Online Schooling

https://mailchi.mp/class-central/moocwatch-4836473?e=a8ba1d5…

I have been following online training for better than 5 years now. I have experienced college level training from Coursera and EDx. Both specialize in bringing courses from universities to your home.

There are several platforms to get online training, the two biggest for university level training are EDx a not for profit, and Coursera a for profit. I have found that while EDx has some very fine courses, Harvard’s CS50 being the gold plates standard for online training, I got more use from Coursera.

For example, Rice had a good course on interactive python, University of Michigan had an excellent course for Python for Informatics and John Hopkins had a good course on R programming for big data.

While the courses I took just four years ago would be considered archaic and the pedagogy was amateurish compared to top courses today, they were much more effective than taking a course at the local community college.

I have taken courses from Udemy also. Udemy is a similar beast to Coursera. While Coursera provides a platform for University level education, Udemy provides a platform for trade level education. While you might find a course in Coursera for marine biology, in Udemy you might find a course on how to sail. (I am actually taking that one)

I mention these here because both are considering going public. Both are growing quickly, for example Udemy has gone from 1 million ARR to 100 million in 5 years.

While there have been some notable failures in this area, Udacity comes to mind, the business models and the training methods are evolving quickly.

There is also some significant competition. Khan Academy, which is free has the best pedagogy of all the online training. It is expanding quickly and is working on creating a valuable diploma of some sort. (Salmon Khan was working on this in 2018 or 2019, however Khan Academy has spent the last year just attempting to keep the servers running with the crush of new users due to Covid 19.)

So, while this is not something you can invest in today, when the IPO’s happen, do not be caught unawares as to the value, if any, of Udemy and Courrsera.

Cheers
Qazulight

26 Likes

Qazu, if u’re looking into this space to invest - check also PACE. It’s a SPAC which should be bring Nerdy/ Varsity Tutors to markets soon. Here is the presentation https://www.tpg.com/sites/default/files/2021-01/210128%20Vic…

I looked at the business over the weekend - for me a bit weak growth in 30-40s and long-term 25-30% p.a. But if they would accelerate that could be a multibagger. Considering the current price of below 12, it’s pretty cheap, but again I don’t know the space well and not sure how they will be growing. Margins looks OK in low 70s with long-term target 75-80 and FCF target of 25-30. Looks like a pretty decent business.

Here is a good analysis https://seekingalpha.com/article/4404201-tpg-pace-tech-oppor…

Good luck!
V

2 Likes

Qazu, if u’re looking into this space to invest - check also PACE. It’s a SPAC which should be bring Nerdy/ Varsity Tutors to markets soon. Here is the presentation

I think I would go with the market leaders, and only once they could put up Saul like growth numbers. The reason I bring it up is that the infrastructure, think, fiber, 5g, Starlink, and Zoom are changing the landscape for education.

When Saul moved from Casey’s and housing to SaaS I was slow to grasp the change. I might add I was slow to understand the value in Yahoo, Google and Facebook too. What I am trying to do is keep
my mind flexible.

Saul’s movement into medical is also an avant guard movement, and it is likely that there is way more money there than in education.

The idea of the original post was not to start an investment, but to soften up the mind so that when, or if, this becomes an investable category, we, more appropriately, I can
grasp it.

Cheers
Qazulight

8 Likes