DCBO - iLearningEngines: An EdTech Disruptor With Hyper Growth Potential

2024-07-02 13:19:58 ET

Summary

• iLearningEngines is seeing rapid topline growth along with operating leverage, allowing it to expand its operating margin over the past 3 years.
• iLearningEngines has an impressive NRR of 132%, highlighting its ability to upsell its offerings to its existing customers.
• I expect iLearningEngines’ share to continue growing until 2030 at least thanks to its AI-powered EdTech platform and reach $1 billion in annual revenues by 2027.
• My price target for iLearningEngines is $95 by 2030, implying 938% upside from its current valuation.

iLearningEngines, Inc. ( AILE ) is a recent de-SPAC that is down 26% since its listing. The company offers an AI-powered EdTech platform that positions it to benefit from the forecasted growth in the EdTech market that is fueled by the rise of AI. In fact, the market is forecasted to grow at a CAGR of 13.44% until 2030 to reach $348.41 billion. Given the company’s AI-first platform, I expect its market share to grow until 2030 and reach $1 billion in annual revenues in 2027, per my estimates. In light of its expected topline growth as well as its efficient cost structure, I’m rating iLearningEngines as a buy with a price target of $95 by 2030, representing 938% upside from current levels.

Company Overview

iLearningEngines provides an AI-powered learning and work automation platform to enterprises. The company’s platform uses AI to automate tasks involved in corporate training and development, including creating targeted training materials, streamlining content delivery, and personalizing the learning experience for employees. Moreover, the company’s platform can be used to analyze data to provide insights into learning effectiveness and employee performance. In this way, the platform allows companies to measure the impact of training programs and make data-driven decisions about their learning strategy....

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