COVID-19 school closures help boost Family Zone’s US education business

Family Zone Cyber Safety US sales COVID-19 ASX FZO
Family Zone has added 620 schools and 308,000 students to its platform in the March quarter of 2020.

In the midst of school closures and the rise of home-based learning due to COVID-19, technology company Family Zone Cyber Safety (ASX: FZO) has posted significant growth to its US education business for the March quarter.

The company added 620 schools and 308,000 students to its learning platform since the previous quarter, to end the period with 1,858 active schools and 1,333 contracted.

The total included 304 Proof of Concept schools – accounting for 190,000 students and close to $1 million of recurring revenue – and 151 trials of the new Classwize remote learning tool.

Family Zone also recorded 958,000 students by end March, of which 696,000 had usage licences.

The total school and student numbers reflect an 83% and 70% year-on-year growth, respectively.

Premium parental control accounts grew strongly during the quarter, to reach 210,000 at end March representing a 120% year-on-year increase.

Record values

Family Zone also achieved record levels of contract value for the period, with $1.85 million worth of paperwork signed representing an annual value of $930,000.

“With continued record student licencing, [we have] achieved new records in the total value and annual value of contracts signed in the quarter,” the company said.

“With a large pipeline, increased activity due to COVID-19 remote learning, our US business coming into its seasonally-strongest quarter, and 304 schools in proof of concept stage, [we expect] even stronger results in the June period.”

Family Zone also initiated a strategic review of Asian telco channel Telkomsel in the quarter to capture regional education opportunities arising from COVID-19.

Stimulus package

Last month, US congress passed a $3.25 trillion coronavirus stimulus package which includes $21.96 billion for school technology to support online learning.

The funding will be distributed to school districts to provide internet connectivity and internet-connected devices for students from kindergarten to Year 12.

At the time of the announcement, Family Zone said the package represented a “massive injection of funding” into areas key to the growth of its US business.

At mid-morning, shares in Family Zone were steady at $0.14.

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