Family Zone posts biggest ever sales for June quarter

Family Zone Cyber Safety ASX FZO sales June 2020 Covid-19
Family Zone added 598 schools and 358,000 students to the Family Zone platform.

Family Zone Cyber Safety (ASX: FZO) has posted its biggest ever sales quarter for June, adding 482 US schools and 214,000 students to its subscription-based platform of a total 598 schools and 358,000 students.

The June quarter is seasonally the biggest sales quarter in US education, which is now the Family Zone’s biggest contributor to top line revenue.

The sector helped the company secure a 500% year-on-year growth for contracts signed for the quarter, recording an annual value of $2.03 million compared to $930,000 in March.

Total contract values jumped 200% year-on-year, posted at $3.63 million for the quarter compared to $1.85 million in March.

At the end of the quarter, Family Zone had 2456 schools live of which 1815 are contracted, with a record 641 schools signing up for a 30-day trial.

The trial allows schools to maintain visibility and control of student online activity including placing limits on screen time, blocking adult content, controlling social media access and controlling access to specific apps.

Wholesale suspension

In March, Family Zone announced it would suspend its Asian wholesale channel with Telkomsel Indonesia due to concerns around the potential impact of COVID-19 on its developing world telco partners and the immediate growth opportunities in education.

Telkomsel is one of the world’s largest mobile operators, providing services for more than 16 million children with smartphones.

“With the enormous opportunities being presented in education, in the US in particular, [we] feel the education and school communities segments are a more productive and appropriate focus for short term investment,” Family Zone said at the time.

Despite the suspension however, its direct premium consumer account numbers continued to grow during the quarter to more than 16,000.

Its freemium service Insights also recently passed 70,000 accounts.

Family Zone said it would reconsider the wholesale channel in 2021.

With increased activity driven by COVID-19 and a plan to launch consumer offerings into the US market, the company said it expects continued strong growth in the upcoming September quarter.

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