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2U, Inc. (TWOU) SEC Filing 10-Q Quarterly report for the period ending Tuesday, June 30, 2020

SEC Filings

2U, Inc.

CIK: 1459417 Ticker: TWOU

 

Exhibit 99.1

 

2U, Inc. Reports Results for Second Quarter 2020

Delivers revenue growth of 35%

 

LANHAM, Md. — July 30, 2020 — 2U, Inc. (Nasdaq: TWOU)

, a global leader in education technology, today reported financial and operating results for the second quarter ended June 30, 2020.

 

Results for Second Quarter 2020 Compared to Second Quarter 2019

Revenue increased 35% to $182.7 million
Graduate Program Segment revenue increased 14% to $115.7 million
Alternative Credential Segment revenue increased 97% to $67.0 million, including $36.6 million in revenue from Trilogy, acquired in May 2019
Net loss increased $38.2 million to $66.2 million, or $1.03 per share

 

Non-GAAP Results for Second Quarter 2020 Compared to Second Quarter 2019

Adjusted net loss was $21.8 million, or $0.34 per share, compared to adjusted net loss of $25.8 million, or $0.43 per share
Adjusted EBITDA loss was $2.1 million, compared to a loss of $15.0 million

 

“In these complex and challenging times, the importance of 2U’s mission and the value we deliver for our partners and their students has never been more clear,” Co-Founder and CEO Christopher “Chip” Paucek said. “As universities accelerate their digital transformations and more students affirmatively choose to pursue an education online, we believe our strong relationships with leading universities and the unmatched scale and quality of our portfolio of offerings position us well for future growth.”

 

“We are driving significant improvement in key profitability and cash flow metrics while maintaining quality, enhancing operational efficiency, and executing on growth opportunities,” said Chief Financial Officer Paul Lalljie. “We delivered a significant improvement in free cash flow in the second quarter and expect to achieve EBITDA profitability next quarter and for the full year. We also increased our financial flexibility with our recent convertible senior notes offering and revolving line of credit.”

 

Discussion of Second Quarter 2020 Results

 

Revenue totaled $182.7 million, a 35% increase from $135.5 million in the second quarter of 2019. Graduate Program Segment revenue grew 14% to $115.7 million driven by an 18% increase in full course equivalent (“FCE”) enrollments, partially offset by a 3% decrease in average revenue per FCE enrollment. Alternative Credential Segment revenue increased 97% to $67.0 million, driven by FCE enrollments of 20,435. The acquisition of Trilogy was completed on May 22, 2019, making this quarter the last period for which comparative period results do not exist.

 

Costs and expenses totaled $231.8 million, a 28% increase from $181.5 million in the second quarter of 2019. This $50.3 million increase was driven by $33.8 million of incremental operating costs related to Trilogy, with the remaining increase primarily attributable to personnel and personnel-related expense, curriculum and teaching costs, and depreciation and amortization expense, partially offset by decreased spend on travel and entertainment due to cost efficiencies and the impact of COVID-19.

 

As of June 30, 2020, the company’s cash, cash equivalents, and restricted cash totaled $213.0 million, an increase of $23.1 million from $189.9 million as of December 31, 2019. The cash balance as of June 30, 2020 reflects net proceeds from the convertible senior notes offering. As of June 30, 2020, the company’s outstanding borrowings were $385.3 million, principally related to the issuance of its convertible senior notes.

 


The following information was filed by 2U, Inc. (TWOU) on Friday, July 31, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside 2U, Inc.'s 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Cover Page
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Changes In Stockholders' Equity
Condensed Consolidated Statements Of Operations And Comprehensive Loss
Condensed Consolidated Statements Of Operations And Comprehensive Loss (Parenthetical)
Accrued Expenses
Accrued Expenses (Details)
Accrued Expenses (Tables)
Business Combination
Business Combination (Tables)
Business Combination - Additional Information (Details)
Business Combination - Pro Forma Information (Details)
Commitments And Contingencies
Commitments And Contingencies (Details)
Debt
Debt (Tables)
Debt - Additional Information (Details)
Debt - Long-Term Debt (Details)
Goodwill And Amortizable Intangible Assets
Goodwill And Amortizable Intangible Assets (Tables)
Goodwill And Amortizable Intangible Assets - Amortizable Intangible Assets (Details)
Goodwill And Amortizable Intangible Assets - Estimated Future Amortization Expense (Details)
Goodwill And Amortizable Intangible Assets - Narrative (Details)
Income Taxes
Income Taxes (Details)
Leases
Leases (Tables)
Leases - Additional Information (Details)
Leases - Lease Cost (Details)
Leases - Operating Lease Liabilities Due (Details)
Net Loss Per Share
Net Loss Per Share (Details)
Net Loss Per Share (Tables)
Organization
Organization (Details)
Segment And Geographic Information
Segment And Geographic Information (Tables)
Segment And Geographic Information - Concentration Risk (Details)
Segment And Geographic Information - Contract Acquisition Costs (Details)
Segment And Geographic Information - Geographical Information (Details)
Segment And Geographic Information - Revenue And Total Assets By Segment (Details)
Significant Accounting Policies
Significant Accounting Policies (Policies)
Significant Accounting Policies (Tables)
Significant Accounting Policies - Change In Provision For Credit Losses (Details)
Significant Accounting Policies - Convertible Senior Notes (Details)
Stockholders' Equity
Stockholders' Equity (Tables)
Stockholders' Equity - Common Stock And Stock-Based Compensation (Details)
Stockholders' Equity - Restricted And Performance Restricted Stock Units (Details)
Stockholders' Equity - Stock Options (Details)
Stockholders' Equity - Stock-Based Compensation Expense (Details)
Supplemental Cash Flow Information
Supplemental Cash Flow Information (Details)
Ticker: TWOU
CIK: 1459417
Form Type: 10-Q Quarterly Report
Accession Number: 0001459417-20-000010
Submitted to the SEC: Fri Jul 31 2020 4:16:28 PM EST
Accepted by the SEC: Fri Jul 31 2020
Period: Tuesday, June 30, 2020
Industry: Prepackaged Software

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