See my original post for my initial thoughts about the Age of Learning’s recent $1B post-money valuation.
Congratulations to Will Griffith and Iconiq on their decision. And, once again – hats off to Doug Dohring and his team. When there is such a temptation to succumb to the monetization woes and to shift away focus from the young kids educational apps space, Age of Learning has shown us that there is plenty of money to be made right where we are. Coupled with the recent acquisition of Toca Boca, this certainly puts new wind in our sails.
First of all, congratulations to Doug Dohring. It feels really good to see someone in our space (i.e. educational apps for kids) finally reaching that milestone.
Having all that content (over 7000(!) activities now, per article) and the fact that their subscription pack offers full curriculum for preschool, pre-k, and kindergarten gives users enough value to result in an unusually high uptake for their subscription. As a result, they get more lifetime (and even short term) value out of a user than it costs to acquire one. This is a rarity in mobile kids space even in the App Store (with Playkids, Reading Rainbow being some of the notable exceptions) and certainly on Google Play. Once a developer reaches a stage where they make more money per user than it costs to acquire one – they are able to scale their success by paying for advertising.
If your kids are young and your phone is Android-based (and most are), take note.
Featured right at the top of Games main screen on Google Play for the next two weeks are our educational apps for kids – which have now been downloaded on Google Play over 50 million times. To celebrate, Google has made all of our premium apps available for 50¢ – below the minimum-allowed 99¢ price.