Slide 1: FY2022 Earnings Presentation
FY2022 Earnings Presentation August 9, 2022
Slide 2: Safe Harbor
Safe Harbor This press release 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: Lifelong learning platform in a $100B+ addressable market
Career Advancement (Corp. Training & Upskilling) $100B+ Leveraging over 20 years addressable of experience with over Job Placement Market in U.S. & Recruitment 2 million students supported, and a scalable education services platform, Stride Early Career provides online and blended & Immersive lifelo
Slide 4: Compelling long-term investment thesis
Compelling long-term investment thesis Growing in $100B+ addressable market in U.S. 01 02 03 04 05 Leading education Sustainable core Career Learning Experienced, Financial services platform business growth diverse leadership track record With scale, Secular shift toward Leveraging Deep educational
Slide 5: Yearly Highlights
Yearly Highlights FY22 Performance • Revenue: $1.69B 1 Record revenue and profitability +9.8% y-o-y • Revenue of $1.69 billion, Adjusted OI of $188.2 million • Revenue and adjusted operating income beat updated guidance • Adj. Operating Income1: $188.2M +16.6% y-o-y • Adj. EBITDA1: $273.1M 2 Career
Slide 6: Strong year-over-year growth in key financial metrics
Strong year-over-year growth in key financial metrics Revenue ($B) Adjusted Operating Income1 ($M) $2.0B $200M $188M $1.7B $161M $1.6B $1.5B $150M $1.2B $1.0B $100M $0.8B $62M $50M $0.4B - - FY2020 FY2021 FY2022 FY2020 FY2021 FY2022 Continued execution of growth Demonstrated demand for Improving mar
Slide 7: Career & Adult Learning Continue to Drive Growth
Career & Adult Learning Continue to Drive Growth Year Ended June 30, 2022 Career Learning 2022 2021 Change • Enrollment growth of 42% Revenue ($M) General Education $1,273.8 $1,280.2 ↓ (0.5%) Adult Learning Career Learning • Strong organic growth Middle – High School 321.4 200.8 ↑ 60.1% rates (Q4 Y-
Slide 8: General Education Growth Drivers
General Education Growth Drivers Total Enrollment1 (K) FY22 FY25 Actuals Expectations3 QE 9/30 165 148 Revenue $1.27B $1.25B-$1.4B 112 114 111 Enrollments1 147.6K 170-180K FY2 0 1 8 FY2 0 1 9 FY2 0 2 0 FY2 0 2 1 FY2 0 2 2 Programs2 80 + 8-10 Per Pupil Funding ($K) YE 6/30 ` States2 30 34-36 8.1 7.7
Slide 9: Career Learning Growth Drivers
Career Learning Growth Drivers Total Enrollment1 (K) FY22 FY25 Actuals Expectations3 QE 9/30 42 31 Revenue $412.9M $650M-$800M 14 Adult Learning 7 $91.5M $140M-$150M 2 Revenue FY2 0 1 8 FY2 0 1 9 FY2 0 2 0 FY2 0 2 1 FY2 0 2 2 Career Prep 42.0K 80-85K Enrollments1 Per Pupil Funding ($K) Career Prep Y
Slide 10: FY25 Financial Outlook
FY25 Financial Outlook Strategic priorities supporting outlook Support improving learner outcomes while delivering strong growth and sustainable long-term value creation Enrollment growth in K-12 and Adult programs FY22 FY25 Actuals Financial Outlook Expand capacity in existing Low High and new prog
Slide 11: Liquidity & Low Debt Support Organic & Inorganic Growth
Liquidity & Low Debt Support Organic & Inorganic Growth Select balance sheet and other information As of June 30, 2022 ($M) Strong cash position Cash and Cash Equivalents $389.4 Accounts receivable Accounts Receivable, Net 418.6 balance reflects seasonality and timing of payments Accounts Payable 62
Slide 12: Disciplined capital allocation
Disciplined capital allocation Prioritizing free cash flow sustainability, educational platform development, and synergistic M&A • Invest in academic quality & student/customer experience to support outcomes & retention Organic growth • Implement innovative products across portfolio • Leverage platf
Slide 13: Appendix
Appendix Confidential
Slide 14: Reconciliation
ADJ. OPERATING INCOME AND ADJUSTED EBITDA TO GAAP FINANCIALS Reconciliation Three months ended Year ended June 30, June 30, (In Millions) 2022 2021 2022 2021 Income (loss) from operations $46.1 $21.4 $156.6 $110.5 Stock-based compensation expense $4.1 $8.5 $18.6 $39.3 Amortization of intangible asse