Janison Education Group Limited (JAN) Earnings Call Transcript & Summary

Good morning, everyone, and welcome again to the FY '21 Janison Investor Update. I am your moderator for today, and I will be handing over shortly to our CEO, David Caspari; and CFO, Stuart Halls. [Operator Instructions] After the update, around 11:50, we will have a 10-minute Q&A window in which we'll have a look at any questions you may have. [Operator Instructions] Please note, this session will also be recorded. I will now hand over to David Caspari, CEO, from Janison. Over to you, David.

Thank you, Sanne. And welcome to all of our investors today for Janison's FY '21 Investor Update. Before I get started, I just want to send my wishes to all of you, your families, your loved ones through what is an extraordinary time and just want to make sure that you're looking after your well-being, keeping yourself healthy and navigating this time as best you can. It's my pleasure today to present Janison's operational and financial results for FY '21, and it's an exciting time for Janison. We've announced some great financial results today. The results of a decade maturing, perfecting our capability as well as the transformation that we began almost 18 months ago. In particular, we've reshaped our portfolio to focus on our suite of school assessments products and on our assessment platform and a portfolio now that collectively delivers on our promise, which is to unlock the potential in every learner. Our strong focus in the last 14 to 18 months has been on operational execution, on customer experience and on our growth drivers of PISA for Schools, our ICAS products and our Insights core assessment platform. And that's enabled us to deliver a record year, a record in revenue, a record in annualized recurring revenue dollars, a record in annualized recurring revenue growth and a very strong cash position, but most pleasingly in our key metrics of assessment, annualized recurring revenue growth and gross margin expansion. I'm so proud to be leading Janison and working with our Board and an extraordinary and diverse team. And we've now established firm foundations that we know will unlock our sustained performance over the medium term. So many of you have been on the journey with Janison since our listing in 2017. But that said, we've seen a very significant lift in our investor register in the last 12 months. So for that reason, we're going to be stepping through a company overview, followed by our highlights of the year that's passed, our financial results, an outlook in -- for FY '22 and then beyond that in horizon and then a very short deep dive on our key growth engines. So for those of you that are new to the Janison's story. We're a leader in digital assessments. And that's important because from a market standpoint, it places us very well where school assessment is a core piece of the rapidly expanding school EdTech market and where schools represent more than half of all of the education TAM, or target addressable market. It creates an enormous opportunity. And we're only at the start of what we believe is a 10-plus year growth cycle in the digitization of assessments and the taking of assessments online. A core piece of Janison's differentiation, a core piece of our IP, is our standard assessment platform called Janison Insights, and it's been built and perfected over the last 10 years in partnership with some of the largest jurisdictions such as the Australian Commonwealth, New South Wales Department of Education, the Singapore government and other large jurisdictions. And what it means is we're now a flagship in the market, in a market where the barriers to entry are very, very high. Our assessment products, which also sits on that platform of the ICAS portfolio, but also our PISA for Schools partnership are flagships and differentiated in the market. And our assessment platform has set all sorts of benchmarks in FY '21. We delivered 6.5 million digital exams in 117 countries. And our platform as a stand-alone platform with NAPLAN set the global benchmark for high-volume, high-stakes exams. Many people are asking us what COVID is doing to the dynamics in our business. And as our FY '21 results have demonstrated, our business is not just resilient, but we're seeing shifts and accelerations and permanent adoption of digital and online assessments only accelerate as a result of COVID. As I said before, one of our key metrics is ARR growth in our assessments portfolio. And our 3 core growth engines that drive our assessment ARR are PISA for Schools, ICAS Assessments and customers on our assessment platform. And I'm delighted with the performance of all of those in FY '21. PISA for Schools continues to flourish, and we see an opportunity in the medium term of that being a $30-plus million per annum ARR partnership with the OECD and with dozens of countries around the world. ICAS Assessment has had a very successful year, particularly with the ICAS competition, and it's poised for further growth in FY '22 and with a medium-term aspiration and objective of $20-plus million per annum. And our assessment platform business has gone from strength to strength. We see that as having a horizon target of $20-plus million as well. We saw 6 new logo customers join Janison on our assessment platform, including Australia and New Zealand Chartered Accountants, a $5 million-plus TCV, $1 million-plus a year partnership in business; expansion in key strategic customers such as New South Wales Department of Education, and I'll cover that a little bit later; expansion in roads and maritime services; benchmark performance and a very successful NAPLAN 2021; and true innovation with SCIO in the Czech Republic and the University of London, where we helped those organizations go online for high-stakes tests in a remote proctored form in the middle of COVID. Our commitment to equity is at the core of everything we do. And our Founder, Wayne Holden, more than 20 years ago was a teacher and he really created our founding ethos, and that is that all learners deserve the opportunity to realize their potential. And that's now encapsulated in our reimagined purpose, which is to unlock the potential in every learner. And I do want to stress the word every because every is a very precise statement that speaks to our commitment to equity. Whether people are in some of the wealthiest socioeconomic countries with access to technology or whether they're in some of the poorest locations, nations or where Internet access is poor, our purpose is to be able to provide the same experience and to unlock the potential across all. And we've embedded it in our technology, whether it be low no bandwidth technology, which allows indigenous communities in the Northern Territory to participate in the likes of NAPLAN even though Internet connectivity is poor, to our branching technology, which means independent of learn and knowledge and skill set, they can find the right assessment pathway that allows them to be assessed and the insights to be gathered. And it's been a very successful and transformational year for Janison. We scaled our sales and marketing investments and capability as we said we would do from 8% of revenue to about 16% of revenue. We accelerated our product development. We brought significant new talent into -- in the company, including a refreshed leadership team, an extraordinary leadership team. We clarified and simplified our strategy, which is now clear and very simple and anchored on PISA for Schools, ICAS Assessment and our assessment platform. And we've now established a very clear path to an $80 million to $100 million annualized recurring revenue horizon. At the final weeks of the year, we also had a heavily oversubscribed and successful capital raise. So why Janison? Well, as I mentioned at the start, our platform is being developed in partnership with jurisdictions at a national level, at a state level and at a global level over many, many, many years. And high-stakes, high-volume assessment is very different to a year 6 teacher running a quiz for her classroom for 20 kids to understand where they are. What we do is where organizations, large jurisdictions require an organization they can trust to provide an assessment experience end-to-end, high stakes, high volume when it matters most, you come to Janison. And our assessment platform is also highly configurable. Even though it's a standardized platform, the experience and the development we've done through some of our largest customers means we have flexibility to meet the needs on our standardized platform of almost every customer need in the high-stakes, high-scale market, a market where there are very significant barriers to entry. And in terms of functionality, it directly addresses some of the key pain points that organizations have. At its very core, what we do is better and provides better insights than pen-and-paper exams. But it also puts data in the hands of educators almost immediately, which allows them to make the interventions and to drive learner improvement. Because teachers and administrators use it, it has to be simple. And it also integrates into their existing learning management and other student management systems. Ultimately, it puts the data and the insights into the hands of educators when they need it most. And I'll talk about a great example of that in our partnership with the New South Wales Department of Education in the last 12 months with our Check-In assessment. Finally, unlike at any other time before in this space, integrity and security really matters. As we grappled with helping organizations take their high-stakes assessment online and remote, the biggest question is how can you secure my data? How can you ensure that the integrity of a high-stakes assessment meets our needs? And whether it's for NAPLAN, whether it's for checking Chartered Accountants online and remote, whether it's for SCIO where we ran the university entrance exams for the entire Czech Republic, our credentials on integrity and security and high stakes are unparalleled. So if we move forward, it's now my pleasure to step you through some headlines on our FY '21 highlights, which arguably has been the best year in Janison's history. Our OECD partnership continues to flourish, and we've now partnered with the OECD in 15 countries, and we'll deep dive on that in subsequent sections later today. What that does is it establishes a very firm annualized recurring revenue base in FY '22 and beyond. We had our first successful delivery of ICAS with almost 300,000 tests and $5 million in new revenue, which exceeded even the highest expectations of management. And we realized a number of milestones for the company, $30 million of revenue passed for the first time. 9 percentage points increase in gross margin, which is an absolute core lever for us, to 55% gross margin, on the way to those true platform and SaaS gross margin measures. And very pleasingly, a nonfinancial measure, but a very important cultural measure is for the very first time, we achieved workforce gender balance, and we now have more than 50% of our entire organization being female. And diversity goes far greater than just gender diversity. But it also is an important dimension, and we're very proud that we've reached this pleasing milestone. As we go through the rest of the presentation and we address questions later on, you'll hear us talk about our 2 key financial metrics that we orientate ourselves towards. The first being gross margin expansion, and we just spoke about a very positive gross margin expansion story from 46% to 55%. And Stuart will later talk about how we can take 55% up into the 60s and into the 70s through our growth engines. But the second key metric our -- we orientate ourselves towards is assessment annualized recurring revenue because the combination of assessment ARR and gross margin expansion makes us very sustainably cash generative in the next few years. And you can see as we unpack our full year group revenue below that headline $30 million revenue for the year, you can see our growth is coming from the right parts of our business, our assessment platform and our assessment products. And we are happy to be able to communicate and share a 117% year-on-year increase in assessment ARR. What we would like to continue to orient conversations on in the future is not just growth, but the quality of growth, the mix, the margin and the component of our business that is growing. At this point, I'd like to pass over to Stuart Halls, our CFO, to take us into a little bit more detail on FY '21 financials. Stuart seems to be having some challenges at the moment, as is the COVID world when we have -- when we work on Teams. What I will do perhaps is move forward to our FY '22 outlook. And then I'll ask Stu to come back to the FY '21 financials once we have our technology back on track. As you've heard just now, we've had very pleasing FY '21 results. And in FY '22, if we go to the next page, we expect to sustain this momentum from FY '21 into FY '22. We expect to see continued sales momentum. And we're continuing to see very strong pipeline growth, and I'll step through the components of that in a moment. ICAS, our pipeline, and our sales campaign for ICAS 2021 is progressing very, very well. We're right now at the very beginning of our ICAS 2021 year delivery. And we're already seeing tests run. Even through COVID, we've seen almost 20% of currently sold and purchased tests have now been completed for ICAS 2021. In PISA for Schools, we expect to see significant expansion in the 15 countries where we're already accredited or have partnered with a national service provider to take PISA for Schools to market, and we will go into that later. And in our assessment ARR and our platform customers, we continue to expect that we will expand our existing customer installed base as well as bring new logos on board, both domestically, but we now expect that we will start to see some additional international new logos in our assessment space. As a function of that growth and the growth mix, we will see acceleration of our gross margins because we will see -- because our gross margin mix in ICAS, PISA for Schools and our assessment platform naturally changes our margin percentage up. Now school lockdowns is obviously a critical question that I'm sure you'll raise. You could see that in FY '21, our business has been very resilient to COVID. And in fact, what we've seen is while we've seen some pressures in our business as a result to lockdowns, we've also seen at least the sign of new opportunities being created. In fact, right now, this minute, we're running in-person -- not in-person, remote HSC trials for students in New South Wales to help them get through this COVID crisis and provide them with educational continuity. So Stuart, we've -- the Teams has crashed and you're back on?

Yes, sorry about that. I'm not sure what happened. Just as I was joining -- expected to start, it all crashed. So apologies to everyone.

That's okay. So don't we get back down to FY '21...

Yes, let's just jump back, Sanne, to the financials, and I'll take it from there. Sanne, do you want to just go back up to the FY '21 financials, that's it, keep going a couple of slides up. Yes, perfect. All right. So just moving on to the next slide into the P&L. Excellent. Thanks for that. Look, I mean, on the whole, FY '21 was a great result. We saw, as David mentioned, record numbers in many areas, if not in all areas. Starting with revenue. We exceeded $30 million for the first time, which is fantastic. And a lot of that growth is really coming from platform revenue where we saw almost 60% growth. And that's really pleasing because as we shift our business and we talked about this throughout the presentation, as we shift the business away from the sort of heavy project services, clients with low margin, long projects and more into the platform revenue, high-margin recurring business, that's really starting to make an impact on our margins, which you'll see in a second. Overall revenue and platform revenue, particularly was driven by the 3 key growth drivers that David mentioned. So it's the PISA for Schools program, ICAS and adding new and expanding our assessment platform clients. Moving down the P&L to the margin lines, looking really good again. So $16 million of gross profit, 66% growth, margin of 55%. We saw last year in FY '20, an 11-point increase in gross margin. And now we're seeing another 9 points this year. And in a couple of slides, I think it's the next slide, you'll see a continuation that we've seen over the past few years of margin growth, and we'll talk about why that's happening. But again, as David already alluded to, we see -- we expect to see more of that coming into the future years as well. On OpEx or operating expenses, we did see a noticeable increase in FY '21. That wasn't a surprise. We are basically setting ourselves up for growth now. We deployed capital the we raised in April '20 on the things that we said we would. We -- which is primarily to build out the senior leadership team and also to establish a world-class sales and account management team. And the results of that team are now really started to take effect in, as you can see, in the revenue and higher gross margins and just on our ability to execute on our annual plans. That team that we now have in place has the capacity -- that leadership team and the sales and account management team, have the capacity to deliver more on the top line. So we won't see a lot of recruitment in FY '22. We also have some in places. But on the whole, that's largely complete. However, we will see a sort of annualization impact. A lot of those roles that we added this year were phased-in during the year. So we haven't really seen the full year's impact of that. So we will see a step-up in OpEx next year because of that. D&A, or depreciation and amortization stepped up again as well this year. But it's starting to level off now, which is good. And this reflects really the last few years we've seen a higher spending on our products. We're really investing in the platform to maintain our position but also to build out our items. So there's cushions that create the digital bank for our competitions like ICAS and in many other assessment products that we deliver for schools. Just moving on to the next slide. So we -- what we've got here is a sort of 6 monthly or half year gross margin chart showing dollars in the bars and the percentage in the line. And look, again, obvious to see that it's a really strong trend and sort of really getting us closer to more of the traditional or typical SaaS platform margins that you'd expect, and that's where we're heading. I think the second thing to take out on this chart is the fact that we finished the year with the second half stronger than the first half, with 57% gross profit, and that's a really good indicator as we go into FY '22. I think in general, the growth in margin hasn't come about through significant price increase or dramatic cost reductions. It's come about through mix and volume. We've really shifted our customer mix towards -- the majority of our revenue coming from customers who purchased the standard assessment platform now or our off-the-shelf products like ICAS. Previously, a large proportion of our revenue was from developing customer assessment platforms that generally were sort of low margin in nature. On top of that, we have increased -- seen an increase in volume. And with that volume comes a scale benefit as well an efficiency in margin. And in that -- on that vein to produce the ICAS assessment and other school products, it's largely a fixed cost base. And by that, I mean, once we sell over and above in revenue terms, the cost to cover or the amount to cover the fixed costs, those variable costs associated with the incremental revenue are really immaterial. And it's only a marginal cloud hosting expense that goes with it. So that's margin. Moving on to the next slide to look at cash flow for a moment. Again, I won't go through every single line item, but some key points to call out here are really strong customer receipts, $34 million for the year. And I think also it's worth mentioning the strength of our customers underneath. We have some really high-quality customers. We deal with governments, large enterprises, accreditation bodies, so very low credit risk clients. And on top of that, most of our customers, in fact, pay us upfront in advance for the year ahead for their license fees. In general, we are sitting on a bit more than the $23 million of cash on hand that it says there. We've received receipts from the ICAS assessment that's about to kick off this month. So we're on a bit more than $23 million, and we don't have any debt, which is great. So we're in a very healthy position. And we're ready to use those funds in accordance with what we said in the capital raise in June and July, and that's to accelerate investment in our 3 growth drivers and really capitalize with that money on the opportunities that we have ahead of us with things like PISA for Schools and ICAS in particular. One of the other reasons why we raised capital as aside from sort of shoring up the balance sheet and ensuring we have sufficient working capital now that we're a larger business than we were a year or 2 ago, it's also to look at acquisition opportunities, and we do have a pipeline of acquisitions. And we are in discussions at various stages with different companies, and we hope that in the not-too-distant future, we'll be able to publish news of an acquisition that we've completed on. So that's sort of it really for the financials. Very high level, just picking out the key points. Obviously, there's time at the end of questions and also we can take more detailed specific questions, either through the IR e-mail address or online. But for now, I'll hand you back over to David.

I think we'll go to -- I managed to cover a lot of the FY '22 outlook. So Sanne, if you could step forward to the horizon, I just will reiterate, we do expect to be able to keep the momentum that we built into FY '21 and FY '22. And the momentum will come from those key growth drivers of PISA for Schools, ICAS Assessments and assessment and platform growth. And as a core result of that, we will see that margin continue to improve as well.

Yes. Thanks, David. So yes, look, I mean, I think at this point here, we wanted to look at the horizon and starting out with the market that we operate in. I think we talk about this, but we don't really present a huge amount of detail on it. So maybe if we just go to the next slide, Sanne. I think the main thing to say is that we operate in a very, very large market. We operate in the education space and in particular, in digital assessments within EdTech. The EdTech market in 2021 was valued at $268 billion, and it's growing very quickly. It grew about 18% this year, and it's accelerating, as you can see between -- the difference between those 2 lines as a result of COVID forcing a transition to digital delivery of assessments and learning. Of this market, schools comprises more than half. And so with that, plus our history of developing school platforms and products for the schools market, this is why we are focused very heavily on the schools market. The other thing to note here is that the digital spend or the EdTech spend within the education market in the bottom 2 rows is very small. We're still talking about single digits, 4% or 5%, of the overall education market is digitized. And so that leaves another opportunity for this market. And we'll talk more about this later on, but the transition to digital technologies is -- will really start to drive that share of the overall education market up. Just moving on to the next slide. So within that overall market, of the size, which it is, these are some of the sort of more recent dynamics that we're seeing. One of them is governments around the world are spending up, increasing their education spend to try and address the issues that came about last year and this year through school closures. They're really trying to understand and identify where there are learning gaps among students and cohorts and investing in tools and technologies that help teachers get back on track. And that's a great thing for Janison. We have tools and platforms that really help educators assess where those learning gaps are among students and help to develop interventions that improve and lift education standards for those students. In terms of technology adoption, we were seeing a fairly increased level of investment across schools and education systems and departments, increasing their technology infrastructure. Through COVID, that has only accelerated it further. And we are seeing schools very rapidly uplifting their digital capability with improved infrastructure, network infrastructure, hardware and digital literacy in general. And then finally, for those schools that have tried to do something through COVID by maintaining continuity in their exams, particularly those end of year high-stakes exams, are using hybrid sort of solutions, whether it's pen-and-paper remote offering. They've already experienced it firsthand, and we've heard through our advisory board and other schools in our network, the problems they've had and the difficulty and the logistics and also the exam integrity more than anything that goes with those sort of hybrid solutions and really the need that's come about from that -- for them to adopt a proper digital assessment solution. So moving ahead. So this sort of gives you an idea of the size of the market and the dynamics that are taking place within the market. And then now what we're doing is we're presenting a sort of an outlook for the next 3 to 4 years as to where we see Janison heading in amongst all of that. And we've stated before a couple of times, we have this vision and a pathway now to $80 million to $100 million of revenue from the $30 million that we're at today by FY '25. And that comprises -- or the sort of the build to the $80 million to $100 million comprises 3 strategic growth drivers, which I'll step you through. Firstly, #1, at the top there, on the right-hand side is PISA for Schools program, which is the exclusive partnership that we have with the OECD. And we can see a path for this delivering in over 30 countries as the platform provider, generating approximately $5 million to $10 million. And then in the further 3 countries, as the full service national provider where we take on a larger role in delivering around about 1,000 schools in each of those countries at $7,000 which would generate $20 million to $25 million. So combined across the platform and the full service offering, we see this PISA for Schools program generating around about $30 million in FY '25. Secondly, moving down, ICAS Assessments. Historically, this competition has been delivered by about 1 million times per annum historically, quite consistently before it was digitized and before COVID. Now that it's fully digitized, it has the ability to expand into much broader geographies. And so we see this expanding further and us recovering it back to its pre-COVID predigitized volumes, and that would generate around about $20 million to $25 million per annum, which would be approximately 1 million tests a year at $20 to $25 a test. And then thirdly and finally, we have currently a set of about 10 large enterprise clients who subscribe to the Janison assessment platform to run their own exams like the Chartered Accountants, for example, like Department of Education, who use our platform to offer and deliver exams to their own students and candidates. And that currently generates about $10 million a year. And we can see this doubling over the next few years to a point where we're in the region of $20-plus million per annum from this group of customers. So those 3 strategic growth drivers combine to approximately $70-plus million. And then if you layer on top the point at the bottom, which is our existing business units and acquisitions, then we can see quite a nice clear path to $80 million to $100 million in revenue by FY '25. Moving on to the next slide. So the revenue. And so as David mentioned, the 2 key metrics we watch more closely are assessment ARR and gross margin. And on here, you can see the sort of history of gross margin over the past few years and the sort of trajectory of where we're heading. And if we continue to pursue that strategy that we've just outlined on the previous page, we can see enormous benefit from the scale and the volume of those 3 growth drivers. And we expect, as a result of that, the gross margins will continue to keep on lifting as they have done in the past few years. I don't think it would be unreasonable to expect a margin in the sort of 70s -- mid- to high 70s by FY '25. At which point, if you think about the sort of $80 million to $100 million revenue build, generating 70% gross profit, $70 million with a 30% to 40% OpEx rate, the business should generate $30 million to $40 million of free cash flow each year. And so that's sort of the summary of our horizon and the build to get to that place. And I'll now hand you back over to David, and we'll do a recap of the 3 growth drivers in a bit more detail.

Thanks, Stuart, and welcome back. It's great to have you back. Just reiterating, and you'll hear us reinforce this. I wanted to step through our PISA for Schools partnership and how we're taking that to market, where we are with ICAS Assessments and also where we are with our assessment platform because diving a little bit more deeply into these areas will certainly give you all insight and confidence on our trajectory. Firstly, PISA for Schools. And it's extraordinary what we've been able to achieve with the OECD with the PISA for Schools. To recap for those of you who are new on our journey, our 5-year exclusive agreement is with the OECD, the Organization for Economic and Cooperation Development, in the rollout for our product called PISA for Schools. And it just continues to flourish. I love this product because it showcases Janison's aspiration and purpose, unlike anything else we do. It's got a strong focus on real-world learning. It empowers educators. It drives school improvement. It's not about scorecards, it's not about league tables, it's genuinely a force for good. And it's part of -- sorry, if you can just move forward a slide here Sanne, one more. And because it's part of the partnership with the OECD and PISA, the test items are unique and gold standard. There's nothing like it in the world that has the data sets to provide the kind of evidence that we can get from the PISA data set. We've built a strong and what is clearly an enduring relationship with the OECD. And we expect that we're really at the -- only at the start of what is going to be a relationship that has an enormous amount of potential and an enormous enduring nature to it. It's a low stakes test, but it's an extremely high value test. And it's fair to say that it's absolutely in demand. And Sanne, if you go to the next slide briefly, let me give you an update on our progress. FY '21 saw us double the amount of countries that are enrolled to 15. In particular, notably that 6 of those 15 are now where we've been accredited as the national service provider. And I'll come back to explain that a little bit more detail. And what's important to see is that even as nations grapple with COVID, the rollout when we're at stall a little bit in the first half of fiscal year '21, we're seeing ourselves go back to what we said we were going to do, which was to accredit and to sign up in the order of 1 country a month. It's a bit lumpy, but on an average basis, 1 country a month. And just through COVID, we've been able to demonstrate that we can continue to deliver, including delivering almost 2,000 schools through some of the poorest regions of Russia through rolling COVID shutdowns. We were able to deliver and create the kind of experience that schools really know and love of the OECD and Janison. And as we just look at the October, November window coming up, it's going to be our biggest delivery quarter. 1,600 schools in Russia, 200 schools in Kazakhstan, 700 schools in Brazil, a few hundred schools in China, and China will continue to run this program in spite of the law -- the legal changes over there. In the U.S., in the U.K., it's extraordinary what we're doing now and we're able to deliver. And we're only able to deliver it because over the last 12 months, we've scaled the team. We have a dedicated delivery organization. We have a dedicated customer and school experienced organization. And now we're very well placed for that initial energy over the next few months but additional demand. Just recapping Stuart's commentary on the economics before. And it's very important to note that strategic shift to becoming a national service provider in a small number of developed English-speaking countries. You'll remember that the economics would see us -- a quite difference between when we are the international platform partner, the IPP, where we are in 9 countries, where we provide our technology platform to a local service provider, and we can generate in the order of $200,000 to $500,000 of annualized recurring revenue. As a national service provider, we take on greater responsibility to market it, to deliver it, to report on it and so on and so forth. And we charge school $7,000 per school. Becoming a national service provider represents a significant unlock in addressable opportunity. And in Australia, in the first 6 weeks, we signed up in excess of 10% of Australian schools. I can tell you in Australia that the demand continues to be significant. And even with the East Coast states, in lockdown, right, as we're trying to run validation, the demand is such that we're still able to build the critical mass of schools to deliver in August what is called the validation study, the first assessment window for PISA for Schools in Australia. COVID is accelerating demand in many ways. And we have significant system level agreed intent to test in March above and beyond that 10% of schools. So certainly very positive momentum there. If you take our medium-term view of PISA for Schools, we envisage that a medium-term objective should be in the order of 1,000 schools. At $7,000 a school, that's a $7 million medium-term opportunity. And we expect that we can take a much -- as we take a much more moderate aspiration in the initial stages of our renewed partnership in the U.S. for the next 2.5 years, we can expect that in the medium term, we'll also achieve 1,000 schools in the U.S. that requires us to achieve 10% of what our aspirations are in terms of Australian market share achievement. And we announced the first district a couple of weeks ago, 25 schools. What's important is that we're seeing demand in the U.S. to lock-in multiyear agreements. And so you would have seen that first schools announcement, 25 schools -- 1 district, 25 schools for 5 years. And we would expect to see those multiyear announcements continue to occur in the U.S. We're seeing the U.S. -- what we've been focused on in our initial marketing is to help schools understand how they can use and access Biden's additional education funds that were announced in the last few months to fund PISA for Schools. And it fits and schools are looking to see if they can lock-in multiyear funding for PISA for Schools from this initial Biden funding program. So we've got local marketing expertise on the ground, and we're very confident that we will see an uptick in the U.S., although it will be significantly slower than Australia and our aspirations are accordingly as such. Finally, touching on the U.K. We're just entering the U.K. now after being accredited in those 4 countries of the U.K. Schools are just returning this week. So we've got to get our expectations right and our timing right. In the first week back, we've signed on 2 schools. We've got marketing capacity on the ground. Our -- we launched our marketing campaign in the next couple of months -- next couple of weeks, I apologize. But U.K. schools have lost 12 months of learning, and they've gone through what is extraordinary for a well-being standpoint and a loss of learning. And it makes the PISA for Schools proposition even more valuable, not just because it provides a school benchmark for themselves. But because of the well-being dimensions of the social and emotional well-being and the other studies that are part of the PISA for Schools products such as the global crisis module, which brings real and unique insight on the exact issues that educators in the U.K. are trying to get a handle on. So wrapping that all up, we see a medium-term aspiration of $7 million a school in the U.K. -- $7 million revenue in the U.K., $7 million in the U.S. and $7 million in Australia. You add on our momentum in the IPP part of that business, which will continue to grow. And you can see a stepped trajectory to $30-plus million of ARR for PISA for Schools. If we continue on. Next slide, please. So many of you would have heard us talk about ICAS Assessments. It's a suite of products that we acquired from the University of New South Wales in the first half of the 2020 calendar year. And amongst the suite of products that we acquired, the flagship is the ICAS competition. And it's a very aspirational competition. It gives students the opportunity to celebrate academic performance in a way that others accelerate achievement in sports and performing arts. It's got 40 years of history. It's known and loved by parents, by kids, by schools. And at its heyday had 50% market share. We see a strong trajectory to take ourselves back to those highlights. And that was evidenced by what we learned in FY '21. Despite the impact of COVID, the ICAS competition plus the REACH product in 2020 sales cycle exceeded our most optimistic expectations, $5 million in revenue, 300,000 tests, 2,500 schools and notably a 98% improvement in customer satisfaction. And we expect to continue to enhance the product, continue to improve delivery. We've started a very strong ICAS 2021 campaign on the back of a very successful rebrand and reinvigorated marketing campaign, and it's been a very successful plan to date. The business is poised for growth in FY '22 and we see that continuing to have a growth trajectory, both domestically. But now we're fully digitized and online, we've really started to unlock the global addressable opportunity. And finally, if we go to assessment platform. Thank you, Sanne. And we've covered the assessment platform earlier on in these conversations, but we're really encouraged with the uptake and the expansion of use of our assessment platform. We -- as I shared before, we signed 6 new logos, notably Chartered Accountants. And we've run a very successful first term Chartered Accountants Capstone program. It's fair to say that our customers across the board are really delighted with the experience they get when they work with Janison. It's our platform combined with our knowledge of running high-stakes events, our systems and processes and tools, that combined, create the Janison product that large jurisdictions and institutions and accreditors know and love. And I just wanted to highlight one, if we go to the next slide, Sanne. One that I'm particularly proud of, and that is our partnership with the New South Wales Department of Education for Check-In. Through the midst of COVID last year, the Department of Education was desperate to understand the amount of learning loss in school children as a result of COVID. And so we developed with the department, a product called Check-In. And Check-In was an opt-in program that provided immediate data back to schools, immediate being the next day, that could be filtered by cohort, by year, by subject, by class and so on and so forth, to pinpoint learning gaps and provide teachers with the evidence that they require to stage the interventions that they need to do. And what was very pleasing is this is an example of 21st century assessment. It's an example where the likes of the New South Wales Teachers Union saw this as an enlightened approach to assessment. The Grattan Institute considers this the best quality data center of learning loss through COVID to date. The Education Minister, Sarah Mitchel, called this out. We ran 650,000 students over 6 years, twice last year. And our expectation in 2021 fiscal year, that, that will be extended by the department, not to 6 years, but to 7 years and again run twice. So you can see that we've got very strong relationships, enduring business and very clear organic platform growth in these key growth areas. So I think we will now, Stuart and Sanne, go to 10 minutes of Q&A if we step through to the next slide.

Great, David. Thank you. We will now continue with our 10-minute Q&A session. [Operator Instructions] And if we do run out of time in this session, we are happy to answer any remaining questions offline.

[ Angus ], I saw you put your hand up. Please go ahead.

[Operator Instructions]