PowerSchool reports 10% revenue growth in Q2 2024 amid continued product innovation
PowerSchool a provider of cloud-based software for K-12 education in North America, has announced its financial results for the second quarter of 2024, which ended on 30 June.
The company reported a total revenue of $191.6 million, marking a 10% increase compared to the same period last year.
Subscription and support revenue contributed $170.1 million, reflecting a 16% year-over-year growth. However, the company reported a GAAP net loss of $25.7 million, equivalent to 13% of total revenue. Adjusted EBITDA for the quarter stood at $66.6 million, up 9% from the previous year and representing 35% of total revenue.
CEO Hardeep Gulati commented on the quarterly performance, stating:
"I'm pleased with our second quarter performance, which highlights our market leadership in K-12 software and the continued demand for our comprehensive platform of mission-critical products. We demonstrated continued innovation momentum with the launch of new and exciting products such as MyPowerHub and two additional modules of our AI-powered PowerBuddy platform."
Throughout the quarter, PowerSchool secured several important contracts, including a data-as-a-service (DaaS) agreement with the Arkansas State Department of Education. Additional contracts were signed with school districts such as Springfield School District 186 and Orleans Parish School District, expanding the company’s footprint.
PowerSchool also launched MyPowerHub during this period, a communications platform to improve how schools interact with parents, students, and staff. MyPowerHub integrates various features, including student information, personalised notifications, and secure messaging, all in one interface.
PowerSchool introduced two new AI-driven solutions as part of its PowerBuddy platform. PowerBuddy for Learning Student Assistant, incorporated into the PowerSchool Schoology Learning Management System, uses conversational AI to provide personalised guidance to students. PowerBuddy for Data Analysis enhances data access through natural language processing, simplifying the decision-making process for educators and administrators.
CFO Eric Shander remarked:
"We delivered another strong quarter consistent with our philosophy of double-digit top-line growth and margin expansion. I am confident our comprehensive suite of mission-critical software products will continue to meaningfully improve school district operations and drive significant long-term value for the entire K-12 ecosystem."
Looking ahead, PowerSchool anticipates completing its partnership with Bain Capital, announced earlier this year, during the second half of 2024. In light of the upcoming transaction, the company has decided not to host an earnings conference call or provide financial guidance.
