Why is FZO zooming higher?

In the last one month, the shares of Family Zone Cyber Safety Limited (ASX: FZO) stock has given a decent return of 72%. Since 12 June 2019, the shares of FZO has maintained an upward momentum. The price of the FZO shares which was at A$0.115 on 12 June 2019 gradually reached A$0.215 on 9 July 2019. The stock of the company was trading at A$0.235 (as on 10 July 2019, AEST 3:03 PM).

Let’s know about the company and look at the updates:

About the company:

Family Zone Cyber Safety Limited (ASX: FZO) is an ASX listed company which focuses on cyber safety. In order to meet the growing demand as well as keep kids safe online and at the same time manage digital lifestyles, the company has developed a unique and innovative cloud-based solution which brings together the Australian innovation with leading global technology

Update/s:

On 9 July 2019, the company provided an update to the market on the business development achievements in the June 2019 quarter.

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The company reported a 173% growth in the value of contract sold to schools. In the three months, there is an increase in the USA school footprint by 175%. At present, the company provides support to 839 contracted schools and 482,000 licensed students. The company at present provides services to 402 schools in the USA.

The company would soon exceed 500,000 students, and by the end of the financial year 2020, the company believes that student licenses might surpass 1 million worldwide. Most of the growth of the company is expected from the US market. In Australia and New Zealand, the quarter remained solid for the company as it focused on building a sales pipeline for the crucial end of year sales period. In these regions, the company noted that there was a delay in the renewals. As a result, there was a slight fall in the company’s school footprint. However, the company anticipates solid growth in the second half of the CY2019, aided by the roll-out of SpotShield.

SpotShield helps the Schools to manage the huge challenge of hotspotting. It also provides the schools with the ability to enforce duty-of-care and to run effective cyber safety programs to support parents.

The company reported a solid acquisition of paying subscribers via Telkomsel’s trials. Recently, the number of paying subscribers have exceeded 71,000. It means there is a growth of 139% in the period of last 3 months.

Telkomsel Indonesia is one of the largest mobile operators in the world, which is owned 35% by Singtel and has more than 194 million subscribers.

On 13 June 2019, the company provided an update regarding the exciting progress in its wholesale business before the launch of Family Zone Insights. Some of the highlights include- the company had passed through 134,000 paying accounts after the rise in sign-ups within Telkomsel trials. FZO’s accomplishments were signaling towards favorable outcome for the launch of Family Zone Insights by FZO’s direct and wholesale channels.

Family Zone Insights:

The company launched Insights in the June 2019 quarter, which is free and is provided by the school of the child or the child’s telco or is pre-loaded on the device of the child. Insights is valuable for the parents as it does not interfere with internet access after school.

Family Zone’s Strategy for Growth:

The premium products of the company have provided support to the requirements of parents as well as schools.  Based on this, the company is now applying a strategy where the growth in the consumer would be accelerated via school influence as well as telco distribution. The strategy will mainly focus on its free offers and at the same time on supporting products targeting the reduction in friction as well as driving take-up.

In the recent announcement, made by the company on 19 June 2019, it updated on its association with Google. The company has been working closely with Google Cloud to transform back-end services to provide support in global delivery and scale. The company is working on this project since the initial period of 2019. The company anticipates that the project would provide fundamental changes to the capability as well as the cost structure of the company.

Based on this work, along with the company’s growth, followed by innovation in education, the company has recently joined the Technology Partner Program as a Google Cloud Partner and a Google for Education Partner.

Source: Company’s Report

As a Google for Education Partner, the company would be providing products which would complement, improve and extend the functionality of Google for Education products.

In the upcoming days, the company would be developing integrations to aid in digital responsibility and drive collaborative learning and student engagement. With the strong integration between the education solution of the company and G Suite for Education and Chromebook platforms of Google, there would be greater visibility and control over security, streamlined student and class administration. It would also help to drive effective digital citizenship programs in BYOD and 1:1 environment which will educate children the ways to stay safe on the internet.

On 17 June 2019, the company provided an update to the market related to its agreement with The Noel Leeming Group to sell Family Zone’s Cyber Safe mobile, the FZONE.

Under the agreement, Noel Leeming would be selling FZONE smartphone through its flagship stores countrywide as well as online. FZONE is a cyber safe mobile phone which is developed as per the discussion with major retailers as well as cyber safety experts which fulfills the requirements of students, teachers and parents. Noel Leeming is the leading customer electronics and appliances multi-channel retailer in New Zealand with highly trained ‘Passionate Expert’ staff, who can provide best advice and services to its customers.

March Quarter Updates:

In the March 2019 quarterly report, the company had highlighted that it was working with multiple wholesale (telco) partners and developing as well as testing strategies to the customers and monetize services related to cyber safety. The company was working closely with Telkomsel Indonesia in order to test alternative services, onboarding, marketing as well as sales plans. The company had taken significant take-up from the recent trials which targeted small consumer samples and offering them with packages which include free trials along with 90 days plan and content subscriptions.

In the six months duration, the company noted that more than 145,000 wholesale customers signed-up with 65,000 existing subscriptions.

Upcoming Operational Milestones:

As per the company’s 9 July 2019 release- in the upcoming September 2019 quarter and December 2019 quarter it has plans to achieve the below mentioned operational milestones:

  • Launch ‘Insights’ through Telkomsel in the September 2019 quarter.
  • Launch ‘Insights’ through Family Zone in the September 2019 quarter.
  • There would be a soft launch of School Community in the USA in the September 2019 quarter.
  • SpotShield would be offered to the Australian school clients in the September 2019 quarter.
  • Key USA EDU sales period will be during the September 2019 quarter.
  • Key ANZ EDU sales period will be during the December 2019 quarter.

In the last one month, the company’s achievements during the period have helped its shares to surge high on ASX. Based on the upcoming milestones, it could be said that the shares of the company might continue to rise high on ASX and give better returns. FZO has a market capitalization of A$43.13 million and approximately 200.63 million outstanding shares.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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