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Janison Education Group Limited, strong ARR growth

Team Veye | 28 Jan 2021 ASX - JAN
Janison Education Group Limited, strong ARR growth

Janison Education Group Limited (ASX: JAN)

Janison First-Half FY21 Results Exceed Expectations

Janison Education Group Limited (ASX: JAN) (“Janison” or the “Company”), on 27 January 2021 released its preliminary, unaudited financial results for the six months ending 31 December 2020 for the financial year FY21 (“1H21”) and a business trading update.

(Chart source: TradingView)

1H21 Highlights

  • +79% growth in Group Revenue vs pcp1 (excluding COVID impact on JEM business)
  • +40% growth in Group Reported Revenue vs. pcp
  • +88% growth in total Platform Revenue vs. pcp
  • +143% growth in core business revenue - Assessments Platform and Products
  • +78% growth in Assessment ARR at 31 December 2020 vs. pcp
  • +8.3 percentage-point increase in Gross Margin, to 54%
  • +118% growth in EBITDA, up +$1.5m on pcp to $2.7m for the first-half FY21
  • $10m cash on hand as at 31 December 2020
  • ICAS Assessments successfully integrated and generating $4.8m 1H21 revenue

(Graphic Source – Company Reports)

On 21 December 2020, Janison Education Group Limited announced that its technology had been selected by Chartered Accountants Australia and New Zealand to deliver high-stakes examinations online for all five core modules of its Chartered Accountants Program.

The $5M five-year partnership will leverage key features of the Janison Insights online assessment platform and Janison Remote online proctoring technology

Janison will deliver approximately 25,000 high-stakes examinations digitally in 10+ countries annually from early 2021, directly to the candidates, with the support of remote invigilation. (Data Source – Company Reports)

 

Veye’s Take

Janison’s primary revenue source and largest opportunity for growth is the licence of its Software-as-a-Service (SaaS) digital Assessment Platforms and Products to education bodies, globally. As Janison’s revenue from SaaS platforms and products increases, its Gross Margin profitability is also expected to increase. In 1H21 the Company increased its Gross Margin percentage through a number of targeted cost efficiency programs which aided in lowering Cost of Sales. The stock has remained on an upside move for a long, with Doji formations in between, pointing some uncertainty for the trend direction. The immediate bullish candles have cancelled such uncertainties and maintained the uptrend. RSI together with price charts indicates that it can have the potential of growing well in the near to medium term. “Buy” was given to “Janison Education Group Limited” at the price of $0.41 on 12 August 2020. It has already grown by more than 53% in less than six months. Veye maintains a "Hold" on “Janison Education Group Limited” at the current price of $0.63

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