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The Family Zone (ASX:FZO) share price jumps 7%. Here’s why

Family Zone has secured a significant contract win to kick start its growth story in the lucrative US market.
The post The Family Zone (ASX:FZO) share price jumps 7%. Here’s why appeared first on The Motley Fool Australia. –

The Family Zone Cyber Safety Ltd (ASX: FZO) share price jumped 7% higher in early trade after the Australian company announced an agreement with the largest school region in Texas.

At the time of writing, the Family Zone share price is trading at 54 cents, up 4.85%.

Family Zone provides a cyber safety solution for families and schools using flexible parental controls to manage screen-time, block content, manage in-app purchases and more.

What’s driving the Family Zone share price today?

Family Zone today announced a substantial contract win with the largest procurement region in Texas, the Region 7 Education Service Center.

The education centre provides school bodies/districts with technical advice, procurement and various support services. Region 7 is the largest in Texas with 86 school districts, or more than 400 schools and approximately 165,000 students.

Under the contract, Region 7’s centre has committed to a three-year contract to deploy the company’s advanced School Manager compliance tool into 29 school districts and promote this tool as the preferred content filtering service for all schools in the region.

While not all schools in the region are on board, Family Zone expects a large proportion of districts to migrate to School Manager and also upgrade to its market-leading Classwize tool.

Management commentary

Today’s agreement did not come easy. Family Zone won the contract in a competitive tender process against major market competitors, including an “established incumbent provider”.

Family Zone managing director Tim Levy was pleased with the company’s competitiveness and US achievement.

This deal firmly establishes our company as a leading provider of cyber safety technology in the US, having won a competitive tender in the largest region in the second largest education market in the US.

The Family Zone share price so far

The Family Zone share price has been range bound since August 2020, chopping back and forth between lows of 40 cents and highs of 60 cents.

The company has been eyeing its launch in the US market for quite some time. Family Zone advised in its March quarter results that it has been running a number of small trials in the past 6 months, with plans for a soft launch this quarter and a full launch in the September quarter.

The company has hoped to hit the ground running in the US, with Mr Levy previous saying:

The massive US education market is enjoying unprecedented increases in funding. We’re entering the key US sales period, well organised having invested in growing our team to be ready to handle a record sales pipeline

Could today’s major contract win see the company tracking ahead of what was proposed in its March quarterly?

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The post The Family Zone (ASX:FZO) share price jumps 7%. Here’s why appeared first on The Motley Fool Australia.

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