more »

A businessman carrying a briefcase looks at a square peg or block sinking into a round hole.
Earnings Results

Block shares are diving 7% despite significant profit growth in third quarter

Financial services company Block has released its 3Q FY24 report.

Read more »

Happy couple at Bank ATM machine.
Earnings Results

ANZ shares on watch after cash profit dives 9% to $6.7b

How did the big four bank perform during the 12 months compared to expectations?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

NAB shares tumble 3% after FY24 result disappoints investors

The market isn't liking the big four bank's result today.

Read more »

A man looking at his laptop and thinking.
Earnings Results

NAB share price on watch after FY24 profits sink to $7.1b

How did the big four bank perform during the year?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Earnings Results

Goodman shares fall on Q1 update

How did the company perform in the first quarter? Let's find out.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Earnings Results

Westpac shares on watch amid $6.99b profit and new buyback

Has the big four bank delivered the goods for investors this year? Let's find out.

Read more »

Woman inspecting packages.
Earnings Results

This top 50 ASX stock is diving 5% despite a strong outlook

Investors were looking for more.

Read more »