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Exhibit 99.1
2U Reports Results for First Quarter 2022
LANHAM, Md. — May 5, 2022 — 2U, Inc. (Nasdaq: TWOU), a leading online education platform company, today reported financial and operating results for the quarter ended March 31, 2022.
Results for First Quarter 2022 Compared to First Quarter 2021
| • | Revenue increased 9% to $253.3 million |
| • | Degree Program Segment revenue increased 6% to $154.2 million |
| • | Alternative Credential Segment revenue increased 15% to $99.1 million |
| • | Net loss increased $80.2 million to $125.8 million, or $1.65 per share |
Non-GAAP Results for First Quarter 2022 Compared to First Quarter 2021
| • | Adjusted EBITDA decreased $1.5 million to $12.3 million |
| • | Adjusted net loss increased $9.9 million to $18.5 million, or $0.24 per share |
“Today, 2U’s mission is not just about showing it’s possible to create high-quality online programs at scale, but also increasing access to high-quality education for everyone, everywhere, at every stage of life,” said Christopher “Chip” Paucek, Co-Founder and CEO of 2U. “As we transition to a platform company under the edX brand, our partnerships help make institutions sustainable and help individuals unlock the livelihoods they want now and in the future.”
Paul Lalljie, 2U’s Chief Financial Officer, added, “Our first quarter results demonstrated resilience in enrollments and revenue, as well as continued improvement in operating efficiency. Based on these results and the outlook for key business drivers, we are affirming our revenue guidance and increasing our adjusted EBITDA guidance for the full year. We remain focused on unlocking the potential of edX, continuing to invest in our degree programs, and improving the profitability of the Alternative Credential Segment.”
Discussion of First Quarter 2022 Results
Revenue for the first quarter totaled $253.3 million, a 9.0% increase from $232.5 million in the first quarter of 2021. This increase includes $10.9 million from edX, acquired in the fourth quarter of 2021. Revenue from our Degree Program Segment increased $8.3 million, or 5.7%, primarily due to an increase in full course equivalent (“FCE”) enrollments of 2,602, or 4.3% and a 1.3% increase in average revenue per FCE enrollment, from $2,431 to $2,462. Revenue from our Alternative Credential Segment increased $12.6 million, or 14.5%, primarily due the addition of edX offerings and an increase in FCE enrollments of 1,586, or 7.5%, partially offset by a 2.3% decrease in average revenue per FCE enrollment, from $4,108 to $4,012.
Costs and expenses for the first quarter totaled $364.7 million, a 35.3% increase from $269.6 million in the first quarter of 2021. This increase includes $58.8 million of non-cash impairment charges in our Alternative Credential Segment and $18.3 million of operating expense related to edX. The remaining increase was driven by higher depreciation and amortization expense, an increase in transaction, integration and litigation-related expense, and an increase in operational expense to support revenue growth.
As of March 31, 2022, the company’s cash, cash equivalents, and restricted cash totaled $233.6 million, a decrease of $16.3 million from $249.9 million as of December 31, 2021.
Business Outlook for Fiscal Year 2022
The company affirmed its revenue guidance provided on February 9, 2022 and provided updated guidance for its net loss and adjusted EBITDA, as follows:
| • | Revenue to range from $1.05 billion to $1.09 billion, representing growth of 13% at the midpoint |
| • | Net loss to range from $260 million to $240 million |
| • | Adjusted EBITDA to range from $80 million to $90 million, representing growth of 28% at the midpoint |
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), 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, 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, losses on debt extinguishment, and stock-based compensation expense. The company defines unlevered free cash flow as net cash provided by (used in) operating activities, less capital expenditures, payments to university clients, certain non-ordinary cash payments, and 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, losses 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 in the definitions of adjusted EBITDA (loss), unlevered free cash flow, and adjusted net income (loss) may not be applicable in any given reporting period and they 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), 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 2022 financial results conference call | |
| When: | Thursday, May 5, 2022 | |
| Time: | 4:30 p.m. ET | |
| Live Call: | (833) 921-1673 | |
| Conference ID #: | 7559117 | |
| Webcast: | investor.2U.com |
About 2U, Inc. (Nasdaq: TWOU)
For more than a decade, 2U, Inc. has been the digital transformation partner of choice to great non-profit colleges and universities delivering high-quality online education at scale. As the parent company of edX, a leading global online learning platform, 2U provides over 44 million learners with access to world-class education in partnership with more than 230 colleges, universities, and corporations. Our people and technology are powering more than 4,000 digital education offerings — from free courses to full degrees — and helping unlock human potential. To learn more: visit 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 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 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 degree programs, executive education offerings and boot camps; |
| • | the company’s ability to acquire new university clients and expand its degree programs, executive education offerings and boot camps 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; |
| • | the company’s ability to service its substantial indebtedness and comply with the covenants and conversion obligations contained in the indenture governing its convertible senior notes and the term loan agreement governing its term loan facility; |
| • | 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 in the international, undergraduate and non-degree alternative markets; |
| • | 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 qualified employees; |
| • | the company’s expectations about the scalability of its cloud-based platform; |
| • | potential changes in regulations 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 impact of the significant decline in the market price of our common stock, including the impairment of goodwill and indefinite-lived assets; |
| • | the impact of any natural disasters or public health emergencies, such as the coronavirus disease 2019 (“COVID-19”) pandemic; |
| • | the company’s expectations regarding the effect of the capped call transactions and regarding 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 our Annual Report on Form 10-K for the year ended December 31, 2021, 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, 2022 |
December 31, 2021 |
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| (unaudited) | ||||||||
| Assets |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ | 216,620 | $ | 232,932 | ||||
| Restricted cash |
16,977 | 16,977 | ||||||
| Accounts receivable, net |
77,945 | 67,287 | ||||||
| Other receivables, net |
29,767 | 29,439 | ||||||
| Prepaid expenses and other assets |
87,452 | 47,217 | ||||||
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| Total current assets |
428,761 | 393,852 | ||||||
| Other receivables, net, non-current |
21,296 | 21,568 | ||||||
| Property and equipment, net |
49,610 | 48,650 | ||||||
| Right-of-use assets |
75,107 | 76,841 | ||||||
| Goodwill |
804,580 | 834,539 | ||||||
| Intangible assets, net |
624,413 | 665,523 | ||||||
| Other assets, non-current |
69,178 | 68,033 | ||||||
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| Total assets |
$ | 2,072,945 | $ | 2,109,006 | ||||
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| Liabilities and stockholders’ equity |
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| Current liabilities |
||||||||
| Accounts payable and accrued expenses |
$ | 157,926 | $ | 166,458 | ||||
| Deferred revenue |
121,217 | 91,926 | ||||||
| Lease liability |
12,847 | 13,985 | ||||||
| Other current liabilities |
100,225 | 61,138 | ||||||
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| Total current liabilities |
392,215 | 333,507 | ||||||
| Long-term debt |
927,264 | 845,316 | ||||||
| Deferred tax liabilities, net |
1,675 | 1,726 | ||||||
| Lease liability, non-current |
97,802 | 98,666 | ||||||
| Other liabilities, non-current |
639 | 636 | ||||||
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| Total liabilities |
1,419,595 | 1,279,851 | ||||||
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| 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, 76,616,534 shares issued and outstanding as of March 31, 2022; 75,754,663 shares issued and outstanding as of December 31, 2021 |
77 | 76 | ||||||
| Additional paid-in capital |
1,645,456 | 1,735,628 | ||||||
| Accumulated deficit |
(983,601 | ) | (890,638 | ) | ||||
| Accumulated other comprehensive loss |
(8,582 | ) | (15,911 | ) | ||||
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| Total stockholders’ equity |
653,350 | 829,155 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 2,072,945 | $ | 2,109,006 | ||||
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2U, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(unaudited, in thousands, except share and per share amounts)
| Three Months Ended March 31, |
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| 2022 | 2021 | |||||||
| Revenue |
$ | 253,329 | $ | 232,473 | ||||
| Costs and expenses |
||||||||
| Curriculum and teaching |
33,230 | 33,148 | ||||||
| Servicing and support |
39,624 | 33,184 | ||||||
| Technology and content development |
51,057 | 42,924 | ||||||
| Marketing and sales |
130,982 | 113,237 | ||||||
| General and administrative |
51,022 | 47,112 | ||||||
| Impairment charges |
58,782 | — | ||||||
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| Total costs and expenses |
364,697 | 269,605 | ||||||
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| Loss from operations |
(111,368 | ) | (37,132 | ) | ||||
| Interest income |
257 | 362 | ||||||
| Interest expense |
(13,890 | ) | (7,881 | ) | ||||
| Other expense, net |
(1,030 | ) | (915 | ) | ||||
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| Loss before income taxes |
(126,031 | ) | (45,566 | ) | ||||
| Income tax benefit |
251 | 2 | ||||||
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| Net loss |
$ | (125,780 | ) | $ | (45,564 | ) | ||
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| Net loss per share, basic and diluted |
$ | (1.65 | ) | $ | (0.62 | ) | ||
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| Weighted-average shares of common stock outstanding, basic and diluted |
76,271,855 | 73,676,409 | ||||||
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| Other comprehensive income (loss) |
||||||||
| Foreign currency translation adjustments, net of tax of $0 for all periods presented |
7,329 | (805 | ) | |||||
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| Comprehensive loss |
$ | (118,451 | ) | $ | (46,369 | ) | ||
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2U, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities |
||||||||
| Net loss |
$ | (125,780 | ) | $ | (45,564 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
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| Non-cash interest expense |
4,254 | 7,693 | ||||||
| Depreciation and amortization expense |
34,415 | 24,987 | ||||||
| Stock-based compensation expense |
24,424 | 24,947 | ||||||
| Non-cash lease expense |
5,750 | 4,291 | ||||||
| Provision for credit losses |
2,350 | 2,022 | ||||||
| Impairment charges |
58,782 | — | ||||||
| Other |
1,378 | 930 | ||||||
| Changes in operating assets and liabilities, net of assets and liabilities acquired: |
||||||||
| Accounts receivable, net |
(12,012 | ) | (30,698 | ) | ||||
| Other receivables, net |
(1,206 | ) | (8,602 | ) | ||||
| Prepaid expenses and other assets |
(1,419 | ) | 95 | |||||
| Accounts payable and accrued expenses |
(11,944 | ) | (660 | ) | ||||
| Deferred revenue |
29,614 | 32,850 | ||||||
| Other liabilities, net |
(8,672 | ) | (4,664 | ) | ||||
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| Net cash (used in) provided by operating activities |
(66 | ) | 7,627 | |||||
| Cash flows from investing activities |
||||||||
| Purchase of a business, net of cash acquired |
4,960 | — | ||||||
| Additions of amortizable intangible assets |
(17,487 | ) | (14,219 | ) | ||||
| Purchases of property and equipment |
(1,769 | ) | (838 | ) | ||||
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| Net cash used in investing activities |
(14,296 | ) | (15,057 | ) | ||||
| Cash flows from financing activities |
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| Proceeds from debt |
33 | 2,908 | ||||||
| Payments on debt |
(1,903 | ) | (176 | ) | ||||
| Tax withholding payments associated with settlement of restricted stock units |
(919 | ) | (12,613 | ) | ||||
| Proceeds from exercise of stock options |
875 | 3,533 | ||||||
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| Net cash used in financing activities |
(1,914 | ) | (6,348 | ) | ||||
| Effect of exchange rate changes on cash |
(36 | ) | (32 | ) | ||||
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| Net decrease in cash, cash equivalents and restricted cash |
(16,312 | ) | (13,810 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period |
249,909 | 518,866 | ||||||
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| Cash, cash equivalents and restricted cash, end of period |
$ | 233,597 | $ | 505,056 | ||||
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2U, Inc.
Reconciliation of Non-GAAP Measures
(unaudited)
The following table presents a reconciliation of adjusted EBITDA to net loss for each of the periods indicated.
| Three Months Ended March 31, |
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| 2022 | 2021 | |||||||
| (in thousands, except share and per share amounts) |
||||||||
| Net loss |
$ | (125,780 | ) | $ | (45,564 | ) | ||
| Stock-based compensation expense |
24,424 | 24,947 | ||||||
| Other expense, net |
1,030 | 915 | ||||||
| Amortization of acquired intangible assets |
17,491 | 10,472 | ||||||
| Income tax benefit on amortization of acquired intangible assets |
(435 | ) | (293 | ) | ||||
| Impairment charges |
58,782 | — | ||||||
| Other* |
6,027 | 946 | ||||||
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| Adjusted net loss |
(18,461 | ) | (8,577 | ) | ||||
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| Net interest expense |
13,633 | 7,519 | ||||||
| Income tax expense |
184 | 291 | ||||||
| Depreciation and amortization expense |
16,924 | 14,515 | ||||||
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| Adjusted EBITDA |
$ | 12,280 | $ | 13,748 | ||||
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| Net loss per share, basic and diluted |
$ | (1.65 | ) | $ | (0.62 | ) | ||
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| Adjusted net loss per share, basic and diluted |
$ | (0.24 | ) | $ | (0.12 | ) | ||
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| Weighted-average shares of common stock outstanding, basic and diluted |
76,271,855 | 73,676,409 | ||||||
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| * | Includes (i) transaction and integration expense of $2.4 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively, (ii) restructuring-related expense of $0.8 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively, and (iii) stockholder activism and litigation-related expense of $2.8 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively. |
2U, Inc.
Reconciliation of Non-GAAP Measures
(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, |
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| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
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| (in thousands) | ||||||||||||||||||||||||
| Net loss |
$ | (10,782 | ) | $ | (12,562 | ) | $ | (114,998 | ) | $ | (33,002 | ) | $ | (125,780 | ) | $ | (45,564 | ) | ||||||
| Adjustments: |
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| Stock-based compensation expense |
13,365 | 16,523 | 11,059 | 8,424 | 24,424 | 24,947 | ||||||||||||||||||
| Other expense, net |
552 | 62 | 478 | 853 | 1,030 | 915 | ||||||||||||||||||
| Net interest expense (income) |
13,702 | 7,580 | (69 | ) | (61 | ) | 13,633 | 7,519 | ||||||||||||||||
| Income tax expense (benefit) |
(102 | ) | 75 | (149 | ) | (77 | ) | (251 | ) | (2 | ) | |||||||||||||
| Depreciation and amortization expense |
13,893 | 13,507 | 20,522 | 11,480 | 34,415 | 24,987 | ||||||||||||||||||
| Impairment charges |
— | — | 58,782 | — | 58,782 | — | ||||||||||||||||||
| Other |
5,190 | 703 | 837 | 243 | 6,027 | 946 | ||||||||||||||||||
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| Total adjustments |
46,600 | 38,450 | 91,460 | 20,862 | 138,060 | 59,312 | ||||||||||||||||||
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| Total adjusted EBITDA (loss) |
$ | 35,818 | $ | 25,888 | $ | (23,538 | ) | $ | (12,140 | ) | $ | 12,280 | $ | 13,748 | ||||||||||
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2U, Inc.
Reconciliation of Non-GAAP Measures
(unaudited)
The following table presents a reconciliation of unlevered free cash flow to net cash (used in) provided by operating activities for each of the twelve-month periods indicated.
| Twelve Months Ended | ||||||||||||||||
| March 31, 2022 |
December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
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| (in thousands) | ||||||||||||||||
| Net cash (used in) provided by operating activities |
$ | (25,766 | ) | $ | (18,074 | ) | $ | 33,325 | $ | 34,054 | ||||||
| Additions of amortizable intangible assets |
(63,814 | ) | (60,546 | ) | (61,213 | ) | (60,154 | ) | ||||||||
| Purchases of property and equipment |
(10,716 | ) | (9,788 | ) | (6,398 | ) | (4,715 | ) | ||||||||
| Payments to university clients |
7,150 | 6,800 | 8,800 | 8,550 | ||||||||||||
| Non-ordinary cash payments* |
23,943 | 22,193 | 11,199 | 15,739 | ||||||||||||
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| Free cash flow |
(69,203 | ) | (59,415 | ) | (14,287 | ) | (6,526 | ) | ||||||||
| Cash interest payments on debt |
35,082 | 25,537 | 9,046 | 9,075 | ||||||||||||
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| Unlevered free cash flow |
$ | (34,121 | ) | $ | (33,878 | ) | $ | (5,241 | ) | $ | 2,549 | |||||
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| * | 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 period indicated.
| Year Ending December 31, 2022 |
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| (in millions) | ||||
| Net loss |
$ | (250.0 | ) | |
| Stock-based compensation expense |
105.0 | |||
| Other expense, net |
1.0 | |||
| Amortization of acquired intangible assets |
65.0 | |||
| Impairment charges |
59.0 | |||
| Other |
6.0 | |||
|
|
|
|||
| Adjusted net loss |
(14.0 | ) | ||
|
|
|
|||
| Net interest expense |
55.0 | |||
| Income tax benefit |
(1.0 | ) | ||
| Depreciation and amortization expense |
45.0 | |||
|
|
|
|||
| Adjusted EBITDA |
$ | 85.0 | ||
|
|
|
|||
2U, Inc.
Key Financial Performance Metrics
(unaudited)
Full Course Equivalent Enrollments
Degree Program Segment*
The following table presents the FCE enrollments and average revenue per FCE enrollment in the company’s Degree Program Segment for the last eight quarters.
| Q1 ‘22 | Q4 ‘21 | Q3 ‘21 | Q2 ‘21 | Q1 ‘21 | Q4 ‘20 | Q3 ‘20 | Q2 ‘20 | |||||||||||||||||||||||||
| Degree Program Segment FCE enrollments |
62,609 | 58,967 | 57,842 | 60,429 | 60,007 | 58,425 | 47,842 | 46,142 | ||||||||||||||||||||||||
| Degree Program Segment average revenue per FCE enrollment |
$ | 2,462 | $ | 2,585 | $ | 2,555 | $ | 2,420 | $ | 2,431 | $ | 2,234 | $ | 2,551 | $ | 2,507 | ||||||||||||||||
Alternative Credential Segment**
The following table presents the FCE enrollments and average revenue per FCE enrollment in the company’s Alternative Credential Segment for the last eight quarters.
| Q1 ‘22 | Q4 ‘21 | Q3 ‘21 | Q2 ‘21 | Q1 ‘21 | Q4 ‘20 | Q3 ‘20 | Q2 ‘20 | |||||||||||||||||||||||||
| Alternative Credential Segment FCE enrollments |
22,664 | 21,153 | 20,174 | 23,679 | 21,078 | 22,190 | 23,067 | 20,435 | ||||||||||||||||||||||||
| Alternative Credential Segment average revenue per FCE enrollment |
$ | 4,012 | $ | 4,312 | $ | 4,193 | $ | 3,843 | $ | 4,108 | $ | 3,821 | $ | 3,426 | $ | 3,279 | ||||||||||||||||
| * | FCE enrollments and average revenue per FCE include enrollments in edX degree offerings and revenue from these offerings of $2.7 million for the three months ended March 31, 2022. |
| ** | FCE enrollments and average revenue per FCE exclude the impact of enrollments in edX offerings and the related revenue of $8.2 million for the three months ended March 31, 2022. |
