2U, Inc. (TWOU) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2020

Exhibit 99.1

2U, Inc. Reports Results for Full-Year and Fourth Quarter 2020

Delivers revenue growth of 35% for the full year

Reports significant improvements to profitability measures

LANHAM, Md. — February 11, 2021 — 2U, Inc. (Nasdaq: TWOU)

Results for Full-Year 2020 Compared to Full-Year 2019

Non-GAAP Results for Full-Year 2020 Compared to Full-Year 2019

Results for Fourth Quarter 2020 Compared to Fourth Quarter 2019

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

“In the face of the unprecedented challenges 2020 presented for our society and the economy globally, 2U delivered excellent results that I believe are a testament to the underlying strength of our business and the value our shared success model continues to deliver for our partners and students,” Co-Founder and Chief Executive Officer, Christopher “Chip” Paucek said. “2U’s unmatched scale and the quality, diversity, and breadth of our growing portfolio of degree and non-degree offerings from great nonprofit universities around the world has solidified our position as the digital transformation partner of choice in edtech, and we believe sets us on a clear path forward for strong, profitable growth in 2021 and beyond.”

“We executed on our commitment to balance strong revenue growth with margin improvements while driving towards free cash flow and greatly increasing our liquidity and financial flexibility throughout the year,” said Chief Financial Officer, Paul Lalljie. “We believe we are well positioned to continue to grow profitably, invest for the future, and drive sustainable value for our shareholders. Our guidance for 2021 reflects confidence in our ability to maintain strong growth while making significant improvements in profitability.”

Discussion of 2020 Results

Revenue for the year totaled $774.5 million, a 35% increase from $574.7 million in 2019. This increase was driven by a 17% increase in Degree Program Segment revenue to $486.7 million and an 83% increase in Alternative Credential Segment revenue to $287.8 million. The increase in revenue from the Alternative Credential Segment included incremental revenue of $95.6 million from Trilogy, which was acquired in May 2019.

Revenue for the fourth quarter totaled $215.3 million, a 32% increase from $163.2 million in the fourth quarter of 2019. Degree Program Segment revenue grew 21% to $130.5 million, primarily driven by a 40% increase in full course equivalent (“FCE”) enrollments. Alternative Credential Segment revenue grew 54% to $84.8 million, driven by a 52% increase in FCE enrollments.