Cluey Ltd Boosts New Student Enrolments 24% While Cutting Cash Burn Nearly Half

• 24% increase in new student enrolments year-on-year
• Only 5% rise in customer acquisition costs, enhancing cost-effectiveness
• Underlying EBITDA loss narrowed by 7% compared to prior corresponding period
• Cash burn reduced by 46% to $1.2 million in Q3 FY25
• Total cash on hand stood at $4.3 million at quarter end

Strong Student Growth Amid Cost Discipline

Cluey Ltd (ASX: CLU), the Australian Edtech company specialising in personalised online tutoring and co-curricular programs, has released its Q3 FY25 quarterly activities report, revealing a notable 24% increase in new student enrolments compared to the prior corresponding period. This growth was achieved with only a modest 5% increase in customer acquisition spend, underscoring the company’s improved efficiency in attracting new students.

CEO Matteo Trinca highlighted this quarter as a pivotal moment in Cluey’s journey towards profitability, emphasizing the company’s ability to grow its student base cost-effectively. The enrolment surge was supported by a combination of online tutoring sessions and the popular Cluey Code Camp programs, which continue to expand across Australia, New Zealand, and the United Kingdom.

Financial Performance and Margin Pressures

Despite the positive enrolment trends, Cluey’s underlying EBITDA loss narrowed only slightly by 7% to -$1.7 million in Q3 FY25, reflecting seasonal factors such as extended summer holidays and public holidays in New South Wales, which temporarily reduced tutoring activity. Additionally, margin compression was noted due to a higher proportion of students opting for lower-priced starter plans and promotional offers, which, while boosting enrolments, exerted downward pressure on average revenue per student.

The company also reported a decline in gross margin from 58.2% in Q3 FY24 to 55.3% in Q3 FY25, primarily driven by increased delivery costs and a strategic decision to invest in customer acquisition ahead of revenue growth. Cluey is actively implementing initiatives to improve margins, including optimizing pricing structures and operational efficiencies.

Cash Flow Improvements and Capital Position

Cluey’s cash burn improved significantly, dropping by 46% to $1.2 million in the quarter, compared to $2.2 million in the prior corresponding period. This reduction reflects disciplined cost management and a shift in focus from expense reduction in FY23 and FY24 to sustainable revenue growth and profitability in FY25.

The company ended the quarter with $4.3 million in cash and term deposits, providing a runway of approximately 4.5 quarters based on current operating cash flows. Operating cash flow improved by 49% year-on-year, with receipts from customers totaling $6.4 million, albeit seasonally impacted by holiday pauses in tutoring.

Outlook and Strategic Focus

Management remains optimistic about returning to top-line growth and achieving profitability, supported by the strong enrolment momentum and efficient customer acquisition. The company continues to invest in marketing and program delivery to sustain growth, while carefully managing margins and operating expenses.

Cluey’s diversified offerings, including online tutoring and Code Camps, position it well to capture ongoing demand for flexible, technology-enabled education solutions in Australia and internationally. However, the company will need to navigate seasonal fluctuations and pricing pressures as it scales.

Bottom Line?

Cluey’s Q3 results mark meaningful progress, but sustaining growth and margin recovery will be critical as it pushes toward profitability.

Questions in the middle?

• Can Cluey sustain its improved customer acquisition efficiency as it scales?
• How will promotional pricing strategies impact long-term revenue and margins?
• What are the company’s plans to mitigate seasonal revenue fluctuations in future quarters?