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2U Reports Results for First Quarter 2024

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2U, Inc. reported financial and operating results for the first quarter of 2024. Despite better-than-expected results, the company faces challenges and is focused on executing a turnaround. Revenue decreased by 17%, with Degree Program Segment revenue down 21% and Alternative Credential Segment revenue down 11%. The net loss was $54.6 million. Adjusted EBITDA decreased by 43% to $17.3 million. The company's increased cash position and performance improvement initiatives aim to strengthen the balance sheet.

Positive
  • None.
Negative
  • Revenue decreased by 17%, with Degree Program Segment revenue down 21% and Alternative Credential Segment revenue down 11%

  • Net loss was $54.6 million

  • Adjusted EBITDA decreased by 43% to $17.3 million

Insights

The reported 17% decrease in revenue for 2U in the first quarter of 2024, compared to the previous year, represents a significant contraction, suggesting challenges within their core educational offerings. The decline in the Degree Program Segment by 21% could indicate market saturation or increased competition. Conversely, the growth in executive education revenue, though not enough to offset overall declines, points to a viable pivot strategy as the company tries to optimize its portfolio.

A net loss of 54.6 million, widening from the previous year, coupled with an adjusted EBITDA decrease of 43%, signals a stressed financial condition. However, investors might see the increased cash position of $137 million as a buffer for liquidity risks. The company's comprehensive performance improvement initiative, despite increasing costs by $7.0 million, may be seen as an attempt to realign the cost structure and improve operational efficiency in the long term.

The sharp 30% decline in FCE enrollments for the company's boot camp offerings, particularly in coding boot camps, suggests a possible shift in the technology education landscape or a decline in consumer interest. This warrants close attention to emerging trends within tech education, possibly influenced by external factors such as the labor market or advancements in AI-driven learning tools that could be affecting enrollment patterns. The 32% growth in FCE enrollments for executive education, though, might reflect a broader industry trend of working professionals seeking to upskill in a competitive job market.

It's important for investors to monitor how 2U adapts its product portfolio to changing market demands and whether the company's efforts to reduce expenditures can translate into a sustainable business model without compromising on the quality of education provided.

LANHAM, Md., May 2, 2024 /PRNewswire/ -- 2U, Inc. (Nasdaq: TWOU), a leading online education platform company, today reported financial and operating results for the quarter ended March 31, 2024.

"With our leading position in the education industry, 2U has a significant opportunity to respond to and support the current technology moment, where advances in generative AI are driving strong demand for workforce development," said Paul Lalljie, Chief Executive Officer of 2U. "In order to make the most of this opportunity, we are focused on ensuring that we have the right operating model, an effective and efficient organization and cost structure, the right products, and a balance sheet that provides a sound financial foundation for the future. We continued to make progress on all of these fronts in the quarter while launching 42 new degree programs and building on our momentum in executive education."

"While we are pleased that first quarter results were better than our expectations, significant work remains to execute our turnaround," added Matthew Norden, Chief Financial Officer of 2U. "We continue to deliver strong growth in our executive education offerings and are pursuing additional operating efficiencies across the business by reducing personnel expense, rationalizing our real estate footprint and lowering delivery costs. We believe our increased cash position of $137 million, together with the kick-off of our performance improvement initiatives, put us in a strong position to fix our balance sheet."

Results for First Quarter 2024 compared to First Quarter 2023

  • Revenue decreased 17% to $198.4 million
  • Degree Program Segment revenue decreased 21% to $111.5 million
  • Alternative Credential Segment revenue decreased 11% to $86.8 million
  • Net loss was $54.6 million, or $0.65 per share

Non-GAAP Results for First Quarter 2024 compared to First Quarter 2023

  • Adjusted EBITDA decreased 43% to $17.3 million; a margin of 9%
  • Adjusted net loss was $18.1 million, or $0.22 per share

Discussion of 2024 Results

Revenue for the quarter totaled $198.4 million, a 17% decrease from $238.5 million in the first quarter of 2023. Revenue from the Degree Program Segment decreased $28.9 million, or 21%. This decrease was primarily due to certain programs operating in 2023 that are no longer operating in 2024 due to portfolio management activities. Revenue from the Alternative Credential Segment decreased $11.2 million, or 11%. This decrease was primarily due to a $21.9 million decrease in revenue from the company's boot camp offerings driven by a 30% decrease in FCE enrollments, particularly in coding boot camps. This decrease was partially offset by an $11.0 million increase in revenue from the company's executive education offerings driven by a 32% increase in FCE enrollments.

Costs and expenses for the quarter totaled $225.7 million, a 13% decrease from $258.7 million in the first quarter of 2023. This decrease was primarily driven by a $29.5 million decrease in personnel and personnel-related expense, a $5.6 million decrease in paid marketing costs, and a $5.3 million decrease in depreciation and amortization expense. These decreases were partially offset by a $7.0 million increase in costs to implement the company's comprehensive performance improvement initiative.

As of March 31, 2024, the company's cash, cash equivalents, and restricted cash totaled $137.4 million, an increase of $64.0 million from $73.4 million as of December 31, 2023. This increase includes net proceeds of $74.0 million from the previously announced receivables transaction. As of March 31, 2024, the company's total debt was $906.4 million, including borrowings of $40.0 million under the company's revolving credit facility.

Forward-Looking Guidance

The company reaffirmed its full-year 2024 revenue and adjusted EBITDA guidance provided on February 12, 2024 and updated its guidance for net loss as follows:

Full-year 2024

  • Revenue to range from $805 million to $815 million
  • Net loss to range from $103 million to $98 million
  • Adjusted EBITDA to range from $120 million to $125 million
    The company is providing its second quarter guidance as follows:

Second quarter 2024

  • Revenue to range from $191 million to $194 million
  • Net loss to range from $37.5 million to $32.5 million
  • Adjusted EBITDA to range from $16 million to $18 million

The company is implementing and continuing to refine its comprehensive performance improvement initiative, the potential results of which are not fully reflected in the guidance above.  In addition, guidance assumes the following: (i) no new portfolio management activities in 2024 and (ii) revenue from 2023 portfolio management activities of $15 million in full-year 2024.

For full-year 2024, we anticipate approximately $45 million in capital expenditures and weighted average shares outstanding of 85 million.

Non-GAAP Measures

To provide investors and others with additional information regarding 2U's results, the company has disclosed the following non-GAAP financial measures: adjusted EBITDA (loss), adjusted EBITDA margin, adjusted free cash flow, adjusted unlevered free cash flow, adjusted net income (loss), and adjusted net income (loss) per share. The company has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. The company defines adjusted EBITDA (loss) as net income or net loss, as applicable, before net interest income (expense), other income (expense), net, taxes, depreciation and amortization expense, transaction costs, integration costs, performance improvement initiative implementation expense, restructuring-related costs, stockholder activism costs, certain litigation-related costs, consisting of fees for certain non-ordinary course litigation and other proceedings, impairment charges, debt modification expense and loss on debt extinguishment, and stock-based compensation expense. The company defines adjusted EBITDA margin as adjusted EBITDA divided by revenue. The company defines adjusted free cash flow as net cash provided by (used in) operating activities, less capital expenditures, payments to university clients, and certain non-ordinary cash payments. The company defines adjusted unlevered free cash flow as adjusted free cash flow less cash interest payments on debt. The company defines adjusted net income (loss) as net income or net loss, as applicable, before other income (expense), net, acquisition-related gains or losses, deferred revenue fair value adjustments, transaction costs, integration costs, restructuring-related costs, stockholder activism costs, certain litigation-related costs, consisting of fees for certain non-ordinary course litigation and other proceedings, impairment charges, debt modification expense and loss on debt extinguishment, and stock-based compensation expense. Adjusted net income (loss) per share is calculated as adjusted net income (loss) divided by diluted weighted-average shares of common stock outstanding for periods that result in adjusted net income and basic weighted-average shares outstanding for periods that result in an adjusted net loss. Some of the adjustments described above may not be applicable in any given reporting period and may vary from period to period.

The company's management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, to understand cash that is generated by or available for operational expenses and investment in the business after capital expenditures, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. Management believes these non-GAAP financial measures reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in the company's business as they exclude expenses that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the company's operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

The use of adjusted EBITDA (loss), adjusted free cash flow, adjusted unlevered free cash flow, adjusted net income (loss), and adjusted net income (loss) per share measures has certain limitations, as they do not reflect all items of income and expense that affect the company's operations. The company compensates for these limitations by reconciling the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review the company's financial information in its entirety and not rely on a single financial measure.

Conference Call Information

What:


2U's first quarter 2024 financial results conference call

When:


Thursday, May 2, 2024

Time:


4:30 p.m. ET

Live Call:


(888) 330-2446

Conference ID #:


1153388

Webcast:


investor.2U.com

About 2U, Inc. (Nasdaq: TWOU)

2U is a global leader in online education. Guided by its founding mission to eliminate the back row in higher education, 2U has spent 15 years advancing the technology and innovation to deliver world-class learning outcomes at scale. Through its global online learning platform edX, 2U connects more than 86 million people with thousands of affordable, career-relevant learning opportunities in partnership with 260 of the world's leading universities, institutions, and industry experts. From free courses to full degrees, 2U is creating a better future for all through the power of high-quality online education. Learn more at 2U.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains forward-looking statements regarding 2U, Inc.'s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding future results of operations and financial position of 2U, including financial targets, business strategy, and plans and objectives for future operations, are forward-looking statements. 2U has based these forward-looking statements largely on its estimates of its financial results and its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs as of the date of this press release. The company undertakes no obligation to update these statements as a result of new information or future events. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from the results predicted, including, but not limited to:

  • trends in the higher education market and the market for online education, and expectations for growth in those markets;
  • the company's ability to maintain minimum recurring revenues or other financial ratios during required periods through the maturity date of its amended term loan facilities;
  • the acceptance, adoption and growth of online learning by colleges and universities, faculty, students, employers, accreditors and state and federal licensing bodies;
  • the impact of competition on the company's industry and innovations by competitors;
  • the company's ability to comply with evolving regulations and legal obligations related to data privacy, data protection, artificial intelligence and information security;
  • the company's expectations about the potential benefits of its cloud-based software-as-a-service technology and technology-enabled services to university clients and students;
  • the company's dependence on third parties to provide certain technological services or components used in its platform;
  • the company's expectations about the predictability, visibility and recurring nature of its business model;
  • the company's ability to meet the anticipated launch dates of its offerings;
  • the company's ability to acquire new clients and expand its offerings with existing university clients;
  • the company's ability to successfully integrate the operations of its acquisitions, including the edX acquisition, to achieve the expected benefits of its acquisitions and manage, expand and grow the combined company;
  • the company's ability to refinance its indebtedness on attractive terms, if at all, to better align with its focus on profitability and address impending maturities and the impact any refinancing may have on the price of the company's common stock;
  • the company's ability to regain compliance with the continued listing standards for listing of our common stock on the Nasdaq Global Select Market;
  • the company's ability to service its substantial indebtedness and comply with the covenants and conversion obligations contained in the indentures governing its 2.25% convertible senior notes due 2025 and 4.50% convertible senior notes due 2030 and the credit agreement governing its revolving credit facility;
  • the company's ability to implement its platform strategy and achieve the expected benefits;
  • the company's ability to generate sufficient future operating cash flows from recent acquisitions to ensure related goodwill is not impaired;
  • the company's ability to execute its growth strategy, including expansion internationally and growing its enterprise business;
  • the company's ability to continue to recruit prospective students for its offerings;
  • the company's ability to maintain or increase student retention rates in its degree programs;
  • the company's ability to attract, hire and retain senior management and other key personnel;
  • the company's expectations about the scalability of its cloud-based platform;
  • potential changes in laws, regulations or guidance applicable to the company or its university clients;
  • the company's expectations regarding the amount of time its cash balances and other available financial resources will be sufficient to fund its operations;
  • the impact and cost of stockholder activism;
  • the potential negative impact of the significant decline in the market price of the company's common stock, including the impairment of goodwill and indefinite-lived intangible assets;
  • the expected impact of our 2022 Strategic Realignment Plan, or similar performance improvement initiatives, and the estimated savings and amounts expected to be incurred in connection therewith;
  • the impact of any natural disasters or public health emergencies, such as the COVID-19 pandemic;
  • the company's expectations regarding the effect of the capped call transactions and actions of the option counterparties and/or their respective affiliates; and
  • other factors beyond the company's control.

These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and other SEC filings. Moreover, 2U operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for 2U management to predict all risks, nor can 2U assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements 2U may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated.

Investor Relations Contact: investorinfo@2U.com

Media Contact: media@2U.com

 

2U, Inc. 

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)






March 31,
2024


December 31,
2023






(unaudited)



Assets




Current assets




Cash and cash equivalents

$         124,728


$           60,689

Restricted cash

12,710


12,710

Accounts receivable, net

67,235


115,944

Other receivables, net

24,196


28,293

Prepaid expenses and other assets

30,521


33,828

Total current assets

259,390


251,464

Other receivables, net, non-current

14,955


12,507

Property and equipment, net

37,978


40,233

Right-of-use assets

61,813


63,986

Goodwill

650,008


651,498

Intangible assets, net

357,078


371,198

Other assets, non-current

51,715


68,797

Total assets

$      1,432,937


$      1,459,683

Liabilities and stockholders' equity




Current liabilities




Accounts payable and accrued expenses

$         114,000


$         103,378

Deferred revenue

102,286


81,949

Lease liability

14,472


15,158

Accrued restructuring liability

7,409


14,506

Other current liabilities

46,598


44,348

Total current liabilities

284,765


259,339

Long-term debt

898,416


896,514

Deferred tax liabilities, net

317


323

Lease liability, non-current

79,724


83,297

Other liabilities, non-current

1,137


1,165

Total liabilities

1,264,359


1,240,638

Stockholders' equity




Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued


Common stock, $0.001 par value, 200,000,000 shares authorized, 83,644,026 shares issued
    and outstanding as of March 31, 2024; 82,260,619 shares issued and outstanding as of
    December 31, 2023

84


83

Additional paid-in capital

1,747,529


1,741,657

Accumulated deficit

(1,552,228)


(1,497,579)

Accumulated other comprehensive loss

(26,807)


(25,116)

Total stockholders' equity

168,578


219,045

Total liabilities and stockholders' equity

$      1,432,937


$      1,459,683

 

2U, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)




Three Months Ended

March 31,


2024


2023


(unaudited)

Revenue

$         198,377


$         238,504

Costs and expenses




Curriculum and teaching

31,052


32,840

Servicing and support

25,511


36,109

Technology and content development

34,995


45,484

Marketing and sales

89,712


100,175

General and administrative

39,702


39,250

Restructuring charges

4,727


4,875

  Total costs and expenses

225,699


258,733

Loss from operations

(27,322)


(20,229)

Interest income

577


365

Interest expense

(19,267)


(17,957)

Debt modification expense and loss on debt extinguishment


(16,735)

Other (expense) income, net

(8,404)


607

Loss before income taxes

(54,416)


(53,949)

Income tax expense

(233)


(113)

Net loss

$          (54,649)


$          (54,062)

Net loss per share, basic and diluted

$              (0.65)


$              (0.68)

Weighted-average shares of common stock outstanding, basic and diluted

83,448,101


79,310,434





Other comprehensive income (loss)




Foreign currency translation adjustments, net of tax of $0 for all periods presented

(1,691)


(3,303)

Comprehensive loss

$          (56,340)


$          (57,365)

 

2U, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)




Three Months Ended

March 31,


2024


2023


(unaudited)

Cash flows from operating activities




Net loss

$             (54,649)


$             (54,062)

Adjustments to reconcile net loss to net cash provided by operating activities:




Non-cash interest expense

3,283


3,532

Depreciation and amortization expense

24,686


30,020

Stock-based compensation expense

5,324


14,563

Non-cash lease expense

4,162


4,457

Provision for credit losses

2,873


2,497

Loss on debt extinguishment


12,123

Loss on sale of receivables

8,120


Other

284


(598)

Changes in operating assets and liabilities:




Accounts receivable, net

39,186


(11,455)

Other receivables, net

(310)


947

Prepaid expenses and other assets

20,025


(1,213)

Accounts payable and accrued expenses

2,395


11,158

Deferred revenue

20,583


24,674

Other liabilities, net

(3,713)


(9,165)

Net cash provided by operating activities

72,249


27,478

Cash flows from investing activities




Additions of amortizable intangible assets

(7,134)


(10,586)

Purchases of property and equipment

(176)


(1,222)

Net cash used in investing activities

(7,310)


(11,808)

Cash flows from financing activities




Proceeds from debt


239,223

Payments on debt

(1,376)


(321,078)

Prepayment premium on extinguishment of senior secured term loan facility


(5,666)

Payment of debt issuance costs


(2,867)

Tax withholding payments associated with settlement of restricted stock units

(112)


(361)

Proceeds from exercise of stock options


110

Proceeds from employee stock purchase plan share purchases

661


1,176

Net cash used in financing activities

(827)


(89,463)

Effect of exchange rate changes on cash

(73)


501

Net increase (decrease) in cash, cash equivalents and restricted cash

64,039


(73,292)

Cash, cash equivalents and restricted cash, beginning of period

73,399


182,578

Cash, cash equivalents and restricted cash, end of period

$             137,438


$             109,286

 

2U, Inc.

Reconciliation of Non-GAAP Measures - Adjusted EBITDA

(unaudited)


The following table presents a reconciliation of adjusted EBITDA to net loss for each of the periods indicated.




Three Months Ended

March 31,


2024


2023






(in thousands, except share and per
share amounts)

Revenue

$      198,377


$      238,504





Net loss

$      (54,649)


$      (54,062)

Stock-based compensation expense

5,324


14,563

Other expense (income), net

8,404


(607)

Amortization of acquired intangible assets

8,242


9,936

Income tax benefit on amortization of acquired intangible assets

(19)


(19)

Debt modification expense and loss on debt extinguishment


16,735

Restructuring charges

4,727


4,875

Other*

9,880


962

  Adjusted net loss

(18,091)


(7,617)

Net interest expense

18,690


17,592

Income tax expense

252


132

Depreciation and amortization expense

16,444


20,084

  Adjusted EBITDA

$        17,295


$        30,191





Adjusted EBITDA margin

9 %


13 %

Net loss per share, basic and diluted

$          (0.65)


$          (0.68)

Adjusted net loss per share, basic and diluted

$          (0.22)


$          (0.10)

Weighted-average shares of common stock outstanding, basic and diluted

83,448,101


79,310,434





*


Includes (i) transaction and integration expense of $0.3 million and $0.1 million for the three months ended March 31, 2024 and 2023, respectively, (ii) litigation-related expense of $2.6 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively and (iii) performance improvement initiative implementation expense of $7.0 million and $0 for the three months ended March 31, 2024 and 2023, respectively.

 

 

2U, Inc.

Reconciliation of Non-GAAP Measures - Adjusted EBITDA by Segment

(unaudited)


The following table presents a reconciliation of adjusted EBITDA (loss) to net loss by segment for each of the periods indicated.








Degree Program Segment


Alternative Credential Segment


Consolidated


Three Months Ended

March 31,


Three Months Ended

March 31,


Three Months Ended

March 31,


2024


2023


2024


2023


2024


2023














(in thousands)

Revenue

$   111,546


$   140,480


$     86,831


$     98,024


$   198,377


$   238,504













Net loss

$    (22,455)


$    (13,077)


$    (32,194)


$    (40,985)


$    (54,649)


$    (54,062)

Adjustments:












Stock-based compensation expense

3,365


8,135


1,959


6,428


5,324


14,563

Other expense (income), net

7,626


(1,203)


778


596


8,404


(607)

Net interest expense (income)

18,742


17,649


(52)


(57)


18,690


17,592

Income tax expense

151


96


82


17


233


113

Depreciation and amortization expense

11,118


13,818


13,568


16,202


24,686


30,020

Debt modification expense and loss on debt extinguishment


16,735





16,735

Restructuring charges

3,558


4,107


1,169


768


4,727


4,875

Other

9,880


944



18


9,880


962

Total adjustments

54,440


60,281


17,504


23,972


71,944


84,253

Total adjusted EBITDA (loss)

$     31,985


$     47,204


$    (14,690)


$    (17,013)


$     17,295


$     30,191













Adjusted EBITDA margin

29 %


34 %


(17) %


(17) %


9 %


13 %

 

2U, Inc.

Reconciliation of Non-GAAP Measures - Adjusted Free Cash Flow and Adjusted Unlevered Free Cash Flow

(unaudited)


The following table presents a reconciliation of adjusted unlevered free cash flow to net cash provided by (used in) operating activities for each of the twelve-month periods indicated.




Trailing Twelve Months Ended


March 31,

2024


December 31,

2023


September 30,

2023


June 30,

2023










(in thousands)

Net cash provided by (used in) operating activities

$           41,340


$            (3,431)


$            (5,149)


$          (16,536)

Additions of amortizable intangible assets

(40,559)


(44,010)


(44,733)


(50,619)

Purchases of property and equipment

(4,975)


(6,021)


(7,313)


(8,640)

Payments to university clients

300


1,050


1,050


3,550

Non-ordinary cash payments*

43,345


36,653


34,618


36,101

Adjusted free cash flow

39,451


(15,759)


(21,527)


(36,144)

Cash interest payments on debt

63,268


61,194


53,473


47,802

Adjusted unlevered free cash flow

$         102,719


$           45,435


$           31,946


$           11,658





*


Includes transaction, integration, restructuring-related, stockholder activism, and litigation-related expense.

 

2U, Inc.

Reconciliation of Non-GAAP Measures

(unaudited)


The following table presents a reconciliation of adjusted EBITDA guidance to net loss guidance, at the midpoint of the ranges provided by the company, for the periods indicated.






Three Months Ending

June 30, 2024


Year Ending

December 31, 2024


(in millions)

Net loss

$                 (35.0)


$              (100.5)

Stock-based compensation expense

5.0


20.0

Amortization of acquired intangible assets

8.0


32.5

Restructuring charges

3.0


15.0

Other

4.0


27.5

  Adjusted net loss

(15.0)


(5.5)

Net interest expense

16.0


70.0

Depreciation and amortization expense

16.0


58.0

  Adjusted EBITDA

$                   17.0


$                122.5

 

2U, Inc.

Key Financial Performance Metrics

(unaudited)

Full Course Equivalent Enrollments


Degree Program Segment


The following table presents FCE enrollments and average revenue per FCE enrollment in the company's Degree Program Segment for the last eight quarters.


















Q1 '24


Q4 '23


Q3 '23


Q2 '23


Q1 '23


Q4 '22


Q3 '22


Q2 '22

Degree Program Segment FCE enrollments

44,693


43,309


45,284


50,490


55,491


53,631


57,092


60,303

Degree Program Segment average revenue per FCE enrollment*

$  2,496


$  3,774


$  3,039


$  2,367


$  2,532


$  2,557


$  2,404


$  2,373





*


Average revenue per FCE enrollment includes revenue from portfolio management activities.

 

Alternative Credential Segment*


The following table presents FCE enrollments and average revenue per FCE enrollment in the company's Alternative Credential Segment for the last eight quarters.


















Q1 '24


Q4 '23


Q3 '23


Q2 '23


Q1 '23


Q4 '22


Q3 '22


Q2 '22

Alternative Credential Segment FCE enrollments

24,955


24,499


25,318


25,840


21,990


24,236


23,128


23,443

Alternative Credential Segment average revenue per FCE enrollment

$  3,260


$  3,500


$  3,428


$  3,591


$  4,193


$  3,840


$  3,850


$  3,891





*


FCE enrollments and average revenue per FCE enrollment exclude the impact of enrollments in edX offerings and the related revenue of $5.5 million and $5.8 million for the three months ended March 31, 2024 and 2023, respectively.

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/2u-reports-results-for-first-quarter-2024-302135006.html

SOURCE 2U, Inc.

2U, Inc.

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