OLL - OpenLearning Limited

[System]

OL Group commenced operations in Australia in 2012, with an expansion into the South-East Asian market (primarily Malaysia) commencing in 2015. OL Group initially provided its platform for free to institutions and the general public and generated revenue from learning design services. In September 2017, OL Group restructured its operations and monetisation strategy to operate as a software as a service (SaaS) business whereby it would charge annual license, support and hosting fees for its platform to education providers worldwide.

The OL Group continues to develop and operate its proprietary global cloud online learning platform (OL Platform), which enables education providers to design and deliver both accredited and non-accredited courses, micro-credentials and degrees. OL Group derives revenue through:

(a) operating the OL Platform as an SaaS;
(b) offering learning design services to education providers that utilise the OL Platform (Design Services); and
(c) student acquisition for course delivered on the OL Platform (OL Marketplace).

OL Group has iteratively developed, deployed and tested its approach, model and technology over the past 7 years in high-income and emerging markets, with a diverse range of education providers, including top-ranked universities in Australia, training providers in the United States and government departments in Malaysia.

It is anticipated that OLL will list on the ASX during December 2019.

https://www.openlearning.com

 

[So_Cynical]

I like the idea but there is some serious cash burn going on and they are less than 12 months into the SaaS model.

 

[verce]

I think this is a good buying opportunity at current levels.

Knowledge and education is a huge, booming industry - see ASX listed company IDP EDUCATION LIMITED (IEL) with a current market cap of ~4.5 billion AUD.

Software as a service (SaaS) is also very popular at the moment, due to an inherently high ability to scale with minimal additional cost.

What happens when you combine the two? I don't know, but I'm willing to be it's a higher market cap than the company is currently being assigned.

Australian education is highly prized - so what happens when you open this market up to a larger audience? Especially in this day and age where modern technology effectively means no difference learning from home compared to in person. And people don't just go to university once and get a career - it's a lifelong learning experience with people continually refreshing their studies.

Furthermore, according to the recent investor webinar (a recording of which is available online), the company is also looking at learning analytics; using artificial intelligence to improve the facilitation process, and the efficiency of the assessment process etc.

They also say they have built out the company for a number of years now, and it's ready for scale without needing much additional investment at all. Possible inflection point at the end of calendar year 2020 where they anticipate being cashflow break-even.

The quality of the courses themselves on OpenLearning are superior to any other competitor alternative. This becomes self-evident after students take a course, due to the higher quality of the partnerships with the institutions involved (Tier 1 Aussie universities, governments etc.).

In conclusion, to paraphrase the company:

"A commanding position as the number one provider to institutions [including government and universities] in what is one of the world's top education markets"

Not bad for a microcap stock.

 

[So_Cynical]

I think this is a good buying opportunity at current levels.
Knowledge and education is a huge, booming industry - see ASX listed company IDP EDUCATION LIMITED (IEL) with a current market cap of ~4.5 billion AUD.

While there are things to like about Openlearning i think it's a stretch to compare them with IDP, apples and oranges comparison.

 

[verce]

While there are things to like about Openlearning i think it's a stretch to compare them with IDP, apples and oranges comparison.

Oh I realise that. I was just trying to illustrate that knowledge and education as a sector can be considered a viable business model and not something to be afraid of.

The brilliance and simplicity of OLL's recurring revenue model with this kind of business in particular, is that people no longer just go to university once and then never again.

Increasingly, people with full-time careers are treating their work as a lifelong learning experience, with people continually coming back to refresh their studies.

The high quality partnerships with Tier 1 Aussie universities, and governments means that you get both a high degree of credibility AND convenience in the same offering.

That is a powerful combination indeed. I will probably tip this one in the next monthly competition.

 

[verce]

David Buckingham on the board of this. (former CEO and Managing Director Navitas)

https://www.smh.com.au/business/com...-bid-from-bgh-consortium-20190321-p5164b.html

Navitas was acquired by private equity firm BGH Capital and the nation's biggest super fund, AustralianSuper, in a cash deal valuing the global education group at $2.1 billion in 2019.

 

[verce]

I figured the only way to get a better handle on the company was to try the platform itself. So I signed up for a brief (free) Blockchain course via the University of Technology Sydney.

Registration was simple, and I found it to be a very clean and uncluttered interface. Each module of the course allowed for comments, questions and general interaction by the students with the course facilitator.What I thought was interesting is that each module/activity displays all the previous knowledge and contributions by others who have ever taken the course since its inception (which can be filtered by most recent/most likes). This means you get the widest repository of information available compared to traditional teaching methods. Chances are, if you have a question, someone else has already asked and had it answered - which saves a lot of time.

You can integrate video/images/hyperlinks seamlessly into the course material. It was nice to see industry experts from the Australian Digital Commerce Association and ANZ Bank contributing material, for example. When you complete a module, you are usually prompted to complete a learning activity by commenting and sharing your answer with the rest of the online 'class'. Everyone gets their own profile and on your profile you can get a course "badge" (micro-credential) that verifies that you successfully completed the course. You build up a portfolio on your profile, which allows you to build up an online education CV (sort of like LinkedIn).

By the end of it, it really felt no different to what would traditionally be delivered by a very expensive contractor in a face-to-face classroom (except faster). And I believe that this is where real disruptive potential exists. For a fraction of the cost and overhead, you can deliver teaching material to a much wider audience all over the world - which enriches the learning experience because you are getting contributions from people with all different backgrounds. And I would argue that participation and interaction online is actually higher than what it would be in a face-to-face environment (because people are more comfortable learning in their own home).

 

[Country Lad]

Interesting, this one is just about back to the price I sold it in January. Looking at the last 3 days, obviously some people were in the know about today's announcement regarding the deal with Alibaba.

 

[debtfree]

I have picked OLL for the April Monthly Competition. Am I confident? Not really! I had to pick something and it came up on a few scans, looked at the chart and said "That'll do"

Momentum picked up carrying price above all my MAs and has stayed there long enough for the MAs to be the way I like them. Fibonacci and Ascending Triangle give a little confidence as well.

The comments above about cash burn has me worried but the deal with Alibaba and the opportunity Coronavirus might bring to the table might give it a pop this month or, is that what happened last month. Time will tell, I'm hoping for a breakout above .27 and a target of the previous high of .37 resulting in a return of 64%.

 

[Faramir]

Angus Ellis from 8020 Investment picked OLL as a speccy back in a Livewire interview December last year. This podcast was published early January this year. I think it was mentioned after the 30 minute mark?? I honesty can't remember why she choose OLL. Her mentioning OLL made me start monitoring OLL but I don't following OLL closely.
https://www.livewiremarkets.com/wires/how-an-everyday-investor-competes-with-the-pros

 

[Faramir]

OLL should be experiencing FOMO. Trouble is, many are experiencing the other fear. Online learning should be experiencing a boom. This announcement on 27 March details how High Resolve will deliver programs to hundreds of high schools. I also believe they do universities as well. Here the announcement:
https://www.asx.com.au/asxpdf/20200327/pdf/44gfy8nmzq4qkb.pdf

Then again, accounts is not that hot. $7.7 million statutory loss for a start up is acceptable??
https://www.asx.com.au/asxpdf/20200330/pdf/44gjj7dhcztfw5.pdf

@debtfree I expected your selection to flog my selection and be up with the leaders for April tipping comp. I guess it is early in the month and OLL will do a final sprint as Term 2 schooling resumes and lock down continues. At least I got to wear the yellow jersey for 3 April for a joke selection while you are breaking even for a "That'll do" selection.

 

[debtfree]

@debtfree I expected your selection to flog my selection and be up with the leaders for April tipping comp.

I was hoping for this but with the lower volume so far this month it is clear ASF members are not supporting me to achieve this expectation. Live in hope die in despair, as they say!

I guess it is early in the month and OLL will do a final sprint as Term 2 schooling resumes and lock down continues. At least I got to wear the yellow jersey for 3 April for a joke selection while you are breaking even for a "That'll do" selection.

I like to see the yellow jersey worn by numerous ASF members during each month as it engages everyone and makes it more of an interesting competition.
Congrats on your pick which has got off to a great start, you've picked up the early points for sure so enjoy your time with the jersey. see you up there at the finish.

 

[Faramir]

I am going to choose OLL for September Tipping Competition. I did not realise that I have posted on this thread before.

Still a big loss like last year.
44m3mthv58qdqd.pdf

Hoping that FOMO might kick in next month? It is online learning. VIC lockdown should help OLL?

 

[aus_trader]

I have taken a position in this fast growing small cap, all the reasoning and details are in Speculative Stock Portfolio.

 

[over9k]

Alright aus_trader I'm along for the ride with you

 

[aus_trader]

Alright aus_trader I'm along for the ride with you

Good on you @over9k, I think it's a good growth play . But as always, if it doesn't work out on this occasion, we cut losing stocks and move on as the spec portfolio is not a buy and hold residence for stocks.

 

[over9k]

I reckon it's one of those ones that'll skyrocket once the borders reopen. It's a long hold for me.

 

[aus_trader]

I think the pandemic is actually a catalyst that will make it more commonplace for online courses. So my thinking is this situation may fuel it's growth...

Below is the latest video of CEO presenting the Half Year results:

 

[aus_trader]

Major development and cap raise happening for OLL, see below:

 

[over9k]

For international students only huh?