Education cloud software company PowerSchool Holdings Inc. acquired its third company since going public last summer, the company said on a conference call with investors and analysts.
PowerSchool (NYSE: PWSC) CEO Hardeep Gulati said Thursday that the Folsom-based company has completed its deal to buy Chalk.com Education Inc. of Ontario, Canada. Chalk.com offers an integrated curriculum analytics platform.
The acquisition brings PowerSchool up to 19 modules that it can offer school districts to manage and track everything from attendance to grades to learning.
The company reported a net loss of $14.1 million for the first quarter, compared to net income of $483,000 in the year-earlier period. Revenue rose 26.6% to $149.6 million.
During the first quarter PowerSchool spent $26.6 million on research and development, up from $18.5 million in the first quarter of last year. Sales and administration costs for the first quarter were $40.1 million, up 58%.
PowerSchool software is used to support school administrators with programs that eliminate manual processes for everything from daily attendance to counseling to grades. The company also provides an online platform for virtual learning, and offers supports to teachers, parents and students with online lesson plans. PowerSchool offers analytics and assessment products, as well as career counseling and college search.
PowerSchool’s initial public offering in July raised $766.1 million, net of underwriting costs and commissions, and was the largest IPO by a Sacramento area company in memory.
Gulati said some of PowerSchool’s modules are mission critical to school districts while others empower districts to better support and communicate with students, parents, teachers and employees.
In the first quarter, the company managed to cross-sell more services to 300 existing customers. PowerSchool also added large school groups in the United Arab Emirates representing more than 10,000 students.
Gulati said further cross-selling and international sales are anticipated for the company.
“We are only scratching the surface for opportunities ahead of us,” he said, adding that PowerSchool is the leader in the field, and it is the most integrated with a variety of services. Students, parents and teachers can access assignments, attendance and grades all on the same site, he said, adding that having more modules active with districts makes PowerSchool more sticky as a vendor to districts.
