Laureate Education, Inc. · NASDAQ:LAUR

Laureate Education — Q4 2024 Earnings Presentation

41 slides from Laureate Education's earnings presentation, Feb 20, 2025

  1. Slide 1: Fourth Quarter & Year-End 2024 Earnings Presentation

    Fourth Quarter & Year-End 2024 Earnings Presentation February 20, 2025 ©2025 Laureate Education, Inc.

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation includes statements that express Laureate’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, ‘‘forward-looking statements’’ within the meani

  3. Slide 3: Presentation of Non-GAAP Measures

    Presentation of Non-GAAP Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles (GAAP) throughout this presentation, Laureate provides the non-GAAP measures of Adjusted EBITDA and its related margin, Adjusted net income, Adjusted Earnings Per Sh

  4. Slide 4: Summary Overview

    Summary Overview Note: Throughout this presentation amounts may not sum to totals due to rounding ©2025 Laureate Education, Inc. 4

  5. Slide 5: Executive Summary

    Executive Summary  Fourth quarter results in line with expectations; Net Income of $94M in Q4  Strong operating results in FY 2024 – continued growth and margin expansion  Growth and Margins: Delivered 7% constant currency revenue growth, with Adjusted EBITDA margins at 28.7%  FY Financial Resul

  6. Slide 6: Key Academic Highlights in 2024

    Key Academic Highlights in 2024 UPC in Peru: For the fourth consecutive year, UPC was ranked Peru’s #1 Education Brand in Peru by Universidad Peruana de Ciencias Aplicadas (UPC) Merco. UPC also placed an impressive 11th overall among all Peruvian organizations across industries. UVM in Mexico: For t

  7. Slide 7: Compelling Investment Characteristics

    Compelling Investment Characteristics ©2025 Laureate Education, Inc. 7

  8. Slide 8: Attractive Market Opportunities in Mexico and Peru

    Attractive Market Opportunities in Mexico and Peru Attractive Markets with Significant Growth Opportunities Participation rates growing and still well below developed markets Mexico Peru Combined Population 130 million 32 million 162 million Higher Education Students 5,518 2,042 7,560 (000s) Higher

  9. Slide 9: Leading University Portfolio in Mexico & Peru

    Leading University Portfolio in Mexico & Peru Enrollment Market QS StarsTM Brand Founded Segment Overall Ratings/Rankings @ 12/31/24 • Ranked Top 5 university in Mexico Premium/ • 5-Stars rated by QS Stars™ in categories of 1960 124,400 Traditional Employability, Inclusiveness, Online Learning & Mex

  10. Slide 10: Q4 & FY 2024 Performance Results

    Q4 & FY 2024 Performance Results ©2025 Laureate Education, Inc. 10

  11. Slide 11: 2024 Fourth Quarter – Financial Summary

    2024 Fourth Quarter – Financial Summary Q4 ’24 Variance Vs. Q4 ’23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) New Enrollment 11K n.m. n.m. • Not a material intake period • Mexico +7%, Peru +3% Total Enrollment 472K 5% 5% • Driven by new enroll

  12. Slide 12: 2024 FY – Financial Summary

    2024 FY – Financial Summary FY ’24 Variance Vs. FY ’23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) • Mexico +4% New Enrollment 252K 5% 5% • Peru +6% • Mexico +7%, Peru +3% Total Enrollment 472K 5% 5% • Driven by new enrollment growth Revenue $1

  13. Slide 13: Segment Results

    Segment Results ©2025 Laureate Education, Inc. 13

  14. Slide 14: Mexico Segment Results

    Mexico Segment Results Q4 Results FY Results Notes ($ in millions) Organic/CC Vs. Organic/CC Vs. (Enrollments rounded to Q4 ’24 FY ’24 the nearest thousand) Q4 ’23 1 FY ’23 1 New Enrollment 8K 10% 160K 4% Total Enrollment 259K 7% 259K 7% • Driven by new enrollment trends • Q4: +12% organic/cc adjust

  15. Slide 15: Peru Segment Results

    Peru Segment Results Q4 Results FY Results Notes ($ in millions) Organic/CC Vs. Organic/CC Vs. (Enrollments rounded to Q4 ’24 FY ’24 the nearest thousand) Q4 ’23 1 FY ’23 1 • Strong secondary intake in Sept. across all New Enrollment 3K n.m. 92K 6% brands following macroeconomic recovery Total Enrol

  16. Slide 16: Capitalization and Share Count

    Capitalization and Share Count ©2025 Laureate Education, Inc. 16

  17. Slide 17: Q4 2024 Capitalization and Return of Capital

    Strong Balance Sheet and Cash Accretive Business Model Allow For Continued Return of Capital Q4 2024 ($ in millions) Total Company Capitalization as of 12/31/24 and Return of Gross Debt $102 Capital Less: Cash & Cash Equivalents ($91) Net Debt $11  151M shares outstanding as of December 31st  Shar

  18. Slide 18: Outlook

    Outlook ©2025 Laureate Education, Inc. 18

  19. Slide 19: 2025 Outlook – Executive Summary

    2025 Outlook – Executive Summary  Market dynamics remain favorable for the private sector in Mexico and Peru  Strong operating results expected on a constant currency basis – Significant FX headwinds anticipated on USD reported results due to weakening of the Mexican Peso – Revenue also impacted b

  20. Slide 20: Continued Constant Currency Revenue Growth And Margin Expansion

    Continued Constant Currency Revenue Growth And Margin Expansion 2025 ($ in millions) (Enrollments rounded to the nearest thousand) 2025 Guidance Outlook1 Outlook Total Enrollment 489K – 495K Revenue $1,545 – $1,570 Adjusted EBITDA $467 – $477 (1) Outlook is based on actual FX rates for January, and

  21. Slide 21: As Reported 2025 USD Outlook Impacted by Weaker FX

    As Reported 2025 USD Outlook Impacted by Weaker FX Total Revenue Adjusted EBITDA 5% -1% 1,567M 472M 1,558M 450M (110M) 101M 52M (7%) (30M) +12% +6% (7%) 2024 Actuals FX Impact 1 Operational Growth 2025 Guidance 2024 Actuals FX Impact 1 Operational Growth 2025 Guidance in Constant Currency Midpoint a

  22. Slide 22: Change in Academic Calendar in 2025

    Change in Academic Calendar in 2025  Changes in academic calendar expected to impact seasonality during 2025  Start of certain classes shifted in both Mexico and Peru to align with updated academic scheduling requirements Expected Intra-Year Changes in Revenue Seasonality Vs 2024 ($ in millions) Q

  23. Slide 23: Q1 2025 Guidance

    Q1 Impacted by Intra-Year Academic Calendar Timing Q1 2025 ($ in millions) Q1 2025 Outlook1 Guidance Revenue $221 – $226 Adjusted EBITDA ($7) – ($4) (1) Outlook is based on actual FX rates for January and Spot FX rates (local currency per US dollar) of MXN 20.50 & PEN 3.71 for February and March 202

  24. Slide 24: Target Profile Achieved – Transitioning to Annual Guidance

    Target Profile Achieved – Transitioning to Annual Guidance  Laureate went through a significant transformation from 2019 through 2021 – The company believed it was important to give investors insight into our new profile and growth trajectory post the transformation  In conjunction with our year-e

  25. Slide 25: Appendix

    Appendix ©2025 Laureate Education, Inc. 25

  26. Slide 26: 2024 Fourth Quarter – Net Income Reconciliation

    2024 Fourth Quarter – Net Income Reconciliation Q4 ’24 B / (W) Notes ($ in millions) Reported Vs. Q4 ’23 Adjusted EBITDA 141 10 Depreciation & Amortization (16) 2 Interest Expense, net (2) - • Mainly non-cash FX translation on Other 16 44 intercompany loans Income Tax (47) (10) Income/(Loss) From Co

  27. Slide 27: 2024 FY – Net Income Reconciliation

    2024 FY – Net Income Reconciliation FY ’24 B / (W) Notes ($ in millions) Reported FY ’23 Adjusted EBITDA 450 31 Depreciation & Amortization (68) 1 Interest Expense, net (10) 2 • Mainly non-cash FX translation on Other 43 125 intercompany loans Income Tax (119) 19 • Includes certain one-time benefits

  28. Slide 28: 2025 Full Year Guidance Details

    2025 Full Year Guidance Details ($ in millions) (Enrollments rounded to the nearest thousand) Total Enrollment Revenues Adj. EBITDA 2024 FY Results As Reported 472K $1,567 $450 Organic Growth (excl. Campus Consolidations) 21K - 27K $102 - $127 $53 - $63 Organic Growth % (excl. Campus Consolidations)

  29. Slide 29: Q1 2025 Guidance Details

    Q1 2025 Guidance Details Q1 Guidance ($ in millions) Revenues Adj. EBITDA 2024 Q1 Results As Reported $275 $31 Timing Impact Intra-Year (academic calendar) ($27) ($24) 2024 Q1 Results Adjusted $248 $6 Organic Growth (excl. Campus Consolidations) $20 - $25 $3 - $6 Organic Growth % (excl. Campus Conso

  30. Slide 30: Return of Capital Summary Since 2019

    Return of Capital Summary Since 2019 Cash Stock Distributions / ($ in millions) Buybacks Dividends Total 2019 $264 - $264 2020 $100 - $100 2021 $380 $1,375 $1,755 2022 $282 $249 $531 2023 - $110 $110 2024 $102 - $102 Cumulative Since 2019 $1,128 $1,734 $2,862 Strong Track Record of Returning Capital

  31. Slide 31: Intra-Year Seasonality Trends

    Intra-Year Seasonality Trends Revenue Seasonality Adjusted EBITDA Seasonality 42% 43% 42% 42% 32% 30% 31% 31% 27% 28% 28% 27% 25% 24% 24% 24% 30% 31% 31% 28% 18% 17% 17% 18% 24% 21% 19% 20% 8% 8% 7% 4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 2021 2022 2023 2024 New Enrollments Seasonality Factor

  32. Slide 32: Financial Results & Tables

    Financial Results & Tables ©2025 Laureate Education, Inc. 32

  33. Slide 33: Consolidated Statements of Operations

    Financial Tables Consolidated Statements of Operations For the three months ended December 31, For the year ended December 31, IN MILLIONS, except per share amounts 2024 2023 Change 2024 2023 Change Note: May not sum to total due to rounding. Revenues $ 423.4 $ 409.4 $ 14.0 $ 1,566.6 $ 1,484.3 $ 82.

  34. Slide 34: Revenue and Adjusted EBITDA by Segment: Quarter

    Financial Tables Revenue and Adjusted EBITDA by segment: Quarter IN MILLIONS nm - percentage changes not meaningful % Change $ Variance Components (1) Organic Constant Currency results exclude the period-over-period impact from currency Organic Organic fluctuations, acquisitions and divestitures. Or

  35. Slide 35: Revenue and Adjusted EBITDA by Segment: Fiscal Year

    Financial Tables Revenue and Adjusted EBITDA by segment: Fiscal Year IN MILLIONS nm - percentage changes not meaningful % Change $ Variance Components (2) Organic Constant Currency results exclude the Organic Organic period-over-period impact from currency For the year ended Constant Constant fluctu

  36. Slide 36: Consolidated Balance Sheets

    Financial Tables Consolidated Balance Sheets IN MILLIONS December 31, 2024 December 31, 2023 Change Note: Dollars in millions may not sum to total due Assets to rounding. Cash and cash equivalents $ 91.4 $ 89.4 $ 2.0 Receivables (current), net 91.8 92.1 (0.3) Other current assets 43.6 42.9 0.7 Prope

  37. Slide 37: Consolidated Statements of Cash Flows

    Financial Tables Consolidated Statements of Cash Flows For the year ended December 31, IN MILLIONS 2024 2023 Change Note: Dollars in millions may not sum to total due Cash flows from operating activities to rounding. Net income $ 296.4 $ 107.3 $ 189.1 Depreciation and amortization 68.2 69.6 (1.4) (G

  38. Slide 38: Non-GAAP Reconciliations (1 of 3)

    Financial Tables Non-GAAP Reconciliations (1 of 3) The following table reconciles Net Income to Adjusted EBITDA and Adjusted EBITDA margin: (3) Represents non-cash, share-based For the three months ended December 31, For the year ended December 31, compensation expense pursuant to the provisions IN

  39. Slide 39: Non-GAAP Reconciliations (2 of 3)

    Financial Tables Non-GAAP Reconciliations (2 of 3) The following table reconciles Net income to Adjusted net income and Adjusted EPS: (5) Per share amounts on a dilutive basis. (6) For 2024, discrete tax items represent a non- For the year ended December 31, 2024 recurring, non-cash deferred tax ben

  40. Slide 40: Non-GAAP Reconciliations (3 of 3)

    Financial Tables Non-GAAP Reconciliations (3 of 3) The following table presents Free cash flow and reconciles Net cash flows from operating activities to Free cash flow: Note: Dollars in millions may not sum to total due to rounding. For the year ended December 31, IN MILLIONS 2024 2023 2022 Net cas

  41. Slide 41: ©2025 Laureate Education, Inc.

    ©2025 Laureate Education, Inc.

Laureate Education — Q4 2024 Earnings Presentation on 6ix