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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