OpenLearning Accelerates SaaS ARR 23% Amid AI Expansion and Market Gains

Strong SaaS Growth Amid AI Innovation

OpenLearning Limited (ASX: OLL) has delivered another robust quarter, reporting a 23% year-on-year acceleration in its platform SaaS annual recurring revenue (ARR) to $2.335 million for Q4 FY24. This marks over 12 consecutive quarters of sustained SaaS revenue growth, underscoring the company’s momentum in the competitive education technology sector.

The growth was fueled by a 17% increase in average revenue per B2B SaaS customer, reaching $9,767 annually, alongside stable customer numbers totaling 236 active B2B clients. This stability reflects effective churn management and successful new customer acquisition across OpenLearning’s suite of products.

CourseMagic.ai Gains Traction Globally

Launched in June 2024, CourseMagic.ai, OpenLearning’s AI-powered instructional design toolset, has quickly gained market traction, attracting 126 active B2C customers across Australia, the US, India, Canada, and Malaysia within six months. Despite industry-wide high churn rates for B2C AI products, OpenLearning reports encouraging user retention and plan upgrades, signaling strong product-market fit.

CourseMagic’s usage-based SaaS model, which charges based on institutional staff users and AI token consumption, positions it well for scalable adoption. The company is actively enhancing CourseMagic’s capabilities, including new quiz generation features and improved AI content creation workflows.

Strategic Partnerships and Market Expansion

OpenLearning’s partnership with Meshed Group, a prominent Australian student management system provider, has already yielded its first higher education customer. This integration strengthens OpenLearning’s LMS offering and opens doors to a growing pipeline of institutions considering the platform for core degree programs.

Further international expansion is underway, with new SaaS customers added in India and the Philippines, and a reseller agreement signed to promote the LMS in Bangladesh. The company’s pilot with Gujarat University to deliver compulsory short courses aligned with India’s National Education Policy is progressing well, highlighting OpenLearning’s foothold in key emerging markets.

Operational Efficiency and Financial Health

Operationally, OpenLearning has improved cash flow management, reducing net operating cash outflows by 52% year-on-year to $0.365 million in Q4 FY24. Cash receipts from customers surged 45% to $1.084 million, driven by both SaaS and marketplace segments. The company’s total available funding stood at $1.953 million at quarter-end, supported by a recent $2 million capital raise and an increased loan facility.

These financial improvements reflect successful cost optimisation efforts and growing revenue, positioning OpenLearning to sustain its growth trajectory while investing in product innovation.

Looking Ahead: AI and International Recruitment

OpenLearning is preparing to roll out new generative AI features in early 2025 aimed at providing automated student feedback and facilitation suggestions, which could further reduce costs for education providers and enhance learner engagement.

Additionally, the company is expanding The Uni Guide into international student recruitment, leveraging its significant web traffic and shareholder Education Centre of Australia’s expertise. Discussions with Australian and overseas universities are underway to formalise agent agreements, targeting student placements in the second half of 2025.

CEO Adam Brimo emphasised the company’s commitment to innovation and market expansion, highlighting the strategic integration of AI and partnerships as key drivers for continued growth.