ASX edtech stocks are continuing to gain traction, even as education returns to normal
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A year on from COVID-19, ASX edtech stocks continued to gain.
After decades of little to no innovation in the education sector, many edtech companies saw demand for their services explode overnight.
Most ASX edtech stocks have capitalised – the average stock is up 49 per cent in 12 months.
But even with a return to physical classrooms, companies are continuing to announce deals that will see their products or services reach more schools.
The best performing ASX edtech stock is online assessment and training software provider Janison Education Group (ASX:JAN) which is up over 170 per cent in 12 months.
The past few weeks have been particularly positive for the company. Last month it was accredited by the OECD as sole provider in Australia of the PISA for schools assessment.
Today it gave an update on this deal, noting over 200 schools had now signed up to its services. At an average cost of $7,000 per school, Janison is expecting $1.4 million in revenue per annum from this deal.
But Australia is just one of 10 markets the company has and CEO David Caspari is eyeing off more in the next few years – over 80 to be exact.
Another solidly performing ASX edtech stock is 3P Learning (ASX:3PL) which also runs educational software – most notably Mathletics and Spellodrome.
Having been a takeover target last year, 3P has been the suitor this week. It announced on Monday was buying fellow online education company Blake for $185 million.
Blake began in 2009 with the reading software Reading Eggs and has continued to sell educational software since then as well as physical textbooks. It services 320,000 student subscribers and made $40.4 million in revenue in 2020.
While the deal is subject to shareholder approval, chairman Sam Weiss says the deal “should propel 3PL’s current growth trajectory and broaden its customer reach”.
The edtech reach is even expanding beyond companies you may not have considered as edtechs.
While Booktopia (ASX:BKG) is best known as an ecommerce stock, it sells academic and corporate books.
This week it has reported selling 30 per cent more than the entire FY20.
Booktopia also announced a partnership with global edtech Zookal whereby Booktopia would source, supply and distribute all of Zookal’s book orders.
The agreement, which will star on May 1, will cover approximately $22 million in annual sales and 185,000 titles.