One of the leading contract operators of bookstores at colleges and universities across the country, as well as the leading provider of digital education services, has recently announced it has acquired the assets to LoudCloud Systems.
Barnes and Noble Education, Inc. acquired the digital platform, which also provides analytics to those in the areas of higher education, the for-profit sector, and K-12 segment in an effort to increase the company's digital market and aid in the creation of an educational platform.
"The acquisition of LoudCloud will be a key asset for Barnes & Noble Education's digital strategy, better positioning it as a leader in the rapidly growing multi-billion dollar market for digital products and services," said Kanuj Malhotra, Chief Operating Officer, Digital Education, Barnes & Noble Education. "LoudCloud's impressive portfolio of products and strong operating team will enable us to address the growing and diverse demands of our clients in the dynamically changing education industry."
LoudCloud includes a number of platforms, such as a competency based courseware platform, a learning analytics platform, an eReading product, and a learning management system. The software allows for the analysis of student behavioral and performance metrics, offering educators a way to track and improve upon student outcomes. The dashboard operates in real-time allowing educators to identify and correct any student issues before traditional student measurements are put to use.
A new revenue model is expected to be created by the company for digital business, offering Barnes and Noble Education the opportunity to better serve over 250,000 faculty and five million students across the United States at more than 740 colleges and universities.
In a statement, Manoj Kutty, Chief Executive Officer of LoudCloud Systems, said the company is looking forward to its partnership with Barnes and Noble, adding that the company's products are currently in use in over 25 educational institutions in the United States, Australia, and Asia. He went on to say that the opportunity would allow the company to expand at a fast pace while at the same time keeping the ability to develop innovative products.
Barnes and Noble currently offers students the eTextbook platform Yuzu, which allows users access to a wide variety of digital academically relevant titles, writes Austen Hufford for The Wall Street Journal.
The company recently released Q3 earnings per share of $0.07, with revenue for the quarter coming in at $518.4 million, despite a consensus estimate of $534.42 million. The non-GAAP reported net income for the quarter totaled $4.9 million, when the net income for the same prior year period came in at $8.7 million, writes Samantha Reynolds for Financial Market News.
Store sales were also found to have decreased by 4.1% for the quarter. This could be a result of the Spring Rush period, which was extended beyond the quarter due to later school openings in addition to students continuing to make course material purchases later in the semester. When the three additional weeks in February are accounted for, comparable store sales decreased by 2.9%, a slight increase over the second quarter.