Highlights

• Cluey -- a dominant Edtech player with interests in Australia, NZ, and the UK -- registered significant growth in revenue and gross profit in FY22
• The company acquired Code Camp during the financial year, which provides co/extra curricular holiday camps and after-school offerings
• High growth in student sessions were reported during the first quarter of FY23 

Technology is a dominant force that is shaping every sector. Sydney-based Cluey Ltd (ASX:CLU) is harnessing the latest technological innovations to reshape Australia’s school education sector, which comprises approximately four million school students. Cluey is an education technology (Edtech) market participant with an emphasis on technology that provides curriculum aligned learning programs supported by its tutors. Online tutoring is one of the primary services of the company, and the financial progress during FY22 substantiates the fact that Cluey is thriving. 

The key achievements of Cluey during the financial year are listed below. These include progress regarding revenue growth and new business (numbers of new students added). New subjects were also introduced in the tutoring services vertical, Cluey Learning, which gave a big boost to operations. New markets -- a pilot in the UK and expansion in New Zealand -- were also highlights of the year. 

Revenue and gross profit more than doubled in FY22

In the FY22 ended 30 June 2022, revenue amounted to AU$34.3 million, which marked a 116% surge compared to the revenue of FY21 (AU$15.9 million). Notably, revenue has continued to grow exponentially each year since FY19.

The gross profit of the company more than doubled to AU$18.1 million in FY22 (AU$8.6 million in FY21). 

Cluey’s variable customer acquisition costs (CAC) showed improvement and went down 24% year-on-year, while the LTV (Life-Time Value) to CAC ratio marked a gain of 33% in FY22.

Source: Cluey Ltd FY22 Annual Report

Business expansion

The aforementioned rise in financial numbers can be attributed to robust growth in the numbers of students and tutors in FY22. An annual growth of 124% was observed in the number of active Cluey tutors. To put this in perspective, 2,490 tutors was the count in June 2022. During the financial year, Cluey added 34,842 new students, which marked an increase of 95% compared to FY21.

Biology and Physics were added as new subjects in the tutoring division for Years 11 and 12. The Edtech company also forayed into the UK market as well as  expaned in the NZ market. The annual report confirms the initial results have been promising with over 8,000 student sessions delivered in NZ since the launch in October 2021.

Cluey acquired Code Camp in FY22, and in the ongoing year, the company plans to provide related programs as part of its after-school offerings. Code Camp is Cluey’s expansion into holiday camps and after-school activities. Besides building on Code Camp’s momentum in Australia, Cluey undertook its pilot in the UK. The FY22 annual report also shows that student attendance at holiday camps and after-school programs has improved and is now at pre-COVID-19 levels.

Further progress in Q1 FY23

Year-on-year (YoY) growth of 52% and 59% in revenue and gross profit, respectively, was the highlight of Cluey’s first-quarter results. 

Cluey’s student sessions have now crossed the one million-plus milestone thanks to an addition of over 11,000 students during the quarter ended September 2022. New students were up 52% in the quarter on a yearly basis.

In October, Cluey Ltd established its lead in the Edtech sector by being recognised as the Technology Growth Company of the Year at the 2022 Australian Growth Awards.

CLU shares traded at AU$0.50 on 17 November 2022.