E-learning company Edufocal right-sizes

 

Gordon Swaby, CEO for Edufocal Limited reports that 2024 was a year of significant challenges, as the company continued to navigate a difficult operating environment characterized by declines in revenue and profitability.

Listed in 2022, the company offers e-learning services. EduFocal since listing has incorporated new subsidiaries — EduFocal Africa Inc in the USA and Edufocal Nigeria Limited — and also formed a strategic partnership with Design Privacy Limited to deliver data protection e-learning content.

The company in 2024 focused on restructuring operations, diversifying revenue streams, and also “building a more resilient business model for sustainable growth.”

With persisting cash flow challenges, the company is considering tapping a new equity offer as a possible solution.

Revenue for the year 2024 was J$97.17 million, down significantly from J$263.54 million in 2023. This 63 per cent decrease was primarily due to the shift towards “a more predictable and resilient revenue model, which has temporarily impacted our topline performance,” management stated.

For the year ended, the company made a loss of $57,621,679 compared to losses of $78,008,919 in 2023.

The company sought to control administrative expenses by renegotiating vendor contracts and optimizing staffing.

While some cost savings were achieved, these were partly offset by investments in technology, which are described as essential for future growth and expansion.

Swaby said, “The company’s EBITDA remained negative in 2024, reflecting the continued challenges with declining revenue. However, adjusted EBITDA showed improvement thanks to the cost optimization measures that were implemented.

“ Net profit for the year was a loss of J$57.96 million, though this was an improvement from the loss of J$79.48 million in 2023.”

In March 2022 EduFocal raised $116.45 million in new equity capital and converted $13.24 million in debt to ordinary shares during its IPO, which was priced at $1 per share. A total of $428.42 million in applications went after the IPO.

Revenue diversification to reduce persistent losses include expansion of EduFocal’s "Quizzitive" platform, which, along with strategic partnerships and market expansion initiatives, is expected to generate incremental revenue growth.

The CEO outlined, “We are also exploring the use of data analytics to better understand user behavior and refine our offerings, maximizing customer lifetime value.”

The company, he stated, has been looking at refinancing existing debt and exploring equity financing options, aiming for “ a stronger capital structure (which) will provide flexibility for growth and help navigate potential market uncertainties.”

Swaby noted, “One of the key strategies implemented in 2024 was the diversification of our revenue base. Recognizing the limitations of our traditional revenue streams, we focused on expanding into new markets and exploring partnerships that could provide recurring income.

“Though the impact of these initiatives on the full year’s revenue was limited, the early-stage results have been promising. Management is optimistic that these efforts will lead to a more stable and predictable revenue model in the future.”

EduFocal, meanwhile, has begun monetizing its proprietary technology platforms, exploring licensing agreements with the aim of unlocking new revenue channels. Administrative changes in the year ended included staff cuts.



Photograph: Co-Founder and CEO of EduFocal, Gordon Swaby and wife Kemesha Swaby (right). JIS

Caribbean Money Daily

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