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2U, Inc. (TWOU) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

SEC Filings

TWOU Annual Reports

2U, Inc.

CIK: 1459417 Ticker: TWOU

Exhibit 99.1

2U Reports Results for Full-Year and Fourth Quarter 2021

Delivers revenue growth of 22% for the full year

LANHAM, Md. — February 9, 2022 — 2U, Inc. (Nasdaq: TWOU), a global leader in education technology, today reported financial and operating results for the full-year and fourth quarter ended December 31, 2021.

Results for Full-Year 2021 Compared to Full-Year 2020

 

 

Revenue increased 22% to $945.7 million

 

 

Degree Program Segment revenue increased 22% to $592.3 million

 

 

Alternative Credential Segment revenue increased 23% to $353.4 million

 

 

Net loss improved $21.7 million to $194.8 million, or $2.61 per share

Non-GAAP Results for Full-Year 2021 Compared to Full-Year 2020

 

 

Adjusted EBITDA improved $50.5 million to $66.6 million

 

 

Adjusted net loss improved $16.1 million to $47.6 million, or $0.64 per share

Results for Fourth Quarter 2021 Compared to Fourth Quarter 2020

 

 

Revenue increased 13% to $243.6 million

 

 

Degree Program Segment revenue increased 17% to $152.4 million

 

 

Alternative Credential Segment revenue increased 8% to $91.2 million

 

 

Net loss increased $29.6 million to $67.3 million, or $0.89 per share

Non-GAAP Results for Fourth Quarter 2021 Compared to Fourth Quarter 2020

 

 

Adjusted EBITDA improved $2.2 million to $21.0 million

 

 

Adjusted net loss increased $10.8 million to $14.9 million, or $0.20 per share

“Our strong 2021 results were led by healthy revenue growth in both our degree and alternative credential business, with demand for our undergraduate offerings particularly compelling,” said Christopher “Chip” Paucek, 2U’s Co-Founder and Chief Executive Officer. “With the closing of the edX transaction in November 2021, we are laser focused on transforming 2U into the leading global education platform company, positioned to drive powerful societal impact and superior value for all our stakeholders, by delivering learners affordable, flexible, and career-relevant online education offerings, while helping universities and businesses strengthen their institutions for the digital age.”

Paul Lalljie, 2U’s Chief Financial Officer, added, “We ended 2021 nicely, capping off a strong year. We closed out the year with double-digit revenue growth and continued margin improvement. Additionally, we completed our transformational acquisition of edX in the fourth quarter and its successful integration is a key priority for us. Our outlook for 2022 reflects a disciplined growth strategy and continued progress towards profitability, which is prudent given the digital marketing environment. With the addition of edX and our transition to a platform company, we have established a strategic and financial framework for achieving our mid-term goals and creating shareholder value.”

Discussion of 2021 Results

Revenue for the year totaled $945.7 million, a 22% increase from $774.5 million in 2020. This increase was driven by a 23% increase in Alternative Credential Segment revenue to $353.4 million, primarily due to an increase in the average revenue per full course equivalent (“FCE”) enrollment of 15% resulting from a higher proportion of boot camp offerings in operation, and a 22% increase in Degree Program Segment revenue to $592.3 million, primarily due to growth in FCE enrollments of 39,102, or 20%. On a year-over-year basis, total FCE enrollments increased 16% to 323,329.

Revenue for the fourth quarter totaled $243.6 million, a 13% increase from $215.3 million in the fourth quarter of 2020. This increase was driven by a 17% increase in Degree Program Segment revenue to $152.4 million, primarily due to an increase in the average revenue per FCE enrollment of 16%, and an 8% increase in Alternative Credential Segment revenue to $91.2 million, primarily due to an increase in the average revenue per FCE enrollment of 13%. Total average revenue per FCE enrollment increased by 14% over the prior year period to $3,041.

Costs and expenses for the year totaled $1.1 billion, a 17% increase from $953.5 million in 2020. This increase was primarily driven by increased operational expense to support revenue growth, including the acquisition of edX.

Costs and expenses for the fourth quarter totaled $293.3 million, a 20% increase from $245.3 million in the fourth quarter of 2020. This increase was primarily driven by increased operational expense to support revenue growth, including the acquisition of edX.


The following information was filed by 2U, Inc. (TWOU) on Wednesday, February 9, 2022 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-K Annual 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-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Audit Information
Cover Page
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statement Of Changes In Stockholders' Equity
Consolidated Statements Of Cash Flows
Consolidated Statements Of Operations And Comprehensive Loss
Consolidated Statements Of Operations And Comprehensive Loss (Parenthetical)
Business Combination
Business Combination (Tables)
Business Combination - Estimated Fair Value (Details)
Business Combination - Narrative (Details)
Business Combination - Pro Forma Information (Details)
Commitments And Contingencies
Commitments And Contingencies (Details)
Commitments And Contingencies (Tables)
Commitments And Contingencies - Future Minimum Payments Due To University Clients (Details)
Debt
Debt (Tables)
Debt - Future Principal Payments (Details)
Debt - Long-Term Debt (Details)
Debt - Narrative (Details)
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables)
Goodwill And Intangible Assets - Additional Information (Details)
Goodwill And Intangible Assets - Estimated Future Amortization Expense And License Agreement (Details)
Goodwill And Intangible Assets - Goodwill (Details)
Goodwill And Intangible Assets - Intangible Assets (Details)
Income Taxes
Income Taxes (Tables)
Income Taxes - Carryforwards (Details)
Income Taxes - Components Of Deferred Tax Assets And Liabilities (Details)
Income Taxes - Components Of Income Tax (Provision) Benefit (Details)
Income Taxes - Other (Details)
Income Taxes - Statutory Federal Income Tax Rate And The Effective Tax Rate (Details)
Leases
Leases (Tables)
Leases - Additional Information (Details)
Leases - Lease Cost (Details)
Leases - Maturities Of Operating Lease Liabilities (Details)
Net Loss Per Share
Net Loss Per Share (Details)
Net Loss Per Share (Tables)
Organization
Organization (Details)
Other Balance Sheet Details
Other Balance Sheet Details (Tables)
Other Balance Sheet Details - Accounts Payable And Accrued Expenses (Details)
Other Balance Sheet Details - Narrative (Details)
Other Income (Expense)
Other Income (Expense) (Details)
Other Income (Expense) (Tables)
Property And Equipment, Net
Property And Equipment, Net (Details)
Property And Equipment, Net (Tables)
Receivables And Contract Liabilities
Receivables And Contract Liabilities (Tables)
Receivables And Contract Liabilities - Change In Provision For Credit Losses For Other Receivables (Details)
Receivables And Contract Liabilities - Change In Provision For Credit Losses For Trade Receivables (Details)
Receivables And Contract Liabilities - Contract Liabilities (Details)
Receivables And Contract Liabilities - Narrative (Details)
Receivables And Contract Liabilities - Other Receivables (Details)
Receivables And Contract Liabilities - Other Receivables Credit Quality Indicators (Details)
Receivables And Contract Liabilities - Trade Accounts Receivable And Contract Liabilities (Details)
Retirement Plan
Retirement Plan (Details)
Schedule Ii - Valuation And Qualifying Accounts
Schedule Ii - Valuation And Qualifying Accounts (Details)
Segment And Geographic Information
Segment And Geographic Information (Tables)
Segment And Geographic Information - Narrative (Details)
Segment And Geographic Information - Reconciliation Of Net Loss To Total Segment Profitability (Details)
Segment And Geographic Information - Segment Results Of Operations (Details)
Segment And Geographic Information - Total Assets By Segment (Details)
Significant Accounting Policies
Significant Accounting Policies (Details)
Significant Accounting Policies (Policies)
Stockholders' Equity
Stockholders' Equity (Tables)
Stockholders' Equity - Additional Information (Details)
Stockholders' Equity - Common Stock And Stock-Based Compensation (Details)
Stockholders' Equity - Employee Stock Purchase Plan (Details)
Stockholders' Equity - Fair Value Assumptions (Details)
Stockholders' Equity - Restricted And Performance Restricted Stock Units (Details)
Stockholders' Equity - Stock Options (Details)
Stockholders' Equity - Stock-Based Compensation Expense (Details)
Subsequent Events
Subsequent Events (Details)
Ticker: TWOU
CIK: 1459417
Form Type: 10-K Annual Report
Accession Number: 0001459417-22-000004
Submitted to the SEC: Tue Mar 01 2022 4:17:57 PM EST
Accepted by the SEC: Tue Mar 01 2022
Period: Friday, December 31, 2021
Industry: Prepackaged Software

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