2U, Inc. (TWOU) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 30, 2017

Exhibit 99.1

2U, Inc. Reports Third Quarter 2017 Financial Results

First Reporting Period Including GetSmarter’s Financial Results

LANHAM, MD, November 7, 2017 — 2U, Inc. (NASDAQ: TWOU),

Third Quarter 2017 Results

·                                          Revenue was $70.3 million, an increase of 35% from $52.0 million in the third quarter of 2016.

·                                          Net loss was $(14.7) million, or $(0.30) per share, compared to $(6.8) million, or $(0.14) per share, in the third quarter of 2016.

·                                          Adjusted net loss was $(7.4) million, or $(0.15) per share compared to an adjusted net loss of $(2.7) million, or $(0.06) per share, in the third quarter of 2016.

·                                          Adjusted EBITDA loss was $(3.7) million, compared to an adjusted EBITDA loss of $(0.2) million in the third quarter of 2016.

Of the 35% year-over-year revenue growth in the third quarter, 27% was related to 2U’s Graduate Program business and the remainder was attributable to revenue from the recently acquired Short Course business. On a consolidated basis, the year-over-year net loss, adjusted net loss and adjusted EBITDA loss changes were primarily related to the consolidation of results from the recently acquired Short Course business. For more information on the impact of the GetSmarter acquisition on 2U’s consolidated third quarter results, please see the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2017, and listen to the Company’s third quarter 2017 financial results conference call or review the transcript thereof.

“We have now delivered 15 quarters of strong financial results with no plans of slowing down in 2018,” 2U CEO and co-founder Christopher “Chip” Paucek said. “We are further cementing our leadership position and forging new pathways in the digital education space with short courses. Although we expect the domestic graduate landscape to continue to produce strong growth, short courses now allow us to provide a more comprehensive product solution to our clients. Based on this combined strength, we expect 2018 year-over-year revenue growth of between 38 to 39 percent. In addition, our acquisition of GetSmarter enables us to expand and more effectively serve the growing demand coming from global markets, a trend that we expect to continue in 2019 with our plans to launch 2U’s first international graduate program, or IGP.”

Program Developments

2U initially targeted 12 new Domestic Graduate Programs (DGPs) in 2018. Last year, 2U raised that target to 13 DGPs. 2U has now slotted all 13 launches, but due to university demand, 2U has increased the expected 2018 launch cohort to 14 DGPs, and for 2019 has already targeted 16 DGPs for launch.

The following 13 DGPs are each slotted to launch in 2018. They are listed in the order of their expected launch date. Included is the Yale Physician Assistant program, which has been approved by its accrediting body and will be the 13th DGP, with classes beginning in January 2018. 2U expects to announce the final 2018 DGP before the end of the year.

·                  Yale University: Yale PA Online, a Master of Medical Sciences for Physician Associates degree

·                  University of Denver: MBA@Denver, a Master of Business Administration degree

·                  University of Denver: MSW@Denver, a Master of Social Work degree

·                  Harvard University: Harvard Business Analytics Program, a business analytics certificate