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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