Genius Group Announces 2023 Financial Results, 150% Pro Forma Revenue Growth to $70.4 million
May 15 2024 - 12:27PM
Genius Group Limited (NYSE American: GNS) ("Genius Group" or the
"Company"), a leading provider of AI-powered, digital-first
education solutions
, announced today its financial
results for the year ended December 31, 2023.
Business Highlights for Fiscal
2023
- 2023 audited revenue increased 27%
to $23.1 million from $18.2 million in 2022.
- Pro forma 2023 revenue increased
150% to $70.4 million from $28.1 million in 2022, including revenue
from the FatBrain AI transaction.
- Students and users increased 24% to
5.5 million from 4.4 million in 2022.
- Gross profit increased to $11.9
million or 52% of revenue compared to $8.6 million, or 47% of
revenue in 2022.
- Net loss after tax reduced 90% to
($5.7) million compared to ($56.0) million in 2022. On a pro forma
basis, net loss after tax reduced further to ($0.8) million.
- Reiterates previously issued 2024
pro forma revenue guidance of at least $105 million for the full
year, a 50% increase compared to 2023’s pro forma revenue of $70.4
million
Roger James Hamilton, Founder and CEO of Genius
Group, commented “2023 was a year of significant growth in revenue
combined with a significant reduction in costs, positioning us for
strong, sustainable growth in 2024.”
“2024 is already proving to be a truly
transformative year for Genius Group. The completion of the recent
of acquisition FatBrain AI and pending OpenExO transaction have
accelerated our plans to build a global AI education and
acceleration group. We are building upon our AI-driven Edtech
platform, GeniusU, with in-demand AI training and AI tools to power
the exponential economies of tomorrow.”
“We are launching our Genius City Model,
beginning with Singapore, Dubai and Abu Dhabi, to deliver localized
learning ecosystems for students, entrepreneurs, businesses and
governments to access AI education and acceleration tools with
their own localized AI avatars and assistants. Our Genius City
Model has attracted global interest, with nine new Genius Cities
now scheduled to launch in 2024: London, Tokyo, Mumbai, Miami, Las
Vegas, Toronto, Vancouver, Stockholm and Santiago.”
Audited Financial Results
The audited financial results are for the seven
companies within Genius Group (excluding the FatBrain AI and
pending OpenExO transactions completed and to be completed in 2024)
and including nine months of Entrepreneur Resorts Ltd prior to its
spin off in October 2023.
- During the year ended December 31,
2023, overall revenue totaled $23.1 million, or an increase of 27%,
compared to $18.2 million in the previous year. This was driven by
an increase in Education Revenue of 37% from $13.6 million to $18.6
million and decrease in campus revenue by 4% from $4.6 million in
2022 to $4.5 million in 2023 as a result of the ERL spin off.
- Gross profit increased to $11.9
million or 52% of revenue compared to $8.6 million, or 47% or
revenue in 2022.
- Operating expenses decreased to
$48.3 million in 2023 compared to $51.1 million in 2022. The
decrease in our operating expenses is the result of lower
impairments offset by continued investment in our business.
- Net loss for 2023 was ($5.7)
million compared to a net loss of ($56.0) million in 2022. Earnings
per diluted share were $(0.10) in 2023 compared to $(2.47) in
2022.
- Cash and equivalents on December
31, 2023 were $1.3 million. Total assets at December 31, 2023 were
$43.2 million.
Pro Forma Financial Results
Genius Group pro forma financial results is for
the seven companies within Genius Group, taking into account the
Group Companies including FatBrain AI with the transaction
completed in March 2024, and excluding Entrepreneur Resorts Ltd,
which spun off in October 2023, and pending OpenExO, as the
agreement was completed in 2024 but final closing is pending
various closing conditions being met.
The Pro Forma Financial Results should be viewed
as the current group’s financial performance, of which the audited
financial results represent a subset of this group – the group
prior to the 2024 FatBrain AI transaction. The historical results
do not necessarily indicate our expected results for any future
periods.
- During the year ended December 31,
2023, overall pro forma revenue totaled $70.4 million, compared to
$28.1 million in 2022.
- Pro forma gross profit was $17.0
million or 24% of revenue.
- Pro forma net loss after tax was
($0.8) million.
- Pro forma total assets was $97.9
million.
Strategic and Operational
Highlights
- Welcomed leading education
entrepreneurs to our investor base, including Michael Moe (Founder
and CEO of GSV Ventures), Brent Richardson (Past CEO and Chairman
of Grand Canyon Education), Dr Ali Saeed Bin Harmal Aldhaheri
(Founder and Chairman of Abu Dhabi University).
- Added new Board Members and
Executive Team, including Salim Ismail (Founder, OpenExO), Eric
Pulier (Founder, Vatom), new Chairman, Michael Moe, and new CFO,
Adrian Reese.
- Completed transaction with FatBrain
AI and signed agreement with OpenExo, building AI product
suite
- Launched Genius City model with
first cities Singapore, Dubai and Abu Dhabi
- Launched AI educator suite of AI
Genie and AI Avatars
- Launched full AI-driven partner
portal for education and community partners
- Moved from campus to digital
revenue with spin off of ERL and closure of UAV
- Restructured financing with full
repayment of $18.3 million convertible note eighteen months ahead
of schedule.
Financial Guidance
Genius Group maintains its 2024 financial
guidance as we scale our GeniusU, AI-Driven Edtech platform and
scale our Genius City model of local teams delivering AI training
and AI tools to participating cities around the world. We believe
we are on a strong, sustainable pathway of ongoing organic growth
and acquisitions, leading to continued revenue growth and a path to
sustainable, cash positive, profitable growth.
Profit & Loss
Performance
|
|
Pro forma |
|
|
Audited Financials |
|
|
|
Year Ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
(USD 000’s) |
|
|
(USD 000’s) |
|
|
(USD 000’s) |
|
Revenue |
|
|
70,371 |
|
|
|
23,063 |
|
|
|
18,194 |
|
Cost of revenue |
|
|
(53,325 |
) |
|
|
(11,127 |
) |
|
|
(9,555 |
) |
Gross
profit |
|
|
17,046 |
|
|
|
11,936 |
|
|
|
8,639 |
|
Other Operating Income |
|
|
346 |
|
|
|
344 |
|
|
|
144 |
|
Operating Expenses |
|
|
(47,753 |
) |
|
|
(48,347 |
) |
|
|
(51,121 |
) |
Operating
Loss |
|
|
(30,361 |
) |
|
|
(36,067 |
) |
|
|
(42,338 |
) |
Other income |
|
|
32,965 |
|
|
|
32,981 |
|
|
|
418 |
|
Other Expense |
|
|
(4,070 |
) |
|
|
(3,704 |
) |
|
|
(15,151 |
) |
Net Loss Before
Tax |
|
|
(1,466 |
) |
|
|
(6,790 |
) |
|
|
(57,070 |
) |
Tax Benefits |
|
|
644 |
|
|
|
1,079 |
|
|
|
1,063 |
|
Net Loss |
|
|
(822 |
) |
|
|
(5,711 |
) |
|
|
(56,007 |
) |
Other Comprehensive
Income |
|
|
(204 |
) |
|
|
(204 |
) |
|
|
(290 |
) |
Total Comprehensive
Loss |
|
|
(1,026 |
) |
|
|
(5,915 |
) |
|
|
(56,297 |
) |
Net income per share, basic
and diluted |
|
|
(0.01 |
) |
|
|
(0.10 |
) |
|
|
(2.47 |
) |
Weighted-average number of
shares outstanding, basic and diluted |
|
|
55,501,971 |
|
|
|
55,501,971 |
|
|
|
22,634,366 |
|
About Genius Group
Genius Group (NYSE: GNS) is a leading provider
of AI-powered, digital-first education solutions, disrupting the
highly standardized system of traditional education with a
personalized, flexible and life-long learning curriculum for the
modern student. Genius Group services 5.4 million users in over 200
countries, providing personalized curriculums for individuals,
enterprises and governments. The comprehensive, AI-powered platform
offers programs for K-12 education, accredited university courses
and skills-based courses for entrepreneurs. To learn more, please
visit https://www.geniusgroup.net/.
Investor Notice
Investing in our securities involves a high
degree of risk. Before making an investment decision, you should
carefully consider the risks, uncertainties and forward-looking
statements described in our most recent Annual Report on Form 20-F
for the fiscal year ended December 31, 2023, filed with the
SEC on May 14, 2024. If any of these risks were to occur, our
business, financial condition or results of operations would likely
suffer. In that event, the value of our securities could
decline, and you could lose part or all of your investment.
The risks and uncertainties we describe are not the only ones
facing us. Additional risks not presently known to us or that we
currently deem immaterial may also impair our business operations.
In addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. See "Forward-Looking
Statements" below.
Forward-Looking Statements
Statements made in this press release include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements can be
identified by the use of words such as “may,” “will,” “plan,”
“should,” “expect,” “anticipate,” “estimate,” “continue,” or
comparable terminology. Such forward-looking statements are
inherently subject to certain risks, trends and uncertainties, many
of which the Company cannot predict with accuracy and some of which
the Company might not even anticipate and involve factors that may
cause actual results to differ materially from those projected or
suggested. Readers are cautioned not to place undue reliance on
these forward-looking statements and are advised to consider the
factors listed above together with the additional factors under the
heading “Risk Factors” in the Company's Annual Reports on Form
20-F, as may be supplemented or amended by the Company's Reports of
a Foreign Private Issuer on Form 6-K. The Company assumes no
obligation to update or supplement forward-looking statements that
become untrue because of subsequent events, new information or
otherwise.
Investor Relations Contact:Brian M. Prenoveau,
CFAManaging DirectorMZ Group - MZ North America(561)
489-5315GNS@mzgroup.us www.mzgroup.us
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