KneoMedia Ltd has increased the use and visibility of its KneoWorld, Inc content in the public school system in New York state during FY21.
The company has tabled its preliminary financials for FY21, a period which saw it help roll out the Connect All Kids initiative across schools in New York City and State.
Through its KneoWorld brand, the ASX-lister collaborated with the National Association for the Advancement of Colored People (NAACP) and Dell Technologies to advance the New York-centred initiative, which aims to bring education technology to every public school student.
Financially speaking, this activity bolstered revenue by 44.2% to around A$234,000, while deferred revenue increased more than nine-fold to nearly A$470,000.
Looking ahead, KneoMedia intends to broaden its presence in New York and, from there, continue its educational tech rollout across the United States.
Deploying tech in New York education market
KneoMedia CEO James Kellett said: “Despite the challenges posed by the pandemic, KneoMedia was successful in increasing the deployment and the visibility of our core technology primarily in the New York public education market.
“As well, we broadened our reach into New York State and Florida, which sets us up well for the current year.
“The Connect All Kids program in New York City is very exciting, and we can see the momentum beginning to build following the re-opening of in-class learning.
“As more educational programs are initiated across the country, we have an opportunity to establish KneoMedia as a valuable educational tool in classrooms throughout the United States and starting in New York.”
KneoWorld software examples.
Financials
Over FY21, KneoMedia’s revenue from ordinary activities increased 44.2% to A$234,000, up from FY20’s A$162,000 result.
Deferred revenue also increased by 855.1% to A$467,000, compared to nearly A$50,000 in the previous year.
Specifically, the New York ‘Connect All Kids’ program has provided the majority of the group’s sales for the year, with the associated contract set to run for a three-year period.
Accordingly, the deferred revenue is set to be recognised across the contract’s term and has been booked as a liability until the deal runs its course.
Kellett continued: “Our expanding sales and marketing channels are also very encouraging with prestigious and world-class organisations such as NAACP and Dell Technologies partnering with KneoWorld to broaden and diversify the distribution of our educational content across the United States.
“Running in conjunction with the Connect All Kids initiative, it positions us well for the coming year to build sales in both the school and home school sectors.”
KneoMedia ended the financial year with $6,600 to support its future operations, but last month completed a A$651,000 capital raise to bolster its cash balance.
Over the 2021 financial year, the digital education publisher consolidated its loss to A$3.1 million, down from the previous year’s A$3.7 million result.
Meanwhile, operating net cash outflows totalled A$1.4 million, compared to FY20’s A$2.7 million in operating expenses.
Cash outflow from investment activities also slightly consolidated to A$700,000, while KneoMedia brought in A$990,000 from financing work over the period — a significant reduction on FY20’s $A3.4 million inflows owing to reduced capital raising activities.
Connect All Kids initiative
A formative part of KneoMedia’s US market strategy is its work within the Connect All Kids initiative in New York.
Over the financial year, New York City councillors committed US$5 million to back the program, while 8,400 Dell Chromebook devices are set for deployment over 100 NYC schools before year’s end.
Of this commitment, the ASX-lister is poised to pocket around $1.3 million for its contributions.
The initiative targets a 2.5-million-strong market of students across New York City and State, all of which are possible candidates for the KneoWorld technology, which provides curriculum-based online learning tools for early learning to primary-age kids.
KneoMedia serves under approved supplier status in the Connect All Kids initiative and is responsible for publishing the KneoWorld software.
Expansion in the US
Outside the New York-centred initiative, KneoMedia pursued several other channels to market over the 2021 financial year.
These included its Career Technology Education program in Albany, New York, a not-for-profit STEM program, a reseller agreement with the Homeschool Buyers Co-op and work on its educational tech business development brand.
As New York heads into the new school year next month, KneoMedia anticipates further deployments of the KneoWorld technology across the city’s education system.
In addition, the focus on New York over FY21 has established a platform through with the ASX-lister intends to grow its sales and marketing channels into other US markets.
Kellett explained: “Gaining a foothold into New York State justifies the expansion efforts and growth strategy set out at the beginning of the year.
“As well as being the largest public education market, New York is the bellwether for the rest of America so the fact that KneoWorld is now being progressively delivered here bodes well for us."
Next steps
Beyond the US market, the ASX-lister also made its first steps towards establishing an international footprint, deploying the KneoWorld software in the Philippines.
Although COVID-19 has made partnership opportunities rare because of school shutdowns, KneoMedia is confident activities will resume after a period of extreme disruption.
Speaking to the company’s broader vision, the MD concluded: “Our near-term objective is simple – achieve greater scale in New York, broaden our presence in New York State, and then continue the roll-out across the United States.
"We are confident that the sales momentum will continue.”