The Janison Education Group Ltd (ASX: JAN) share price is in negative territory today.
This comes after the educational technology company released its full-year results for the 2022 financial year.
At the time of writing, Janison shares are trading 1.18% lower to 42 cents each. The S&P/ASX 200 Index (ASX: XJO) is also down 0.75% so far today.
Let's check the company's latest results.
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Janison share price backtracks as company records widening net loss
Janison delivered its FY 2022 results for the 12 months ended 30 June 2022. Here are some of the key takeaways:
- Total group revenue up 20% to $36.3 million
- Gross margin up 9 percentage points to 64% (gross profit of $23 million)
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) down 37% to $1.9 million
- Net loss after tax up 181% to $9.1 million
- $11.8 million cash on hand
What happened to Janison in FY 2022?
In FY 2022, Janison delivered a sound year with 20% revenue growth year-on-year driven by Janison Solutions and Janison Assessments. Both business units contributed of $23.9 million (+4%) and $12.4 million (+72%), respectively.
Janison also delivered further gains in gross profit of 39% to approximately $23.2 million in FY22. This was underpinned by an enhanced customer mix as well as improved pricing and scale benefits.
Operating costs increased by 56% to roughly $21.4 million. The majority of these costs came from investment in enterprise sales and marketing resources for large enterprise procurement opportunities.
Overall, the company registered a net loss of $9.1 million on the back of depreciation and amortisation expenses. This reflects an increase of 181% from the $3.2 million loss incurred in FY 2021.
What's ahead for Janison in FY 2023?
Looking ahead, Janison expects sales momentum and revenue growth to continue in FY 2023.
The group delivered $1.4 million in positive operating cash flow in FY 2022 and is targeting positive net cash flow this year.
For the first half of FY 2023, income from the International Competitions and Assessments for Schools (ICAS) segment is expected to be 15% higher with around $6.5 million in net revenue.
In addition, two new major platform deals secured in Q4 FY 2022 have an aggregate revenue of $1-2 million annual recurring revenue.
Janison also said that it is well positioned to take advantage of Program for International Student Assessment (PISA) opportunities in the United States and United Kingdom in FY 2023.
The Janison share price is down almost 70% since the start of 2022.
