July 18, 2023
Kingston, Jamaica: Leading regional technology firm, One on One (OOO), announced the release of its third quarter unaudited financial statements for the period ended May 31, 2023. The company’s nine- month performance showed revenues growing by 14.3 percent, from $194.4 at the end of May 2022 to $222.3 for the comparative period for 2023. This growth in revenue was driven mainly by the Business to Customers (B2C) and Business to Government (B2G) business lines, which benefited from new contracts and increased development work for government projects.
While the company booked this increase in revenues, it also recorded a sharp increase in operating expenses from $107.3 million in 2022 to $166.5 million for the comparative period in 2023. This was largely due to the development and expansion of new products as well as marketing and promotional activities to fuel increased awareness, lead generation and customer acceptance. Correspondingly, net profit for the nine-month period declined to $22.1 million from $40.0 million compared to the same period of 2022.
The company, for the third quarter, from March to May 2023, experienced a decline in revenues to $68.9 million from $90.2 million for the comparative period of 2022. This resulted primarily from a reduction in the non-recurring B2C line, and a reduction in the value of additional B2G development work, from the previous year’s comparative period.
Operating expenses increased by $15.6 million during the quarter when compared to the same period in 2022, as the company focused on expanding its workforce to enhance existing product offerings while continuing to advance its new product development initiatives. Furthermore, additional resources were allocated to the advertising and promotion of the company’s award-winning Learning Management System (LMS) to help attract new users.
President and CEO of One on One, Ricardo Allen referred to the increased expenses as necessary investments, as they related to strategic elements that are expected to yield significant returns to the businesses, not only in generating revenues but also in ensuring the sustainability of its operations. He said, “Despite the significant increase in expenses, primarily driven by investments in product build-out and operational enhancements, we want to assure our shareholders that these expenses were essential for laying the foundation of our growth plans. We strategically allocated resources in advance to support the successful launch of our new product lines. Moving forward, as our new product offerings gain traction and generate revenues, we expect the expense level to stabilize and align with our revenue growth”.
The company achieved a profit before tax of $5.4 million for the third quarter of 2023 and recorded a tax charge of $1.4 million due to deferred taxation movement. Consequently, the net profit for the quarter was $4.0 million, which represents a decrease from $31.2 million for the comparative period of the prior year.
Total assets recorded for the period was $590.4 million, up from the $580.7 million recorded at the 2022-year end. This was largely as a result of the continued development of the company’s intellectual property. The company’s total equity increased to $463.2 million for the quarter, from $441.8 million for the 2022- year end, representing an increase of $21.4 million. The increased equity was mainly due to retained profits.
Looking ahead to the final quarter for the 2022/2023 financial year, the company will focus on converting its robust sales pipeline, particularly in the business segment, to drive a strong performance in the fourth quarter. These ongoing initiatives will be anchored by the launch of the company’s One Academy product, which will feature the Teacher Availability Solution, set for roll-out in time to begin the new academic school year in September. One Academy, along with the company’s award-winning LMS, will be robustly supported by its content development output, as well as its artificial intelligence (AI) strategy.
Speaking on the company’s fourth quarter outlook, Allen said, “We are well positioned to capitalize on emerging opportunities and further solidify our position as a leader in the Ed-Tech sector. We remain committed to our mission of providing personalized and impactful online learning experiences, and we are confident in our ability to navigate the challenges and capitalize on the opportunities that lie ahead”.
About One on One
One on One [JSE: OOO], which began operations in 2013, provides customized e-learning solutions for government agencies, corporates, and individuals alike to educate, upskill and train through the company’s award-winning Learning Management System (LMS). Over the years, the One on One Team has provided digital learning solutions for over 150,000 learners through its easy-to-use platform. The company is headquartered in Kingston.