NEW YORK, Dec. 01, 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 Ltd. (NYSE: GNS). The update note includes information on the Genius Group Ltd.’ financial results, management commentary, recent developments, outlook, risks, and our revised valuation estimates.
The update note is available here. Highlights from the note include:
- Quarterly Financial Result Update: Genius Group Ltd. has reported audited financial results for the fiscal quarter ended September 30, 2022. The company reported total revenues of $14.42 million. In addition, for the nine months ended September 30, 2022, EBITDA had a net loss of $3.89 million compared to an EBITDA net loss of $1.59 million for the nine months ended September 30, 2021, and an EBITDA net loss on a pro forma basis of $2.99 million for the nine months ended September 30, 2022. Cash increased to $8.97 million from $1.78 million on December 31, 2021.
- Top Line Growth Continues to Improve: For the nine months ended September 30, 2022, Genius Group revenue grew to $14.42 million, representing a 60.68% growth over nine months ended September 2021 and revenue of $24.67 million on a pro forma basis for the nine months ended September 30, 2022. For the nine months ended September 30, 2022 gross margins grew to 33.96%, against 32.95% for the nine months ended September 30, 2021 and gross margin of 47.33% on a pro forma basis for the nine months ended September 30, 2022.
- Student and Partners Numbers Increasing: The number of paying students grew to 41,282 as of September 30, 2022, a 14% annualized growth rate. On a pro forma basis, the company had 167,915 paying students and users. The number of partners grew to 10,751 at the end of September 2022, a 7% annualized growth rate. On a pro forma basis, partners grew to 12,521.
- Acquisition of Antelope Valley University: Genius Group has completed the acquisition of a California-based university. Antelope Valley University is fully accredited and provides Genius Group with a more solid foothold in the education space. The acquisition comes with full access to courses at the university and the students of the school will now be exposed to Genius Group’s course offering as well. We believe that this is the type of acquisition that not only helps grow the presence of the company, but also serves as positive signaling to prospective students both in the domestic and international markets.
- Acquisition of Revealed Films: Genius Group completed the acquisition of Revealed Films Inc., a documentary and docuseries making company founded by award winning filmmaker and producer Jeff Hays and wellness expert Patrick Gentempo. The company focuses its creative efforts on producing content centered around wealth building, health and nutrition, medical issues, religion, and political matters. The company typically launches 3 to 4 docuseries per year. This acquisition will help Genius Group provide a wider offering of courses and learning material to its current and future students, on topics (such as wealth building) which are not typically available to students at traditional universities. In addition, the large audience that is already attracted to Revealed Films will now be exposed to Genius Group, creating potentially large viewer to customer conversion.
- 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 $10.66 per share or $263.29 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 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 12/01/2022, the issuer had paid us $27,000 for our research services, which commenced 04/16/22 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 paid us for non-research related services as of 12/01/2022 consisting of $3,000 for a virtual investor conference and $2,000 for organizing an investment dinner. 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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