Business Highlights for Fiscal 2023
- 2023 audited revenue increased 27% to
$23.1 million from$18.2 million in 2022. - Pro forma 2023 revenue increased 150% to
$70.4 million from$28.1 million in 2022, including revenue from the FatBrain AI transaction. - Students and users increased 24% to 5.5 million from 4.4 million in 2022.
- Gross profit increased to
$11.9 million or 52% of revenue compared to$8.6 million , or 47% of revenue in 2022. - Net loss after tax reduced 90% to
($5.7) million compared to($56.0) million in 2022. On a pro forma basis, net loss after tax reduced further to($0.8) million . - Reiterates previously issued 2024 pro forma revenue guidance of at least
$105 million for the full year, a 50% increase compared to 2023’s pro forma revenue of$70.4 million
“2024 is already proving to be a truly transformative year for
“We are launching our Genius City Model, beginning with
Audited Financial Results
The audited financial results are for the seven companies within
- During the year ended
December 31, 2023 , overall revenue totaled$23.1 million , or an increase of 27%, compared to$18.2 million in the previous year. This was driven by an increase in Education Revenue of 37% from$13.6 million to$18.6 million and decrease in campus revenue by 4% from$4.6 million in 2022 to$4.5 million in 2023 as a result of the ERL spin off. - Gross profit increased to
$11.9 million or 52% of revenue compared to$8.6 million , or 47% or revenue in 2022. - Operating expenses decreased to
$48.3 million in 2023 compared to$51.1 million in 2022. The decrease in our operating expenses is the result of lower impairments offset by continued investment in our business. - Net loss for 2023 was
($5.7) million compared to a net loss of($56.0) million in 2022. Earnings per diluted share were$(0.10) in 2023 compared to$(2.47) in 2022. - Cash and equivalents on
December 31, 2023 were$1.3 million . Total assets atDecember 31, 2023 were$43.2 million .
Pro Forma Financial Results
The Pro Forma Financial Results should be viewed as the current group’s financial performance, of which the audited financial results represent a subset of this group – the group prior to the 2024 FatBrain AI transaction. The historical results do not necessarily indicate our expected results for any future periods.
- During the year ended
December 31, 2023 , overall pro forma revenue totaled$70.4 million , compared to$28.1 million in 2022. - Pro forma gross profit was
$17.0 million or 24% of revenue. - Pro forma net loss after tax was
($0.8) million . - Pro forma total assets was
$97.9 million .
Strategic and Operational Highlights
- Welcomed leading education entrepreneurs to our investor base, including
Michael Moe (Founder and CEO ofGSV Ventures ),Brent Richardson (Past CEO and Chairman of Grand Canyon Education), DrAli Saeed Bin Harmal Aldhaheri (Founder and Chairman ofAbu Dhabi University ). - Added new Board Members and Executive Team, including
Salim Ismail (Founder, OpenExO),Eric Pulier (Founder, Vatom), new Chairman,Michael Moe , and new CFO,Adrian Reese . - Completed transaction with FatBrain AI and signed agreement with OpenExo, building AI product suite
- Launched Genius City model with first cities
Singapore ,Dubai andAbu Dhabi - Launched AI educator suite of AI Genie and AI Avatars
- Launched full AI-driven partner portal for education and community partners
- Moved from campus to digital revenue with spin off of ERL and closure of UAV
- Restructured financing with full repayment of
$18.3 million convertible note eighteen months ahead of schedule.
Financial Guidance
Profit & Loss Performance
Pro forma | Audited Financials | |||||||||||
Year Ended | Year Ended | |||||||||||
2023 | 2023 | 2022 | ||||||||||
(USD 000’s) | (USD 000’s) | (USD 000’s) | ||||||||||
Revenue | 70,371 | 23,063 | 18,194 | |||||||||
Cost of revenue | (53,325 | ) | (11,127 | ) | (9,555 | ) | ||||||
Gross profit | 17,046 | 11,936 | 8,639 | |||||||||
Other Operating Income | 346 | 344 | 144 | |||||||||
Operating Expenses | (47,753 | ) | (48,347 | ) | (51,121 | ) | ||||||
Operating Loss | (30,361 | ) | (36,067 | ) | (42,338 | ) | ||||||
Other income | 32,965 | 32,981 | 418 | |||||||||
Other Expense | (4,070 | ) | (3,704 | ) | (15,151 | ) | ||||||
Net Loss Before Tax | (1,466 | ) | (6,790 | ) | (57,070 | ) | ||||||
Tax Benefits | 644 | 1,079 | 1,063 | |||||||||
Net Loss | (822 | ) | (5,711 | ) | (56,007 | ) | ||||||
Other Comprehensive Income | (204 | ) | (204 | ) | (290 | ) | ||||||
Total Comprehensive Loss | (1,026 | ) | (5,915 | ) | (56,297 | ) | ||||||
Net income per share, basic and diluted | (0.01 | ) | (0.10 | ) | (2.47 | ) | ||||||
Weighted-average number of shares outstanding, basic and diluted | 55,501,971 | 55,501,971 | 22,634,366 |
About
Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described in our most recent Annual Report on Form 20-F for the fiscal year ended
Forward-Looking Statements
Statements made in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue,” or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading “Risk Factors” in the Company's Annual Reports on Form 20-F, as may be supplemented or amended by the Company's Reports of a Foreign Private Issuer on Form 6-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
Investor Relations Contact:
Managing Director
(561) 489-5315
GNS@mzgroup.us
www.mzgroup.us
Source:
2024 GlobeNewswire, Inc., source