Funding

• Sdui raised EUR 25 million (~USD 27.5 million) in an extended Series A funding round led by HV Capital and Haniel, to advance its international expansion and for further platform development. It also aims to establish itself as a partner for educational institutions in Europe. Additionally, the company stated that revenue has grown by 300% YoY since the first Series A in March 2021. (February 1, 2023; TFN)

• Knowunity raised EUR 9 million (~USD 9.5 million) in an extended Series A funding round co-led by Stride and Redalpine to increase its workforce from 75 to 110–120 personnel by the end of the year, expand in Spain in April, and possibly expand to other continents by end-2023/early-2024. (February 15, 2023; sifted)

M&A

• Paper acquired MajorClarity, a career and college readiness (CCR) tool, to offer a comprehensive CCR solution, regardless of the student's preferred path after graduating from high school. (February 28, 2023; eSchool News)

Partnerships

• Stride and Never Whisper Justice's partnership expands the curriculum and content options available to students from all backgrounds and walks of life by enabling teachers to incorporate digital media in their teaching. This partnership intends to promote important discussions regarding racial fairness and social justice. (February 7, 2023; Company press release)

Management News

• PowerSchool appointed Paul Brook as its new chief customer officer (CCO). Brook will lead the professional services and customer support teams and help align the company's strategy with its business plan and vision. (February 1, 2023; Company press release)

New Product

• Kendall Hunt’s K-12 division is introducing a new science curriculum called Anchored Science by Mi-STAR, which applies the Next Generation Science Standards (NGSS) and emphasizes the application of science and engineering practices to empower students and promote the development of critical thinking, problem-solving, and collaboration skills. (February 1, 2023; Company press release)

• Microsoft announced updates to its current line of products, including Reading Coach and Reading Progress, which assist students in developing greater fluency and accuracy in their reading. Additionally, Microsoft 365's Speaker Coach tool, which helps users to talk more fluidly while minimizing pauses and monotone voice, is being expanded. By offering tools like Search Coach, NewsGuard, and Search Progress to assist students in finding dependable information, it also seeks to increase information literacy. Two new features, Arithmetic Coach and Math Progress, will be available in the 2023–2024 academic year to aid students in learning math more efficiently. (February 9, 2023; XDA Developers)

• Savvas Learning Company introduced its newly updated enVision Mathematics series that features tools for family engagement, adaptable instructor assistance, student-led learning activities, and ready-made instructional materials. Additionally, the new Savvy Adaptive Practice automatically provides personalized practice and math instruction in real-time, allowing students to review previously learned concepts or move forward as they practice. (February 9, 2023; eSchool News)

• BrightCHAMPS introduced a new model for life-skills learning, called the “BrightCHAMPS Next-Gen Hub,” which combines physical and digital aspects of learning. The company plans to expand this model by setting up similar hubs in major cities in India, Indonesia, and the UAE within the next two years. (February 17, 2023; CNBC)

Industry News

• Byju's announced laying off 1,500 employees in the design, engineering, and production verticals. This follows a layoff in October 2022 where the company let go of ~2,500 workers (5% of its workforce). (February 2, 2023; Mint)

• Camp K-12 has laid off 70% of its workforce and has been accused of not paying dues to its staff, despite the company's denial of these allegations. (February 23, 2023; TechStory)

Earnings/Results

• Novakid reported double-digit YoY revenue growth in 2022, including an increase in the proportion of long-term subscriptions, and the addition of 70,000 new students from more than 50 countries. Although the company expects a challenging macroeconomic climate in FY2023, it expects revenue to grow and break even. It also plans to change the 25-minute private English class style for young pupils to a 40-minute educational journey. (February 8, 2023; FE News)

• Instructure reported a GAAP revenue growth of 12.8% YoY to USD 124.7 million in Q4 2022, with the subscription and support segment contributing 91.8% of total revenue, growing by 13.4% YoY. The company also reported an adjusted EBITDA of USD 48.6 million in Q4 2022, indicating strong operational performance. Additionally, the net loss decreased significantly by more than 73% YoY to USD 0.04 per share. For FY2023, revenue is expected to range between USD 519.4 million and USD 523.4 million. (February 13, 2023; Company press release)

• Kahoot! reported a recognized revenue growth of 18% YoY to USD 39 million and invoiced revenue (billings) growth of 10% YoY to USD 43.9 million for Q4 2022. The company also achieved an adjusted EBITDA of USD 9.6 million for Q4 2022, indicating a margin of 25% compared to 17% in Q4 2021. For FY2023, Kahoot! anticipates continuing to achieve double-digit YoY growth in billings, with recognized revenues surpassing USD 170 million and moderate yearly growth in operational costs. The company also expects an adjusted EBITDA growth exceeding 40% YoY and solid free cash flow. (February 16, 2023; Company press release)

• PowerSchool reported a revenue growth of 10% YoY to USD 161.1 million in Q4 2022, with the subscription and support segment contributing 87.8% of total revenue and growing by 10% YoY. The company also reported an adjusted EBITDA of USD 52.8 million (up by 59% YoY) in Q4 2022, with an adjusted EPS of USD 0.27 per share (Q4 2021: USD 0.14 per share). For FY2023, revenue is expected to range USD 688 million–USD 694 million and adjusted EBITDA is expected to range USD 222 million–USD 227 million. (February 22, 2023; Company press release)

• Duolingo reported a revenue growth of 42% YoY to USD 103.8 million in Q4 2022, while total bookings grew by 39% YoY to USD 126.4 million. The company also reported an adjusted EBITDA of USD 5.2 million, indicating a margin of 5%. Net loss decreased significantly by 77% YoY, amounting to USD 13.9 million. Moving forward, Duolingo forecasts that its revenue for FY2023 will range from USD 486 million to USD 498 million, while total bookings are expected to range from USD 530 million to USD 542 million, and adjusted EBITDA to range from USD 48.6 million to USD 59.8 million. (February 28, 2023; Shareholder Letter)