IODM’s Q2 Cash Receipts Hit A$719k, UK Education Revenue Doubles
IODM Limited reported a robust 49.4% increase in Q2 FY25 cash receipts, driven by explosive growth in its UK Education segment and strategic onboarding of prestigious universities.
- Q2 FY25 cash receipts rose 49.4% year-on-year to A$719k
- UK Education segment revenue doubled with a 119% increase
- Twelve universities onboarded including Global Trium Executive MBA partners
- North American commercial agreements nearing finalisation
- Sales team expansion fueling pipeline growth across multiple regions
Strong Quarter Reflects Strategic Sales Expansion
IODM Limited (ASX: IOD) has delivered an impressive second quarter for fiscal year 2025, with cash receipts reaching A$719,000, a 49.4% increase compared to the same period last year. This performance notably exceeded the company’s own forecasts announced in November 2024, underscoring the effectiveness of its recent sales team reinvigoration and market penetration strategies.
The standout contributor was the UK Education segment, which more than doubled its cash receipts with a 119% year-on-year increase to A$511,000. October 2024 marked a record month for the division, with revenues surpassing the guaranteed minimum monthly revenue share arrangement, highlighting the strength of IODM’s partnership with its exclusive UK service provider, Convera.
Expanding Global Footprint with Prestigious Onboardings
IODM’s growth story is further bolstered by the onboarding of twelve universities by the end of Q2, including three new additions in the quarter. Notably, the company secured partnerships with high-profile institutions such as New York University and HEC Paris Business School, both integral to the Global Trium Executive MBA program managed by the London School of Economics. This expansion into North America and France marks a significant step in IODM’s global strategy.
While only eight universities contributed to Q2 cash receipts due to late-quarter onboarding, the remaining four are expected to drive revenue growth in the current quarter, signaling a strong pipeline ahead.
North America and Australia: New Frontiers for Growth
IODM is in advanced negotiations to formalize commercial agreements with multiple North American education sector participants, including universities and financial service providers. The company has streamlined its service agreement and implementation process in this region, enabling faster onboarding compared to earlier experiences in the UK.
Domestically, the Australian sales team’s revitalization has led to contracts with tier 1 enterprise clients, with implementations underway and a promising pipeline of household-name enterprises expected to contribute to revenue uplift in the near term.
Leadership Confidence and Future Outlook
CEO Mark Reilly expressed strong confidence in the company’s trajectory, emphasizing the scalability of IODM’s Connect Platform and the momentum generated by the expanded sales teams. The company’s ability to exceed revenue expectations and onboard prestigious institutions across multiple geographies positions it well for continued growth in Q3 and beyond.
Additionally, the receipt of a $504,000 R&D tax offset during the quarter supports ongoing innovation efforts, while controlled increases in operating outflows reflect strategic investments in sales capacity.
Bottom Line?
IODM’s Q2 momentum sets the stage for accelerated global expansion, with North American deals and new university onboardings poised to drive the next wave of growth.
Questions in the middle?
- How quickly will newly onboarded universities in North America and France begin contributing to revenue?
- What impact will the expanded sales teams have on contract conversion rates in Australia and other regions?
- Can IODM sustain its rapid UK Education growth amid evolving market dynamics and competitive pressures?
