Aspen Group, Inc. · OTC:ASPU
Aspen — Investor Presentation (January 2020)
23 slides from Aspen's investor presentation, Jan 29, 2020
Slide 1: Creating Value by Transforming the College Education Experience
Michael Mathews Chairman & Chief Executive Officer January 29, 2020 Nasdaq: ASPU Creating Value by Transforming the College Education Experience
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation and responses to various questions include forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding continued growth in nursing opportunities, expected increas
Slide 3: Aspen Group is an Education Technology Company With Mission of Making College Affordable Again
3 Aspen Group is an Education Technology Company With Mission of Making College Affordable Again x Focused o n high LTV nursing programs to drive revenue growth and margin improvement x EdTech platform drives low Customer Acquisition Cost (CAC) which allows the Company to offer lower tuition rates a
Slide 4: Evolving Our Business to Drive Growth
Evolving Our Business to Drive Growth 4 Michael Mathews appointed CEO of Aspen University Launches industry’s only vertically integrated marketing platform Launches online degree program Monthly Payment Plans Nursing degree focus with 100% online curriculum AGI Acquires United States University Expa
Slide 5: Trends Fueling Strong Demand for Nurses
BLS cites core reasons fueling the nursing industry’s growth: Baby Boomers ’ higher demand for health care services as they live longer, increased emphasis on preventive care and growing rates of chronic diseases A recent study by HR consulting firm Mercer found that the U.S. needs to hire 2.3 milli
Slide 6: Acceptance Rates in Pre-Licensure Degree Programs Not Meeting High Demand
Acceptance Rates in Pre - Licensure Degree Programs Not Meeting High Demand Nursing applicants are turned away due to budget constraints and insufficient resources - faculty, clinical sites, classroom space and clinical preceptors In 2017 nursing schools turned away over 56,000 qualified applicants
Slide 7: Nursing - Fastest Growing ASPU Student Body
Nursing - Fastest Growing ASPU Student Body 7 Nursing student growth drivers: • High market demand • ASPU targeted marketing • Affordable tuition • Online degree monthly payment plan minimizes student debt ASPU offers affordable nursing degrees from Bachelor to Doctorate, including highly sought - a
Slide 8: EdTech Platform Drives Low Cost of Enrollment and Better Student Outcomes
EdTech Platform Drives Low Cost of Enrollment and Better Student Outcomes Vertically - integrated lead acquisition platform acquires highly qualified leads Automated real - time tracking of instructor activity and student participation across all courses CRM prioritizes outreach to prospects with hi
Slide 9: Low Cost of Enrollment Driven by In-House Internet Advertising and CRM System
9 *For Aspen University online nursing + other program, as of October 2019, six - month rolling averages Low Cost of Enrollment Driven by In - House Internet Advertising and CRM System ~$150 Average Cost of Lead 4 Conversion Rate* $1,061 Cost/Enrollment * Industry leading conversion rates drive
Slide 10: EdTech Platform Drives Better Student Outcomes
EdTech Platform Drives Better Student Outcomes 92% 76% 84% Student Satisfaction Aspen University RN to BSN Graduation Rate Monthly Payment Model Aspen University alumni that felt they achieved the goals they set when they started the course or program As compared to the 60% national average of nursi
Slide 11: EdTech Platform Delivers Significant Savings for ASPU Nursing Students
EdTech Platform Delivers Significant Savings for ASPU Nursing Students 11 Salary uplift and expanded career options with a payback of one year or less motivates student to enroll in ASPU programs and graduate Degree Program Aspen / USU Average* Savings Chamberlain WGU Walden Capella RN to BSN (AU) $
Slide 12: Transforming the College Financing Experience Through Monthly Payment Plans
Transforming the College Financing Experience Through Monthly Payment Plans 12 Aspen is transforming the college education experience for students looking to pursue higher paying careers that require advanced skills Debt Free – Monthly payment plans minimize student debt burden after graduation Affo
Slide 13: Monthly Payment Plan Delivers Recurring Cash
Monthly Payment Plan Delivers Recurring Cash • 66% of ASPU students pay monthly • Monthly recurring cash of over $1.6 million* • Monthly payments are interest free and paid over a fixed period 5,588 5,861 6,162 6,633 7,028 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Students Paying Monthly Tuition by Qu
Slide 14: Prioritize Investment to Accelerate Growth
Prioritize Investment to Accelerate Growth 14 Efficient Marketing Spend One marketing dollar spent delivers at least 6.9x revenue and 3.9x contribution margin Expand Pre - licensure BSN Campuses – Plan to Add 2 Campuses Per Year Our Pre - licensure BSN program delivers the highest LTV of all our nur
Slide 15: Pre-Licensure BSN Campuses - $100 Million Opportunity
Pre - Licensure BSN Campuses - $100 Million Opportunity 15 *Tuition and fees for students with no college credits Pre - licensure BSN program estimated $30,000 LTV per enrollment - the highest of all our nursing programs Assumptions: • $47,600 - average total cost for tuition and fees* • ~2/3 of the
Slide 16: Fiscal Year 2020 Key Metrics
Fiscal Year 2020 Key Metrics 16 Increasing enrollments in highest LTV program while managing costs to achieve positive Adjusted EBITDA Year - over - year enrollment growth of ~30% 54% annual bookings growth to ~$102 million Adjusted EBITDA positive for Fiscal Year 2020 Annual revenue growth to meet
Slide 17: Aspen Group Key Investment Takeaways
Aspen Group Key Investment Takeaways x Targeting high - growth nursing education sector with a comprehensive degree offering x Unique EdTech platform provides key competitive advantages of lower tuition costs and flexible financing options x Focused marketing spend on highest LTV nursing programs dr
Slide 18: Operating Metrics and Financial Results Second Quarter FY 2018
Operating Metrics and Financial Results Second Quarter FY 2020 18
Slide 19: Q2 and Year-to-Date FY 2020 Summary Financials
Q2 and Year - to - Date FY 2020 Summary Financials 19 Three months ended Six months ended ($ in millions) October 31, 2019 October 31, 2018 % Change B/(W) October 31, 2019 October 31, 2018 % Change B/(W) Revenue $12.1 $8.1 49% $22.4 $15.3 47% GAAP Gross profit $7.6 $4.1 87% $13.4 $7.4 81% GAAP Gross
Slide 20: Strong Bookings Growth and Increased ARPU Fueled by High LTV Program Enrollments
Strong Bookings Growth and Increased ARPU Fueled by High LTV Program Enrollments 20 *“Bookings” are defined by multiplying LTV by new student enrollments for each operating unit. 1,565 2,217 Q2 FY19 Q2 FY20 Total Enrollment $10,434 $14,125 Q2 FY19 Q2 FY20 ARPU $16.3 $31.3 Q2 FY19 Q2 FY20 Total Booki
Slide 21: Average Revenue Per User (ARPU) Increased 35% due to Increased Percentages of High LTV Enrollment
Average Revenue Per User (ARPU) Increased 35% due to Increased Percentages of High LTV Enrollment 21 LTV/ Enrollment Q2 FY'2019 Enrollments % of total Q2 FY'2019 Bookings* Q2 FY'2020 Enrollments % of total Q2 FY'2020 Bookings* AU Online (Nursing + Other) Unit $7,350 1,104 71% $8,114,400 1,196 54% $8
Slide 22: Consistent Enrollment Growth with Solid Enrollment Advisor Results Across All Programs
Consistent Enrollment Growth with Solid Enrollment Advisor Results Across All Programs 22 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 EAs Enrolls/ Month/EA Aspen (Nursing + Other) 1,104 895 944 941 1,196 47 8.5 Aspen (Doctoral) 133 120 113 198 190 8 7.9 USU (FNP + Other) 271 251 317 514 394 18 7.3 Aspen (Pre - Li
Slide 23: Equity Snapshot
Equity Snapshot 23 As of 01/27/2020 Nasdaq Ticker: ASPU Share Price: $8.17 52 Week Range: $3.58 - $8.67 Market Cap: $157 Million Shares Outstanding: 21.6 Million Management & Director Ownership: 7 23