Online lessons sales strengthens Velpic’s revenue model

By Trevor Hoey. Published at Nov 2, 2016, in Technology

Provider of cloud-based video e-learning, Velpic Group (ASX: VPC), announced on Tuesday that its online Lesson Marketplace product was live, a development which is important in terms of enhancing the company’s revenue model.

The product offers customers the ability to purchase ‘off-the shelf’ e-learning lessons on demand with VPC’s library currently offering a selection of more than 90 lessons.

Customers can purchase lessons from the company’s velpic.com website with pricing ranging between $1.05 and $15 per lesson charged on a per registered user basis.

The library is made up of lessons that have been sourced and licensed from leading e-learning creators including Learning Heroes. Content available is most relevant to small to medium size enterprises (SMEs), and it is pitched at the delivery of everyday essential learning tools rather than contributing to the attainment of qualifications.

As indicated below, more than $100 billion annually is invested in upskilling employees through the global e-learning market.

VPC stands to generate income from a wide range of industries including human resources, environmental awareness, project management and consumer rights. This diversification along with the fact that it targets base skills provides insulation against cyclical movements across industries.

Looking at where this fits into VPCs broader strategy Chief Executive Russell Francis said, “In addition to building Velpic’s revenue model, the new Lesson Marketplace is expected to become a differentiator in the decision-making process of potential new customers with the expectation that more will convert to paying subscribing customers driving the company’s recurring SaaS revenue”.

It should be noted that Velpic is an early stage play and anything can happen, so seek professional financial advice if considering this stock for your portfolio.

Francis also highlighted that the pay per seat licensing model has significant scalability potential. While this development appears to pave the way for future growth, potential investors should not make assumptions regarding such developments as they may not be achieved.

Those considering an investment in this stock should seek independent financial advice.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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