Knowledge and education is a huge, booming industry – see ASX listed company IDP EDUCATION LIMITED (IEL) with a current market cap of ~4.5 billion AUD.
Software as a service (SaaS) is also very popular at the moment, due to an inherently high ability to scale with minimal additional cost.
What happens when you combine the two? I don’t know, but I’m willing to be it’s a higher market cap than the company is currently being assigned.
Australian education is highly prized – so what happens when you open this market up to a larger audience? Especially in this day and age where modern technology effectively means no difference learning from home compared to in person. And people don’t just go to university once and get a career – it’s a lifelong learning experience with people continually refreshing their studies.
Furthermore, according to the recent investor webinar (a recording of which is available online), the company is also looking at learning analytics; using artificial intelligence to improve the facilitation process, and the efficiency of the assessment process etc.
They also say they have built out the company for a number of years now, and it’s ready for scale without needing much additional investment at all. Possible inflection point at the end of calendar year 2020 where they anticipate being cashflow break-even.
The quality of the courses themselves on OpenLearning are superior to any other competitor alternative. This becomes self-evident after students take a course, due to the higher quality of the partnerships with the institutions involved (Tier 1 Aussie universities, governments etc.).
In conclusion, to paraphrase the company:
“A commanding position as the number one provider to institutions [including government and universities] in what is one of the world’s top education markets”
Not bad for a microcap stock.
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