The following is a summary of the 2U, Inc. (TWOU) Q1 2024 Earnings Call Transcript:
Financial Performance:
2U's Q1 2024 revenue stood at $198.4 million, surpassing expectations.
Adjusted EBITDA was reported at $17.3 million.
The revenue for Q1 2024 shows a 17% decrease from Q1 2023 primarily due to a 21% decline in the Degree segment and an 11% decline in the Alternative Credential segment.
The company recorded a net loss of $54.6 million for the quarter, compared to $54.1 million in Q1 2023.
2U ended the quarter with cash, cash equivalents, and restricted cash of $137.4 million.
Business Progress:
2U launched 42 new degree programs in high-demand fields using a cost-effective model.
The company plans to deliver profitable growth in its Degree segment next year thanks to a robust pipeline and successful learner outcomes.
The Alternative Credential segment has signed contracts for AI boot camps targeting workforce upskilling.
A subscription-based contract has been signed with the Council of Higher Education in Andhra Pradesh, India, which takes 2U's courses to over 1 million students in the state.
The company is making operational improvements to increase market segmentation, and focus on organic lead generation.
2U is also implementing cost-saving efficiencies such as streamlining marketing technology, relocating back-end functions, and standardizing the technology infrastructure.
Despite a decline in their boot camp business, 2U provides updated guidance for Q2 and full year 2024, expecting to meet their adjusted EBITDA expectations.
More details: 2U IR
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