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Added 4 months ago
#Business Model/Strategy

This company has been a highlight and a lowlight. Held from 16c all the way to $1 and then held it all the way back to mid teens. A few stuffups in the business strategy (imo) resulted in too much cashburn for too little return, such as too much focus on Australia, failed international telco business model (changed now)

The company appears to however finally realised it has to go for the big game by penetrating the education sector in the United States of America. Unlike Australia where a single school client can require signifcant resources to attract, the United States school system is made up of school districts, each of which comprised multiple schools. Signup a district and you signup several schools all in one hit. And there are 100k schools in the US!

Further they have refined the strategy so that rather than just selling student subscriptions they offer more school oriented services (such as classroom manager) and instead charge the school a per student license fee. And its working a treat so far having signed up 65 school districts in a very short span of time because their offerring is vastly superior to the competitors such as iBoss. Parents ofc can still opt into the actual subscription service.

I feel however it will take at least a couple more quarters for the full impact of this to become apparent. More school district wins in the US is critical. However I estimate by 2nd qtr CY20 FZO will have achieved breakeven on an annual basis on recurring revenue alone.

Catalysts:

  • more US school district wins
  • Larger multi school arrangements in Australia and/or New Zealand
  • Woolworths, JB Hi Fi and otehr retailers successfully promoting the FZO service to parents...the subscription service is very high margin
  • Successful Telkomsel launch in Indonesia with significant takeup to verify the new telco model of offerring a free service with parents having the option to upgrade to premium subscription service...other telcos around world will be watching this very closely
  • Succesfully attracting insto investors to the company through business success and effective promotional roadshows...the new very high profile chairman (also DUB) will be CRITICAL to this
 
Added 5 months ago
##Australian

Same patent awarded in Australia on 'Device management system'. Need to find more details on this patent. If I find something, will post it.