The following is a summary of the Laureate Education Inc. (LAUR) Q4 2023 Earnings Call Transcript:
Financial Performance:
Laureate reported Q4 revenue of $409 million and adjusted EBITDA of $131 million.
Year-on-year, Q4's revenue increased by 10%, owed to a 6% growth in total enrollment volume and a favorable price mix, while adjusted EBITDA grew by 28%.
For the entire year, revenue was $1.484 billion, up 11%, and adjusted EBITDA was $419 million, up 15% in constant currency basis, culminating in an adjusted EBITDA margin of 28.2%.
Revenue growth in Mexico for Q4 was 11% compared to the prior year, driving a 40% increase in adjusted EBITDA.
For 2023, revenue growth in Peru rose by 10%, leading to a 5% increase in adjusted EBITDA despite macroeconomic conditions.
Laureate concluded the year with $89 million in cash and $167 million in gross debt.
The EBITDA to unlevered free cash flow conversion for year-end 2023 was 49%.
Business Progress:
In 2023, annual enrollments rose by 6% and new enrolments by 10%.
The growth strategy to expand margins in Mexico to above 25% is in progress.
Laureate targets an adjusted EBITDA to unlevered free cash flow conversion of approximately 50% in 2024, in line with their 2023 results.
For 2024, total enrollments are expected to range between 467,000 and 473,000 students, reflecting a growth of 4% to 5% from 2023.
Projected revenue for 2024 lies between $1.553 billion to $1.568 billion, indicating a growth of 5% to 6%.
Adjusted EBITDA is estimated to be between $441 million to $451 million.
A new $100 million stock repurchase authorization has been announced.
Further margin expansion is anticipated, driven by Mexico and reduced corporate expenses, despite slight margin decrease in Peru due to pricing pressures.
More details: Laureate Education IR
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