Lingo Media, through the implementation of its aggressive
growth strategy, has established itself as an outfit to watch in the
educational technology space. Last week, the company’s recent progress toward
achieving sustainable growth in the $56 billion global English-learning market
was highlighted in an article by Investor’s Digest of Canada. The key to this
growth, according to the article, lies in Lingo’s ability to gain industry
recognition and start making sales in the rapidly expanding educational technology
market.
Over the past two years, Lingo has invested considerable
time and resources into completing a transformation from a conventional
textbook publisher into an emerging player in the EdTech market. The
development of a digital library and the creation of a functioning platform
through which to present its language-learning programs proved to be a
complicated and lengthy process. However, with the creation of an online
business unit now complete, Lingo appears to be primed for strong growth in the
short term.
Lingo stands out from big names in the edtech market, such
as Rosetta Stone (NYSE: RST) and Duolingo, for its dedication to the
development of specialized modules to meet the needs of every type of student –
from preschool through to adults. By customizing its learning products, the
company is able to more adequately address the language needs of specific
groups, effectively increasing the marketability of its products.
In the first three quarters of 2015, Lingo’s innovative
approach to the English-learning industry has helped it secure a strong
foothold in one of the world’s most promising educational markets. Since July,
the company has entered into contracts in Mexico, Peru and Colombia,
establishing a presence in a region with more than 600 million people and an
educational system that, in many respects, lags behind the rest of the
developed world.
With the foundation in place, Lingo appears set to
capitalize on its work in previous quarters. In the second quarter of 2015, the
company recorded just under $1.8 million in total revenue, doubling its results
from the previous year. This financial growth carried over to the bottom line,
with Lingo achieving net profit of $979,000 for the period. As the company
continues its sales rollout, it is in a favorable position to build on these
results while benefitting from the high margins offered by the EdTech market.
As Lingo progresses toward positioning itself as a major
player in the educational technology space, it is expected to continue to record
revenue from its legacy publishing operations thanks to a contract with the
Chinese government. Providing stable, recurring sales of roughly $1.5 million a
year for the next five years, this contract is anticipated to pad the company’s
top and bottom lines for the foreseeable future. As a result, Investor’s Digest
of Canada suggests that Lingo’s tiny market cap, which is currently about $12
million, leaves plenty of room for upside for forward-thinking investors.
For more information, visit www.lingomedia.com
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