The 76% online migration really is the hidden story here. I worked with an ed-tech accelerator back in 2021 and saw similar dynamics - once you cross 70% online, unit economics just flip completley. The deferred revenue jump ($3.5M to $17.7M) tells you students are locked in for multi-year programs. If Adam Davis is buying 4M shares at these levels while sitting on $22M cash, that says alot about pipeline confidence.
Exactly! I am very bullish on this one. I think it is just it's a very boring stock and obviously a tiny small cap, so will take time to rerate. Will just quietly rerate...
Hi, also a holder here. I wanna ask, did you take any look at Aussie childcare companies? Like Nido, Embark or G8. Stocks are absolute falling knives, but companies are fundamentaly doing pretty well. I´m talking to people now to get an opinion on which one could be best for investment and if there are any other players.
Hey! Haven't had a chance to look into those yet, but will do soon. I see indeed trading very cheap.
I guess the main concern would be the falling Aussie birth rates, right?
Also not overly high operating leverage possible, in the sense that you will always have to have 1 supervisor to X children, rather than the online emerging scalability of many higher education providers; and thus lack of having to own/lease facilities.
The 76% online migration really is the hidden story here. I worked with an ed-tech accelerator back in 2021 and saw similar dynamics - once you cross 70% online, unit economics just flip completley. The deferred revenue jump ($3.5M to $17.7M) tells you students are locked in for multi-year programs. If Adam Davis is buying 4M shares at these levels while sitting on $22M cash, that says alot about pipeline confidence.
Exactly! I am very bullish on this one. I think it is just it's a very boring stock and obviously a tiny small cap, so will take time to rerate. Will just quietly rerate...
Hi, also a holder here. I wanna ask, did you take any look at Aussie childcare companies? Like Nido, Embark or G8. Stocks are absolute falling knives, but companies are fundamentaly doing pretty well. I´m talking to people now to get an opinion on which one could be best for investment and if there are any other players.
Hey! Haven't had a chance to look into those yet, but will do soon. I see indeed trading very cheap.
I guess the main concern would be the falling Aussie birth rates, right?
Also not overly high operating leverage possible, in the sense that you will always have to have 1 supervisor to X children, rather than the online emerging scalability of many higher education providers; and thus lack of having to own/lease facilities.
Yeah, I looked at it more and thought those companies are cheaper then they really are. Will stick to EDU.
👍 Always good to have a look at other stocks though! Always something interesting to learn.