One on One Educational Services Limited (OOO) has announced a significant improvement in its financial performance for the second quarter of 2023 compared to the same period in 2022.

The unaudited financial statements revealed a rise in total revenues, net profit, total assets, and total equity.

For the quarter ending February 28, 2023, One on One recorded gross revenues of J$76.3 million, up from J$65.4 million for the same quarter the previous year.

Gross profit increased by J$15.3 million, representing a 33.6 per cent increase over the previous year’s second quarter.

The increase in gross revenues was primarily driven by new and ongoing contracts in both the business to customers (B2C) and business to business (B2B) revenue lines.

The company also took advantage of economies of scale in executing some of its projects, which led to a 27 per cent reduction in direct costs.

However, the operating expenses grew by $16.1 million due to an increase in staff costs as the company looked to bolster its product offering and develop new lines.

Additionally, the company incurred registration fees following the IPO, and increased expenditure on advertising and promotion to generate awareness and market positioning for the company’s award-winning Learning Management System (LMS).

Total assets recorded for the period was $634.9 million, a 91.6 per cent increase from the $331.4 million recorded for the quarter ending February 28, 2022.

This spike was attributed to the ongoing development of the company’s intellectual property, the leasing of a new property, which has been recognised as a right-of-use asset, an increase in receivables due to a change in the payment terms of some government contracts, as well as the acquisition of new perpetual licenses for the classroom-in-a-box devices and content license for resale.

Total equity showed a 320.6 per cent increase for the quarter, rising to $459.3 million, compared to the $109.2 million recorded for the corresponding period in 2022.

This increase was a direct result of the issuance of shares on the Junior Market of the Jamaica Stock Exchange (JSE) and retained profits. Meanwhile, total liabilities for the period decreased by 26.4 per cent, as loans were converted to ordinary shares at the time of the company’s IPO.

Ricardo Allen, CEO of One on One, stated that he plans to actualize growth strategies that will see further positive results going forward.

The focus for the first two quarters of the financial year was to solidify the talent required to execute on the initiatives outlined in the prospectus at the time of the IPO, as well as to develop key products that will drive revenues in the individual customer market.

The team will look to ramp up its lead generation efforts for the B2B segment of the business.

Looking ahead to the third quarter, the team has specific plans centred around the expansion of the company’s content development output and strategic investments in artificial intelligence (AI).

To this end, a 4,000 square feet space was acquired in Q2 to house studios that will be used to create content for the company’s various platforms, while the team has identified potential partners for the rollout of their AI-powered products.

With these extensive plans, Allen and his team are setting the foundation for advancing the company’s business objectives that are expected to reinforce One on One’s position as a regional and global leader in the ed-tech space.