Despite a ‘no big deal’ attitude in the United State towards the coronavirus pandemic, educated Americans have been minimising the spread of COVID-19 with droves of students adapting to online learning where edutech provider Family Zone (ASX: FZO) has seen a 250% increase in revenue with 2,834 schools now on their distance learning platform.
From the 2,834 schools using the platform,1.5 million licenses have been purchased by students, educators and administrators which has resulted in $4.4m revenue for the three month period ending 30 September 2020.
Adoption, in particular, is increasing rapidly with 704 new schools joining the platform through the September quarter which came following an increase in sales and marketing resources in the United States as Family Zone focused on the region in response to COVID-19.
Making the US market particularly attractive is the structure of the education system where schools fall within geographical districts that enable Family Zone to contact entire districts rather than individual schools. On average, there are 5.6 schools located in each district.
Despite the strong performance through 2020, Family Zone is still only servicing 2.5% of school districts across 37 States where they will continue focusing marketing efforts for schools to trial the platform for their teachers and students before any contractual agreement is signed.
Of the 2,834 schools currently using the Family Zone online learning platform, 2,447 are under contract and 387 are undergoing trials.
In March 2020, Emerald Financial issued a Buy rating on Family Zone when FZO shares were trading at $0.095. *Please note past performance is not a reliable indicator of future performance.
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