Thread by @stocksondrocks

EduFocal Limited, $LEARN.ja, has released its Q3 earnings. Here's a #SOTRSummary:

-Revenue 🔻59%
-9 month Revenues ⬆️45%
-Net losses of 28M vs profits of 4M in the same quarter last year.

See details 👇🏾

The CEO of the company provided a report with a lot more detail. Please read it.

A summary of the year-to-date performance was also provided. Please see below.

LEARN saw a dip in its Q3 sales and profits, though year-to-date sales grew.

EduFocal's balance sheet has seen massive growth since Dec 2021.
-Assets have doubled, driven by higher receivables, cash & intangible assets
-debt to equity is 1.6x

LEARN would've raised debt at an attractive rate through their broker, Mayberry Investments.

It was stated that they would put said funds into K-12&health edu, and EduFocal Engage which will focus on software as a service or SaaS content for companies.

jamaica-gleaner.com/article/busine…

LEARN completed its acquisition of the website and assets of CST earlier this year in March 2022.

-operating cash was remains negative
-that net cash outflow as well as investments made over the period was funded by the debt received through Mayberry
-this debt & the IPO raise also assisted in paying down shorter-term debt

Below are the shareholders for EduFocal between July 2022 and September 2022.

There was no material change in shareholdings.

LEARN listed on the JSE in March of this year and peaked at about 4.20 (+320%). It has since traded sub 2.50 mid-year. In recent times it has traded closer to 3.

Volumes are more apparent on the sell side with buy side support closer to 2.55.

What are your thoughts on EduFocal's Q3 performance?

Let us know in our 2,000 member strong community here:

t.me/+LoPrrHCLGYQ3Z…