Full Year 2024 3P Learning Ltd Earnings Call Transcript
Key Points
- Achieved significant product releases, positioning for future growth.
- Maintained tight cost control, resulting in increased gross margins.
- Modest growth in the direct-to-consumer (B2C) segment despite economic challenges.
- Successful acquisition of Reading Eggs US distribution rights, with positive early customer feedback.
- Implemented cost-saving measures, achieving annualized savings of $5 million.
- Sales growth in the schools market, particularly in North America, was challenging.
- Revenue and EBITDA were slightly below the lower end of previous guidance.
- Annual recurring revenue for B2B declined by 5%, driven by higher churn rates.
- Significant non-cash goodwill impairment expense of $44.5 million related to the B2C segment.
- High expenditure on product development and reacquisition of distribution rights, impacting cash flow.
Welcome to 3PL's full year results presentation for the financial year 2024. I'm Matthew Sandblom, Executive Chairman. And for today's presentation, I'm joined by CEO, Jose Palmero, and CFO, Anton Clowes.
Reviewing the 2023-24 financial year overall, I'm pleased to report that we delivered some significant product releases that will position us well for future growth. While at the same time, we maintained tight cost control. However, sales growth in the schools market was hard to achieve, especially in North America. So we have delivered $110 million in sales and $12 million in EBITDA. These results are just under the lower end of our previous guidance of $112 million and $115 million for revenue and $13 million to $15 million for underlying EBITDA.
We achieved modest growth in the direct-to-consumer B2C part of the business in '23-'24 as well as a good increase in the gross margins due to very tight cost control. This is a good result in face of a very tight consumer spending as parents were buffeted by high mortgage
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