Stride Posts Another Record Year
Stride Inc. (NYSE: LRN) reported strong financial results for fiscal year 2024, with significant year-over-year growth. Key highlights include:
- Revenue increased 11% to $2,040.1 million
- Net income rose 60.9% to $204.2 million
- Diluted earnings per share grew 57.9% to $4.69
- Adjusted EBITDA improved 31.9% to $390.7 million
The company's General Education segment saw a 13.9% revenue increase, while Career Learning revenue grew 6.4%. Average enrollment across both segments increased by 9% to 194,300 students. Stride's strong cash position of $714.2 million as of June 30, 2024, positions it well for future growth.
Stride Inc. (NYSE: LRN) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con una crescita significativa rispetto all'anno precedente. I punti salienti includono:
- I ricavi sono aumentati dell'11% arrivando a 2.040,1 milioni di dollari
- L'utile netto è cresciuto del 60,9% a 204,2 milioni di dollari
- L'utile per azione diluito è aumentato del 57,9% a 4,69 dollari
- L'EBITDA rettificato è migliorato del 31,9% raggiungendo 390,7 milioni di dollari
Il segmento Educazione Generale dell'azienda ha visto un incremento del fatturato del 13,9%, mentre il fatturato dell'Apprendimento Professionale è cresciuto del 6,4%. L'iscrizione media in entrambi i segmenti è aumentata del 9%, raggiungendo 194.300 studenti. La solida posizione di cassa di Stride, pari a 714,2 milioni di dollari al 30 giugno 2024, la colloca bene per una futura crescita.
Stride Inc. (NYSE: LRN) informó resultados financieros sólidos para el año fiscal 2024, con un crecimiento significativo año tras año. Los puntos destacados incluyen:
- Los ingresos aumentaron un 11% alcanzando $2,040.1 millones
- El ingreso neto creció un 60.9% hasta $204.2 millones
- Las ganancias por acción diluidas aumentaron un 57.9% a $4.69
- El EBITDA ajustado mejoró un 31.9% hasta $390.7 millones
El segmento de Educación General de la empresa vio un aumento del 13.9% en los ingresos, mientras que los ingresos por Aprendizaje Profesional crecieron un 6.4%. La inscripción promedio en ambos segmentos aumentó un 9% alcanzando 194,300 estudiantes. La sólida posición de efectivo de Stride de $714.2 millones hasta el 30 de junio de 2024 la posiciona bien para el crecimiento futuro.
Stride Inc. (NYSE: LRN)는 2024 회계연도에 강력한 재무 성과를 보고했으며, 전년 대비 눈에 띄는 성장을 기록했습니다. 주요 사항은 다음과 같습니다:
- 매출이 11% 증가하여 20억 4,010만 달러에 도달
- 순이익이 60.9% 증가하여 2억 420만 달러에 도달
- 희석 주당 순이익이 57.9% 증가하여 4.69 달러에 도달
- 조정 EBITDA가 31.9% 개선되어 3억 9,070만 달러에 도달
회사의 일반 교육 부문은 13.9%의 매출 증가를 보였고, 직업 학습 매출은 6.4% 증가했습니다. 두 부문 모두 평균 등록 인원은 9% 증가하여 194,300명이 되었습니다. 2024년 6월 30일 기준 Stride의 현금 보유액은 7억 1,420만 달러로, 향후 성장에 대한 좋은 입지를 제공합니다.
Stride Inc. (NYSE: LRN) a annoncé de solides résultats financiers pour l'exercice 2024, avec une croissance significative d'une année sur l'autre. Les faits saillants comprennent :
- Les revenus ont augmenté de 11 % pour atteindre 2,040.1 millions de dollars
- Le bénéfice net a augmenté de 60,9 % pour atteindre 204,2 millions de dollars
- Le bénéfice par action dilué a augmenté de 57,9 % pour s'établir à 4,69 dollars
- L'EBITDA ajusté a progressé de 31,9 % pour atteindre 390,7 millions de dollars
Le segment Éducation Générale de l'entreprise a connu une augmentation des revenus de 13,9 %, tandis que les revenus de l'Apprentissage Professionnel ont augmenté de 6,4 %. L'inscription moyenne dans les deux segments a augmenté de 9 % pour atteindre 194 300 étudiants. La solide position de trésorerie de Stride s'élevait à 714,2 millions de dollars au 30 juin 2024, la plaçant bien pour une croissance future.
Stride Inc. (NYSE: LRN) hat für das Geschäftsjahr 2024 starke Finanzdaten veröffentlicht, mit einem erheblichen Wachstum im Jahresvergleich. Die wichtigsten Highlights sind:
- Der Umsatz stieg um 11% auf 2.040,1 Millionen Dollar
- Der Nettogewinn erhöhte sich um 60,9% auf 204,2 Millionen Dollar
- Der verwässerte Gewinn je Aktie wuchs um 57,9% auf 4,69 Dollar
- Das bereinigte EBITDA verbesserte sich um 31,9% auf 390,7 Millionen Dollar
Der Geschäftsbereich Allgemeine Bildung verzeichnete einen Umsatzanstieg von 13,9%, während die Einnahmen aus beruflicher Bildung um 6,4% wuchsen. Die durchschnittliche Einschreibung in beiden Bereichen stieg um 9% auf 194.300 Studierende. Die solide Bargeldposition von Stride von 714,2 Millionen Dollar zum 30. Juni 2024 positioniert das Unternehmen gut für zukünftiges Wachstum.
- Revenue increased 11% year-over-year to $2,040.1 million
- Net income rose 60.9% to $204.2 million
- Diluted earnings per share grew 57.9% to $4.69
- Adjusted EBITDA improved 31.9% to $390.7 million
- General Education segment revenue increased 13.9%
- Average enrollment across segments grew 9% to 194,300 students
- Strong cash position of $714.2 million as of June 30, 2024
- Adult Career Learning revenue decreased 16.4% year-over-year
- Capital expenditures increased to $61.6 million from $66.5 million in the previous year
Insights
Stride's fiscal 2024 results demonstrate robust financial performance and growth. The company reported a
The General Education segment showed impressive growth, with revenue up
Overall, Stride's performance reflects the growing demand for technology-based education solutions, positioning the company well in the evolving education landscape.
Stride's fiscal 2024 results underscore the accelerating adoption of tech-based education. The
The company's ability to increase revenue per enrollment in General Education by
The reduced capital expenditure on curriculum development (
Stride's performance reflects broader trends in the education technology sector. The strong growth in General Education aligns with the increased acceptance of online learning post-pandemic. However, the decline in Adult Learning revenue (
The company's decision to withhold fiscal 2025 guidance until Q1 results are released could indicate uncertainty in the market or potential strategic shifts. This approach may be prudent given the evolving regulatory landscape and potential economic headwinds.
Stride's robust cash position (
Earnings Per Share Increased
RESTON, Va., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2024.
Fiscal 2024 Highlights Compared to 2023
- Revenue of
$2,040.1 million , compared with$1,837.4 million . - Income from operations of
$249.6 million , compared with$165.5 million . - Net income of
$204.2 million , compared with$126.9 million . - Diluted net income per share of
$4.69 , compared with$2.97 . - Adjusted operating income of
$293.9 million , compared with$201.0 million . (1) - Adjusted EBITDA of
$390.7 million , compared with$296.2 million . (1)
Fiscal 2024 Summary Financial Metrics
| Year Ended June 30, | Change 2024/2023 | |||||||||||
| 2024 | 2023 | $ | % | |||||||||
| (In thousands, except percentages and per share data) | ||||||||||||
| Revenues | $ | 2,040,069 | 1,837,358 | 202,711 | 11.0 | % | ||||||
| Income from operations | 249,600 | 165,499 | 84,101 | 50.8 | % | |||||||
| Adjusted operating income (1) | 293,940 | 201,027 | 92,913 | 46.2 | % | |||||||
| Net income | 204,183 | 126,867 | 77,316 | 60.9 | % | |||||||
| Net income per share, diluted | 4.69 | 2.97 | 1.72 | 57.9 | % | |||||||
| EBITDA (1) | 359,283 | 275,857 | 83,426 | 30.2 | % | |||||||
| Adjusted EBITDA (1) | 390,745 | 296,177 | 94,568 | 31.9 | % | |||||||
| (1) | To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA and adjusted EBITDA. Management believes that these additional metrics provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. | |
Fourth Quarter Fiscal 2024 Highlights Compared to 2023
- Revenue of
$534.2 million , compared with$483.5 million . - Income from operations of
$73.7 million , compared with$53.9 million . - Net income of
$62.8 million , compared with$43.4 million . - Diluted net income per share of
$1.42 compared with$1.01 . - Adjusted operating income of
$87.9 million , compared with$64.4 million . (1) - Adjusted EBITDA of
$112.1 million , compared with$88.8 million . (1)
Fourth Quarter Fiscal 2024 Summary Financial Metrics
| Three Months Ended June 30, | Change 2024/2023 | |||||||||||
| 2024 | 2023 | $ | % | |||||||||
| (In thousands, except percentages and per share data) | ||||||||||||
| Revenues | $ | 534,183 | $ | 483,489 | $ | 50,694 | 10.5 | % | ||||
| Income from operations | 73,678 | 53,946 | 19,732 | 36.6 | % | |||||||
| Adjusted operating income (1) | 87,896 | 64,430 | 23,466 | 36.4 | % | |||||||
| Net income | 62,782 | 43,372 | 19,410 | 44.8 | % | |||||||
| Net income per share, diluted | 1.42 | 1.01 | 0.41 | 40.6 | % | |||||||
| EBITDA (1) | 101,897 | 83,648 | 18,249 | 21.8 | % | |||||||
| Adjusted EBITDA (1) | 112,087 | 88,772 | 23,315 | 26.3 | % | |||||||
| (1) | To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA and adjusted EBITDA. Management believes that these additional metrics provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. | |
Revenue and Enrollment Data
Revenue
The following table sets forth the Company’s revenues for the periods indicated:
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| June 30, | Change 2024 / 2023 | June 30, | Change 2024 / 2023 | |||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||||||||||||
| (In thousands, except percentages) | ||||||||||||||||||||||||||
| General Education | $ | 347,058 | $ | 295,402 | $ | 51,656 | 17.5 | % | $ | 1,289,193 | $ | 1,131,391 | $ | 157,802 | 13.9 | % | ||||||||||
| Career Learning | ||||||||||||||||||||||||||
| Middle - High School | 167,219 | 156,668 | 10,551 | 6.7 | % | 651,191 | 586,770 | 64,421 | 11.0 | % | ||||||||||||||||
| Adult | 19,906 | 31,419 | (11,513 | ) | (36.6 | %) | 99,685 | 119,197 | (19,512 | ) | (16.4 | %) | ||||||||||||||
| Total Career Learning | 187,125 | 188,087 | (962 | ) | (0.5 | %) | 750,876 | 705,967 | 44,909 | 6.4 | % | |||||||||||||||
| Total Revenues | $ | 534,183 | $ | 483,489 | $ | 50,694 | 10.5 | % | $ | 2,040,069 | $ | 1,837,358 | $ | 202,711 | 11.0 | % | ||||||||||
Enrollment Data
The following table sets forth enrollment data for students in our General Education and Career Learning lines of revenue. Enrollments for General Education and Career Learning only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, instructional and support services inclusive of administrative support.
| Three Months Ended | Change | Year Ended | Change | ||||||||||||||||||||||
| June 30, | 2024 / 2023 | June 30, | 2024 / 2023 | ||||||||||||||||||||||
| 2024 | 2023 | # | % | 2024 | 2023 | # | % | ||||||||||||||||||
| (In thousands, except percentages) | |||||||||||||||||||||||||
| General Education (1) | 120.6 | 110.6 | 10.0 | 9.0 | % | 121.6 | 112.3 | 9.3 | 8.3 | % | |||||||||||||||
| Career Learning (1)(2) | 72.8 | 65.5 | 7.3 | 11.1 | % | 72.7 | 65.9 | 6.8 | 10.3 | % | |||||||||||||||
| Average Enrollment | 193.4 | 176.1 | 17.3 | 9.8 | % | 194.3 | 178.2 | 16.1 | 9.0 | % | |||||||||||||||
| (1) | This data includes enrollments for which Stride receives no public funding or revenue. | |
| (2) | No enrollments are included in Career Learning for Stride’s Adult Learning offerings. | |
Revenue per Enrollment Data
The following table sets forth revenue per average enrollment data for students for the period indicated. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different.
| Three Months Ended | Change | Year Ended | Change | ||||||||||||||||||||||
| June 30, | 2024 / 2023 | June 30, | 2024 / 2023 | ||||||||||||||||||||||
| 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | ||||||||||||||||||
| General Education | $ | 2,735 | $ | 2,455 | $ | 280 | 11.4 | % | $ | 10,028 | $ | 9,270 | $ | 758 | 8.2 | % | |||||||||
| Career Learning | 2,294 | 2,389 | (95 | ) | (4.0 | %) | 8,946 | 8,885 | 61 | 0.7 | % | ||||||||||||||
Cash Flow and Capital Allocation
As of June 30, 2024, the Company’s cash and cash equivalents and marketable securities totaled
Capital expenditures for the fiscal year ended June 30, 2024 were
Fiscal Year 2025 Outlook
The Company will provide an outlook for fiscal year 2025 when it reports results for the first quarter of fiscal year 2025, anticipated to be released in October 2024. No separate guidance communication, or enrollment counts, for fiscal 2025 will be provided before that time.
Conference Call
The Company will discuss its fourth quarter and full fiscal year 2024 financial results during a conference call scheduled for Tuesday, August 6, 2024 at 5:00 p.m. eastern time (ET).
A live webcast of the call will be available at https://events.q4inc.com/attendee/804531504. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.
A replay of the call will be posted at https://events.q4inc.com/attendee/804531504 as soon as it is available.
About Stride Inc.
Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.
Investor Contact
Timothy Casey
Vice President, Investor Relations
Stride, Inc.
tcasey@k12.com
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends” and similar expressions to identify forward looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve or us to comply with federal, state and local regulations, resulting in a loss of funding, an obligation to repay funds previously received, or contractual remedies; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve as curriculum standards, testing programs and state accountability metrics evolve; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school in which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; and failure to prevent or mitigate a cybersecurity incident that affects our systems; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Financial Statements
The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three and twelve months ended June 30, 2024 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Annual Report on Form 10-K for the year ended June 30, 2024, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s website at www.stridelearning.com.
| STRIDE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| (In thousands except share and per share data) | |||||||||||||||||
| Revenues | $ | 534,183 | $ | 483,489 | $ | 2,040,069 | $ | 1,837,358 | |||||||||
| Instructional costs and services | 345,971 | 311,408 | 1,276,466 | 1,190,288 | |||||||||||||
| Gross margin | 188,212 | 172,081 | 763,603 | 647,070 | |||||||||||||
| Selling, general, and administrative expenses | 114,534 | 118,135 | 514,003 | 481,571 | |||||||||||||
| Income from operations | 73,678 | 53,946 | 249,600 | 165,499 | |||||||||||||
| Interest expense, net | (2,318 | ) | (2,070 | ) | (8,812 | ) | (8,404 | ) | |||||||||
| Other income, net | 7,519 | 5,858 | 26,900 | 15,452 | |||||||||||||
| Income before income taxes and income (loss) from equity method investments | 78,879 | 57,734 | 267,688 | 172,547 | |||||||||||||
| Income tax expense | (16,099 | ) | (14,468 | ) | (64,482 | ) | (45,346 | ) | |||||||||
| Income (loss) from equity method investments | 2 | 106 | 977 | (334 | ) | ||||||||||||
| Net income attributable to common stockholders | $ | 62,782 | $ | 43,372 | $ | 204,183 | $ | 126,867 | |||||||||
| Net income attributable to common stockholders per share: | |||||||||||||||||
| Basic | $ | 1.47 | $ | 1.02 | $ | 4.79 | $ | 3.00 | |||||||||
| Diluted | $ | 1.42 | $ | 1.01 | $ | 4.69 | $ | 2.97 | |||||||||
| Weighted average shares used in computing per share amounts: | |||||||||||||||||
| Basic | 42,760,745 | 42,434,397 | 42,626,588 | 42,286,392 | |||||||||||||
| Diluted | 44,248,689 | 42,849,355 | 43,535,441 | 42,728,108 | |||||||||||||
| STRIDE, INC. CONSOLIDATED BALANCE SHEETS | |||||||||
| June 30, | |||||||||
| 2024 | 2023 | ||||||||
| (In thousands except share and per share data) | |||||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 500,614 | $ | 410,807 | |||||
| Accounts receivable, net of allowance of | 472,754 | 463,722 | |||||||
| Inventories, net | 36,748 | 36,716 | |||||||
| Prepaid expenses | 29,164 | 24,817 | |||||||
| Marketable securities | 191,672 | 111,918 | |||||||
| Other current assets | 14,494 | 17,219 | |||||||
| Total current assets | 1,245,446 | 1,065,199 | |||||||
| Operating lease right-of-use assets, net | 54,503 | 69,508 | |||||||
| Property and equipment, net | 50,856 | 52,332 | |||||||
| Capitalized software, net | 81,952 | 83,465 | |||||||
| Capitalized curriculum development costs, net | 53,232 | 50,787 | |||||||
| Intangible assets, net | 60,282 | 74,771 | |||||||
| Goodwill | 246,676 | 246,676 | |||||||
| Deferred tax asset | 7,200 | 8,776 | |||||||
| Deposits and other assets | 120,318 | 109,152 | |||||||
| Total assets | $ | 1,920,465 | $ | 1,760,666 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 40,970 | $ | 48,854 | |||||
| Accrued liabilities | 60,796 | 76,626 | |||||||
| Accrued compensation and benefits | 64,878 | 57,426 | |||||||
| Deferred revenue | 35,742 | 76,159 | |||||||
| Current portion of finance lease liability | 29,146 | 35,621 | |||||||
| Current portion of operating lease liability | 12,748 | 14,449 | |||||||
| Total current liabilities | 244,280 | 309,135 | |||||||
| Long-term finance lease liability | 26,452 | 21,278 | |||||||
| Long-term operating lease liability | 45,192 | 59,425 | |||||||
| Long-term debt | 414,675 | 413,035 | |||||||
| Other long-term liabilities | 13,841 | 10,497 | |||||||
| Total liabilities | 744,440 | 813,370 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity | |||||||||
| Preferred stock, par value | — | — | |||||||
| Common stock, par value | 4 | 4 | |||||||
| Additional paid-in capital | 720,033 | 695,480 | |||||||
| Accumulated other comprehensive loss | (42 | ) | (35 | ) | |||||
| Retained earnings | 558,512 | 354,329 | |||||||
| Treasury stock of 5,334,743 shares at cost | (102,482 | ) | (102,482 | ) | |||||
| Total stockholders’ equity | 1,176,025 | 947,296 | |||||||
| Total liabilities and stockholders' equity | $ | 1,920,465 | $ | 1,760,666 | |||||
| Year Ended | |||||||||
| June 30, | |||||||||
| 2024 | 2023 | ||||||||
| (In thousands) | |||||||||
| Cash flows from operating activities | |||||||||
| Net income | $ | 204,183 | $ | 126,867 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization expense | 109,683 | 110,358 | |||||||
| Stock-based compensation expense | 31,462 | 20,320 | |||||||
| Deferred income taxes | 2,890 | (10,373 | ) | ||||||
| Provision for credit losses | 22,844 | 9,158 | |||||||
| Amortization of fees on debt | 1,640 | 1,597 | |||||||
| Noncash operating lease expense | 14,246 | 14,728 | |||||||
| Other | 849 | (1,966 | ) | ||||||
| Changes in assets and liabilities: | |||||||||
| Accounts receivable | (32,056 | ) | (54,908 | ) | |||||
| Inventories, prepaid expenses, deposits and other current and long-term assets | (8,877 | ) | (19,389 | ) | |||||
| Accounts payable | (6,844 | ) | (11,999 | ) | |||||
| Accrued liabilities | (16,556 | ) | 24,132 | ||||||
| Accrued compensation and benefits | 7,394 | (15,473 | ) | ||||||
| Operating lease liability | (14,990 | ) | (12,243 | ) | |||||
| Deferred revenue and other liabilities | (37,071 | ) | 22,341 | ||||||
| Net cash provided by operating activities | 278,797 | 203,150 | |||||||
| Cash flows from investing activities | |||||||||
| Purchase of property and equipment | (2,270 | ) | (4,336 | ) | |||||
| Capitalized software development costs | (40,653 | ) | (44,973 | ) | |||||
| Capitalized curriculum development costs | (18,666 | ) | (17,239 | ) | |||||
| Sale of other investments | — | 60 | |||||||
| Acquisition of assets | — | (1,409 | ) | ||||||
| Other acquisitions, loans and investments, net of distributions | (5,196 | ) | (1,652 | ) | |||||
| Proceeds from the maturity of marketable securities | 204,487 | 91,879 | |||||||
| Purchases of marketable securities | (277,573 | ) | (140,570 | ) | |||||
| Net cash used in investing activities | (139,871 | ) | (118,240 | ) | |||||
| Cash flows from financing activities | |||||||||
| Repayments on finance lease obligations | (40,919 | ) | (42,956 | ) | |||||
| Payments of contingent consideration | — | (7,024 | ) | ||||||
| Proceeds from exercise of stock options | — | 20 | |||||||
| Repurchase of restricted stock for income tax withholding | (8,200 | ) | (13,541 | ) | |||||
| Net cash used in financing activities | (49,119 | ) | (63,501 | ) | |||||
| Net change in cash, cash equivalents and restricted cash | 89,807 | 21,409 | |||||||
| Cash, cash equivalents and restricted cash, beginning of period | 410,807 | 389,398 | |||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 500,614 | $ | 410,807 | |||||
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, and adjusted EBITDA, which are not presented in accordance with GAAP.
- Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for stock-based compensation and the amortization of intangible assets.
- EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.
- Adjusted EBITDA is defined as income (loss) from operations as adjusted for stock-based compensation and depreciation and amortization.
- Adjusted EBITDA and adjusted operating income (loss) exclude stock-based compensation, which consists of expenses for stock options, restricted stock, restricted stock units, and performance stock units.
Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss) and Adjusted EBITDA remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and Adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. EBITDA and Adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.
Our management uses these non-GAAP financial measures:
- as additional measures of operating performance because they assist us in comparing our performance on a consistent basis; and
- in presentations to the members of our Board of Directors to enable our Board to review the same measures used by management to compare our current operating results with corresponding prior periods.
Other companies may define these non-GAAP financial measures differently and, as a result, our use of these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although we use these non-GAAP financial measures to assess the performance of our business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items not included and/or included in the most directly comparable GAAP financial measure.
These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.
A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Fourth Quarter and Full Fiscal Year 2024
Reconciliation of Income from Operations to Adjusted Operating Income
| Three Months Ended | Year Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| (In thousands) | |||||||||||
| Income from operations | $ | 73,678 | $ | 53,946 | $ | 249,600 | $ | 165,499 | |||
| Amortization of intangible assets | 4,028 | 5,360 | 12,878 | 15,208 | |||||||
| Stock-based compensation expense | 10,190 | 5,124 | 31,462 | 20,320 | |||||||
| Adjusted operating income | 87,896 | 64,430 | 293,940 | 201,027 | |||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands) | ||||||||||||||||
| Net income | $ | 62,782 | $ | 43,372 | $ | 204,183 | $ | 126,867 | ||||||||
| Interest expense, net | 2,318 | 2,070 | 8,812 | 8,404 | ||||||||||||
| Other income, net | (7,519 | ) | (5,858 | ) | (26,900 | ) | (15,452 | ) | ||||||||
| Income tax expense | 16,099 | 14,468 | 64,482 | 45,346 | ||||||||||||
| (Income) loss from equity method investments | (2 | ) | (106 | ) | (977 | ) | 334 | |||||||||
| Depreciation and amortization | 28,219 | 29,702 | 109,683 | 110,358 | ||||||||||||
| EBITDA | 101,897 | 83,648 | 359,283 | 275,857 | ||||||||||||
| Stock-based compensation expense | 10,190 | 5,124 | 31,462 | 20,320 | ||||||||||||
| Adjusted EBITDA | $ | 112,087 | $ | 88,772 | $ | 390,745 | $ | 296,177 | ||||||||
FAQ
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