Janison Education Group Ltd. · ASX:JAN
Janison Education — FY2022 Earnings Presentation
23 slides from Janison Education's earnings presentation, Aug 22, 2022
Slide 1: FY22 Annual Results Investor Update
JAN.ASX FY22 Annual Results Investor Update. David Caspari CEO & Managing Director Stuart Halls CFO 22 August 2022
Slide 2: Contents
Contents. Overview FY22 Operational Results FY22 Financial Results New Product Launch Outlook & Horizon
Slide 3: FY22 Highlights
FY22 Highlights. Group revenue +20% vs. FY21 - New customer acquisition $36m 64% - Increased number of digital assessments +20% GROUP OPERATING REVENUE +9pps GROSS MARGIN - Growth in all 3 revenue drivers (+39% GROSS PROFIT) Gross profit +39%, gross profit margin +9 ppts on FY21 $25m $1.4m - Cumulat
Slide 4: Our business
Our business. Janison is a market leader in digital assessments Purpose-led Products by educators, for educators Janison's purpose is to unlock the potential in every Founded by educators and developed in partnership with learner. Our technology is built to be accessible on global education thought
Slide 5: Our business
Our business. ‘Janison Solutions’ ‘Janison Assessments’ Assessment Platform K-12 Assessment Products Enterprise & Government Schools & Parents Selected clients Selected brands IPP Countries NSP Schools K-12 Assessments, Progression Assessment platform technology Assessment Learning Platform Learning
Slide 6: Our growth
Our growth. Revenue Drivers Profit Drivers ‘Janison Solutions’ Platform Revenue Mix - Adding new major B2B enterprise clients − 3 Revenue drivers all generate gross margins greater than 70% - Expanding existing clients on the Janison Insights© assessment platform - Focus on key international markets
Slide 7: Business performance
Business performance. ‘Janison Solutions’ ‘Janison Assessments’ Assessment Platform K-12 Assessment Products Enterprise & Government Schools & Parents Assessment Revenue** Solutions Revenue* Revenue 23 24 22 18 16 12 11 7 0 FY 20 FY 21 FY 22 FY 20 FY 21 FY 22 As at 30 June ($m) FY22 FY21 FY22 Growth
Slide 8: Reported Revenue by Product & Brand
Reported Revenue by Product & Brand. "Janison Solutions" Revenue "Janison Assessments" Revenue ($m) ($m) 24 23 22 Janison Solutions - JEM 2 1 5 Janison Solutions - Learning 4 6 1 Janison Solutions - PISA IPP Countries 1 7 5 Janison Solutions - Services Revenue 12 4 0 Janison Assessments - Other 1 0
Slide 9: Cost of Sales, Opex, Capex
Cost of Sales, Opex, Capex. FY21/22 The “Investment” Phase FY22/23 “Future-proofing” Phase Throughout FY21 and FY22 we deployed capital into professionalising Sales FY22 marked the end of the process to merge legacy bespoke platforms into the core and Marketing, and increasing spend to boost custome
Slide 10: Operational Results
Operational Results.
Slide 11: FY22 Operational Momentum
FY22 Operational Momentum. Janison Solutions Platform • Delivery of NAPLAN 2022 – the largest event in Janison’s history Delivered • Expansion of all major existing accounts • Delivery of Chartered Accountants for the first time in FY22 • Platform enhancements and optimisation leading to material gr
Slide 12: NAPLAN – FY22 Record Event Delivery
NAPLAN – FY22 Record Event Delivery. 4.3m +48% YoY increase +45% YoY increase in students in volume of tests 3.0m (millions students) (million tests) 2.3m 1.2m 0.8m 0.7m 0.7m 0.2m 0.2m 0.1m 2017 2018 2019 2021 2022 2017 2018 2019 2021 2022 1.2m 4.3m 1bn 100% 315k+ NAPLAN Online NAPLAN Online tests S
Slide 13: FY22 New Wins & Products Launched – FY23 Benefit
FY22 New Wins & Products Launched – FY23 Benefit. ‘Janison Solutions’ Platform Signed • 2 new major logo wins – c.$1-2m new recurring platform revenue once fully implemented; ACECQA and Cambridge BoxHill English language testing • Strong pipeline of major assessment platform clients ‘Janison Assessm
Slide 14: New Parent SaaS Product Launched FY22
New Parent SaaS Product Launched FY22. RiSE+ (“Rise Plus”) • An online subscription platform with a vast array of K-12 assessment content • Built using the same Janison test player as NAPLAN and other well-known assessments • Provides parents and tutors the tools to help advance a child’s education
Slide 15: Financial Results
Financial Results.
Slide 16: ARR & Margin
ARR & Margin. +9ppts growth in Reported & Recurring Revenue Group Gross Margin GM% ARR Gross Profit $36m Reported Revenue Gross Profit Margin 64% $30m 55% $25m $23m $23m $23m 46% $22m 35% $17m $13m $13m $10m $8m FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 16 16
Slide 17: Income Statement
Income Statement. COMMENTARY $ % Revenue ($m) FY22 FY21 • Group revenue expanded through the following: Growt h Growt h • Business acquisition of AAS and QATs in Q2 FY22 Platform Revenue 24.9 22.2 +2.6 +12% generating $4.8m in revenue ($4.1m in Services from AAS and $0.7m in Platform from QATs) Serv
Slide 18: Income Statement by Business Unit
Income Statement by Business Unit. COMMENTARY ON BUSINESS UNITS “Janison Assessments” • “Janison Assessments” saw substantial revenue growth in FY22 as a result of the acquisition of AAS and QATs which Janison Assessment s Janison Solut ions produced $4.8m of combined revenue in-year ($6.5m pro form
Slide 19: Cash Flow
Cash Flow. COMMENTARY Customer Receipts • The timing of large annual licence fees from enterprise clients, and the revenue recognition of large development projects can for the 12 months ending June cause a variance between the amount of cash receipts recorded $ % each year and the amount of revenue
Slide 20: Outlook
Outlook.
Slide 21: FY23 Outlook
FY23 Outlook. $6 million reduced cost base in June 2022 The company reorganised its operating structure in June 2022 to align the existing business and recent acquisitions into two new business units – Janison Solutions and Assessments. Together with the completion of platform consolidation work in
Slide 22: Long Term Outlook
Long Term Outlook. At the end of FY20 Janison stated Janison’s strategic growth drivers to reach Janison Assessments $80-100m in revenue. Returning ICAS to 1 million assessments p.a. at a higher price point, its medium-term horizon goal of plus a suite of new teacher & parent assessment products. $8
Slide 23: Q&A
Q&A.
Janison Education Group — FY2022 Earnings Presentation on 6ix