Company Interview / "Class" act: AdNeo doubles revenue with EdTech play

Key Points:

AdNeo acquires Learnt, securing $1.5 billion in cost synergies and expanding in education techRevenues doubled, debt halved, and capital raised by $5.5 millionPortfolio includes leading SaaS brands such as Art of Mentoring and Oliver GraceStrategic focus on bolt-on acquisitions and positive cash flow across divisions

Angus Washington of AdNeo (ASX: AD1) outlines a major strategic transformation aimed at driving growth and operational efficiency. Washington points to the recent acquisition of Learnt as a pivotal move, delivering $1.5 billion in cost synergies ahead of schedule. The deal sees AdNeo gaining a strong foothold in the education technology sector, as Learnt serves both the education and corporate markets across Australia and the US, particularly in the VET (vocational education and training) space. Washington highlights Learnt's dual strengths in technology and content creation for the education sector, anticipating continued demand in both the VET and corporate training arenas.

Washington attributes AdNeo’s turnaround to a comprehensive strategic overhaul, including a renewed board, rebranding, and a strict focus on cost management and innovation. The company’s strategy centres on acquiring high-growth SaaS and services businesses, aiming to run each division cash flow positive every quarter. Other key portfolio brands include Art of Mentoring—described as a market leader in corporate mentoring platforms—and the creative agency Oliver Grace.

With a successful $5.5 million capital raise, AdNeo has halved its debt and doubled annual revenues from approximately $6 million to $11 million. Washington says these steps have strengthened the balance sheet and set the company on a trajectory towards mid-cap status, with strong growth and further acquisitions in its pipeline.