Slide 1: Q3 FY2021 Earnings Presentation
Q3 FY2021 Earnings Presentation April 20, 2021
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates,” “believes,” “estimates,” “continues,
Slide 3: Agenda
Agenda o Online and Blended Lifelong Learning Solutions o Highlights o Career Learning o Financial Performance 3
Slide 4: Multiple touchpoints along a lifelong learner's education and career
Career Advancement (Corp. Training & Upskilling) $100B+ addressable Leveraging over 20 years Job Placement market of experience with over 2 & Recruitment million students supported, and a scalable education services platform, Stride provides Early Career online and blended lifelong & Immersive learn
Slide 5: Company Highlights
Company Highlights Q3 FY21 Performance • COVID-19 has broadened awareness and increased acceptance of online • Revenue of $392.1M (+52% y-o-y) learning: • Adjusted Operating Income* of $54.9M (+146% y-o-y) • 1 out of 3 high school students would choose a fully online or hybrid approach even as thing
Slide 6: Strong momentum in Career Learning business
Strong momentum in Career Learning business In just five years, Stride has built the assets and capabilities to reach today’s ~$250M scale and is well-positioned to sustain high growth into the future Career Preparation Career Development / Enterprise • 29.5K students enrolled as of Mar. • Acquired
Slide 7: Robust year-over-year growth in key financial metrics
Robust year-over-year growth in key • General Education revenue financial metrics of $322.3M (+38% y-o-y) driven by 43% increase in enrollment Revenue ($M) Adjusted Operating Adjusted • Career Learning revenue of Income* ($M) EBITDA* ($M) $69.8M (+191% y-o-y) driven 55 75 by 123% increase in 392 enr
Slide 8: Strong revenue growth in both General Education and Career Learning
Strong revenue growth in both General Growing Demand for Online Education and Career Learning Education and Career Learning • COVID-19 has accelerated Three Months Ended March 31 awareness of online and 2021 2020 % change hybrid learning, with several Revenue (in millions) studies suggesting that a
Slide 9: Significant growth in key financial metrics for the nine months ended March 31, 2021
Significant growth in key financial metrics for the nine months ended March 31, 2021 Adjusted Operating Adjusted Revenue ($M) Gross Profit ($M) Income* ($M) EBITDA* ($M) 1200 1139 1000 48% 56% 93% 800 772 175% 600 400 200 0 YTD 3Q FY20 YTD 3Q FY21 *Note: To supplement our financial statements presen
Slide 10: Strong balance sheet & liquidity
Strong balance sheet & liquidity Quarter-over-quarter Flexibility to maintain long-term low leverage ratios cash balance increased $70.9M driven by an increase in cash from Select balance sheet and other information operations For the Three Months Ended March 31, 2021 ($M) Accounts receivable Cash a
Slide 11: Raising FY21 guidance
Raising FY21 guidance FY2021 Low High (In millions) Revenue $ 1,525.0 $ 1,530.0 Adjusted operating income* $ 156.0 $ 159.0 Capital expenditures 50.0 55.0 Tax rate (after discrete items) 27% 29% *Note: To supplement our financial statements presented in accordance with U.S. generally accepted account
Slide 12: Appendix
Appendix
Slide 13: Reconciliation
ADJ. OPERATING INCOME AND EBITDA TO GAAP FINANCIALS Reconciliation Three Months Ended Nine Months Ended March 31, March 31, (in millions) 2021 2020 2021 2020 Income from operations $ 38.5 $ 14.5 $ 89.1 $ 25.4 Stock-based compensation expense $ 12.9 $ 6.1 $ 30.8 $ 17.8 Amortization of intangible asse
Slide 14: FY21 guidance reconciliation
ADJ. OPERATING INCOME TO GAAP FINANCIALS FY21 guidance reconciliation FY2021 Low High (In m illions) Income from operations 102.5 103.5 Stock-based compensation expense 42.0 44.0 Amortization of intangible assets 11.5 11.5 Adjusted operating income $ 156.0 $ 159.0 14