Genius Group(US:GNS)2023-06-09 16:17Financial Data and Key Metrics Changes - The audited revenue increased from $8.3 million in 2021 to $18.2 million in 2022, representing a 118% year-over-year growth, significantly higher than the education industry growth rate of 4.3% and the ed-tech industry growth rate of 16.3% [37][56] - The gross profit margin increased from 33% in 2021 to 47% in 2022, attributed to higher gross margin acquisitions and cost synergies from those acquisitions [62] - The group had a net loss after tax of $55.3 million in 2022, compared to a loss of $4.5 million in 2021 [76] Business Line Data and Key Metrics Changes - GeniusU's total number of students grew from 2.7 million in 2021 to 3.1 million in 2022, a 70% increase year-on-year, with 444,290 new students and 5,755 new paying students [5][22] - The number of paying students increased by 137% in 2022 to 171,919, reflecting the integration of acquisitions and the introduction of the freemium model [22][37] - The number of partners in GeniusU grew from 10,200 in 2021 to 13,000 in 2022, representing a 27% growth year-on-year [7] Market Data and Key Metrics Changes - The pro forma numbers for the group, including acquisitions, reflected a 58% growth in total students and users in 2022 compared to 2021 [22] - The group pro forma non-current assets grew from $11.1 million in 2021 to $67 million in 2022, mainly due to the five acquisitions [67] Company Strategy and Development Direction - The company plans to leverage AI technology to enhance personalized learning experiences, integrating AI capabilities into its curriculum and launching the Genie AI virtual system [15][31] - The M&A strategy has shifted to focus on acquiring larger companies with revenues between $50 million and $100 million, aiming for more effective growth and efficiency [33][84] - The company is also developing a Metaversity to combine gamified learning and augmented reality within a virtual environment [54][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2023, focusing on managing costs and achieving positive EBITDA while integrating acquisitions [70] - The company anticipates that the current economic environment will attract new students and facilitate growth, as education remains a defensive sector during economic slowdowns [56][57] Other Important Information - The company completed five acquisitions in 2022, integrating their offerings into GeniusU to enhance educational pathways [4][11] - A share buyback and consolidation were approved by shareholders, with implementation contingent on increasing shareholder value [13] Q&A Session Summary Question: Why the shift to larger acquisitions? - The company believes that making fewer but larger acquisitions will be more effective and allow for faster and more efficient growth, as each acquisition requires similar time and resources [83][84] Question: What opportunities does the company see in AI for education? - The company sees AI as a powerful tool for personalized learning, leveraging existing platforms while also developing its own AI capabilities to enhance user experience [86][89]