- \n
- PowerSchool delivers first quarter total revenue within guidance, reiterates full-year 2023 outlook for total revenue<\/b><\/li>\n
- GAAP net loss per diluted share improves 4% over the prior year to ($0.07), Non-GAAP Net Income per diluted share improves 13% to $0.18, and Adjusted EBITDA* grows 16% to $49.4 million<\/b><\/li>\n
- Adjusted EBITDA exceeds guidance, full-year 2023 outlook for Adjusted EBITDA reiterated<\/b><\/li>\n
- ARR* increases 10% over the prior year to reach $612 million as of March 31, 2023<\/b><\/li>\n
- NRR* of 109.1% improves 240 basis points from the first quarter of 2022<\/b><\/li>\n<\/ul>\n
FOLSOM, Calif.–(BUSINESS WIRE<\/a>)–
\nPowerSchool Holdings, Inc. (NYSE: PWSC) (\u201cPowerSchool\u201d or the \u201cCompany\u201d), the leading provider of cloud-based software for K-12 education in North America, today announced financial results for its first quarter ended March 31, 2023.<\/p>\n\n\u201cWe started 2023 with a solid quarter of operational execution, continued product innovation, and go-to-market success as customers recognize the value of our advanced platform of software and data solutions. Strong net retention and a record quarter of new logo bookings drove double digit ARR growth,\u201d said Hardeep Gulati, PowerSchool CEO. \u201cWe will continue to focus on delivering solutions that increase the effectiveness, efficiency, and outcomes of K-12 organizations and their students, which will result in durable long-term returns for our shareholders.\u201d<\/p>\n
First Quarter 2023 Financial Results<\/b><\/p>\n
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- \nTotal revenue was $159.5 million for the three months ended March 31, 2023.<\/p>\n<\/li>\n
- \nSubscriptions and support revenue was $141.1 million, up 9% year-over-year.<\/p>\n<\/li>\n
- \nGross profit was $90.0 million, or 56% of total revenue, and Adjusted Gross Profit* was $108.5 million, or 68% of total revenue.<\/p>\n<\/li>\n
- \nNet loss was $14.8 million, or negative 9% of total revenue, and Non-GAAP net income* was $35.4 million, or 22% of total revenue.<\/p>\n<\/li>\n
- \nAdjusted EBITDA* was $49.4 million, or 31% of total revenue.<\/p>\n<\/li>\n
- \nGAAP net loss per basic and diluted share was $(0.07) on 160.5 million shares. Non-GAAP Net Income per diluted share* was $0.18 on 199.4 million shares outstanding.<\/p>\n<\/li>\n
- \nNet cash used in operations was $60.0 million, and Free Cash Flow* was negative $70.1 million.<\/p>\n<\/li>\n
- \nARR* was $612.3 million, up 10% year-over-year, and NRR* rate was 109.1%, consistent with the prior quarter.<\/p>\n<\/li>\n<\/ul>\n
\n* Definitions of the key business metrics and the non-GAAP financial measures used in this press release and reconciliations of such measures to the most closely comparable GAAP measures are included below under the headings \u201cDefinitions of Certain Key Business Metrics\u201d and \u201cUse and Reconciliation of Non-GAAP Financial Measures.\u201d<\/p>\n
Recent Business Highlights<\/b><\/p>\n
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- Unlocking the Power of K-12 Data:<\/b> Saw significant traction in the market for its data-centric solutions, which include Unified Insights\u2122, Unified Insights\u2122 MTSS, and Connected Intelligence DaaS. Six of the largest ten transactions in the first quarter included at least one of these analytics solutions, with particular demand for Connected Intelligence DaaS as districts and states are beginning to see the value of coalescing, connecting, securing, and analyzing their disparate student and operations data.\n<\/li>\n
- International Expansion:<\/b> Announced the strategic partnership with Board Middle East (BME) to resell and support PowerSchool products in the Middle East region. With offices in Riyadh and Beirut, BME will expand educators’ and students’ access to PowerSchool’s platform of solutions in Saudi Arabia, Qatar, and Kuwait, countries with approximately 8 million enrolled students. As part of the agreement, BME has committed to deliver PowerSchool products to 750,000 students in the first year.\n<\/li>\n
- Ellucian Partnership:<\/b> Announced a partnership expansion with Ellucian Company L.P. (Ellucian), a market leader in higher education software, to include K-20 data analytics and deeper product and data integrations between PowerSchool and Ellucian. With PowerSchool’s leadership in K-12 solutions and data and Ellucian’s prominence in the higher education technology space, this partnership creates a powerful opportunity for countries, states, and local communities to better understand and connect student lifecycle data to optimize educational and career success.\n<\/li>\n
- State and Territory-Wide Success:<\/b> Continued winning large, multi-district deployments of the PowerSchool platform, including the Puerto Rico Department of Education (PRDE). PRDE’s purchase of PowerSchool SIS and Ecollect Forms solutions helped drive a record level of dollar bookings from new logos in the first quarter. The win showcases how agencies that have set a strategic goal to modernize and digitize their operations can leverage PowerSchool’s differentiated and unified platform.\n<\/li>\n
- Platform Evolution:<\/b> Announced the development of a proprietary localization framework to enable customers outside of North America to tailor PowerSchool solutions for their specific region. This includes critical user experience support for right-to-left language as well as language translation capabilities. This framework’s ease-of-use, efficiency, and enhancement capabilities showcases the extensibility of the PowerSchool platform’s core technology.\n<\/li>\n
- Awards & Recognition<\/b>: Received several awards, including:\n
- \n
- \n11 Globee\u00ae Awards for PowerSchool\u2019s ongoing commitment to customer support and service awarded at the 10th annual 2023 Globee\u00ae Awards. This was the third consecutive year that PowerSchool has been recognized by the Globee\u00ae Awards for Sales, Marketing, Service, and Operations.<\/p>\n<\/li>\n
- \nPowerSchool Unified Classroom\u00ae recognized as a winner in The EdTech Awards 2023 by EdTech Digest. The solution was named a \u201cCool Tool\u201d winner for the learning management system (LMS) category.<\/p>\n<\/li>\n
- \nPowerSchool recognized for ongoing commitment to customer support and service with 12 Stevie\u00ae Awards in the 17th annual Stevie Awards for Sales & Customer Service. This is the third consecutive year that PowerSchool has been recognized by the Stevie\u00ae Awards for Sales & Customer Service.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\nCommenting on the Company\u2019s financial results, Eric Shander, PowerSchool President and CFO, added, \u201cWe are pleased with our performance in the first quarter, where we expanded our Adjusted EBITDA margin by 250 basis points over the prior year. We remain focused on expanding our operating leverage while continuing to invest in solution innovation and market expansion that will drive sustainable long-term growth in our top and bottom lines.\u201d<\/p>\n
Financial Outlook<\/b><\/p>\n
\nThe Company currently expects the following results:<\/p>\n
- International Expansion:<\/b> Announced the strategic partnership with Board Middle East (BME) to resell and support PowerSchool products in the Middle East region. With offices in Riyadh and Beirut, BME will expand educators’ and students’ access to PowerSchool’s platform of solutions in Saudi Arabia, Qatar, and Kuwait, countries with approximately 8 million enrolled students. As part of the agreement, BME has committed to deliver PowerSchool products to 750,000 students in the first year.\n<\/li>\n
- Unlocking the Power of K-12 Data:<\/b> Saw significant traction in the market for its data-centric solutions, which include Unified Insights\u2122, Unified Insights\u2122 MTSS, and Connected Intelligence DaaS. Six of the largest ten transactions in the first quarter included at least one of these analytics solutions, with particular demand for Connected Intelligence DaaS as districts and states are beginning to see the value of coalescing, connecting, securing, and analyzing their disparate student and operations data.\n<\/li>\n
- GAAP net loss per diluted share improves 4% over the prior year to ($0.07), Non-GAAP Net Income per diluted share improves 13% to $0.18, and Adjusted EBITDA* grows 16% to $49.4 million<\/b><\/li>\n
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