PowerSchool (PWSC) Expands Into LATAM With AI Solutions (2024)

Zacks Equity Research

·4-min read

PowerSchool Holdings, Inc. PWSC, a leading provider of cloud-based K-12 education software in North America, has announced a major expansion into the Latin America (LATAM) region. This strategic move includes six new partnerships with schools in Belize, Honduras, St. Maarten, Mexico, Panama, and Venezuela, showcasing the company’s game-changing AI assistant, PowerBuddy, and its unified communications platform, MyPowerHub.

Driving Modernization Through AI

By entering these new markets, PowerSchool positions itself at the forefront of educational modernization in LATAM. Schools in the region are increasingly embracing AI and data-driven solutions to streamline administrative tasks, enhance communication, and improve student outcomes. PowerBuddy, PowerSchool’s AI assistant, helps schools personalize learning experiences and improve efficiency, while MyPowerHub enables seamless data integration, connecting parents, students, and educators.

First Adopters in Honduras and St. Maarten, Modernizing Schools in Mexico and Panama

Key to this expansion is the adoption of PowerBuddy by the International School of Tegucigalpa in Honduras, marking the first implementation of this AI tool in the region. The school, Honduras’ largest international institution, aims to use AI to foster student engagement and provide educators with powerful tools for personalized learning. In St. Maarten, PowerSchool’s solutions, including Schoology Learning and PowerBuddy, will support educators by automating tasks like creating engaging assignments, freeing up teachers to focus on instruction.

Meanwhile, schools in Mexico and Panama have turned to PowerSchool to replace outdated systems. Northridge School in Mexico and El Colegio de Panama have implemented multiple PowerSchool solutions to streamline administrative processes and enhance educational delivery. This investment in technology positions them to manage data more effectively and reduce manual workloads.

With its continued innovation and expansion into LATAM, PowerSchool is poised to strengthen its market presence and support the digital transformation of education in the region, creating long-term growth opportunities.

Price Performance

Shares of this cloud-based education software provider have gained 19.3% in the past three months against the Zacks Schools industry’s 7.5% decline. The company has been benefiting from the continuous strength in the market demand for its suite of mission-critical products, along with its focus on operating leverage. Furthermore, consistent contract wins, accompanied by advanced AI solutions enhancements and opportunities in its market, bode well for PWSC’s prospects.

PowerSchool (PWSC) Expands Into LATAM With AI Solutions (1)


Image Source: Zacks Investment Research

Considering the estimate revision trend, the Zacks Consensus Estimate for 2024 and third-quarter earnings per share of PWSC have trended upward to 90 cents (from 63 cents) and 25 cents (from 18 cents), over the past 30 days, respectively. The estimated figures indicate 9.8% and 4.2% growth, respectively, from the year-ago period’s reported levels. Such an uptrend depicts analysts’ optimism about the stock’s potential.

In June 2024, PowerSchool announced that it had entered into a definitive agreement and would be acquired by Bain Capital for a total value of $5.6 billion. Although PWSC is set to be acquired, it will continue to remain a standalone company with no interruptions in its business operations and customer service.

Zacks Rank & Key Picks

PowerSchool currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Consumer Discretionary sector.

Stride, Inc. LRN presently carries a Zacks Rank of 2 (Buy). LRN has a trailing four-quarter earnings surprise of 40.3%, on average. The stock has gained 14.9% in the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The consensus estimate for LRN’s fiscal 2025 sales and EPS implies a rise of 6.3% and 7.7%, respectively, from the year-ago levels.

Bright Horizons Family Solutions BFAM presently holds a Zacks Rank of 2. BFAM has a trailing four-quarter earnings surprise of 14.8%, on average. The stock has rallied 15.9% in the past three months.

The consensus estimate for BFAM’s 2024 sales and EPS implies a rise of 10.9% and 18.7%, respectively, from the year-ago levels.

Grand Canyon Education LOPE presently carries a Zacks Rank of 2. LOPE has a trailing four-quarter earnings surprise of 10.2%, on average. The stock has lost 1.2% in the past three months.

The consensus estimate for LOPE’s 2024 sales and EPS implies a rise of 7.2% and 13.4%, respectively, from the year-ago levels.

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Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report

Stride, Inc. (LRN) : Free Stock Analysis Report

Bright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis Report

PowerSchool Holdings, Inc. (PWSC) : Free Stock Analysis Report

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PowerSchool (PWSC) Expands Into LATAM With AI Solutions (2024)

FAQs

PowerSchool (PWSC) Expands Into LATAM With AI Solutions? ›

This expansion within the LATAM region underscores a growing trend, as schools work to modernize teaching approaches through data and AI solutions that help save teachers and administrators time, personalize education

education
Education is about learning skills and knowledge. It also means helping people to learn how to do things and support them to think about what they learn. It is also important for educators to teach ways to find and use information. Education needs research to find out how to make it better.
https://simple.wikipedia.org › wiki › Education
, increase school to home communications and significantly improve student outcomes.

What does AI mean in Powerschool? ›

Using Artificial Intelligence (AI) empowers educators to personalize education, helping students to learn in a way that's right for them.

What changes is AI bringing into the field of education? ›

A. AI solves several modern education challenges, such as closing the technology gap between students and teachers, keeping the learning system ethical and transparent, allowing remote learning, and developing quality data and information solutions for the modern education process.

Is AI good or bad for schools? ›

Students gain problem-solving skills and work ethic from completing assignments in their academic careers that prepare them for their futures. Relying on AI to complete these tasks where they should be learning can be dangerous for individuals in the long run when they have no ability to think independently.

Can teachers tell if you use AI? ›

Experience and intuition: Ultimately, teachers and professors can indeed draw on their experience and intuition to detect whether a piece of work was AI-generated. They're usually familiar with their students' writing styles and capabilities, so they can quickly notice if the work deviates from the norm.

Will AI replace teachers in education? ›

Just as a calculator doesn't replace the need for understanding math, AI won't replace the need for human connection, adaptability, and guidance in the classroom. The future of education doesn't lie in sterile, roboticized classrooms, but rather a balanced blend of human expertise and technological support.

What are the disadvantages of AI in education? ›

AI systems, while efficient, cannot replicate the empathy, understanding and personal connection that human educators offer. This absence of human elements can affect students' social and emotional development, as well as their overall engagement and motivation in the learning process.

What is an example of AI affecting education? ›

Learning process personalization

For example, when an AI-powered system detects that a student learning the English language is having difficulties, it can generate personalized listening, speaking, reading, or writing exercises and provide immediate feedback upon their completion.

What does AI mean in exams? ›

During an AI exam, an AI-based proctoring mechanism monitors exam-takers' live webcam feed and auto-flags various digressions. The AI exam may or may not require human assistance. An AI exam stands for Artificial Intelligence (AI) proctored exam.

What does AI stand for in school? ›

By automating grading, planning and administrative work, artificial intelligence systems can free up educators' time and energy for increased student contact. This is a common argument in support of using AI in the classroom.

What is AI in grading? ›

Grading students' work is a time-consuming and often challenging task. With the rise of artificial intelligence (AI), these tools could help instructors save time and provide students with immediate feedback.

What is AI in assignments? ›

Using generative artificial intelligence (AI) can be both productive and limiting—it can help students to create and revise content, yet it also has the potential to undermine the process by which students create.

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