NEW YORK, June 03, 2022 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released update note on Genius Group Limited (NYSE: GNS). The update note includes information on the Genius Group’s financial results, management commentary, recent developments, outlook, risks, and our revised valuation estimates.
The update note is available here. Highlights from the note include:
Full Year Financial Result Update: Genius Group Ltd. has reported audited financial results for the fiscal year ended 31st December 2021. The company reported total revenues of $28.6 million; The pre-IPO group accounted for $12.8 million, while IPO acquisitions accounted for $15.8 million of revenue. The company’s adjusted EBITDA for 2021 stood at $252,000 with a net loss of $4.7 million. Genius Group faced an increased cost of revenue in 2021 because of increased expenditures on marketing, customer acquisition, curriculum development, and expansion of the faculty network. Operating expenses were higher due to campuses returning to full operation after the COVID-19 pandemic restrictions were lifted, increased operations, and expenses related to the IPO. In line with the company’s long-term outlook, 86% of the group’s total revenue was from digital education, with an increase of 83% in digital education revenue compared to the year 2020. Genius Group’s plan to integrate all courses and programs into the GeniusU platform will benefit from the shift to online and digital learning after the COVID-19 pandemic.
Acquisition of E-Square Education: Genius Group has completed the acquisition of a South Africa-based education company that operates primary and secondary schools and a vocational college. E-Square focuses on providing entrepreneurial and vocational training along with traditional classroom learning in order to enable students to become business leaders who can create successful enterprises. We believe that the core curriculum of E-Square Education complements that of Genius Group. This acquisition will allow the company to enter the African education market with an established platform and curriculum relevant to the geographical area’s needs.
GeniusU Ltd. Closes Funding Round: GeniusU Ltd., a Singapore-based wholly owned subsidiary of Genius Group Ltd., has closed a seed funding round at a valuation of $250 million. GeniusU is the EdTech arm of Genius Group and owns and operates the EdTech platform along with the A.I. enabled personal assistant. The company raised $1.5 million to develop the Genius Metaversity, a metaverse-based immersive learning system from GeniusU.
Genius Metaversity: The company plans to launch a virtual reality (metaverse) based ecosystem with six different campuses all based in the virtual world. The ‘Genius Metaversity’ is expected to be launched in 2022. Courses and programs will be adapted to an interactive learning system, where students and faculty can interact in a 3D environment. This will allow the company to leverage the rapid growth in virtual-reality and metaverse-based applications and provide students with a mixed-reality learning system.
Valuation Outlook: We have updated our financial model to reflect the latest financials, changes in discount rate and comparable company analysis, valuing the company at $12.34 per share or $278.79 million contingent on successful execution by the company.
About Genius Group Limited
Genius Group (NYSE: GNS) is a Singapore-based EdTech and education company engaged in providing educational services in over 200 countries. It aims to develop an alternative lifelong learning curriculum and make its educational products accessible worldwide to all age groups. For more information, visit https://www.geniusgroup.net/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Genius Group Limited for producing research materials regarding Genius Group Limited, and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 06/03/2022, the issuer had paid us $27,000 for our services, which commenced 04/16/2022 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 06/03/2022. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Genius Group Limited.
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