Cluey (ASX:CLU) reports new milestones and continued growth in September quarter

Highlights

• Cluey Ltd witnessed a year-on-year increase of 52% and 59% in revenue and gross profit in Q1, respectively
• The key milestone of having delivered one million-plus student sessions was also completed during the quarter
• Cluey bagged the 2022 Technology Growth Company of the Year Award, which corroborates its strong edtech credentials

Cluey Ltd (ASX:CLU) has ended the first quarter of FY23 with key milestones and continued growth across all key group metrics. Moreover, the period marked new appointments and investments in product and technology. 

The leading education technology company working in the online tutoring space has shared an update about its impressive performance during the three-month period ended 30 September 2022. Continue reading to know more! 

Q1 FY23 – Group revenue up 52%, gross profit up 59%  

In Q1, Cluey Group reported 52% year-on-year (y-o-y) growth in revenue, while gross profit surged by 59% compared to the same period a year ago. The group also registered strong growth in the new student base and student sessions.

The below table highlights continued growth across all key group metrics during the September quarter of 2022:  

As of 30 September 2022, the group reported AU$19.5 million as cash on hand and in term deposits.

Cluey Learning, the primary segment of Cluey Ltd, which focuses on online tutoring services, recorded an increase of 7% year-on-year in the new student acquisition in Q1 FY23.

The gross profit margin grew to 56.7% during the quarter (as against 53.7% in the prior corresponding period). Notably, the growth in profit was driven by the implementation of a price hike from 1 July 2022.

The variable customer acquisition cost (CAC) per new student increased by 8% compared to the prior corresponding period.

With respect to the New Zealand (NZ) market, Cluey ramped up investment in this market, which resulted in an addition of 863 new students in NZ and the completion of over 8,700 student sessions during the quarter.

The segment is committed to implementing new cost mitigation initiatives over the coming months.

Code Camp, acquired in October last year by Cluey*, registered an increase of 17% quarter-on-quarter with respect to the number of after-school attendance days. This growth, from 8,848 to 10,336 attendance days, excludes the UK market. An increase of 68% was recorded in the number of holiday camp attendance days, also excluding the UK.

For the UK, the rollout of the pilot project continued during the quarter, which helped generate AU$103,000 in revenue, from 2,330 and 594 after-school attendance days and holiday camp attendance days, respectively.

New appointments and investments

In September, Cluey appointed previous CEO Mark Rohald as Executive Deputy Chairman. The same month, Matteo Trinca and Trevor McDougall were appointed as the company’s joint CEOs. The move aims to achieve sharper execution of key business plan initiatives and focus on corporate development, cashflow break-even and profitability.

In Q1 FY23, the incremental investment of AU$0.5 million in product and technology took the overall related expenditure to AU$1.2 million. Cluey Ltd expects the benefits of investments in technology to start yielding returns by Q3, supporting the pathway to profitability in FY24.

Winner of Technology Growth Company of the Year

In October, Cluey Ltd added another feather in its cap by winning the 2022 Australian Growth Awards (Technology Growth Company of the Year). 

“This is an outstanding achievement for Cluey and is a testament to the hard work, dedication and commitment of the entire Cluey team,” Robert Gavshon, Cluey’s chairman commented on the development.

Shares of Cluey Ltd on the ASX traded at AU$0.53 on 9 November 2022.

*Please note that comparisons have been provided to the previous quarter as Code Camp was not owned by Cluey Ltd in the PCP.