INVESTOR BRIEFING-B2B

INVESTOR BRIEFING-B2B CRAIG HELDMAN, CEO HOBSONS 5 SEPTEMBER 2013 HOBSONS TEARSHEET Business :: Key Activities :: Presence :: Reach :: Financials ...
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INVESTOR BRIEFING-B2B CRAIG HELDMAN, CEO HOBSONS 5 SEPTEMBER 2013

HOBSONS TEARSHEET Business :: Key Activities :: Presence ::

Reach ::

Financials ::

Key Trends ::

An education information and services company, helping educators, administrators, students and families maximize success through every stage of the learning lifecycle Student success solutions, workflow solutions, marketing & advertising, consulting, print 807 employees in 10 offices around the world FY2012 revenue split is 73% North America and 27% APAC/EMEA

~7m students and ~9,000 institutions $117m revenue in FY2012, 20% underlying growth 70% of revenue from subscriptions and quasi subscriptions Our goal: double digit top line growth and improving margins Focus on student outcomes

Return on education (“ROE”)

Alternate learning driving student choice

“Non-traditional student” is majority

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HOBSONS - ADOPTING THE STUDENT PERSPECTIVE

13

15

18

20

25+

Market Stages ::

K-12 (Middle School)

K-12 (High School)

K-12 (High School) Higher Education (College/University Undergraduate)

Mary’s Needs ::

What’s my passion? Course selection Life advice

College planning Feasibility Action plan

Application help Transcript Course selection

Course management Identifying student svcs Part-time work

Remedial work Course selection Credential

Career Planning Course Planning

Course Planning College Planning Test Preparation

Course Planning College Selection Prospect Communication Application Process Enrollment Process Credentials

Course Planning Student Success and Retention Career Readiness Credentials

Course Planning and Selection Prospect Communication

Software subscription for student success Enrollment technology subscription Student outreach advertising

Enrollment technology subscription Student outreach advertising

Hobsons Engagement ::

Client ::

Software subscription for student success

Software subscription for student success

Higher Education (College/University Undergraduate)

Higher Education (College/University Undergraduate and Graduate)

Enrollment technology subscription Student outreach advertising © 2013 DMGT | 3

STRONG PROGRESS ON STRATEGIC PRIORITIES

K-12

Higher Education

Geographic Expansion

Data/ Analytics

Partnership with Roadtrip Nation

Launch of Virtual Student Fairs (VSFs)

New office in Kuala Lumpur

Partnership with National Student Clearinghouse

Acquisition of PrepMe

Acquisition of Intelliworks

Acquisition of Edumate

Acquisition of National Transcript Center

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GROWTH OPPORTUNITIES – US K-12 >$150m+ Addressable Markets millions in market segment revenue

Hobsons’ revenue in segment

Business Dynamics ● Greater focus on student outcomes (e.g. graduation rates)

$100 $80

● Increased emphasis on college readiness

80 $60

Strategic Priorities ● Entered test prep market

$40

38

33

$20

● Building out a blended learning experience

$0 College Planning Tools

Test Prep

21st Century Skills

Source: OC&C reports

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GROWTH OPPORTUNITIES – US/UK HIGHER EDUCATION $1.4BN+ Addressable Markets millions in market segment revenue

Hobsons’ revenue in segment

● Increased competition for students

$500 $400

Business Dynamics ● Rise of the non-traditional student

445

400

$300

Strategic Priorities

335 235

$200

● Consolidating offerings into a student success management platform

$100 $0 Student Recruitment

Enquiry & Conversion

● New forms of alternative learning

Support Services

EMS

● Invest in retention and quality lead generation

Source: OC&C reports

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GROWTH OPPORTUNITIES – AUSTRALIA & ASIA-PACIFIC $650m+ Addressable Markets millions in market segment revenue

Hobsons’ revenue in segment $500 $400

383 $300 $200

Business Dynamics ● Australia is a core and mature market with modest growth ● Asia-Pacific is nascent with lots of expansion opportunity

Strategic Priorities

275

● Create a strong diversified product offering in Australia through Edumate and Naviance

$100 $0 Australian Education Services Source: OC&C reports

New Asian Markets

● Become an early entrant and seek to strategically leverage our existing product set and services in Asia-Pacific

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THREE THEMES DRIVING STRATEGY & GROWTH PROSPECTS

DATA & ANALYTICS

PLATFORMS

COMMUNITY

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DATA & ANALYTICS DRIVING INTELLIGENCE Culture change occurring everywhere driven by outcomes ● State/District/School level ● Teacher/Student level Developing our data driven organisation ● Manage the large amounts of data, much of it proprietary, flowing through our solutions ● Align talent base and organisational structure to maximize impact on business Aligning data strategy with acquisitions ● National Transcript Center: Hobsons can capture data along the student lifecycle by facilitating e-transcript exchanges © 2013 DMGT | 9

INTEGRATED PLATFORM STRATEGY In current development of an integrated Higher Education platform (HITS) Status ::

Fully Operational

Reach ::

5.3m students, 5.7K institutions, 89 countries

Description :: Attributes ::

Provides student-centric tools for course, career, college and success planning College and Career Readiness

● Apply Naviance experience to deliver transformational Higher Education enrollment platform

● Operating both a K-12 and Higher Education platform will generate significant value for Hobsons ● Spanning both markets increases revenue opportunities and competitive positioning

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HOBSONS – CREATING COMMUNITIES Fostering communities in Web Properties Gamification at Beat The GMAT & College Confidential ●

Definition: application of game elements and digital game design techniques to non-game problems



Keeps sites healthy, growing, supports strong user engagement, fosters ability to generate revenue



Examples: leaderboards, badges, enhanced reputation, following

Strong data underlying each site that can be monetised ●

Sticky niche areas of students and parents that deliver unique value to higher education institutions

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SUSTAINING DOUBLE-DIGIT GROWTH Key priorities for growth: ● Expanding in our large addressable markets: K12, Higher Education, international market growth, data & analytics ● Organic investment to drive integrated platform strategy ● Bolt-on acquisitions to enhance market position and expand products and services

We are well positioned to deliver double digit growth and improving margins

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