Key takeaways:

1) Unaudited revenue for the FY of $7.4M (up 55%)

2) Poistive EBITDA and cashflow in H2 2020.  

3) 112k users on the platform (up 40%)

4) Strong pipeline reported.  

5) ARPU grew to $65, up from $54 in FY2019.  

Ok, solid results.   However, gross margins remain low, due to publisher payments.   Publishers have the whip hand, and Readcloud do not have any leverage to increase their share of the pie.  My concern is it will be hard for readcloud to achieve decent profit margins when the publishers are taking the cream off the top.   

Improvements made to platform are encouraging, and management are confident strong growth will continue, driven by the digital transformation of schools.   I just think they need to expand the platform beyond eBooks to achieve their full potential.  

$500 million announcement to offer free VET courses for school leavers. Its subsidiary, https://aiet.edu.au/, should be a beneficiary.  However, the funding is contingent on co-operation of the state governments, and is light on in detail.

I run through some thoughts on Readcloud in this podcast.

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