Strategic Education, Inc. Reports Fourth Quarter 2024 Results
Strategic Education (NASDAQ: STRA) reported strong financial results for Q4 and full-year 2024. Annual revenue increased 7.7% to $1,219.9 million, with net income rising to $112.7 million from $69.8 million in 2023. Full-year diluted EPS grew to $4.67 from $2.91.
Q4 2024 highlights include revenue growth of 2.9% to $311.5 million, though quarterly net income decreased to $25.3 million from $39.1 million year-over-year. The U.S. Higher Education segment saw enrollment increase 3.0% to 88,860 students, while FlexPath enrollment reached 24% of USHE enrollment.
Notable achievements include Education Technology Services revenue jumping 39.3% to $30.5 million, driven by Sophia Learning's 29% subscriber growth and Workforce Edge expanding to 76 corporate agreements. The company declared a quarterly dividend of $0.60 per share, payable March 17, 2025.
Strategic Education (NASDAQ: STRA) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024. Il fatturato annuale è aumentato del 7,7% a 1.219,9 milioni di dollari, con un utile netto che è salito a 112,7 milioni di dollari, rispetto ai 69,8 milioni di dollari del 2023. L'utile per azione diluito per l'intero anno è cresciuto a 4,67 dollari, rispetto ai 2,91 dollari.
I punti salienti del Q4 2024 includono una crescita del fatturato del 2,9% a 311,5 milioni di dollari, sebbene l'utile netto trimestrale sia diminuito a 25,3 milioni di dollari, rispetto ai 39,1 milioni di dollari dell'anno precedente. Il segmento dell'istruzione superiore negli Stati Uniti ha registrato un aumento delle iscrizioni del 3,0%, raggiungendo 88.860 studenti, mentre le iscrizioni a FlexPath hanno rappresentato il 24% delle iscrizioni totali a USHE.
Tra i risultati notevoli si segnala un aumento del fatturato dei Servizi Tecnologici Educativi del 39,3% a 30,5 milioni di dollari, trainato da una crescita del 29% degli abbonati di Sophia Learning e dall'espansione di Workforce Edge a 76 accordi aziendali. L'azienda ha dichiarato un dividendo trimestrale di 0,60 dollari per azione, pagabile il 17 marzo 2025.
Strategic Education (NASDAQ: STRA) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos anuales aumentaron un 7.7% a $1,219.9 millones, con un ingreso neto que subió a $112.7 millones desde $69.8 millones en 2023. Las ganancias por acción diluidas para el año completo crecieron a $4.67 desde $2.91.
Los aspectos destacados del Q4 2024 incluyen un crecimiento de ingresos del 2.9% a $311.5 millones, aunque el ingreso neto trimestral disminuyó a $25.3 millones desde $39.1 millones en comparación con el año anterior. El segmento de educación superior en EE. UU. vio un aumento en la matrícula del 3.0% a 88,860 estudiantes, mientras que la matrícula de FlexPath alcanzó el 24% de la matrícula total de USHE.
Logros notables incluyen un aumento del 39.3% en los ingresos de Servicios de Tecnología Educativa a $30.5 millones, impulsado por un crecimiento del 29% en suscriptores de Sophia Learning y la expansión de Workforce Edge a 76 acuerdos corporativos. La compañía declaró un dividendo trimestral de $0.60 por acción, pagadero el 17 de marzo de 2025.
Strategic Education (NASDAQ: STRA)는 2024년 4분기 및 연간 재무 결과가 우수하다고 보고했습니다. 연간 수익은 $1,219.9 백만으로 7.7% 증가했으며, 순이익은 2023년의 $69.8 백만에서 $112.7 백만으로 증가했습니다. 연간 희석 주당 이익(EPS)은 $2.91에서 $4.67로 증가했습니다.
2024년 4분기의 주요 내용은 수익이 2.9% 증가하여 $311.5 백만에 도달했지만, 분기 순이익은 작년 동기 대비 $39.1 백만에서 $25.3 백만으로 감소했습니다. 미국 고등 교육 부문은 3.0% 증가하여 88,860명의 학생이 등록했으며, FlexPath 등록자는 USHE 등록의 24%에 도달했습니다.
주목할 만한 성과로는 교육 기술 서비스의 수익이 39.3% 증가하여 $30.5 백만에 달했으며, 이는 Sophia Learning의 29% 구독자 증가와 Workforce Edge가 76개의 기업 계약으로 확장된 덕분입니다. 회사는 2025년 3월 17일에 지급될 주당 $0.60의 분기 배당금을 선언했습니다.
Strategic Education (NASDAQ: STRA) a annoncé de solides résultats financiers pour le quatrième trimestre et l'ensemble de l'année 2024. Les revenus annuels ont augmenté de 7,7% pour atteindre 1,219.9 millions de dollars, avec un bénéfice net passant de 69,8 millions de dollars en 2023 à 112,7 millions de dollars. Le bénéfice par action dilué pour l'année entière est passé de 2,91 dollars à 4,67 dollars.
Les points forts du Q4 2024 incluent une croissance des revenus de 2,9% à 311,5 millions de dollars, bien que le bénéfice net trimestriel ait diminué à 25,3 millions de dollars contre 39,1 millions de dollars d'une année sur l'autre. Le segment de l'enseignement supérieur aux États-Unis a enregistré une augmentation de 3,0% des inscriptions, atteignant 88 860 étudiants, tandis que les inscriptions à FlexPath ont représenté 24% des inscriptions totales à USHE.
Parmi les réalisations notables, on note une augmentation des revenus des services de technologie éducative de 39,3% à 30,5 millions de dollars, soutenue par une croissance de 29% des abonnés de Sophia Learning et l'expansion de Workforce Edge à 76 contrats d'entreprise. L'entreprise a déclaré un dividende trimestriel de 0,60 dollar par action, payable le 17 mars 2025.
Strategic Education (NASDAQ: STRA) hat starke Finanzergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet. Der Jahresumsatz stieg um 7,7% auf 1.219,9 Millionen Dollar, während der Nettogewinn von 69,8 Millionen Dollar im Jahr 2023 auf 112,7 Millionen Dollar anstieg. Der verwässerte Gewinn pro Aktie für das gesamte Jahr wuchs von 2,91 Dollar auf 4,67 Dollar.
Zu den Höhepunkten des Q4 2024 gehört ein Umsatzwachstum von 2,9% auf 311,5 Millionen Dollar, obwohl der Nettogewinn im Quartal im Vergleich zum Vorjahr von 39,1 Millionen Dollar auf 25,3 Millionen Dollar sank. Im Segment der Hochschulbildung in den USA stieg die Einschreibung um 3,0% auf 88.860 Studierende, während die Einschreibung in FlexPath 24% der USHE-Einschreibung erreichte.
Bemerkenswerte Erfolge umfassen einen Anstieg der Einnahmen aus Bildungstechnologiediensten um 39,3% auf 30,5 Millionen Dollar, angetrieben durch ein Wachstum der Abonnentenzahl von Sophia Learning um 29% und die Ausweitung von Workforce Edge auf 76 Unternehmensverträge. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,60 Dollar pro Aktie, zahlbar am 17. März 2025.
- Annual revenue up 7.7% to $1.22B
- Full-year net income increased 61.5% to $112.7M
- Education Technology Services revenue grew 39.3% YoY
- USHE enrollment increased 6.4% for full-year 2024
- Sophia Learning subscribers up 29% YoY
- Operating margin improved to 12.8% from 8.4% in 2023
- Q4 net income declined to $25.3M from $39.1M YoY
- Q4 operating margin decreased to 11.6% from 17.9% YoY
- USHE Q4 revenue decreased 1.5% YoY
- Q4 bad debt expense increased to 4.5% from 3.7% YoY
Insights
Strategic Education (STRA) has delivered strong full-year 2024 results while showing signs of potential headwinds in Q4 that warrant investor attention. The company achieved 7.7% annual revenue growth to
However, Q4 results reveal a concerning deceleration, with revenue growth slowing to just
The company's strategic shift toward employer partnerships is gaining traction, with employer-affiliated enrollment reaching
The rising bad debt expense ratio (
The increasing adoption of FlexPath (now
Strategic Education's results reveal both promising strategic evolution and emerging challenges in the higher education landscape. The company's full-year performance demonstrates strong execution, but Q4 results highlight critical transitions that will shape future growth trajectories.
The most significant development is the fundamental business model transformation underway at STRA. The
Similarly, the acceleration of FlexPath adoption to
The
The concerning
STRA's transformation mirrors the broader evolution in higher education toward employer-aligned, flexible learning models. While this transition creates near-term margin pressure, it positions the company for more sustainable growth in an increasingly competitive landscape where traditional enrollment models face demographic and value-proposition challenges.
“During 2024, we delivered strong performance consistent with our notional operating model including enrollment, revenue, and earnings growth,” said Karl McDonnell, Chief Executive Officer of Strategic Education. “We started 2025 positioned well to continue to deliver growth from the investments we've made across our diversified portfolio of education offerings.”
STRATEGIC EDUCATION CONSOLIDATED RESULTS
Year Ended December 31
-
Revenue increased
7.7% to compared to$1,219.9 million in 2023. Revenue on a constant currency basis, which is a non-GAAP financial measure, increased$1,132.9 million 7.8% to in 2024 compared to$1,220.9 million in 2023. For more details on non-GAAP financial measures used in this press release, refer to the information in the Non-GAAP Financial Measures section of this press release.$1,132.9 million -
Income from operations was
or$155.6 million 12.8% of revenue, compared to or$95.3 million 8.4% of revenue in 2023. Adjusted income from operations, which is a non-GAAP financial measure, was in 2024 compared to$157.3 million in 2023. The adjusted operating income margin, which is a non-GAAP financial measure, was$124.6 million 12.9% compared to11.0% in 2023. -
Net income was
in 2024 compared to$112.7 million in 2023. Adjusted net income, which is a non-GAAP financial measure, was$69.8 million compared to$117.7 million in 2023.$89.1 million -
Adjusted EBITDA, which is a non-GAAP financial measure, was
compared to$233.8 million in 2023.$196.5 million -
Diluted earnings per share was
compared to$4.67 in 2023. Adjusted diluted earnings per share, which is a non-GAAP financial measure, increased to$2.91 from$4.87 in 2023. Adjusted diluted earnings per share on a constant currency basis, which is a non-GAAP financial measure, was$3.72 . Diluted weighted average shares outstanding increased to 24,140,000 from 23,956,000 in 2023.$4.87
Three Months Ended December 31
-
Revenue increased
2.9% to compared to$311.5 million for the same period in 2023. Revenue on a constant currency basis, which is a non-GAAP financial measure, increased$302.7 million 2.7% to in the fourth quarter of 2024 compared to$310.8 million for the same period in 2023. For more details on non-GAAP financial measures used in this press release, refer to the information in the Non-GAAP Financial Measures section of this press release.$302.7 million -
Income from operations was
or$36.0 million 11.6% of revenue, compared to or$54.2 million 17.9% of revenue for the same period in 2023. Adjusted income from operations, which is a non-GAAP financial measure, was compared to$40.4 million for the same period in 2023. The adjusted operating income margin, which is a non-GAAP financial measure, was$56.6 million 13.0% compared to18.7% for the same period in 2023. -
Net income was
compared to$25.3 million for the same period in 2023. Adjusted net income, which is a non-GAAP financial measure, was$39.1 million compared to$30.8 million for the same period in 2023.$40.4 million -
Adjusted EBITDA, which is a non-GAAP financial measure, was
compared to$60.1 million for the same period in 2023.$74.4 million -
Diluted earnings per share was
compared to$1.05 for the same period in 2023. Adjusted diluted earnings per share, which is a non-GAAP financial measure, decreased to$1.63 from$1.27 for the same period in 2023. Adjusted diluted earnings per share on a constant currency basis, which is a non-GAAP financial measure, was$1.68 . Diluted weighted average shares outstanding increased to 24,149,000 from 23,968,000 for the same period in 2023.$1.26
-
The
U.S. Higher Education segment (USHE) is comprised of Capella University and Strayer University. -
For the fourth quarter, student enrollment within USHE increased
3.0% to 88,860 compared to 86,233 for the same period in 2023. Full-year 2024 student enrollment within USHE increased6.4% compared to 2023. -
For the fourth quarter, FlexPath enrollment was
24% of USHE enrollment compared to21% for the same period in 2023. -
Revenue decreased
1.5% to in the fourth quarter of 2024 compared to$214.3 million for the same period in 2023, driven by lower revenue per student.$217.6 million -
Income from operations was
in the fourth quarter of 2024 compared to$17.9 million for the same period in 2023. The operating income margin was$32.9 million 8.3% compared to15.1% for the same period in 2023.
Education Technology Services Segment Highlights
- The Education Technology Services segment (ETS) is comprised primarily of Enterprise Partnerships, Sophia Learning, and Workforce Edge.
-
For the fourth quarter, employer affiliated enrollment was
30.2% of USHE enrollment compared to27.7% for the same period in 2023. Full-year 2024 employer affiliated enrollment was29.6% of USHE enrollment compared to27.2% in 2023. -
For the fourth quarter, average total subscribers at Sophia Learning increased approximately
29% from the same period in 2023. - As of December 31, 2024, Workforce Edge had a total of 76 corporate agreements, collectively employing approximately 3,820,000 employees.
-
Revenue increased
39.3% to in the fourth quarter of 2024 compared to$30.5 million for the same period in 2023, driven by growth in Sophia Learning subscriptions, employer affiliated enrollment, and revenue from a new Workforce Edge employer partnership.$21.9 million -
Income from operations was
in the fourth quarter of 2024 compared to$11.8 million for the same period in 2023. The operating income margin was$8.8 million 38.8% compared to40.3% for the same period in 2023.
-
The
Australia /New Zealand segment (ANZ) is comprised of Torrens University, Think Education, and Media Design School. -
For the fourth quarter, student enrollment within ANZ increased
3.0% to 19,825 compared to 19,252 for the same period in 2023. Full-year 2024 student enrollment within ANZ increased4.8% compared to 2023. -
Revenue increased
5.4% to in the fourth quarter of 2024 compared to$66.7 million for the same period in 2023, driven by higher fourth quarter enrollment and revenue per student. Revenue on a constant currency basis, which is a non-GAAP financial measure, increased$63.3 million 4.3% to in the fourth quarter of 2024 compared to$66.0 million for the same period in 2023, driven by higher fourth quarter enrollment and revenue per student.$63.3 million -
Income from operations was
in the fourth quarter of 2024 compared to$10.7 million for the same period in 2023. The operating income margin was$14.9 million 16.1% compared to23.5% for the same period in 2023. Income from operations on a constant currency basis, which is a non-GAAP financial measure, was in the fourth quarter of 2024 compared to$10.3 million for the same period in 2023. The operating income margin on a constant currency basis, which is a non-GAAP financial measure, was$14.9 million 15.6% compared to23.5% for the same period in 2023.
BALANCE SHEET AND CASH FLOW
At December 31, 2024, Strategic Education had cash, cash equivalents, and marketable securities of
For the fourth quarter of 2024, consolidated bad debt expense as a percentage of revenue was
COMMON STOCK CASH DIVIDEND
Strategic Education announced today that it declared a regular, quarterly cash dividend of
CONFERENCE CALL WITH MANAGEMENT
Strategic Education will host a conference call to discuss its fourth quarter 2024 results at 10:00 a.m. (ET) today. This call will be available via webcast. To access the live webcast of the conference call, please go to www.strategiceducation.com in the Investor Relations section 15 minutes prior to the start time of the call to register. An earnings release presentation will also be posted to www.strategiceducation.com in the Investor Relations section. Following the call, the webcast will be archived and available at www.strategiceducation.com in the Investor Relations section. To participate in the live call, investors should register here prior to the call to receive dial-in information and a PIN.
About Strategic Education, Inc.
Strategic Education, Inc. (NASDAQ: STRA) (www.strategiceducation.com) is dedicated to helping advance economic mobility through higher education. We primarily serve working adult students globally through our core focus areas: 1)
Forward-Looking Statements
This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “may,” “will,” “forecast,” “outlook,” “plan,” “project,” “potential” and other similar words, and include all statements that are not historical facts, including with respect to, among other things, the future financial performance and growth opportunities of Strategic Education; Strategic Education’s plans, strategies and prospects; and future events and expectations. The statements are based on Strategic Education’s current expectations and are subject to a number of assumptions, uncertainties and risks, including but not limited to:
- the pace of student enrollment;
- Strategic Education’s continued compliance with Title IV of the Higher Education Act, and the regulations thereunder, as well as other federal laws and regulations, institutional accreditation standards and state regulatory requirements;
-
legislation and other actions by the
U.S. Congress, actions by the current administration, rulemaking and other action by the Department of Education or other governmental entities, including without limitation action related to borrower defense to repayment applications, gainful employment, 90/10, increased focus by governmental entities on for-profit education institutions, and including actions by governmental entities inAustralia and New Zealand ; - competitive factors;
- risks associated with the opening of new campuses;
- risks associated with the offering of new educational programs and adapting to other changes;
-
risks associated with the acquisition of existing educational institutions, including Strategic Education’s acquisition of Torrens University and associated assets in
Australia and New Zealand ; -
the risk that the benefits of the acquisition of Torrens University and associated assets in
Australia and New Zealand may not be fully realized or may take longer to realize than expected; -
the risk that the acquisition of Torrens University and associated assets in
Australia and New Zealand may not advance Strategic Education’s business strategy and growth strategy; - risks relating to the timing of regulatory approvals;
- Strategic Education’s ability to implement its growth strategy;
- the risk that the combined company may experience difficulty integrating employees or operations;
- risks associated with the ability of Strategic Education’s students to finance their education in a timely manner;
- general economic and market conditions; and
- additional factors described in Strategic Education’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Many of these risks, uncertainties and assumptions are beyond Strategic Education’s ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, these forward-looking statements speak only as of the information currently available to Strategic Education on the date they are made, and Strategic Education undertakes no obligation to update or revise forward-looking statements, except as required by law. Actual results may differ materially from those projected in the forward-looking statements.
STRATEGIC EDUCATION, INC. |
|||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||
(in thousands, except per share data) |
|||||||||||
|
|||||||||||
|
For the three months ended
|
|
For the twelve months ended
|
||||||||
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||
Revenues |
$ |
302,702 |
|
$ |
311,456 |
|
$ |
1,132,924 |
|
$ |
1,219,930 |
Costs and expenses: |
|
|
|
|
|
|
|
||||
Instructional and support costs |
|
153,751 |
|
|
166,884 |
|
|
623,903 |
|
|
650,496 |
General and administration |
|
92,377 |
|
|
104,145 |
|
|
384,443 |
|
|
412,158 |
Amortization of intangible assets |
|
1,093 |
|
|
— |
|
|
11,457 |
|
|
— |
Merger and integration costs |
|
209 |
|
|
— |
|
|
1,544 |
|
|
— |
Restructuring costs |
|
1,048 |
|
|
4,405 |
|
|
16,256 |
|
|
1,648 |
Total costs and expenses |
|
248,478 |
|
|
275,434 |
|
|
1,037,603 |
|
|
1,064,302 |
Income from operations |
|
54,224 |
|
|
36,022 |
|
|
95,321 |
|
|
155,628 |
Other income |
|
994 |
|
|
1,869 |
|
|
5,405 |
|
|
5,804 |
Income before income taxes |
|
55,218 |
|
|
37,891 |
|
|
100,726 |
|
|
161,432 |
Provision for income taxes |
|
16,089 |
|
|
12,555 |
|
|
30,935 |
|
|
48,748 |
Net income |
$ |
39,129 |
|
$ |
25,336 |
|
$ |
69,791 |
|
$ |
112,684 |
Earnings per share: |
|
|
|
|
|
|
|
||||
Basic |
$ |
1.67 |
|
$ |
1.08 |
|
$ |
2.98 |
|
$ |
4.81 |
Diluted |
$ |
1.63 |
|
$ |
1.05 |
|
$ |
2.91 |
|
$ |
4.67 |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
23,367 |
|
|
23,370 |
|
|
23,403 |
|
|
23,406 |
Diluted |
|
23,968 |
|
|
24,149 |
|
|
23,956 |
|
|
24,140 |
STRATEGIC EDUCATION, INC. |
|||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands, except share and per share data) |
|||||||
|
|||||||
|
December 31,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
168,481 |
|
|
$ |
137,074 |
|
Marketable securities |
|
39,728 |
|
|
|
46,949 |
|
Tuition receivable, net |
|
76,102 |
|
|
|
76,127 |
|
Other current assets |
|
44,758 |
|
|
|
44,793 |
|
Total current assets |
|
329,069 |
|
|
|
304,943 |
|
Property and equipment, net |
|
118,529 |
|
|
|
111,247 |
|
Right-of-use lease assets |
|
119,202 |
|
|
|
103,673 |
|
Marketable securities, non-current |
|
483 |
|
|
|
14,981 |
|
Intangible assets, net |
|
251,623 |
|
|
|
245,098 |
|
Goodwill |
|
1,251,888 |
|
|
|
1,206,883 |
|
Other assets |
|
54,419 |
|
|
|
62,910 |
|
Total assets |
$ |
2,125,213 |
|
|
$ |
2,049,735 |
|
|
|
|
|
||||
LIABILITIES & STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
90,888 |
|
|
$ |
101,749 |
|
Income taxes payable |
|
2,200 |
|
|
|
2,926 |
|
Contract liabilities |
|
92,341 |
|
|
|
89,563 |
|
Lease liabilities |
|
24,190 |
|
|
|
22,222 |
|
Total current liabilities |
|
209,619 |
|
|
|
216,460 |
|
Long-term debt |
|
61,400 |
|
|
|
— |
|
Deferred income tax liabilities |
|
28,338 |
|
|
|
27,586 |
|
Lease liabilities, non-current |
|
127,735 |
|
|
|
103,004 |
|
Other long-term liabilities |
|
45,603 |
|
|
|
40,186 |
|
Total liabilities |
|
472,695 |
|
|
|
387,236 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, par value |
|
244 |
|
|
|
245 |
|
Additional paid-in capital |
|
1,517,650 |
|
|
|
1,532,414 |
|
Accumulated other comprehensive loss |
|
(34,247 |
) |
|
|
(88,565 |
) |
Retained earnings |
|
168,871 |
|
|
|
218,405 |
|
Total stockholders’ equity |
|
1,652,518 |
|
|
|
1,662,499 |
|
Total liabilities and stockholders’ equity |
$ |
2,125,213 |
|
|
$ |
2,049,735 |
|
STRATEGIC EDUCATION, INC. |
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
|
|||||||
|
For the year ended
|
||||||
|
|
2023 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
69,791 |
|
|
$ |
112,684 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Gain on sale of property and equipment |
|
(2,136 |
) |
|
|
— |
|
Gain on early termination of operating leases, net |
|
(141 |
) |
|
|
(6,166 |
) |
Amortization of deferred financing costs |
|
557 |
|
|
|
674 |
|
Amortization of investment discount/premium |
|
(65 |
) |
|
|
(290 |
) |
Depreciation and amortization |
|
57,313 |
|
|
|
44,378 |
|
Deferred income taxes |
|
(6,322 |
) |
|
|
(150 |
) |
Stock-based compensation |
|
19,772 |
|
|
|
25,571 |
|
Impairment of right-of-use lease assets |
|
5,135 |
|
|
|
677 |
|
Changes in assets and liabilities: |
|
|
|
||||
Tuition receivable, net |
|
(12,874 |
) |
|
|
221 |
|
Other assets |
|
(7,631 |
) |
|
|
(11,622 |
) |
Accounts payable and accrued expenses |
|
552 |
|
|
|
11,577 |
|
Income taxes payable and income taxes receivable |
|
(4,688 |
) |
|
|
1,067 |
|
Contract liabilities |
|
4,495 |
|
|
|
(2,948 |
) |
Other liabilities |
|
(6,639 |
) |
|
|
(6,342 |
) |
Net cash provided by operating activities |
|
117,119 |
|
|
|
169,331 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(36,943 |
) |
|
|
(40,580 |
) |
Purchases of marketable securities |
|
(26,905 |
) |
|
|
(54,117 |
) |
Proceeds from marketable securities |
|
9,800 |
|
|
|
31,025 |
|
Proceeds from sale of property and equipment |
|
5,890 |
|
|
|
— |
|
Proceeds from other investments |
|
457 |
|
|
|
20 |
|
Other investments |
|
(314 |
) |
|
|
(531 |
) |
Cash paid for acquisition, net of cash acquired |
|
(530 |
) |
|
|
(177 |
) |
Net cash used in investing activities |
|
(48,545 |
) |
|
|
(64,360 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Common dividends paid |
|
(58,780 |
) |
|
|
(58,971 |
) |
Payments on long-term debt |
|
(40,000 |
) |
|
|
(61,275 |
) |
Net payments for stock awards |
|
(4,828 |
) |
|
|
(3,318 |
) |
Payments of deferred financing costs |
|
— |
|
|
|
(1,698 |
) |
Repurchase of common stock |
|
(9,999 |
) |
|
|
(11,510 |
) |
Net cash used in financing activities |
|
(113,607 |
) |
|
|
(136,772 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(496 |
) |
|
|
(3,468 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(45,529 |
) |
|
|
(35,269 |
) |
Cash, cash equivalents, and restricted cash — beginning of period |
|
227,454 |
|
|
|
181,925 |
|
Cash, cash equivalents, and restricted cash — end of period |
$ |
181,925 |
|
|
$ |
146,656 |
|
STRATEGIC EDUCATION, INC. |
|||||||||||||||
UNAUDITED SEGMENT REPORTING |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|||||||||||||||
|
For the three months ended
|
|
For the twelve months
|
||||||||||||
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
$ |
217,551 |
|
|
$ |
214,332 |
|
|
$ |
818,953 |
|
|
$ |
857,890 |
|
|
|
63,279 |
|
|
|
66,666 |
|
|
|
233,518 |
|
|
|
257,119 |
|
Education Technology Services |
|
21,872 |
|
|
|
30,458 |
|
|
|
80,453 |
|
|
|
104,921 |
|
Consolidated revenues |
$ |
302,702 |
|
|
$ |
311,456 |
|
|
$ |
1,132,924 |
|
|
$ |
1,219,930 |
|
Income from operations: |
|
|
|
|
|
|
|
||||||||
|
$ |
32,886 |
|
|
$ |
17,881 |
|
|
$ |
59,628 |
|
|
$ |
77,165 |
|
|
|
14,878 |
|
|
|
10,743 |
|
|
|
35,862 |
|
|
|
37,394 |
|
Education Technology Services |
|
8,810 |
|
|
|
11,803 |
|
|
|
29,088 |
|
|
|
42,717 |
|
Amortization of intangible assets |
|
(1,093 |
) |
|
|
— |
|
|
|
(11,457 |
) |
|
|
— |
|
Merger and integration costs |
|
(209 |
) |
|
|
— |
|
|
|
(1,544 |
) |
|
|
— |
|
Restructuring costs |
|
(1,048 |
) |
|
|
(4,405 |
) |
|
|
(16,256 |
) |
|
|
(1,648 |
) |
Consolidated income from operations |
$ |
54,224 |
|
|
$ |
36,022 |
|
|
$ |
95,321 |
|
|
$ |
155,628 |
|
Non-GAAP Financial Measures
In our press release and schedules, we report certain financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in
Management uses certain non-GAAP measures to evaluate financial performance because those non-GAAP measures allow for period-over-period comparisons of the Company’s ongoing operations before the impact of certain items described below. Management believes this information is useful to investors to compare the Company’s results of operations period-over-period. These measures are Adjusted Revenue, Adjusted Total Costs and Expenses, Adjusted Income from Operations, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Net Income, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Adjusted EBITDA and Adjusted Diluted Earnings Per Share (EPS). We define Adjusted Revenue, Adjusted Total Costs and Expenses, Adjusted Income from Operations, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS to exclude (1) amortization and depreciation expense related to intangible assets and software assets associated with the Company’s acquisition of Torrens University and associated assets in
STRATEGIC EDUCATION, INC. |
|||||||||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||
ADJUSTED REVENUE, ADJUSTED TOTAL COSTS AND EXPENSES, ADJUSTED INCOME FROM OPERATIONS, ADJUSTED OPERATING MARGIN, ADJUSTED INCOME BEFORE INCOME TAXES, ADJUSTED NET INCOME, AND ADJUSTED EPS |
|||||||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
|
|
|
For the three months ended December 31, 2023 Non-GAAP Adjustments |
|
|
||||||||||||||||||||||
|
As Reported
|
|
Amortization
|
|
Merger and
|
|
Restructuring
|
|
Loss from
|
|
Tax
|
|
As Adjusted
|
||||||||||||||
Revenues |
$ |
302,702 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
302,702 |
|
Total costs and expenses |
$ |
248,478 |
|
|
$ |
(1,093 |
) |
|
$ |
(209 |
) |
|
$ |
(1,048 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
246,128 |
|
Income from operations |
$ |
54,224 |
|
|
$ |
1,093 |
|
|
$ |
209 |
|
|
$ |
1,048 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
56,574 |
|
Operating margin |
|
17.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
18.7 |
% |
||||||||||
Income before income taxes |
$ |
55,218 |
|
|
$ |
1,093 |
|
|
$ |
209 |
|
|
$ |
1,048 |
|
|
$ |
108 |
|
|
$ |
— |
|
|
$ |
57,676 |
|
Net income |
$ |
39,129 |
|
|
$ |
1,093 |
|
|
$ |
209 |
|
|
$ |
1,048 |
|
|
$ |
108 |
|
|
$ |
(1,214 |
) |
|
$ |
40,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ |
1.63 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1.68 |
|
||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Diluted |
|
23,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
23,968 |
|
||||||||||
|
|
|
For the three months ended December 31, 2024 Non-GAAP Adjustments |
|
|
||||||||||||||||||||||
|
As Reported
|
|
Amortization
|
|
Merger and
|
|
Restructuring
|
|
Loss from
|
|
Tax
|
|
As Adjusted
|
||||||||||||||
Revenues |
$ |
311,456 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
311,456 |
|
Total costs and expenses |
$ |
275,434 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4,405 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
271,029 |
|
Income from operations |
$ |
36,022 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,405 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
40,427 |
|
Operating margin |
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
13.0 |
% |
||||||||||
Income before income taxes |
$ |
37,891 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,405 |
|
|
$ |
193 |
|
|
$ |
— |
|
|
$ |
42,489 |
|
Net income |
$ |
25,336 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,405 |
|
|
$ |
193 |
|
|
$ |
850 |
|
|
$ |
30,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ |
1.05 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1.27 |
|
||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Diluted |
|
24,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
24,149 |
|
||||||||||
|
|
|
For the twelve months ended December 31, 2023 Non-GAAP Adjustments |
|
|
||||||||||||||||||||||
|
As Reported
|
|
Amortization
|
|
Merger and
|
|
Restructuring
|
|
Income from
|
|
Tax
|
|
As Adjusted
|
||||||||||||||
Revenues |
$ |
1,132,924 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,132,924 |
|
Total costs and expenses |
$ |
1,037,603 |
|
|
$ |
(11,457 |
) |
|
$ |
(1,544 |
) |
|
$ |
(16,256 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,008,346 |
|
Income from operations |
$ |
95,321 |
|
|
$ |
11,457 |
|
|
$ |
1,544 |
|
|
$ |
16,256 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
124,578 |
|
Operating margin |
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
11.0 |
% |
||||||||||
Income before income taxes |
$ |
100,726 |
|
|
$ |
11,457 |
|
|
$ |
1,544 |
|
|
$ |
16,256 |
|
|
$ |
(2,718 |
) |
|
$ |
— |
|
|
$ |
127,265 |
|
Net income |
$ |
69,791 |
|
|
$ |
11,457 |
|
|
$ |
1,544 |
|
|
$ |
16,256 |
|
|
$ |
(2,718 |
) |
|
$ |
(7,245 |
) |
|
$ |
89,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ |
2.91 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3.72 |
|
||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Diluted |
|
23,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
23,956 |
|
||||||||||
|
|
|
For the twelve months ended December 31, 2024 Non-GAAP Adjustments |
|
|
||||||||||||||||||||||
|
As Reported
|
|
Amortization
|
|
Merger and
|
|
Restructuring
|
|
Loss from
|
|
Tax
|
|
As Adjusted
|
||||||||||||||
Revenues |
$ |
1,219,930 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,219,930 |
|
Total costs and expenses |
$ |
1,064,302 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1,648 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,062,654 |
|
Income from operations |
$ |
155,628 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,648 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
157,276 |
|
Operating margin |
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
12.9 |
% |
||||||||||
Income before income taxes |
$ |
161,432 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,648 |
|
|
$ |
2,660 |
|
|
$ |
— |
|
|
$ |
165,740 |
|
Net income |
$ |
112,684 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,648 |
|
|
$ |
2,660 |
|
|
$ |
684 |
|
|
$ |
117,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted |
$ |
4.67 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4.87 |
|
||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Diluted |
|
24,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
24,140 |
|
(1) |
Reflects amortization and depreciation expense of intangible assets and software assets acquired through the Company’s acquisition of Torrens University and associated assets in |
|
(2) |
Reflects integration expenses associated with the Company’s merger with Capella Education Company and the Company’s acquisition of Torrens University and associated assets in |
|
(3) |
Reflects severance costs, asset impairment charges, gains on sale of real estate and early termination of leased facilities, and other costs associated with the Company’s restructuring activities. |
|
(4) |
Reflects income/loss recognized from the Company’s investments in partnership interests and other investments. |
|
(5) |
Reflects tax impacts of the adjustments described above and discrete tax adjustments related to stock-based compensation and other adjustments, utilizing adjusted effective income tax rates of |
STRATEGIC EDUCATION, INC. |
|||||||||||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||
2024 AS ADJUSTED WITH CONSTANT CURRENCY |
|||||||||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
For the three months ended
|
|
For the twelve months ended
|
||||||||||||||||||||
|
As Adjusted
|
|
Constant
|
|
As Adjusted
|
|
As Adjusted
|
|
Constant
|
|
As Adjusted
|
||||||||||||
Revenues |
$ |
311,456 |
|
|
$ |
(672 |
) |
|
$ |
310,784 |
|
|
$ |
1,219,930 |
|
|
$ |
977 |
|
|
$ |
1,220,907 |
|
Total costs and expenses |
$ |
271,029 |
|
|
$ |
(246 |
) |
|
$ |
270,783 |
|
|
$ |
1,062,654 |
|
|
$ |
1,292 |
|
|
$ |
1,063,946 |
|
Income from operations |
$ |
40,427 |
|
|
$ |
(426 |
) |
|
$ |
40,001 |
|
|
$ |
157,276 |
|
|
$ |
(315 |
) |
|
$ |
156,961 |
|
Operating margin |
|
13.0 |
% |
|
|
|
|
12.9 |
% |
|
|
12.9 |
% |
|
|
|
|
12.9 |
% |
||||
Income before income taxes |
$ |
42,489 |
|
|
$ |
(423 |
) |
|
$ |
42,066 |
|
|
$ |
165,740 |
|
|
$ |
(297 |
) |
|
$ |
165,443 |
|
Net income |
$ |
30,784 |
|
|
$ |
(300 |
) |
|
$ |
30,484 |
|
|
$ |
117,676 |
|
|
$ |
(212 |
) |
|
$ |
117,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Diluted |
$ |
1.27 |
|
|
|
|
$ |
1.26 |
|
|
$ |
4.87 |
|
|
|
|
$ |
4.87 |
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Diluted |
|
24,149 |
|
|
|
|
|
24,149 |
|
|
|
24,140 |
|
|
|
|
|
24,140 |
|
(1) |
Reflects an adjustment to translate foreign currency results for the three and twelve months ended December 31, 2024 at a constant exchange rate of 0.65 and |
STRATEGIC EDUCATION, INC. |
|||||||||||||||
UNAUDITED NON-GAAP SEGMENT REPORTING |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|||||||||||||||
|
For the three months ended
|
|
For the twelve months ended
|
||||||||||||
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
$ |
217,551 |
|
|
$ |
214,332 |
|
|
$ |
818,953 |
|
|
$ |
857,890 |
|
|
|
63,279 |
|
|
|
66,666 |
|
|
|
233,518 |
|
|
|
257,119 |
|
Education Technology Services |
|
21,872 |
|
|
|
30,458 |
|
|
|
80,453 |
|
|
|
104,921 |
|
Consolidated revenues |
|
302,702 |
|
|
|
311,456 |
|
|
|
1,132,924 |
|
|
|
1,219,930 |
|
|
|
|
|
|
|
|
|
||||||||
Income from operations: |
|
|
|
|
|
|
|
||||||||
|
$ |
32,886 |
|
|
$ |
17,881 |
|
|
$ |
59,628 |
|
|
$ |
77,165 |
|
|
|
14,878 |
|
|
|
10,743 |
|
|
|
35,862 |
|
|
|
37,394 |
|
Education Technology Services |
|
8,810 |
|
|
|
11,803 |
|
|
|
29,088 |
|
|
|
42,717 |
|
Amortization of intangible assets |
|
(1,093 |
) |
|
|
— |
|
|
|
(11,457 |
) |
|
|
— |
|
Merger and integration costs |
|
(209 |
) |
|
|
— |
|
|
|
(1,544 |
) |
|
|
— |
|
Restructuring costs |
|
(1,048 |
) |
|
|
(4,405 |
) |
|
|
(16,256 |
) |
|
|
(1,648 |
) |
Consolidated income from operations |
|
54,224 |
|
|
|
36,022 |
|
|
|
95,321 |
|
|
|
155,628 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments to consolidated income from operations: |
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
1,093 |
|
|
|
— |
|
|
|
11,457 |
|
|
|
— |
|
Merger and integration costs |
|
209 |
|
|
|
— |
|
|
|
1,544 |
|
|
|
— |
|
Restructuring costs |
|
1,048 |
|
|
|
4,405 |
|
|
|
16,256 |
|
|
|
1,648 |
|
Total adjustments to consolidated income from operations |
|
2,350 |
|
|
|
4,405 |
|
|
|
29,257 |
|
|
|
1,648 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted income from operations by segment: |
|
|
|
|
|
|
|
||||||||
|
|
32,886 |
|
|
|
17,881 |
|
|
|
59,628 |
|
|
|
77,165 |
|
|
|
14,878 |
|
|
|
10,743 |
|
|
|
35,862 |
|
|
|
37,394 |
|
Education Technology Services |
|
8,810 |
|
|
|
11,803 |
|
|
|
29,088 |
|
|
|
42,717 |
|
Total adjusted income from operations |
$ |
56,574 |
|
|
$ |
40,427 |
|
|
$ |
124,578 |
|
|
$ |
157,276 |
|
STRATEGIC EDUCATION, INC. |
|||||||||||||||
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
ADJUSTED EBITDA |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|||||||||||||||
|
For the three months ended
|
|
For the twelve months ended
|
||||||||||||
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
Net income |
$ |
39,129 |
|
|
$ |
25,336 |
|
|
$ |
69,791 |
|
|
$ |
112,684 |
|
Provision for income taxes |
|
16,089 |
|
|
|
12,555 |
|
|
|
30,935 |
|
|
|
48,748 |
|
Other income |
|
(994 |
) |
|
|
(1,869 |
) |
|
|
(5,405 |
) |
|
|
(5,804 |
) |
Gain on sale of property and equipment |
|
— |
|
|
|
— |
|
|
|
(2,136 |
) |
|
|
— |
|
Depreciation and amortization |
|
12,432 |
|
|
|
11,345 |
|
|
|
57,313 |
|
|
|
44,378 |
|
EBITDA (1) |
|
66,656 |
|
|
|
47,367 |
|
|
|
150,498 |
|
|
|
200,006 |
|
Stock-based compensation |
|
4,570 |
|
|
|
6,782 |
|
|
|
19,772 |
|
|
|
25,571 |
|
Merger and integration costs (2) |
|
209 |
|
|
|
— |
|
|
|
1,208 |
|
|
|
— |
|
Restructuring costs (3) |
|
907 |
|
|
|
4,154 |
|
|
|
17,500 |
|
|
|
1,123 |
|
Cloud computing amortization (4) |
|
2,024 |
|
|
|
1,762 |
|
|
|
7,547 |
|
|
|
7,143 |
|
Adjusted EBITDA (1) |
$ |
74,366 |
|
|
$ |
60,065 |
|
|
$ |
196,525 |
|
|
$ |
233,843 |
|
(1) |
|
Denotes non-GAAP financial measures. Please see the information in the Non-GAAP Financial Measures section of this press release for more detail regarding these adjustments and management’s reasons for providing this information. |
(2) |
|
Reflects integration charges associated with the Company’s merger with Capella Education Company and the Company’s acquisition of Torrens University and associated assets in |
(3) |
|
Reflects severance costs, asset impairment charges, gains on sale of real estate and early termination of leased facilities, and other costs associated with the Company’s restructuring activities. Excludes |
(4) |
|
Reflects amortization expense associated with deferred implementation costs incurred in cloud computing arrangements. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227616272/en/
Terese Wilke
Senior Director of Investor Relations
Strategic Education, Inc.
(612) 977-6331
terese.wilke@strategiced.com
Source: Strategic Education, Inc.