16 Jun Amesite : A roller coaster ride!
Amesite Inc, (NASDAQ: AMST), is an educational technology firm that is leveraging the power of Artificial Intelligence, to create leading-edge learning solutions for businesses, higher educational institutions and K-12 education. The Company is the recipient of many accolades and laurels including the 2020 BIG Innovation Award and one of the winners of the 2019 Metropolitan Detroit’s Best and Brightest Companies to Work For.
The Company offers a platform for compliance and testing that aims to increase individual productivity and provides best-in-class analytics to measure performance. Amesite also offers the latest certifications and enables companies to overcome the limitations of conventional learning and development programs.
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Amesite’s solutions help organizations offer a fully-managed enterprise learning platform, along with customized courses that cater to job-specific certifications, essential for employee efficiency. In addition, the platform allows companies to make informed decisions about the upskilling requirements of their employees by offering in-depth analytics and customizable dashboards. The Company delivers up-to-date content in a fun and engaging manner that promotes engagement.
The Company’s social media inspired interface helps attract and retain student interest, without the need for intensive training for teachers or out-dated multi-check platform solutions thereby improving speed and efficiency. Amesite ensures the highest level of compliance and security for user data and is committed to providing best-in-class K-12 Education tools that require minimal administration work and training.
In addition, the platform also provides an on-demand AI powered article feed that offers the latest content and also enables institutions to set automated reminders and notifications. There is a provision for skills-base grading and easy assessment through sophisticated grade books and customizable histogram and advanced data analytics that offer actionable insights and trackable performance.
Amesite Inc (NASDAQ: AMST)
Market Cap: $ 54.91M; Current Share Price: 2.67 USD
Data by YCharts
Industry
Education Technology is a burgeoning industry owing to a rise in internet penetration and use of smartphones. There is a growing acceptance of e-learning and many governments are providing impetus to e-learning initiatives. The advancements witnessed in the smartphone technology have revolutionized the delivery of education, with more and more people opting for digitized content. According to a report by EdTechXGlobal, the education technology market will grow by 17 percent per annum to reach $252bn by 2020.
Furthermore, a report by Grand View Research estimates that the smart education market will reach $680.1 billion by 2027, growing at a CAGR of 17.9 percent from 182.8 billion in 2019. The emergence of a need for distance learning tools owing to COVID-19 will provide further impetus to the market.
The growth in the market will primarily be driven by population growth, with an estimated 2.7 billion students worldwide by the year 2035. The educational needs of such as large population cannot be addressed through conventional learning institutions, due to scarcity of resources to accommodate a large population.
These numbers have grown exponentially since the escalation of the pandemic, as educational institutions and even corporate have been compelled to use e-learning mediums to continue their operations. In some cases, governments are providing encouragement by facilitating the purchase of devices essential for imparting education and knowledge through online learning mediums. In addition, leading educational providers are looking for newer avenues to market their courses and services to a wider audience base worldwide.
As globalization and automation transform the face of the workforce, with a rising number of repetitive low-skilled jobs being automated, employees will need to add to their qualifications and skills. According the report, by 2025, 50 percent of the current jobs will not exist; thereby the demand for re-training will see people resorting to educational technology. The industry witnessed a record fundraising of $1.45 billion in 2018 and has seen the emergence of leaders, with investors concentrating on relatively fewer firms.
Company
Amesite’s Solutions for Higher Education Learning, consists of rapidly deployable customized education learning platforms, which require minimal training and are successful in attracting and retaining student interest through social media inspired interface design. Furthermore, the Company also provides turnkey programs with custom-branding options that help grow tuition revenue, while providing valuable certification courses.
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The Company is leveraging its analytical services for assisting organizations as they reopen after the COVID-19 pandemic. Amesite provides real-time analytics, to make informed decisions and formulate strategies for reopening, to ensure safety of the team members. The Company also accords utmost importance to data privacy, compliance and security.
In June 2021, the Company announced the launch of services on Microsoft Azure, in association with Wayne State University, as part of its efforts to reach out and address the needs of rapidly deployable upskilling programs that offer in-depth analytics and performance tracking. The Company has successfully leveraged its access to Azure FastTrack for ISV program to develop a cloud-native solution and will be able to connect and network with many universities and organizations that are already a part of Microsoft’s network.
A satisfactory cash burn position
Coming to its Cash burn situation, which is the amount spent by a company to drive its growth, Amesite had reported US$14m in cash as of December 2020 and had no debt obligations. The Company’s cash burn during the period was US$4.8m for the trailing twelve months, which effectively means that it has enough cash to fund its operations for 2.9 years.
However, the Company is ramping up its investments, as evidenced by its rising cash burn rate, which stood at 26 percent for the last year. This means that the projected cash runway would be shorter owing to the increased spending. The most important point to note, is that the Company is well placed to raise additional cash if needed, as its cash burn is a very low proportion of its market capitalization and will not result in any major dilution, if the Company decides to raise more capital from the market.
Key Takeaways
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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