Consensus community valuation
$0.295
Average Intrinsic Value
36.2%
Undervalued by
Active Member Straws
#Competitor Analysis
Added 2 weeks ago

Just to highlight the uncertainty in my valuation, Openlearning recently appointed Spiro Pappas as an Executive Director. 

"Spiro will help OpenLearning’s senior executive team to commercialise its technology in large corporate and financial institutions, leveraging the Company’s higher education partnerships to provide industry-relevant training and micro-credentials." 

When I read this, I immediately thought of Jannison's Learning business. Openlearning is going after the corporate training market. I see 3 ASX technology companies going after this market (Janison, Openlearning and Retech). Retech has operations in both China and Australia but they primarily focus on training English (students and corporates). Janison have customers in this market but recently, they lost 2 (Rio Tinto and Kinross). Those miners found Janison's Academy platform did not tailor to the mining industry. Maybe Openlearning can be flexible with their platform to provide holisitic learning experience for corporates.

Just some thoughts on what I think was an interesting turn of events in the edtech space.       

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#remote
Last edited 4 months ago

remote teaching is great

rather than having to wait

for a pandemic to pass

install this software fast

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#Contracts
Last edited 6 hours ago

OpenLearning have multiple contracts in arrangement. This straw is a summary for all significant ongoing contracts in place. 

  1. 19 March 2020 (Alibaba Cloud) - Partnership with internet giant Alibaba Cloud enable OpenLearning to offer students in mainland China high-speed access to online courses. Over 10,000 unique learners in mainland China have taken courses on OpenLearning. OpenLearning is solving a critical problem for universities and colleges globally, they have found that most platforms are substantially slower in speed, the partnership provide OpenLearning with high-speed delivery. This is a strong competitive advantage in the China market. Alibaba’s DNS Acceleration service was implemented for OpenLearning within just one week with zero downtime to existing users. The service speeds up access to OpenLearning via a direct fibre optic cable connection that runs from across specific regions in Asia. 
  2. 27 March 2020 (High Resolves) - Operate in (Australia, USA, Canada, Mexico and Brazil). It is OpenLearning’s first SaaS client to utilise the platform for high school students. The non-profit entity provide social justice, freedom type courses. High Resolves have engaged over 350,000 students. The agreement also includes the potential for High Resolves to act as a reseller of the OpenLearning platform to its partner high schools. High Resolves is OpenLearning’s first SaaS client to utilise the platform for K-12 students. There are 100's of schools as partners (no exact number). Under the agreement, High Resolves will pay OpenLearning an annual SaaS fee ranging from A$50k (15,000 students) to A$90k (30,000+ students) depending on usage of High Resolves across all school portals. High Resolves’ sales force will work to convert each school into a paying SaaS customer in exchange, OpenLearning pays High Resolves 30% of the estimated SaaS fee of A$3,000 per school. This reseller arrangement has the potential to reach up to 1,000 schools.
  3. 29 April 2020 (Heriot-Watt University (Malaysia)) - Heriot-Watt is one of the UK's leading universities with five campuses across the world (Edinburgh, Dubai, Malaysia, Orkney and the Scottish Borders) as well as 53 Approved Learning Partners and over 29,000 students studying both online and offline. Heriot-Watt Malaysia will pay OpenLearning a one-off Learning Services fee of A$289k (ex GST) for the development of 10 courses, which will be carried out in Q2 and Q3 2020. The agreement includes a 1-year licence of the OpenLearning platform should the program continue in 2021.The services fee would be paid to OpenLearning in line with the delivery of the project in 4 equal instalments and subject to standard termination provisions including insolvency, and fundamental breach of agreement clauses. Approximately 200 to 250 students enrol to take Foundation Studies each semester at the Putrajaya campus, which has a total of approximately 2000 students.
  4. 4 June 2020 (Australian Catholic University) - ACU will use OpenLearning’s platform to deliver short courses, micro-credentials and internal professional development programs for its employees. ACU has over 35,000 students across its nine campuses and is expanding its online offering with a particular focus on health and education, two rapidly growing sectors in Australia. Minimum fees payable by ACU to OpenLearning under the agreement is $33k (inc GST) p.a. The agreement builds on an existing partnership formed when ACU made a A$1 million cornerstone investment in OpenLearning’s Initial Public Offering (‘IPO’) in 2019. The terms of the agreement with ACU are similar to large universities. Fees will be renegotiated if the number of unique learners exceeds the upper limit of 20,000 during the term of the agreement.
  5. 14 July 2020 (Open University Australia) - OpenLearning have signed agreements with Open Universities Australia (OUA), Australia’s largest online higher education marketplace with 21 university partners. Under the agreements, OUA will utilise OpenLearning’s platform to deliver micro-credentials from Australian universities, which will be promoted through the OUA marketplace. OpenLearning will receive a fixed usage-based SaaS fee for each enrolment on the platform or a percentage of enrolment fees for courses jointly developed under the agreements. The agreements have an initial term of 3 years and there are no minimum fees payable under the agreements. 
  6. 14 July 2020 (DeakinCo.) - OpenLearning have signed a platform agreement with DeakinCo., part of Deakin University and a global leader in micro-credentials. The agreement with DeakinCo. has an initial term of 1.5 years and is seen as strategically important to OpenLearning, however, the minimum fees payable under the agreement are not currently material. 
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#ASX Announcements
Last edited 4 months ago

27-Mar-2020:  New Partnership opens door to hundreds of schools

Very positive, and that comes on the back of the following recent announcement (8 days ago):

19-Mar-2020:  Agreement with Alibaba Unlocks Significant China Opportunity

Speaking of which, I note that Australia Post's EFTPOS network now accepts Alibaba's AliPay as well as Tencent's WeChat Pay.

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#Bull Case
Added 6 months ago
  • 77% year-on-year (YoY) increase (19.5% quarter-on-quarter (QoQ)) in annualised recurring

    revenue (ARR)1 to $944k at the end of Q4 FY19

  • ?  170% YoY increase (12.7% QoQ) in B2B SaaS clients to 62 at the end of Q4 FY19

  • ?  Record FY19 (ended December 31 2019) cash receipts from customers of $2.24m

  • ?  Gross margin for SaaS2 increased to 57% in Q4 FY19 from 4% in Q4 FY18

  • ?  Strong cash position at end of FY19 of $7.74m

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#Gangbustas 2
Added 4 months ago

Further to my post yesterday 

Up another 22% on Thursday 

That's a rise of 70% this week 

NOW if my other 14 stocks would just pay attention!!!

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#Gangbustas
Added 4 months ago

up 32% yesterday

up 13% today

Not complaining mind you (who would when the rest of your portfolio is down by greater than 30%), but why the increase?

Is it simply the fact of students having to stay home?

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