IBL News | New York
2U (Nasdaq: TWOU) came out yesterday with a reported loss of $66.2 million and revenues of $182.7 million in its second quarter ended June 30. Loss per share was 34 cents, better than Zacks’ analysts expected of 44 cents.
The stock went up 1.36% yesterday until $43.87. Since the beginning of the year, shares increased 83% versus the S&P 500’s gain of 0.9%. The rise of the stock was 20% in the last 12 month.
The Lanham, Maryland-based OPM provider presented a different picture of its quarter earnings. It highlighted its revenue increase of 35% to $182.7 million compared to the second quarter of 2019. It added: “Graduate program segment revenue increased 14% to $115.7 million and Alternative Credential Segment revenue increased 97% to $67.0 million, including $36.6 million in revenue from Trilogy, acquired in May 2019.”
“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.”