Dear friends, good morning. Thank you for joining NetDragon Websoft Holdings Limited today for our 2019 annual results presentation. [Non-English content] Our 2019 annual results presentation PPT will be broadcasted on our webcast platform. The PPT is also available for download on our company website, www.nd.com.cn under the investor relations tag, IR webcast section.
[Non-English content] Before the start of our presentation, please allow me to introduce the management who are joining us today. [Non-English content] Dr. Simon Leung, Group Vice Chairman and Executive Director. [Non-English content] Mr. Ben Yam, Group CFO. Mr. Wang Song, Group Senior VP. [Non-English content] Mr. Vin Riera, CEO of Promethean. [Non-English content] Ms. Susan Kim, CEO of Edmodo. [Non-English content] Now, let's pass our time to Dr. Simon Leung to host our presentation today.
Well, thank you. Good morning, good afternoon, good evening, depending on which part of the world you are. Well, thank you for joining us on the call today. I just realized when I got up this morning, we are doing this on April 1st. I have to admit I did not pick the date, and I can also assure you there's no April Fool's joke when I talk about our earnings in 2019.
We have about an hour. I think you guys have seen a lot of the data. What we will do is actually we'll go through the high level, hit the highlights, and then I will save some time for Q&A. Before we do that, let me make some comments on the presenters today. There's a lot of old faces. Old, as in, you have met them before, maybe with the exception of me.
Ben and myself have actually been on this call for quite some time. The other one is Vin, our CEO of Promethean, who's been doing this for quite some time. We have two kind of "new faces." One is Wang Song. We affectionately call him Yunfei. He's actually in the company. He knows a lot about our gaming business. We're so happy to have Yunfei joining us today.
Last but not least, is the only female on the call. I told Susan thank you for joining us, because she's going to add some class to this presentation. That's the introduction. Let me hit the highlights, and let's take a look at our results. This is actually chart number 5. Needless to say, we grew our top line and grew our bottom line, which is kind of expected because we did the profit alert.
If we can switch to page 6 very quickly. It's actually a record high for both earnings and for profit, which we are very happy about. Then, I'll just hit the highlight on the gaming business, is actually we see a very balanced growth in 2019, both mobile versus desktop, which is very exciting. I think the other exciting part, which I probably talked ahead of the slide already, is that our international business is actually also picking up steam. It really truly is a very balanced growth performance. Promethean is our flagship education business. Continue to maintain a global market leadership. Vin is going to talk a little bit about that. The next two points actually they go together. It's something that we've been working on because we have different assets within the company.
We started looking at how we can implement a country-wide or a district-wide or province-wide strategy to really leverage all our assets in the education business that will help either an area or a country to grow. Egypt is a prime example. I will talk a little bit more about it later on. Even though the announcement is actually made in 2020, however, we have been working on this, a lot of the hard work has actually been put in in 2019. Of course, to thank our investor of believing in us, we are looking at a whole year of dividend of CNY 0.40. Next one on gaming, I think I did hit the highlights. Just one more point I want to talk about is actually is a broad-based revenue growth across all our major IP.
I am not going to steal the thunder from Yunfei, I will let him talk more about that. On learning, again, I did talk a little bit about it. I will just hit the highlight. On Promethean, if you look at the shipment increase, it is quite a bit. This is actually about ex-Russia, because I think for those of you who is very familiar with us, is actually we have a tender business which can make the quarter look a bit uneven.
We purposely take it out so you can track our core business. A very strong growth. Egypt is one of the prime example, and we have more of that in the pipeline that we are basically rolling on all cylinders. A very quick one on Edmodo. This whole virus outbreak has actually created a lot of problem for a lot of businesses in a lot of countries.
I think the reason why we are all over the place and doing this call is because of that. But that turned into a very interesting business opportunity to us. Since the outbreak, our traffic has grown in multiple times. Our DAU is approaching more like 5 million as a total. It went from a million plus. It is actually is a lot of opportunity. For those of you who has been following us, Egypt, the Ministry of Education, has announced putting 22 million students and over 10,000 teachers on Edmodo to allow them to deal with the current situation. One of the thing I want to mention right now is actually, to me, this is not a stop-gap solution. What I call this, thinking more about distant learning, remote learning, I think is what I call the new normal.
I do not see people retreating from it after this virus situation. I think this is actually going to be here to stay. I think that works into the advantage of our business and our capability. Quickly about China, is actually very similar than outside of China, is actually our DAU went up. We did support a few of the provinces like Hubei and Fujian in terms of the remote education. Then we also started pushing our product of Promethean in China last year, and you will see the traction coming up in 2020. The last slide I want to go through before I hand it over to Ben is actually our dashboard, if you will.
I think the exciting part is actually you look at on the learning side is actually the DAU is 5 million plus. I got to joke around with Susan Kim, is actually every time we talk and then that the number goes up. We will take a good advantage of it. On the gaming side is actually has always been very strong, but I want to highlight the upcoming titles that actually we do have quite a bit in our inventory, which is actually quite exciting. With that, I am going to hand it over to Ben Yam, our CFO, and he will take you through the highlights of the numbers, and then he will hand it off to Yunfei to talk about gaming. Ben, please take it over.
Well, thank you, Simon Leung. Hello, all. I am going to take you all through the financials. If we can go to slide 12. First of all, let me draw your attention to the top line, the bottom line. In terms of record high, I think Simon Leung talked to a record high. In 2019, we have set the record high on two fronts. First is our revenue, which has gone up by 15%, and the other is our net profits, which has gone up by 48% to over 800 million. Further, if you look at the bottom line, we can also look at the EBITDA, which is a closer approximation to our operating cash flow that we have generated. EBITDA is over 1.2 billion.
If you look at the non-GAAP operating profits, it is also close to 1.1 billion, because we do have a number of accounting or GAAP adjustments, and this non-GAAP figure would more closely represent our core operating profitability. If you go back to the revenue, I think Simon Leung mentioned gaming continued to deliver very solid growth with close to 40% year-over-year growth on the back of broad-based increase across all of our major IPs.
If you look at the education top line, we dropped by 6.6%, but this is due to the timing of our Russia tender. To elaborate a little bit more, in 2018, we won phase II tender with City of Moscow, which is over $60 million, and that is all recognized in 2018. The phase III of that tender, we are actually expecting that to be released in 2020.
That is why we exclude Russia when we do the comparative presentation. If you exclude Russia tender, our revenue went up by 12%. That growth is actually driven by continuation of us maintaining our global market leadership, the increasing penetration of interactive classroom technologies, and also the increasing traction we are seeing in the emerging markets.
Then we will go into a lot more details. Going to my second slide, which is slide number 13, I believe. There are a few things I want to highlight. In terms of education, I want to highlight that we actually had a great second half with our education business as our education revenue sequentially actually increased by 28.5% from first half to second half. In second half, the revenue actually grew year over year by 14%.
The second half growth was on the back of very positive reception of our new Promethean Element series, or we like Product V7, as we started the shipment of that product towards the end of the second quarter last year. So that growth also has gave us a lot of momentum going into 2020. On to gaming. Revenue up across all three major IP. We are also seeing very strong growth in both our PC as well as our mobile gaming business. Also our overseas gaming revenue also increased very significantly.
I also want to highlight that in terms of the gaming kind of the revenue trend in the past few years, if you look at the past four years, since 2015, our gaming revenue has grown at a compound annual growth rate of 40%, and our gaming segmental profits have increased sevenfold during this period. So I just want to emphasize that our gaming business has been delivering very consistent, very sustainable growth over the past many years, and we're definitely looking forward to seeing that trend continue in the years to come. That's it for my session, and I would like to pass the time to my colleague and our Senior VP Wang Song, who's going to go over the details of our gaming business. [Non-English content]
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Thank you, Yunfei. I'm going to ask Vin to start talking about Promethean. Vin, you ready?
Yeah, absolutely. Great. Thanks, Simon.
Yeah.
Good morning, everybody. This is Vin Riera, and I'm the CEO of Promethean. I'm excited to participate on the call today and share Promethean's 2019 full year performance. I'll also provide some context around Promethean's growth, the interactive flat panel market, and some of our new initiatives that we began in 2019. Let's begin with our full year 2019 highlights.
2019 was an exciting year for Promethean. in Q2, we launched and began shipping our new V7 Element Series product line in time to impact the buying season. Our V7 product is differentiated. It's designed for the education market and packaged with our award-winning lesson delivery software. Immediately upon the launch, V7 was well received across the entirety of the market.
In addition to the successful product launch, the sales and marketing efforts Promethean had in the first half of the year also supported our full year growth. These efforts, along with the new product line, allowed for a 20% increase in revenue from the first half to the second half of 2019. Promethean has a core competency in selling interactive flat panels around the globe, and we have proven that we can compete, win, and implement large-scale countrywide tenders.
Egypt was an example of that in 2019. As I review some of the year-over-year numbers, I'll focus on the core run rate business growth and will exclude the large Russia project that was done in 2018. Ben mentioned this earlier, but for reference, there was no Russia tenders to compete for in 2019, and we believe the Russia phase III tender will take place in 2020.
With that in mind, I'm pleased to report that Promethean panel unit volume grew by 27% year-over-year, and revenue grew by 12%. Within the education market, Promethean continued to be the number one provider of interactive flat panels globally, with the exception of China. We did that by growing our business in our core markets and competing and winning Egypt as a large tender.
Promethean also set out to enter the corporate market to create a new revenue stream in what we believe to be a closely adjacent market. We were able to enter this market by adapting our top-of-the-line V7 Titanium product with existing best-in-class conferencing solutions to get into the market quickly and with a quality offering.
We started these efforts in Q3, and in late Q4, we received our very first order for our V7 corporate product. We're going to continue to focus and pursue this market in 2020. In the next slide, I'll speak to revenue growth in 2019. There are a few areas that I'd like to draw your attention to on this slide. First, you'll see the continued revenue growth of our run rate or core business on a year-over-year basis.
Next, you can see the impact of growth that Promethean can achieve when we compete for and win large tenders. Notice that the revenue that we won in 2018 in Russia, while there is no Russia tender in 2019, we were able to replace a portion of that revenue with growth in our core markets and by winning a large tender in Egypt in 2019. Egypt was the largest tender in the global marketplace that we competed for and won.
Finally, you can imagine the potential growth that we could achieve if multiple countrywide tenders were released that we could compete for and win within a fiscal year. In the next slide, I'll review the trends in the business relative to product volume. To begin with, this slide shows two different product types. Panels refers to interactive flat panels. Boards refer to interactive whiteboards that are a legacy projector-based technology.
You will notice year-over-year consecutive growth on our panels. In 2019, our panel volumes increased in our core run rate business and in our tender business. Panel volumes increased as we expanded our product lines to include our new V7 Nickel product, which is an entry-level, value-based interactive flat panel that's attractive to a broad set of buyers across the globe, especially in the emerging markets and budget-conscious geographies. You can see the speed of adoption of the panels as a front-of-class solution is outpacing the decline in interactive whiteboards.
This speaks to the accessibility of our products to a broader portion of the market, allowing customers with limited budgets to procure entry-level interactive panels and increasing the speed that customers can afford to replace interactive whiteboards with interactive flat panels. As we exit 2019, interactive flat panel technology is and will continue to be the primary choice for front-of-class solutions. Next, I'll speak to Promethean's global market leadership and differentiation. Promethean continues to hold the number one position in many of the largest markets around the globe within K-12 education. We can accomplish this by offering products that span across the largest part of the addressable market.
Our V7 Element series has three different product lines that are designed to scale from entry-level value-based for a basic use case, through a feature-rich product that meets the needs of complex classroom applications. Some products are designed for country-specific applications, but our primary three product lines, with screen sizes that scale from 65 to 86 inches, will meet most of the needs of an education buyer across the globe.
All of our hardware models are offered with a form factor and features designed to be used in the classroom and are paired with both ClassFlow and ActivInspire lesson delivery software. The hardware and software bundle help Promethean customers when they make the transition from interactive boards to panels, and it also helps us compete for new business by having a clearly differentiated offering. The next slide highlights the large addressable market for our interactive flat panels.
To put the size of the market in perspective, there are 43 million classrooms or teaching spaces globally. At the end of 2019, it's estimated that only 31% of those markets had a panel or board installed. In the mature markets, like the U.S. or some of the countries in Europe, we expect growth rates between 9% and 27%. However, we believe that the largest opportunities for growth will come from the emerging markets over the next several years.
Within the emerging markets, we have engaged with multiple ministries of education that are looking for classroom solutions for entire countries. Our products are a great fit for their needs, and I believe that between the mature and emerging markets, there's ample opportunity for growth in the foreseeable future.
I want to shift gears quickly away from front of class technologies and share NetDragon's Intelligent Classroom project that we started at the beginning of 2019. Egypt was looking for a quick and scalable solution to expand classrooms throughout the country. There is a need to provide high-quality education to their K-12 population, and part of that requirement was to expedite the building of physical structures to house the teachers and students. However, the timeline to build actual brick-and-mortar structures would take too long to meet their goals.
So NetDragon and Promethean, working closely together, create an offering of a durable modular structure that is cost-effective. It can be assembled in less than three days and comes equipped with a full suite of NetDragon education technologies. In 2019, the Egyptian Ministry of Education signed an MoU to deploy 265,000 Intelligent Classrooms in Egypt.
In Q4, the first pilot order of 100 classrooms was placed, and these units are currently being deployed in Egypt. This comprehensive solution has drawn interest from other countries such as Lebanon, Pakistan, Iraq and Uzbekistan. Thank you for allowing me to discuss Promethean's achievements in 2019. I will now turn it over to my colleague, Susan Kim.
Thanks, Vin. Good morning, good afternoon, good evening, everyone. As Vin mentioned, my name is Susan Kim, and I am the CEO of Edmodo. It is my pleasure to share some highlights. At Edmodo, we consider ourselves and are a truly global online platform, connecting educators and learners around the world across 192 countries, 400,000 schools, and 100 million registered accounts.
At Edmodo, we talk a lot about the future of learning, and due to the global pandemic that is COVID-19, that future is now. You can see from this chart the immense growth in daily active users over the past month. Our global daily active users have surpassed over 4 million, representing a 400% year-over-year growth, driven by Italy, with 14x growth, Indonesia with 9x growth. It is worth noting that the numbers shown here do not reflect the full rollout of our most recent countrywide deployment.
On the next slide, due to global school closures, we have been busy supporting and partnering with governments and school administrators to bring their schools online. As Vin mentioned, there is an Egypt-wide countrywide deployment. Similarly, leveraging NetDragon and Promethean, Egypt recently designated Edmodo as their online learning platform for the entire Egyptian K-12 school system. We are currently onboarding 1 million teachers and 22 million students.
In times of crisis, true priorities become crystal clear, and in the case of Edmodo, the need to provide an immediate, viable distance learning solution enabling communication between parties with next-generation classroom tools is paramount. We have been hard at work developing these products and features that not only address current needs, but next-gen features to sustain engagement both in the classroom and beyond. Recently launching our first online tutoring service, AskMo, in Q4 of 2019.
On this next slide, you will see that AskMo, which represents the first of our online tutoring suite, is off to a promising start. We are seeing strong market response and engagement, notably daily time spent on the app. In the past two weeks, daily engagement has grown not only beyond this four minutes and nine seconds, but actually beyond six minutes. Finally, our goals and areas of focus for 2020.
Looking ahead, we are going to continue to focus on scaling, large-scale implementation and onboarding tools, reporting and analytics for administrators, organizations, and governments. Fast, iterative product launches to address current needs and deliver on the next generation classroom, which includes gamified and social learning, and to continue to develop our online tutoring product line. With that, I am going to turn it back to Dr. Simon Leung.
Hey, thank you, Susan. This is actually a wonderful presentation. What I am going to do is going to be quickly just summarize how we look at everything in 2020. On the gaming side, Yunfei talked a lot about it, and I think it is very clear on our strategy and how we look forward. We do expect continued growth in that area.
The only thing I want to point out is actually, a lot of you is actually worried about the Ban Hao, is actually, right here we said that we have six new games with approved licenses already. On the learning side, you heard from both Vin and from Susan on some of the growth initiatives within their businesses. The one I want to highlight right here is actually the continued executing of the country's strategy.
Let us take Egypt as the example, and I have to admit personally, I am quite involved together with the different CEOs in kind of making that happen. This is actually the classic case of we can provide both hardware and software and infrastructure and also a platform to allow Egypt to not only kind of improve their education, but you really leapfrog and become the leader in the area.
You heard Vin talking about we provide classroom technology to the existing classrooms. But we also created the solution called Intelligent Classroom to help them address the shortage of the mismatch of the classrooms. At the same time, Edmodo went in and become the de facto standard, supporting all the students and all the teachers, and ultimately connecting all the parents into this platform.
They can do learning collaboratively initially in Egypt, but they can go outside of Egypt. At the same time, we have a lot of technology we can bring in. A virtual classroom, a broadcasting system, ability to help them to create content. One of the things we did not talk about is they have something that developed for the last few years called EKB, Egyptian Knowledge Bank, which it will be integrated into Edmodo, so the student can access the content. But we are going to give them more tools that they can provide even more content and more premium content on top of it, so we can also help them to monetize. Some of the services that Susan talked about, like AskMo, is going to be a perfect solution for Egypt because they have a lot of teachers.
They all speak Arabic, so they can kind of be part of the AskMo solution, providing help to the local students. At the same time, because they speak Arabic, they can potentially support the student in UAE and in the Middle East and different places. Again, very exciting development for us. Egypt is a big focus, but at the same time, we are also working on other countries.
The other countries may not take 100% what Egypt is doing, but 80%, I will be pretty happy. For China, we will continue to grow. I think that is very good. One thing I will be remiss and to not to talk about is actually is the COVID-19 going to impact both, creating some challenges, but at the same time also create opportunities. We do not see this has a huge impact on our gaming business.
If there's any impact, it will be kind of positive because people will be spending more time at home. They will be spending more time on the games. On the Promethean side, I think the challenges will be more impact on the timing, because if you remember, the purchase season will be more in Q2 and Q3. But with this virus situation, we do see it actually push out a little bit. We're looking at maybe a quarter right now. But the good news is actually we do not see the demand diminish, it is actually we always still talking to them. They're very enthusiastic about using the technology.
If you remember, I talk about the new normal, it is actually with that, they really have to invest into more technology to support distance learning or at-home learning, even when they come back to the "normal state." Case in point is actually in the U.S., we do even more see more opportunity. Now, we don't know when it's going to happen. But the $2 trillion stimulus package in there, $13 billion is earmarked to invest into education.
Trust me, we are looking at that both from the eyes of Promethean and also the eyes of Edmodo. With that, it is a good segue into Edmodo. COVID-19 not only it didn't negatively impact Edmodo, but it's actually positively impact Edmodo in terms of the usage, because it's actually all of a sudden, everybody realized the importance of having a community, the importance of connecting teachers and students in remote areas.
We see the opportunity not only is actually in some of the countries like Italy and Indonesia. I mean, Susan may not have talked about it, even in the U.S., we do see is actually increase of the activities is actually by about 30%. I mean, because our base is bigger, 30% is quite a bit. We're seeing similar trend in China. At home learning is going to be big. It will continue to leverage our resources and then we'll start monetizing the business. With that, thank you for your attention. I hope we did give you not only a good view of what we have done in 2019, but I think we also give you a clear strategy and view of our business in 2020. With that, I'm going to give it back to the operator and then we'll go into Q&A. Thank you.
Thank you Dr. Leung and management. Now it's time for our Q&A section. You're welcome to raise your question in the following two ways. First, if you would like to raise questions through teleconferencing system, you may press star one on your phone keypad and our operator will bridge you through. Second, if you would like to raise questions via our webcast platform, please click the question mark on the screen and type your questions in the Q&A box. [Non-English content]
Thank you. Our first question comes from Susanna Chui from DBS. [Non-English content]
Hey, morning, Simon and Ben. Thank you for taking my questions. NetDragon has did a very great job in 2019. Could we have 2020 guidance for revenue growth for both online games and also education segment? Also the profitability outlook, especially on the education segment. Could we expect the loss from education could stabilize or even narrow down in 2020? That's my first question, thanks.
Let me let me take it. Susanna, thank you for the compliment. We did try very hard and we'll continue to do it. In terms of guidance, you know, we don't give it out a call like this. I would suggest we'll take it offline, you talk to Ben and all that. A quick comment on the segmental loss for our education business. You've got to read between the lines that, I mean, Edmodo is going to pick up a lot of students and we can monetize it in so many different ways by charging per student, per teacher, and they set it up for the Ministry, and then we can do advertising, we can offer services.
Exactly we do see the momentum really picking up, and definitely we see a kind of continual narrowing of our losses, and then we'll go into a positive as soon as possible. Okay? Ben's your friend, so talk to Ben. Okay, next.
Thank you. Yes, second question.
Thank you. Our next question comes from Feiya Zhao from Haitong. [Non-English content]
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Thank you very much. [Non-English content] We would like to welcome our next question. [Non-English content]
Thank you. Our next question comes from Eric Qiu from CCBI. [Non-English content]
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Thank you, thank you Dr. Leung. [Non-English content] Now we would like to welcome our next question. [Non-English content]
Thank you. And our next question comes from Yang Linlin from GF Securities. [Non-English content]
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[Non-English content] Thank you, Dr. Leung.
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Before we welcome our next question from the webcast platform, let me reintroduce the ways we can raise questions. So first, if you would like to raise questions through a teleconferencing system, you may press star one on your keypad, and also you may also click the question mark on our webcast platform to ask question in our Q&A box. [Non-English content] Now let me welcome the question from our webcast platform. This is a question from Everbright SHK Lok Chong. He would like to ask: What is our sales target on Promethean in China in 2020? [Non-English content] Thank you.
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Thank you. Our next question comes from Chen Zhangfeng from Hezhang Investment [Non-English content]
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Next question comes from our online webcast platform is from Lawrence from Boston Partners. It is about our gaming and our game business. The question is: Which country are you seeing tractions for international growth? And where do you see contribution in the next three to five years for our game business? [Non-English content]
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Wang Song just replied that currently we see most of the traction coming from Europe and the Middle East. And we are also looking at the development and also opportunities in other smaller regions as well. Thank you. [Non-English content] Welcome our next question from the teleconferencing system. Thank you.
Thank you. Our next question comes from Priscilla Chen from Cloud Capital. [Non-English content]
Hi, good morning management. Could you share with us about Edmodo's business and also Promethean? Because what we can see that the virus outbreak, it might affect the education, about the students, like how they go to school or something. About the order flow. Could you share with us the business there?
I think we talked about this subject quite a few times, so I do not know what additional information are you looking for? Again, I urge you to go back to page 45. I am happy to have Vin and Susan make some more comments, but can I look at our outlook for 2020? Vin and Susan, do you have any additional commentary?
No. I think that with what has been happening with coronavirus and the fact that particularly, outside of Asia, we are still fighting the virus. We will be on lockdown for quite some time. There is going to be continued demand, and that does not show any signs of stopping. I think that it is now about sustaining that demand, servicing it, building those next-generation features to deepen engagement, which is a precursor to monetization.
On top of that as well, we have such a huge opportunity working in partnership with Promethean and NetDragon with these country-wide deployments. Actually, the deployment in Egypt actually that is starting to awaken the U.S. market, which is our most mature market, and has been growing the slowest out of all the other markets. But we have had now states approach us that want to do state-wide deployments because of the news coming out of Egypt. I think it is just, if you are looking for the outlook for 2020, it will be strong, and it presents an opportunity for us to start aggressively making moves in this market.
Vin, any commentary from you?
I think I'd just build on what you said earlier, which is, we don't believe that demand is entirely perishable on interactive devices in classrooms. We all fundamentally believe that classrooms are going to open back up again. When they do, they need to be ready with all sorts of technologies. Interactive flat panels are one of those.
Correct. Can I, yeah, sorry. Can I ask this? So that means because we have to help our clients to build the classrooms and so on. Just because of the epidemic issue, we have to hold on all these kinds of projects. Can I understand if it is the case like that?
I'm not too sure what you mean by holding on to the project.
I'm just wondering.
One more time. On Promethean, as Vin said, we see the demand is still there. I think there will be some timing impact because it's actually, they're busy navigating what they're doing right now, so they will come back. I think what you meant is if the project is going to go away. We don't see that happening, but we do see an impact on timing. On Edmodo, it's actually a totally different story.
Yeah.
Because of where we are, actually, there's much more immediate need for them to go and address that issue. It's an issue, what I call the new normal, because I don't see everything going back exactly the way it was. Because people got to understand, hey, something will happen. Could be a virus thing, could be a hurricane, could be something else. This remote learning is going to be here to stay, and that's why I keep calling it the new normal. Because of that, I see continual pressure for us to really support a lot of people, whether it's in Edmodo or in China, using our other assets. I think that's how we look at the projects. Okay?
Okay. All right, thank you.
Thank you. Yep.
Thank you. I would like to prompt for your attention again for raising questions. If you would like to raise questions through the teleconferencing system, please press star one. You may also click on the question mark in our webcast platform to ask questions. [Non-English content] Let's welcome our next question from our online webcast system. It is a question from Jacob from Cable Car Capital. The question is, do you have any update on the anticipated timing and funding of the Egyptian pop-up classroom MoU? Thank you.
Okay. I might as well take it, and then again. I said it before. First of all, we have shipped about 100 of them. They are testing it out. In terms of the current budget situation, I am only talking about the current budget situation. The Egyptian government has a chunk of money in their budget starting July 1st. That means for the next fiscal year to do what we call the Intelligent Classroom.
At the same time, they also have another budget, which is within the Egyptian government, not necessarily underneath the Ministry of Education, but underneath the Ministry of Transportation, which is money for them to build physical schools, because they did have a plan to do that. That is also another pot of money that potentially, the Ministry of Education can tap into. I think that is all the good news. The money is there in the next fiscal year. We do not control what they do with the coronavirus. Whether there will be some delay, we do not know at this time. We are keeping a close eye. I think that is all the things that I can tell you at this point.
Thank you.
Okay. Yep.
Thanks, Dr. Leung.
Yeah.
Time called break. We would like to welcome the last question. [Non-English content]
Thank you. Our last question comes from Mr. Jia from Everbright. [Non-English content]
Okay. Thank you, Everbright, for taking my questions. This is Charlie from Everbright Securities. I want to know the guidance of our revenue and net income for 2020 and 2021 and the margin between 2019 and 2021. Okay. Thank you.
Well, I said it before, I am going to say it again. We do not give out guidance at this call. My suggestion is that you go talk to our IR department, either Ben, or I think Maggie is on the call, or Pat is on the call, and let us see what we can do. Okay? With that, operator, should I close?
Yes, please. Thank you, Dr. Leung.
Okay. Thank you, everybody. It is great to be here with you, to share the good news of 2019, and also to give you some kind of outlook of how we see the different businesses in 2020. We are very confident about our business model, both in gaming and also in education. I think we do not see the demand diminish, but we do see some impact on timing.
On the Edmodo side, we do see huge opportunity for us to really support a lot of these, either governments or states or provinces or whatnot, to really address the current issue. That allow us to start monetizing much quicker than we expected. With that, one more time, we are very confident about our 2020 business, barring from some unforeseen disaster around the world, which I hope is not going to be the case. With that, well, thank you for joining in, and I would like to thank all the speakers, my colleagues, to spend the time on the call with you. With that, so thank you again.
Thank you. Thank you, Dr. Leung, Ben, Wang, Vin, Susan. This successfully concludes our presentation today. Once again, we would like to thank you for joining us. We wish you have a great day.