OpenLearning’s SaaS ARR Hits $2.364M, Up 12% YoY in Q1 FY25

Sustained SaaS Growth Amid Sector Challenges

OpenLearning Limited (ASX: OLL) has delivered another quarter of solid growth, reporting a 12% year-on-year increase in its platform SaaS annual recurring revenue (ARR) to $2.364 million for Q1 FY25. This marks over 13 consecutive quarters of ARR growth, underscoring the company’s resilience and expanding footprint in the education technology sector.

Despite budget constraints impacting parts of the Australian higher education market, OpenLearning has successfully grown its customer base to 246 active B2B clients across seven countries, including Australia, Malaysia, India, Indonesia, the Philippines, and the United States. This geographic diversification is a key driver of the company’s expanding revenue and pipeline of larger learning management system (LMS) deals.

AI-Powered Innovation Fuels New Revenue Streams

Central to OpenLearning’s growth is its AI-powered product suite, notably CourseMagic.ai, which launched in June 2024. This suite of generative AI tools for educators, including an AI Course Builder, has attracted 154 active B2C users and is gaining traction among universities in Australia and Malaysia. CourseMagic’s usage-based SaaS model complements OpenLearning’s core LMS platform and is contributing to the company’s overall SaaS revenue growth.

The company’s LMS platform itself is evolving beyond short courses and micro-credentials to support on-campus and blended learning, positioning OpenLearning as a comprehensive education delivery solution. The recent release of a new examination system and integration with the Meshed Group’s student management system have already secured five higher education customers, with a pipeline of larger contracts in advanced stages.

Strategic Expansion and Acquisition

OpenLearning is also leveraging its digital marketing and reseller networks to expand internationally, particularly in Southeast Asia and South Asia. The company’s capital-light expansion model has yielded new customers and promising sales prospects in key markets.

In a strategic move to broaden its career readiness offerings, OpenLearning completed the acquisition of Employability Advantage in April 2025. This business provides work-readiness tools such as skills diagnostics and interview simulators, which will be integrated into OpenLearning’s platform to deliver scalable, career-focused learning experiences.

Financial Discipline Supports Growth Trajectory

Operating cash outflows decreased by 12% year-on-year to $0.522 million, reflecting improved operating efficiencies and cost optimisation efforts. Although customer cash receipts declined 10% due to cyclical payment timing, the company maintains a healthy cash position with $1.432 million in available funding, including undrawn loan facilities.

CEO Adam Brimo highlighted the company’s progress, noting that sustained investment in product development and AI integration is translating into a growing sales pipeline and larger contract opportunities. The expansion of The Uni Guide and international student recruitment initiatives further diversify OpenLearning’s revenue streams and market presence.