Pearson's AI Integration Boosts Sales and Student Engagement in Q3 2024

Pearson shares are early risers as AI makes a positive mark on performance By Proactive Investors

Proactive Investors - Shares in Pearson PLC (LSE:LON:PSON) rose 1.6% in early trading as the company reported early "commercial benefits" from integrating artificial intelligence across its services. In the first nine months of the year, Pearson's AI-powered higher education tools saw over five million student interactions, resulting in double-digit growth in billings for these products. Group sales increased by 4% in the third quarter, and the company confirmed its full-year profit forecast of £598 million, aligning with market expectations. CEO Omar Abbosh highlighted Pearson's focus on operational growth, expanding AI capabilities, and building enterprise relationships. The company is advancing AI technology with tools such as a virtual teaching assistant and customised study aids, positioning itself as a modernised leader in educational publishing. In the first minutes of trading the stock was changing hands for 1,089.09p, up 17.59p. Shore Capital repeated its 'buy' recommendation in the wake of the update. It told investors: "We are pleased to note the improving performance, momentum, and reassuring nature of accompanying outlook comments. "It is also encouraging to see signs that the group's growth strategy is gaining traction. "By way of a reminder, the latter is focused on driving the performance of core businesses (improved customer proposition, growth and efficiencies), unlocking synergies, expanding into adjacent markets and capitalising on its leading position, structural growth trends, and opportunities created by AI in the context of a very large addressable global learning market."

Pearson gains as nine-month update posts broad-based growth and AI push By Investing.com

Investing.com -- Pearson 's (LON:PSON) shares rose on Tuesday following the release of its nine-month trading update, which signaled continued progress across all operational divisions. At 8:53 am (12:53 GMT), Pearson was trading 2.9% higher at £1,103. The education company reported a 3% underlying sales growth for the first nine months of 2024, with a stronger 5% growth recorded in the third quarter alone, excluding businesses under strategic review and divested assets such as its former online program management services, the company said in an exchange filing on Tuesday. Higher Education, a key area for the company, returned to growth in the third quarter, with a 4% increase in sales. Pearson attributes this to gains in adoption rates, enhanced customer engagement, and the successful rollout of AI study tools, which are helping students interact with content more effectively. "We are on track to meet full-year expectations," said Pearson's chief executive, Omar Abbosh. Despite challenges earlier in the year, the division's recent performance positions it well for continued growth. In addition, Pearson's enterprise division secured a significant multi-year agreement with ServiceNow (NYSE:NOW) and expanded its collaboration with learning platform Degreed. These partnerships reflect Pearson's commitment to workforce skills development, an area that saw a 6% sales increase in the reporting period. The company's financial position remains solid, bolstered by a recently completed £500 million share buyback program and a £350 million bond issuance. Additionally, a legal victory related to state aid regulations means Pearson could recoup £105 million in tax payments, further strengthening its financial outlook. Despite challenges in virtual learning earlier in the year -- mainly due to the wind-down of a major contract -- the segment showed renewed momentum in the third quarter, with a 4% rise in enrollments. Similarly, English Language Learning reported a 7% growth over the nine-month period, driven by robust demand in institutional markets.

AI Helps Pearson Grow Sales 5% in Back-To-School Quarter

LONDON (Reuters) - British education company Pearson reported 5% growth in underlying sales in its third quarter on Tuesday, boosted by a stronger performance in assessment and qualifications, putting it on track to meet market expectations for the year. It said all of its divisions were up in the quarter, including a return to growth in higher education, where the deployment of AI study tools helped drive sales up 4%. Chief Executive Omar Abbosh said Pearson was accelerating the deployment of AI across its business and it was starting to see a commercial benefit. There were over 5 million student interactions with the tools in the nine-month period to September, it said, and the technology had been extended to more than 90 titles for the recent back-to-school period. Analysts currently expect Pearson to report adjusted operating profit of 598 million pounds ($775 million) for the full year, according to a company-compiled consensus.