Laureate Education, Inc. · NASDAQ:LAUR

Laureate Education — Q2 2024 Earnings Presentation

34 slides from Laureate Education's earnings presentation, Aug 1, 2024

  1. Slide 1: Second Quarter 2024 Earnings Presentation

    Second Quarter 2024 Earnings Presentation August 1, 2024 ©2024 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 measurements of Adjusted EBITDA and its related margin, Adjusted EBITDA to Unlevered Free Cash Fl

  4. Slide 4: Summary Overview

    Summary Overview Note: Throughout this presentation amounts may not sum to totals due to rounding ©2024 Laureate Education, Inc. 4

  5. Slide 5: Executive Summary

    Executive Summary  Solid operating performance for the second quarter  Year-to-date New and Total Enrollments increased 2% and 5%, respectively, versus year-to- date prior year  Mexico: New Enrollments grew 4% (+6% through July cycle completion); total enrollments +9%  Peru: New Enrollments flat

  6. Slide 6: Compelling Investment Characteristics

    Compelling Investment Characteristics ©2024 Laureate Education, Inc. 6

  7. Slide 7: 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 129 million 32 million 161 million Higher Education Students (000s) 5,193 1,841 7,034 Higher

  8. Slide 8: Leading University Portfolio in Mexico & Peru

    Leading University Portfolio in Mexico & Peru Enrollment Market QS StarsTM Brand Founded Segment Overall Ratings/Rankings @ 6/30/24 • Ranked Top 5 university in Mexico Premium/ • 5-Stars rated by QS Stars™ in categories of 1960 104,500 Traditional Employability, Inclusiveness, Online Learning & Mexi

  9. Slide 9: Q2 & YTD 2024 Performance Results

    Q2 & YTD 2024 Performance Results ©2024 Laureate Education, Inc. 9

  10. Slide 10: 2024 Second Quarter – Financial Summary

    2024 Second Quarter – Financial Summary Q2 ’24 Variance Vs. Q2 ’23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) New Enrollment 25K 6% 6% • Not a material intake period • Mexico +9%, Peru +1% Total Enrollment 444K 5% 5% • Driven by new enrollment

  11. Slide 11: 2024 Q2 YTD – Financial Summary

    2024 Q2 YTD – Financial Summary Q2 YTD ’24 Variance Vs. Q2 YTD ’23 Notes ($ in millions) (Enrollments rounded to the Results As Reported Organic/CC1 nearest thousand) • Total Company: +2% (+3% through July cycle completion) New Enrollment 120K 2% 2% • Mexico: +4% (+6% through July cycle completion)

  12. Slide 12: Segment Results

    Segment Results ©2024 Laureate Education, Inc. 12

  13. Slide 13: Mexico Segment Results

    Mexico Segment Results Q2 Results Q2 YTD Results Notes ($ in millions) Organic/CC Vs. Organic/CC Vs. (Enrollments rounded to Q2 ’24 Q2 YTD ’24 the nearest thousand) Q2 ’23 1 Q2 YTD ’23 1 • Strong results during secondary intake cycles; New Enrollment 21K (1%) 62K 4% YTD +6% through July (cycle compl

  14. Slide 14: Peru Segment Results

    Peru Segment Results Q2 Results Q2 YTD Results Notes ($ in millions) Organic/CC Vs. Organic/CC Vs. (Enrollments rounded to Q2 ’24 Q2 YTD ’24 the nearest thousand) Q2 ’23 1 Q2 YTD ’23 1 • Intake cycle impacted by current New Enrollment 4K n.m. 59K 0% macroeconomic conditions Total Enrollment 221K 1%

  15. Slide 15: Outlook

    Outlook ©2024 Laureate Education, Inc. 15

  16. Slide 16: 2024 Outlook – Executive Summary

    2024 Outlook – Executive Summary  Market dynamics remain favorable for the private sector in Mexico and Peru  2024 outlook reflects differing macroeconomic conditions by market  Mexico: Strong growth expectations; favorable macro backdrop including nearshoring tailwinds  Peru: Growth more muted

  17. Slide 17: Reaffirming Full Year Constant Currency Outlook

    Reaffirming Full Year Constant Currency Outlook Adjusting As Reported Guidance for FX Rates 2024 ($ in millions) (Enrollments rounded to the nearest thousand) Prior FY 2024 Outlook FX Impact Current FY 2024 Outlook1 Outlook Total Enrollment 467K – 473K - 467K – 473K – Revenue $1,566 – $1,581 ($15) $

  18. Slide 18: Q3 2024 Guidance

    Q3 2024 ($ in millions) Q3 2024 Outlook1 Guidance Revenue $358 – $362 Adjusted EBITDA $69 – $73 (1) Outlook is based on actual FX rates for July and Spot FX rates (local currency per US dollar) of MXN 18.70 & PEN 3.75 for August through September 2024. FX impact may change based on fluctuations in c

  19. Slide 19: Appendix

    Appendix ©2024 Laureate Education, Inc. 19

  20. Slide 20: 2024 Second Quarter – Net Income Reconciliation

    2024 Second Quarter – Net Income Reconciliation Q2 ’24 B / (W) Notes ($ in millions) Reported Vs. Q2 ’23 Adjusted EBITDA 187 12 Depreciation & Amort. (17) 0 Interest Expense, net (3) 1 • Mainly non-cash FX translation on Other 25 61 intercompany loans Income Tax (63) (6) Income/(Loss) From Continuin

  21. Slide 21: 2024 Q2 YTD – Net Income Reconciliation

    2024 Q2 YTD – Net Income Reconciliation Q2 YTD ’24 B / (W) Notes ($ in millions) Reported Vs. Q2 YTD ’23 Adjusted EBITDA 218 9 Depreciation & Amort. (36) (2) Interest Expense, net (6) 2 • Mainly non-cash FX translation on Other 14 80 intercompany loans Income Tax (73) (5) Income/(Loss) From Continui

  22. Slide 22: Q2 2024 Capitalization and Return of Capital

    Strong Balance Sheet and Cash Accretive Business Model Allow For Continued Return of Capital Q2 2024 ($ in millions) Total Company Capitalization as of 6/30/24 and Return of Gross Debt $233 Capital Less: Cash & Cash Equivalents ($129) Net Debt $104  Total current shares outstanding of 153M shares a

  23. Slide 23: 2024 Full Year Guidance Details

    2024 Full Year Guidance Details ($ in millions) (Enrollments rounded to the nearest thousand) Total Enrollment Revenues Adj. EBITDA 2023 FY Results As Reported 449K $1,484 $419 Organic Growth (incl. Restructuring) 18K - 24K $77 - $92 $27 - $37 Organic Growth % 4% - 5% 5% - 6% 6% - 9% 2024 FY Guidanc

  24. Slide 24: Q3 2024 Guidance Details

    Q3 2024 Guidance Details Q3 Guidance ($ in millions) Revenues Adj. EBITDA 2023 Q3 Results As Reported $362 $78 Timing Impact Intra-Year (academic calendar) $4 $4 2023 Q3 Results Adjusted $366 $82 Organic Growth $16 - $20 ($7) - ($3) Organic Growth % (excl. Mexico restructuring) 5% - 6% (9%) - (4%) 2

  25. Slide 25: Intra-Year Seasonality Trends

    Intra-Year Seasonality Trends Revenue Seasonality Adjusted EBITDA Seasonality 46% 44% 31% 31% 42% 43% 42% 30% 30% 28% 27% 28% 28% 30% 31% 24% 25% 24% 24% 28% 24% 24% 21% 19% 18% 19% 17% 17% 8% 8% 4% (14%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2020 2021 2022 2023 New Enrollments Seasonality Fac

  26. Slide 26: Financial Results & Tables

    Financial Results & Tables ©2024 Laureate Education, Inc. 26

  27. Slide 27: Consolidated Statements of Operations

    Financial Tables Consolidated Statements of Operations For the three months ended June 30, For the six months ended June 30, Note: Dollars in millions, except per share IN MILLIONS (except per share amounts) 2024 2023 Change 2024 2023 Change amounts, and may not sum to total due to rounding. Revenue

  28. Slide 28: 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 Organic Organic period-over-period impact from currency For the three months ended Constant Constant fl

  29. Slide 29: Revenue and Adjusted EBITDA by Segment: Year-to-Date

    Financial Tables Revenue and Adjusted EBITDA by segment: Year-to-Date 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 fluctuations, acquisitions and divestiture

  30. Slide 30: Consolidated Balance Sheets

    Financial Tables Consolidated Balance Sheets IN MILLIONS June 30, 2024 December 31, 2023 Change Note: Dollars in millions may not sum to total due Assets to rounding. Cash and cash equivalents $ 128.8 $ 89.4 $ 39.4 Receivables (current), net 117.5 92.1 25.4 Other current assets 41.7 42.0 (0.3) Prope

  31. Slide 31: Consolidated Statements of Cash Flows

    Financial Tables Consolidated Statements of Cash Flows For the six months ended June 30, IN MILLIONS 2024 2023 Change Note: Dollars in millions may not sum to total due Cash flows from operating activities to rounding. Net income $ 117.5 $ 29.6 $ 87.9 Depreciation and amortization 35.5 34.0 1.5 Loss

  32. Slide 32: Non-GAAP Reconciliation (1 of 2)

    Financial Tables Non-GAAP Reconciliation (1 of 2) The following table reconciles Net Income to Adjusted EBITDA and Adjusted EBITDA margin: For the three months ended June 30, For the six months ended June 30, (3) Represents non-cash, share-based IN MILLIONS 2024 2023 Change 2024 2023 Change compensa

  33. Slide 33: Non-GAAP Reconciliation (2 of 2)

    Financial Tables Non-GAAP Reconciliation (2 of 2) The following table reconciles operating cash flow to Free Cash Flow for the six months ended June 30, 2024 and 2023: Note: Dollars in millions may not sum to total due to rounding. IN MILLIONS 2024 2023 Change Net cash provided by operating activiti

  34. Slide 34: ©2024 Laureate Education, Inc.

    ©2024 Laureate Education, Inc.

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