Bulletin
Investor Alert

Dec. 10, 2020, 1:01 p.m. EST

Online Foreign Language App Hello Pal Translates Livestreams Into $1.5 Million in Revenue in November, Shares Jump

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Hello Pal International Inc. (HP)
  • X
    IAC/InterActiveCorp. (IAC)
  • X
    Twitter Inc. (TWTR)

or Cancel Already have a watchlist? Log In

Dec 10, 2020 (Baystreet.ca via COMTEX) -- The business of digitally learning foreign languages is alive and well in the covid economy, but getting exposure to the market is not easy, as most companies are privately held. In August, Rosetta Stone left the public domain after Cambium Learning Group agreed to pay $792 million for it, representing an 87.5% premium for the company they day before media outlets broke the deal. Cambium wasn’t afraid to pay up as it competes for share in an online language learning market forecast by Verified Market Research to grow 10.2% annually to nearly $26 billion in 2027.

Up-and-comer Hello Pal International Inc. /zigman2/quotes/206713317/delayed CA:HP +6.76% (otcpk:HLLPF), the developer of an eponymous app as well as Travel Pal and Language Pal apps, is growing in leaps and bounds, growth that is undergirded by consumer appetite to use technology to learn a foreign language by socializing in real world interaction. Much like Rosetta Stone and Babbel, Hello Pal’s learning model is based upon the fact that speaking a language is the most practical way to learn it. However, Hello Pal brings a unique approach insomuch that its application incorporates a social component, leaning into what GoAbroad calls the absolute best way to learn a language: make friends.

The app – which is a bridge to making friends and not just communicating with existing ones – can translate text messages in a bi-directional manner for a user or it can provide one of thousands of pre-recorded audio phrases that the user can practice, record and send to another person for real-time communication.

The app incentivizes people to livestream, albeit gaming, cooking or a stroll around their hometown to show off where they live. In fact, HP management sees travel as a central feature of the platform where foreigners can come learn about a city, its culture. sites and language, ahead of a visit. To say thank you, users can give livestream hosts "charms," virtual currency built-in to the Hello Pal platform that can be redeemed for cash or cryptocurrency like Bitcoin or Ethereum.

To lend some color, think of Hello Pal as a sort of a blend of InterActiveCorp. /zigman2/quotes/205118493/composite IAC -4.07% , Babble and Twitter /zigman2/quotes/203180645/composite TWTR +3.71% along with a dash of specialized forums where people can get expert, first-hand information.

Live streams and charm transactions are the primary revenue generator for Vancouver-based Hello Pal and the figures demonstrate their growing popularity. Launched in beta form last summer, there were about 10,000 daily active livestream users (DAUs) in March. Through November, the company can boast over 5.2 million registered users and a 50% increase in livestream DAUs to over 15,000 people communicating across 200+ countries.

Revenue has topped C$1.0 million per month for seven consecutive months, including exceeding $1.5 million in September, October and now, as disclosed today, November. With record revenue of C$1.55 million in November, the monthly average for 2020 has climbed to approximately C$1.0 million, another milestone box Hello Pal management can check.

Impressively, the growth has nearly been totally organic, with negligible marketing expense by Hello Pal.

Commenting on reaching the $1 million per month milestone, Hello Pal founder and Chairman KL Wong sees additional growth on the horizon, stating, “We will continue to refine our user experience, roll out new products and features, and operate in increasingly efficient manner as Hello Pal continues its growth plans.”

Shares of HP are popping on the upbeat revenue news, surging 36% in early afternoon trading on Thursday to 24.5 cents.

Legal Disclaimer/Disclosure: While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing. Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of thirty thousand dollars for Hello Pal advertising from the company. There may be 3rd parties who may have shares of Hello Pal and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Baystreet.ca, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

COMTEX_375890018/2559/2020-12-10T13:00:31

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/206713317/delayed
CA : Canadian Securities Exchange
$ 0.79
+0.05 +6.76%
Volume: 1.39M
Feb. 25, 2021 3:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$54.01 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/205118493/composite
US : U.S.: Nasdaq
$ 237.29
-10.07 -4.07%
Volume: 396,478
Feb. 25, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$21.96 billion
Rev. per Employee
$371,668
loading...
/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 74.59
+2.67 +3.71%
Volume: 63.63M
Feb. 25, 2021 4:03p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$57.40 billion
Rev. per Employee
$675,700
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.