A big quarter for the technology company is seeing investors rush to scoop up shares.
The post Family Zone (ASX:FZO) share price jumps 14% after record quarter appeared first on The Motley Fool Australia. –
The Family Zone Cyber Safety Ltd (ASX: FZO) share price is rising. At the time of writing, shares in the cyber safety company are trading for 65 cents each – up 14.04%.
The massive price rise comes after the company announced “significant growth” and a “record quarter”.
Let’s take a closer look at today’s news.
Family Zone Cyber Safety is engaged in developing a universal cyber safety and parental control platform in the fast-growing cyber safety industry. Its platform allows for secure collaboration between “schools, parents, and cyber safety educators”.
Why the Family Zone share price is rising
In a statement to the ASX, Family Zone says its June quarter was a record for the company. There was 128% growth year-on-year (YoY) in student numbers to total 3 million. Around 2,000 schools were added to its platform, taking the total to 5,600 schools. The company now services approximately 5% of all US school districts.
In the last quarter, $5.8 million worth of contracts were signed plus an extra $1 million acquired through the purchase of NetRef. According to Family Zone, in annual value terms, this converts to roughly $3.3 million in contracts plus $630,000 through NetRef.
Investors are enjoying today’s news, judging by the rise in the Family Zone share price.
Family Zone Managing Director Tim Levy:
This was a breakthrough quarter. We added over 1 million students and 2,000 schools and now service more than 3 million students and 5% of US school districts. We broke sales records and most encouragingly ended the quarter with ~1,500 schools in trials.
Family Zone share price snapshot
Over the past 12 months, the Family Zone share price has increased by 120%. Last month, shares in the company jumped 7% on the news it had signed a contract with the largest school district in the US state of Texas.
Family Zone’s surge comes after its previous 52-week high achieved just 10 days ago on a capital raising announcement.
Family Zone has a market capitalisation of $273 million.
Should you invest $1,000 in Family Zone right now?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.