3P LEARNING LIMITED (3PL)
Share Price Analysis and Chart

19/08/2024

3

Equal-weight

$1.20

57.89%

3P Learning's FY24 earnings were below Morgan Stanley and guidance. Unusually, the company did not provide FY25 earnings guidance, but does expect growth in revenue and earnings in FY25.

The broker expects consensus downgrades to reflect both the rebasing from the FY24 guidance miss and the reducing certainty from a
lack of guidance.

3P Learning's customer count was 5.0m versus 5.5m a year ago and 5.4m in the first half.

Equal-weight and $1.20 target retained. Industry view: In Line.

28/01/2025

3

Downgrade to Hold from Speculative Buy

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Taylor Collison notes elevated Mathletics churn and muted B2C growth extrapolated from third-party web traffic and app download data foreshadowed 3P Learning's FY24 guidance miss. Based on this, the broker anticipates another underwhelming result for 1H25.

Lack of liquidity also exacerbates share price volatility where results have the potential to underperform, the broker observes.

The broker remains optimistic due to a longer-term growth strategy bolstered by experienced management and the expected return of B2C consumers. But in the short-term rating is downgraded to Hold until management provides validation that the goal of 10% revenue growth is achievable, sustainable, and profitable.

No target price is mentioned.

FORECAST
Taylor Collison forecasts a full year FY24 dividend of 0.00 cents and EPS of 4.30 cents.
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 2.90 cents.