Genius News

Genius Group

On Friday, last week, we announced our financial results for the first half of 2023.

Roger Hamilton shared “We are extremely pleased with the revenue growth we have achieved in the first six months of 2023, and anticipate reporting even stronger numbers for the second half of the year. We believe that the revenue growth we have experienced exceeds the industry as a whole, and underlines the demand for our unique entrepreneur curriculum and the strength of our Edtech business model."

“With the launch of our Genie AI and Genie Metaversity, providing AI-driven personalized learning and virtual global classrooms, we are well positioned towards our long-term goal of impacting 100 million students globally with the 21st century skills they need to succeed.”

Financial Highlights for the First Half of 2023:

• First half revenue of $11.8 million, 120.76% growth over first half of 2022. The revenue on a pro forma basis was $9.0 million, which excludes the spin off entity, Entrepreneur Resorts Ltd
• First half gross margin of $6.2 million or 52.58% compared to $2.2 million or 41.75% in first half of 2022. The pro forma gross margin was $4.3 million or 48.33% for the six months ending June 30, 2023
• First half adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share compared to adjusted EBITDA net loss of ($2.0) million or ($0.11) per basic and diluted share in first half of 2022. First half 2023 adjusted EBITDA net loss of ($7.3) million, or ($0.22) per basic and diluted share on a pro forma basis
• First half net loss of ($10.8) million, or ($0.32) per basic and diluted share compared to ($3.5) million, or ($0.20) per basic and diluted share. On a pro forma basis, first half 2023 net loss was ($10.8) million, or ($0.32) per basic and diluted share
• $2.6 million cash and equivalents as of June 30, 2023, compared to $5.7 million as of December 31, 2022
• Adjusting 2023 full year guidance to $26.0 million to $29.0 million

Erez Simha, our group CFO, added: “While the company has put significant focus on various corporate actions and incur significant increased costs in 2023 to protect our shareholders, we have done so while growing our student base and gross margins. We remain committed to achieving our revenue growth targets while cutting costs and moving towards a cash positive operating model.”

Student and Partner Growth Highlights for the First Half of 2023

The Company exceeded its growth targets for students and partners:

• Students and users growth of 21%, from 4.5 million students at the end of 2022 to 5.4 million students and users at the end of June 2023, representing an annualized growth rate of 41%
• Paying students and users growth of 4%, from 171,919 students and users at the end of 2022 to 179,149 paying students and users at the end of June 2023, representing an annualized growth rate of 8%
• Partner growth of 1% from 14,760 at the end of 2022 to 14,942 in June 2023, representing an annualized growth rate of 2%

Strategic and Operational Highlights for the First Half of 2023

• Genius Group won Real Leaders Impact awards in January 2023
• Launched California Business School at UAV and Global Entrepreneurship Program at GeniusU in February 2023
• Strategic partnership with Swiss School of Business Management to launch international DBA in March 2023
• Launched the Alpha and Beta version of the Genie AI in April and June 2023 to assist students throughout their learning journey on GeniusU
• Launch of Genius Metaversity in June 2023, a virtual reality learning environmental in partnership with Vatom to hold educational courses and summits in the Metaverse
• Launch of $1m entrepreneur scholarship fund for students at the University of Antelope Valley with AI Entrepreneur Certification in June 2023
• Launched legal action against illegal trading activities in company shares
• Distributed $10 NFT Coupon to Genius Group investors in March 2023
• Spin off of Entrepreneur Resorts was approved by the Board of Directors in January 2023, approved by shareholders in May 2023 and approved by the Singapore High Court in August 2023.

Recent Strategic and Operational Highlights

• Appointment of Jennifer Brady as Head of Digital Marketing to lead marketing efforts across our subsidiaries
• Appointment of Jason Jaingue as Head of Global Product to enhance our customer and partner experiences across all of our products
• Genius Group Launches Genius Metaversity 2.0 in Partnership with Vatom and GeniusX
• Signed, executed and delivered a bridge note with an accredited investor in the face amount of $3.2 million, which has a $200,000 original issue discount, out of it $2M were received by the company in July and August
• Senior Secured Convertible Note signed in August 2022 with Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B has been reduced to current balance of US$53,344 as of August 2023
• Dual listed Genius Group on Upstream on April 6, 2023 but delisting expected on or about September 29, 2023 due to complex securities regulations arising from dual listing on Upstream and NYSE and de minimis use of Upstream by GNS shareholders
• ERL was dual listed on Upstream in September 2023 and the share dividend distribution and spin off date is expected to be on 2 October 2023

Financial Guidance

Genius Group changes its 2023 financial guidance:

• 2023 revenue of $26 million to $29 million compared to 2022 revenue of $18.2 million
• 2023 net loss of ($15.5) million to ($17.0) million compared to 2022 net loss of ($55.3) million (before expected adjustments writing back contingent liabilities at year end, which will reduce net loss)
• 2023 adjusted EBITDA net loss of ($10.0) million to ($12.0) million compared to 2022 adjusted EBITDA net loss of ($7.8) million
• Number of students and users between 5.7 million and 6.0 million, a 27% to 33% increase from 4.5 million students and users in 2022

Changes in the financial guidance are mainly driven by:

• The exclusion of Entrepreneur Resorts Ltd financial performance due to the spin off
• The delay of several new product launches, partnerships and acquisitions
• Restructuring of business model of most recent acquisition
• Significant increase in professional cost due to spin-off, investigation and audit.

University of Antelope Valley

                  

Adriana Velasco is an outstanding graduate whose journey is a testament to the flexible and supportive environment UAV provides.

Adriana, a devoted mother, was drawn to UAV because of the unique program structure that accommodated her demanding schedule. Balancing full-time work during the day with evening classes allowed her to seamlessly manage her responsibilities as a mother and pursue her academic aspirations. Adriana’s determination and commitment led her to complete both her Bachelor’s and Master’s degrees in Criminal Justice at UAV.

However, this journey was not without its challenges. She had to master the art of organization and balance to excel in her roles as a working mom and a dedicated student. Late-night research papers and multitasking during family gatherings became her norm as she strived to ensure that her children always came first.

Today, after 3.5 years for her Bachelor’s and 1.5 years for her Master’s degree, Adriana’s UAV education has empowered her with the career and financial freedom she enjoys. She currently holds a prestigious position at Tarzana Treatment Centers, where she serves as the head operation supervisor for the admissions department. In her role, she assists individuals in enrolling in various rehabilitation programs, including outpatient, intensive outpatient, and residential services.

Adriana’s background as a counselor uniquely equips her to support individuals with addiction issues intertwined with legal challenges, and she actively collaborates with probation, parole, and other law enforcement agencies to ensure comprehensive care. Her journey is a true testament to the transformative power of a UAV education.

Events

Thursday 12th October: 4pm London / 5pm Paris / 11am New York / 8am San Francisco

Unlocking your Evolutionary Superpower in the Age of AI
Hosted by GIFEW

This isn’t just about AI as a tool – it’s about us embracing our unique strengths, finding our flow, and aligning with our purpose along with it. It’s about stepping into the future with confidence and clarity, while preserving our authentic femininity and that special human touch that sets us apart. In this 75-minute journey, we’ll dive deep into strategies that allow us to not just survive but thrive alongside AI.

You can find more events on our GeniusU platform here.