Genius Group Announces 83% Edtech Revenue Growth in 2021, $28.6 Million Pro Forma Group Revenue
May 16 2022 - 7:00AM
Genius Group Limited (NYSE American: GNS) (the “Company” or “Genius
Group”), a world-leading Edtech and entrepreneur education group
that completed its IPO on NYSE American on April 12, 2022, today
announced financial results for the fiscal year ended December
31, 2021.
2021 Highlights
- Pro forma Group revenue was $28.6
million in 2021 for the Post-IPO Group of eight companies
(“Post-IPO Group”), which consists of the four Pre-IPO companies
(the “Pre-IPO Group”) and the four companies being acquired at the
time of, or shortly after, the closing of the company’s initial
public offering (the “IPO Acquisitions”).
- The Pre-IPO Group achieved record
revenue of $12.8 million, up 67% over revenue of $7.6 million in
2020;
- Digital Edtech revenue for the
Pre-IPO Group grew by 83%, education revenue grew by 72% and campus
revenue grew by 54%.
- Students on the GeniusU Edtech
platform grew from 1.9 million to 2.6 million students across 200
countries.
- The Post-IPO Group’s pro forma
adjusted EBITDA was $320,000 with a net loss of $4.7 million in
2021. The Pre-IPO group’s adjusted EBITDA was ($2.27 million) with
a net loss of ($4.5 million), compared to an adjusted EBITDA of
($137,000) and a net loss of $3.2 million in 2020;
- The Post-IPO Group’s pro forma
shareholders’ equity at year-end 2021 was $39.6 million. The
Pre-IPO Group’s shareholders’ equity at year-end 2021 was $8.0
million, up from $7.7 million at year-end 2020;
Results for the Pre-IPO Group include the four
Pre-IPO companies: the holding company Genius Group, GeniusU,
Entrepreneurs Institute, and Entrepreneur Resorts. Pro forma
results for the Post-IPO Group take into account the four IPO
Acquisitions: Education Angels; E-Square Education; University of
Antelope Valley; and Property Investors Network. The acquisitions
of Education Angels and Property Investors Network have been
consummated, while the acquisitions of E-Square Education and
University of Antelope Valley are in the process of closing.
Financial results should be read in conjunction
with the Company’s audited consolidated financial statements and
related notes in the Company’s Annual Report on Form 20-F (“Annual
Report on Form 20-F”), as filed with the U.S. Securities and
Exchange Commission (“SEC”). Financial results are prepared in
accordance with International Financial Reporting Standards
(“IFRS”) as adopted by the International Accounting Standards
Board. Reconciliation of adjusted EBITDA to net income, the most
comparable financial measure based upon IFRS, is included in the
financial tables of this press release.
“Our growth strategy for Genius Group is a
combination of organic growth and growth from acquisitions. In
2021, we achieved a strong growth rate from organic growth alone,
as preparation for our IPO excluded any new acquisition activity,”
commented Roger James Hamilton, Chairman and CEO of Genius Group.
“Now, with our NYSE American IPO completed and the integration of
all eight companies underway, Genius Group is operating from a
position of strength as we move forward with our mission – To
disrupt the current education model with a student-centered,
lifelong learning curriculum that prepares students with the
leadership, entrepreneurial and life skills to succeed in today’s
market.”
“The IPO acquisitions have accelerated the
expansion of our education system to age groups beyond our adult
audience, to children and young adults,” continued Hamilton. “By
continuing to apply the capabilities of our AI, digital marketing,
and customer intelligence strategies across our combined group of
companies and students of all ages, we see the momentum we
experienced in 2021 continuing through 2022 and beyond.”
Fiscal Year 2021 Financial
Results:
- The Company’s Pre-IPO Group
revenues increased to $12.8 million in 2021, up from $7.6 million
in 2020. This was driven primarily by an 83% increase in digital
education revenue from $5.3 million in 2020 to $9.7 million in
2021. The $28.6 million in pro forma revenue was the combination of
$12.8 million in revenue from the Pre-IPO Group and $15.8 million
in revenue from the IPO Acquisitions. This further breaks down to
the following revenue from each IPO Acquisition: University of
Antelope Valley, $9.0 million in revenue (31% of total); Property
Investors Network, $5.1 million in revenue (18% of total);
Education Angels, $0.9 million in revenue (3% of total); and
E-Square, $0.7 million in revenue (2% of total).
- The Pre-IPO Group’s cost of revenue
was $10.0 million in 2021, with $2.8 million in gross profit, or
22% gross margin, compared to $4.1 million in 2020, with $3.5
million in gross profit, or 46% gross margin. The Company’s cost of
revenue grew in percentage terms in 2021 as a result of higher
digital marketing and faculty costs as it expanded its curriculum
to include more partners. The Company seeks to maintain a balance
between growth and a positive gross margin. For the group
companies, Genius Group’s pro forma cost of revenue in the fiscal
year ended December 31, 2021 was $15.9 million, delivering a gross
profit of $12.7 million, or 44% gross margin, compared to 2020 cost
of revenue of $8.7 million and gross profit of $15.5 million and a
64% gross margin. By owning the majority of its curriculum and
courses across all group companies and acquisitions, Genius Group
is focused on maintaining a low cost of content and a high gross
margin. The cost of revenue incurred is mainly customer acquisition
costs and faculty costs.
- The Pre-IPO Group had operating
expenses of $7.3 million in the fiscal year ended December 31, 2021
compared to $6.2 million in 2020. Approximately 60% of the
Company’s operating expense is staff costs, with the remaining in
development costs, marketing, rental, and general expenses. The
increase in operating expenses is the result of the growth in
operations, the expansion of curriculum, and preparations for the
Company’s IPO and listing. Including the IPO Acquisitions, Genius
Group’s pro forma operating expenses were $17.3 million for the
fiscal year ended December 31, 2021, compared to $16.1 million in
2020.
- As of December 31, 2021, the
Pre-IPO Group had cash and cash equivalents of $1.8 million.
Genius Group Earnings Call:The
Company will host an Earnings and Investor Update call on Thursday,
May 26 at 16:30 Eastern Time. The details to join:
When: May 26, 2022 16:30 Eastern Time (US and
Canada)Topic: Genius Group Limited (“GNS”) Financial Results
Investor Call
Please click the link below to join the
webinar:https://us02web.zoom.us/j/85142151273?pwd=9J4cJAbbbdqDn53ERHtECS919hLsz6.1
Passcode: 640451
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About Genius GroupGenius Group
is a world-leading entrepreneur Edtech and education group, with a
mission to disrupt the current education model with a
student-centered, life-long learning curriculum that prepares
students with the leadership, entrepreneurial and life skills to
succeed in today’s market. The group has over 2.8 million
students in 200 countries, ranging from ages 0 to 100. The group
includes four pre-IPO companies (the “Pre-IPO Group”), and will
include four companies intended to be acquired at the time of, or
shortly after, the closing of the company’s initial public offering
(the “IPO Acquisitions”). The acquisitions of two of these four IPO
Acquisitions, Education Angels and Property Investors Network, have
already been consummated.
The entrepreneur
education system of our Pre-IPO Group has been delivered virtually
and in-person, in multiple languages, locally and globally, mainly
via the Pre-IPO Group’s artificial intelligence (AI)-powered,
personalized GeniusU Edtech platform to adults seeking to grow
their entrepreneur and leadership skills.
The Pre-IPO Group includes Genius Group,
GeniusU, Entrepreneurs Institute and Entrepreneur Resorts. This
group of entrepreneur education companies has grown both
organically and through acquisitions, with a focus on adding value
to each company through GeniusU, which is being developed to
provide AI-driven personal recommendations and guidance for each
student. The Pre-IPO Group is now expanding its education system to
age groups beyond its current adult audience, to children and young
adults. The four IPO Acquisitions will be the first steps towards
this expansion. They include: Education Angels, which provides
early learning in New Zealand for children from 0-5 years old;
E-Square, which provides primary and secondary school education in
South Africa; University of Antelope Valley, which provides
vocational certifications and university degrees in California,
USA; and Property Investors Network, which provides property
investment courses and events in England.
Genius Group’s current plan is to combine the
education programs of the IPO Acquisitions with its current
education programs and Edtech platform as part of one lifelong
learning system, and it has selected these acquisitions because
they already share aspects of the Genius curriculum and its focus
on entrepreneur education.
Forward-Looking Statements
This press release contains statements that
constitute “forward-looking statements,” including with respect to
the closing of the remaining two IPO Acquisitions. Forward-looking
statements are subject to numerous conditions, many of which are
beyond the control of the Company, including those set forth in the
“Risk Factors” section of the Company’s Annual Report on Form 20-F
filed with the SEC. Copies are available on the SEC’s
website, www.sec.gov. The Company undertakes no obligation to
update these statements for revisions or changes after the date of
this release, except as required by law.
Media Contacts: Sally
Butler, Senior Account Manager, Adia PR Tel: +44 7961
730303 Email: sally@adiapr.co.uk Leila Dastyar, Account
Manager, Adia PRTel: +44 7564 334198
Email: leila@adiapr.co.uk
Company Contact:Dave
Gentry, RedChip Companies, Inc.Phone: +1 407
4914498GNS@redchip.com
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