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By Meg Flippin, Benzinga
Universities and small businesses play a big role in reskilling workers for the jobs of tomorrow, but many are forced to balance that responsibility with the costs associated with offering classes and training. In lots of cases, they can only offer the bare minimum. Amesite (NASDAQ: AMST) is helping level the playing field for higher education with its technology-forward no-risk approach.
Thanks to advances in technology, the Detroit-based company that provides an online learning platform is able to deliver what it believes is the best deal in edtech. Instead of charging anywhere from $250,000 to $500,000 in set-up fees to edtech customers, Amesite has a no-fee model where customers pay monthly per user. That approach expands the market for Amesite and enables companies and universities to provide professional training without big upfront investments.
“Now that we moved from an executive sale with a high setup fee to one with no fees it affords us the ability to reach a broader array of higher education partners and businesses,” said Amesite founder and CEO Dr. Ann Marie Sastry during the company’s recent shareholder update.
Amesite says that it also gives the company a more predictable revenue stream with users paying a fixed fee per month per course. The sales process is also made easier because of the lack of startup costs. That has created a much more efficient sales cycle for Amesite, and the company says sales-qualified leads have seen a nearly 200% increase from the first quarter of 2023 to the first quarter of 2024. “We’re extremely busy and extremely excited about our ability to execute in that segment,” said Sastry.
Speed Gives Amesite An Edge
All of this is made possible thanks to Amesite’s technology-first approach aimed at improving the outcomes of learners. With its platform courses can be added quickly, programs are adaptable and users stay engaged. In one example, Amesite was able to onboard 50 courses in four days for EWIE Group of Companies, a commodity management company that provides training to more than 1,000 employees located around the globe. Its old platform fell way short when it came to engagement, but that changed with Amesite. Less than a quarter after courses began, employee scores were 91%, against a target of 70% for passing.
That speed is rare in the e-learning industry and is made possible thanks partly to Amesite’s partnership with Microsoft Corp.’s (NASDAQ: MSFT) Azure cloud unit. By migrating its application to Azure infrastructure and its data to Azure Database for PostgreSQL, Amesite can now onboard customers in 24 hours or less and can easily scale up – all at half the infrastructure cost.
Harnessing The Power Of AI
Amesite also leverages GPT-4 – the AI system powering Bing and ChatGPT Plus – to offer AI capabilities such as learning and creative assistants, educational games, interactive learning experiences, leaderboards and other learning incentives to keep students engaged. Amesite’s V6 can integrate thousands of application programming interfaces (API), which means it works with most companies and schools’ programs.
Thanks to AI and Azure, Amesite can offer tailored e-learning solutions in partnership with customers, making sure workers and students have access to the latest tech and the most up-to-date content whether it changes daily, weekly, monthly or yearly.
More Growth On The Horizon
All of that presents a potential opportunity for investors looking to get exposure to the online learning market, which is projected to reach a value of $602 billion by 2030, growing at a CAGR of 17.2% over 2023-2030. With $5.4 million in cash in the bank, Amesite seems to be well-positioned to expand its platform and add more cutting-edge technology, all while keeping costs down. It’s the reason the company is seeing double-digit revenue growth – in Q2 2023 Amesite reported a 21.96% increase in revenue year-over-year.
The need to retrain workers and educate new ones is growing as companies wrestle with the ever-changing skill requirements of the digital economy. Set-up costs are a major barrier for many edtech providers. Amesite is changing that with its no-fee no-risk offer.
This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.
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