ORLANDO, FL / ACCESSWIRE / November 29, 2018 / Investors poured more than $8 billion into education technology companies in 2017, according to Metaari, a quantitative market research firm focused on the space.
Education used to be simple: there was a blackboard, a teacher, and desks in a classroom. Today, a student can practice English online, upload homework through a portal and learn chemistry through 3D immersion, all thanks to advances in technology.
With technology advancing rapidly, betting on the next hottest trend in this burgeoning space could prove risky. One area of the edtech space that has proven itself is the high-growth market for interactive flat panel displays.
Interactive flat panel displays were a $9 billion market in 2015 and are expected to reach $27 billion by 2022, according to research from Markets and Markets.
New installs are expected to be the primary driver of near-term market growth with additional demand driven by early adopters entering replacement cycles.
In addition to the education market, interactive flat panel displays are gaining traction in healthcare and corporate enterprise markets as well.
We've identified three small-cap edtech stocks, including two focused primarily on the interactive display market, that are positioned for growth in the quarters ahead: Instructure (INST), Galaxy Next Generation (GAXY), and Boxlight (NASDAQ: BOXL).
Instructure (INST)
Market Cap: $1.3B; Share Price: $36.83
Instructure (INST) is a software-as-a-service technology company that provides applications for learning, assessment, and performance management worldwide. The company's applications enhance academic and corporate learning by providing a system of engagement for teachers and learners enabling frequent and open interactions, a streamlined workflow, and the creation and sharing of content with anytime, anywhere access to information. The Company reported 28% year-over-year revenue growth in Q3, with meaningful improvements to operating margins.
Galaxy Next Generation (GAXY)
Market Cap: $31.3M; Share Price: $3.24
Galaxy Next Generation is a U.S. distributor of interactive learning technology hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment. The Company just went public over the summer and reported a 117% increase in technology sales in its first quarter of fiscal 2019 (ending June 30, 2019). A recently announced LOI to acquire KLIK Communications could add another $3 million in annual revenue to the company's growing operations. Small Cap Consumer Research initiated coverage of GAXY in early November with a buy rating and $6 price target. Read the full report for more information: http://www.gaxyinfo.com/GAXY%20Initation%2011-13-18.pdf
Boxlight (NASDAQ: BOXL)
Market Cap: $22.7M; Share Price: $2.22
Boxlight is another leading provider of interactive technology solutions for the global education market. It recently announced the acquisition of EOS Education, which is expected to drive double-digit, high-margin revenue growth for the company's professional services division. BOXL reported 27% year-over-year revenue growth for the first nine months of 2018 and according to management, the momentum is expected to continue.
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SOURCE: RedChip
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