IODM Limited (ASX:IOD) Secures North American Revenue Share Agreements
Revenue Share Agreements
IODM Limited has entered into separate revenue share arrangements with Convera for the United States and Canadian education sectors. These agreements, set to commence in March 2025, allow IODM to receive a predefined share of the net revenue from education institutions adopting the IODM Connect platform. The total addressable market for these agreements exceeds A$275 million, significantly higher than the UK Education Agreement’s A$53 million.
Financial Impact
Under the North American Education Agreements, IODM will receive a 20% revenue share from existing Convera clients and a 30% share from new Convera clients. The agreements cover approximately 1.125 million and 1.00 million overseas students in the United States and Canada, respectively, marking the largest market IODM has commercialised to date.
Future Outlook
IODM continues to engage with other payment providers to formalise additional revenue share arrangements in North America. The Board believes the onboarding process will be more extensive and quicker compared to the UK, given Convera’s existing client base and positive interest from new education institutions.
Executive Comments
CEO Mark Reilly stated, “I am extremely pleased that IODM has concluded revenue share agreements for the United States and Canada. The potential revenue that is now available to the Company has increased dramatically. Given the success we have had in the UK education sector, I look forward to updating the market regularly on the roll out of the IODM Connect platform in North America pursuant to these agreements as well as those further agreements presently being negotiated.”
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