The Family Zone Cyber Safety Ltd (ASX: FZO) share price has edged lower despite announcing a strong set of March quarter results and future growth initiatives.
At the time of writing, the Family Zone share price is down 1.52% to 51 cents per share.
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Family Zone March quarter highlights
Despite the lack of traction for the Family Zone share price in 2021, the company has continued to tick off a number of financial and operational milestones.
Family Zone achieved strong sales growth in what it is typically a quiet March quarter. The company ended the quarter with a 135% year-on-year increase in contracted schools to 3,135 or a 136% increase in contracted students to 1.65 million. The signed contracts were worth an annual value of $1.8 million or 92% higher than a year ago.
Beyond its financial results, the company announced that it had commenced marketing in the Canadian education market, achieving its first deal this quarter.
All eyes on US market
Looking ahead, the company eyes a launch in the significant United States market. Family Zone managing director Tim Levy commented on the opportunity.
"The massive US education market is enjoying unprecedented increases in funding. We're entering the key US sales period, well organised having invested in growing our team to be ready to handle a record sales pipeline," he said.
Last quarter, the US government finalised US$54 billion of funding for the education sector through its 2021 COVID-19 response and relief supplemental appropriations act. This funding is expected to be drawn down over a number of years, which provides a buoyant outlook for Family Zone's cyber safety industry.
The company has run a number of small trials in the US over the past 6 months and highlights an impressive 17.5% conversion of free customers to paid premium offerings. Family Zone plans for a soft launch in the US this quarter with a full launch planned for the September quarter.
The company notes that it is well funded to execute on its growth strategies with $20.4 million in cash at the end of the quarter.
Family Zone share price takes a breather in 2021
The Family Zone share price has been chopping back and forth around the 40 to 50 cent level since August 2020. This follows a spectacular 300% run from 15 cents in June 2020 to a high of 63 cents in August 2020.
