EpicQuest Education Pre-Announces Full Year 2024 Revenue of $9.2 Million Representing a 61% Year-over-Year Increase

Rhea-AI Summary

EpicQuest Education (Nasdaq: EEIQ) pre-announced expected full year revenue of $9.2 million for fiscal year ended September 30, 2024, representing a 61% increase from $5.8 million in fiscal 2023. The growth is attributed to increased international student enrollment through foundational and collaborative programs established in students' home countries.

The company operates Davis University in Toledo, Ohio, and EduGlobal College in Vancouver, Canada, while also recruiting for the English Language Center of Miami University. Their strategy focuses on internationalization through collaborative programs and foundational studies that prepare international students for university education in the US, Canada, and other countries.

Positive

• Revenue increased 61% year-over-year to $9.2 million
• Strong growth in international student enrollment
• Expanded revenue streams through international foundational programs

Negative

• None.

Insights

Financial Analyst

The $9.2 million revenue pre-announcement represents a significant milestone for EpicQuest Education, marking a robust 61% year-over-year growth. This substantial increase is particularly noteworthy given the company's small market cap of $13.6 million. The growth is primarily driven by international student enrollment through innovative foundational and collaborative programs.

The company's diversification strategy across multiple revenue streams - including Davis University, EduGlobal College and international preparatory programs - creates a sustainable growth model. The focus on establishing foundational programs in students' home countries is particularly strategic, as it builds a pipeline of future enrollments while generating immediate revenue. This dual-benefit approach could lead to compounding growth in future periods.

However, investors should note that despite the impressive revenue growth, the company's market cap remains relatively small, suggesting either market skepticism about long-term profitability or concerns about scalability. The absence of profit margins or bottom-line figures in this pre-announcement leaves questions about operational efficiency and profitability.

Education Market Analyst

EpicQuest's multi-pronged expansion strategy in international education markets shows strong execution. The company has effectively positioned itself at multiple entry points in the international education value chain - from preparatory programs in students' home countries to owned institutions in key markets like the US and Canada.

The establishment of foundational programs internationally is particularly shrewd, addressing a critical pain point in international education: the preparation gap between home country education systems and Western university requirements. This approach not only generates immediate revenue but also creates a reliable student pipeline for their owned institutions.

The focus on collaborative programs with elite institutions adds credibility and differentiates their offering in a competitive market. The geographic diversification across Ohio, Vancouver and international markets reduces dependency on any single market or regulatory environment. This model appears well-positioned to capitalize on the growing global demand for Western education, particularly from Asian markets.

MIDDLETOWN, Ohio, Dec. 5, 2024 /PRNewswire/ -- EpicQuest Education Group International Limited (Nasdaq: EEIQ), ("EpicQuest Education", "EEIQ" or the "Company"), a provider of higher education for domestic and international students in the US, Canada and the UK,  today pre-announced that its full year revenue for its fiscal year ended September 30, 2024 is expected to be approximately $9.2 million. This represents a 61% increase compared to full year revenue of $5.8 million for its fiscal year ended September 30, 2023.

"Our pre-announcement of $9.2 million in revenue for fiscal 2024 is driven by the strong increase in international student enrollment attributable to our innovative foundational and collaborative programs that we have established in international students' home countries," EpicQuest Education CFO Zhenyu Wu commented. "The exporting of our unique academic programming enables international students to prepare for university study in the US, Canada and other countries, and it creates a large pool of future students for enrollment at our owned and operated Davis University and EduGlobal College."

EpicQuest Education's recruitment for Davis University, located in Toledo, Ohio, extends to the entire state of Ohio, and the Company has enlisted industry and local partners to diversify its student population. The Company's recruiting for EduGlobal College, located in Vancouver, Canada, has been enhanced by its university transfer program and its recently announced cooperative diploma program. The Company also recruits for the English Language Center of Miami University which continues to be a popular option for international students since it offers a pathway to achieving both bachelors' and advanced university degrees.  

In addition, EpicQuest Education has established several programs internationally that provide a current revenue stream for the Company while developing an internationally based recruitment pool for its owned and operated Davis University and EduGlobal College. Foundational programs are a course of study for international students to acquire the skills needed to ensure their success at colleges and universities. In addition, the Company's collaborative academic programs are developed in conjunction with elite educational institutions around the world that has resulted in premier academic programming in specific courses of study.

EpicQuest Education's Strategy of Internationalization

EpicQuest Education believes that its collaborative programs for Davis University and EduGlobal College, its two owned and operated institutions of higher learning, are a key element of its internationalization strategy to expand its student enrollment and academic programming. The Company's strategy provides enhanced globalized learning and enriched multicultural experiences that can help students reach their full potential and better prepare them for careers in the global economy. Further, EpicQuest Education's strategic growth plan has increased its international student enrollment in recent periods which can lead to strong and sustainable financial results.

About EpicQuest Education Group International Limited

EpicQuest Education Group International Limited ("EpicQuest Education" or the "Company") provides comprehensive education solutions for domestic and international students seeking university and University degrees in the US, Canada and the UK. The Company owns and operates EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company operates and is a 70% owner of Davis University, a career training university located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the Miami University Regional campuses, where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company is also a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the UK. EpicQuest Education recently established a wholly owned subsidiary, Gilmore Inv LLC ("Gilmore"), in Ohio, that will offer international educational programs related to kinesiology and recreation education. The Company also established a company in Ohio, SouthGilmore LLC that has been formed to organize sports-related entertainment projects, which is 40% owned by Gilmore. For more information, please visit www.epicquesteducation.com/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include, without limitation, the Company's projected revenue for fiscal 2024. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our most recent Form 20-F and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Contacts:

EpicQuest Education Group International Limited
+1 513-649-8350
info@epicquesteducation.com

Investor Relations:
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

Source: EpicQuest Education Group International Limited

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SOURCE EpicQuest Education Group International Limited

FAQ

What is EpicQuest Education's (EEIQ) expected revenue for fiscal year 2024?

EpicQuest Education pre-announced expected revenue of $9.2 million for fiscal year ended September 30, 2024.

How much did EEIQ's revenue grow compared to fiscal year 2023?

EEIQ's revenue grew 61% compared to fiscal year 2023, increasing from $5.8 million to $9.2 million.

What educational institutions does EpicQuest Education (EEIQ) operate?

EEIQ operates Davis University in Toledo, Ohio, and EduGlobal College in Vancouver, Canada, while also recruiting for the English Language Center of Miami University.