A Gloucestershire-based virtual reality learning firm is set to experience substantial growth in 2024, attributed to its recent expansion in the United States.
Avantis Education Group, a provider of virtual reality headsets, software, and content for educational institutions, anticipates a significant rise in both revenue and EBITDA this year, exceeding 50%. The company’s technology serves more than two million students across 200,000 institutions in 90 countries. For the fiscal year ending December 31, 2023, Avantis reported revenue of £23 million and EBITDA of £6.4 million, driven largely by its US market penetration.
Since entering the US market in 2007 and establishing a permanent office in 2021, Avantis now collaborates with approximately 2,500 US schools and over 1,200 school districts. These districts, including prominent ones like Los Angeles Unified School District, St Vrain Valley Schools, and Montgomery Public Schools, encompass up to 1,000 schools each, providing collective procurement benefits. The firm aims to secure more district-wide contracts by aligning its educational offerings with the US curriculum, enhancing over 400 lessons to meet US State Standards in subjects such as science, social studies, and English Language Arts for the 2023-24 academic year.
In addition to its ambitions in the United States, Avantis plans to further penetrate markets in EMEA and Asia. The firm continues to invest in content development to bolster revenue from software subscriptions, currently serving 10,000 schools globally with its SaaS license.
Huw Williams, Chief Executive of Avantis Education Group, noted, ‘From a growth perspective, there is a significant opportunity with US school districts, which help us to scale at pace, and we’re proud to have already partnered with some of the largest in the country.’
The company’s expansive growth trajectory follows an investment from the UK private equity firm, LDC, in August 2022. Aziz Ul-Haq, partner at LDC, commented, ‘Avantis has built itself an enviable, global, reputation as a leader in education VR and AR technology. It’s seen strong growth already and this is set to only accelerate this year as it continues to invest in its products, expand its reach and build its base of subscription revenue.’
Avantis Education Group’s expansion into the US market and continued investment in content and technology underpin its significant projected growth for 2024. With substantial backing and strategic alignment with curricular standards, the company is poised to further solidify its leadership in the global educational technology sector.