Tech: Family Zone drives strong US sales, expects COVID-19 benefit from increased home-schooling
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Stock markets are in meltdown, but web-safety platform Family Zone Cyber (ASX:FZO) bucked the trend in morning trade.
The company said it’s now bringing in annual recurring revenues of more than $2m from its US operations.
Investors appeared to be impressed with some other strong metrics around the sales figure, which was achieved within 12 months and a four-person sales team.
Shares rocketed over 35 per cent in morning trade.
Family Zone also highlighted an 85 per cent sales conversion rate as it builds a strong reputation in the US education market.
It also said US school districts typically agreed to multi-year service agreements with cash paid up front.
“These arrangements now account for over 35 per cent of deals won and are expected to build over time to greater than 50 per cent,” Family Zone said.
Family Zone’s cyber safety platform provides blocking and control services around online content, including managed screen time, social media restrictions and measures aimed to restrict cyber bullying.
It serves a customer base comprising individual families and schools, and also provides interactive software such as Classwize to help drive student engagement.
The company added that it’s well-positioned to benefit from pending changes stemming from the coronavirus pandemic, where school districts will be required to explore home-schooling solutions.
Family Zone said its Classwize platform was “perfectly suited for future-classrooms where teachers can seamlessly manage large, mobile and virtual classes”.
“We expect recent events will establish remote learning capability as a prerequisite for school districts and consequently will offer Family Zone a compelling market advantage.”