2u (TWOU) Tops Q1 EPS by 11c, Revenues Beat; Offers FY21 Revenue Outlook

2u (NASDAQ: TWOU) reported Q1 EPS of ($0.12), $0.11 better than the analyst estimate of ($0.23). Revenue for the quarter came in at $232.5 million versus the consensus estimate of $219.49 million.

Results for First Quarter 2021 Compared to First Quarter 2020

• Revenue increased 32% to $232.5 million
• Degree Program Segment revenue increased 23% to $145.9 million
• Alternative Credential Segment revenue increased 52% to $86.6 million
• Net loss improved $14.5 million to $45.6 million, or $0.62 per share
• Total cash balance at quarter end increased to $505.1 million, from $157.5 million

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

• Adjusted EBITDA improved $18.1 million to $13.7 million
• Adjusted net loss improved $12.7 million to $8.6 million, or $0.12 per share

"2U's industry-leading scale and quality are clearly demonstrated by our stellar first quarter results and the extension and expansion of our partnerships across both degree and alternative credential offerings," said Christopher "Chip" Paucek, Co-Founder and CEO of 2U. "Whether it's training the next generation of healthcare workers, reskilling working adults, or strengthening the connection between higher education and career readiness, our business is delivering unmatched value to universities, students, and society."

Paul Lalljie, 2U's Chief Financial Officer, added, "Our results in the first quarter were outstanding. Accelerating revenue growth and continued improvement in profitability and cash flow demonstrate the strength of our business model and strategic positioning. This outperformance and our current expectations for the remainder of 2021 give us the confidence to increase our full-year guidance."

GUIDANCE:

2u sees FY2021 revenue of $925-955 million, versus the consensus of $932.24 million.

The company provided updated guidance for the full-year 2021 for the following metrics:

• Revenue to range from $925.0 million to $955.0 million, or growth of 19% to 23%
• Net loss to range from $175.0 million to $165.0 million
• Adjusted EBITDA to range from $55.0 million to $65.0 million

For earnings history and earnings-related data on 2u (TWOU) click here.

You May Also Be Interested In

• Fox upgraded to overweight as Roku deal, ad strength lift outlook
• Tvardi Therapeutics (TVRD) Tops Q2 EPS by 1c
• CaliberCos Inc (CWD) Misses Q2 EPS by 43c; Offers Guidance