Aspen Group, Inc. · OTC:ASPU
Aspen — Q3 FY2020 Earnings Presentation
13 slides from Aspen's earnings presentation, Mar 10, 2020
Slide 1: Q3 Fiscal Year 2020 Earnings Slides
Q3 Fiscal Year 2020 Earnings Slides Michael Mathews, Chairman & Chief Executive Officer CREATING VALUE BY Frank J. Cotroneo, Chief Financial Officer TRANSFORMING THE COLLEGE Robert Alessi, Chief Accounting Officer March 10, 2020 EDUCATION EXPERIENCE Nasdaq: ASPU
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 relating to the growth of future student enrollments, bookings and ARPU
Slide 3: Q3 Fiscal 2020 Operating Metrics
Q3 Fiscal 2020 Operating Metrics
Slide 4: Trends Fueling Strong Demand for Nurses
TRENDS FUELING STRONG DEMAND FOR NURSES • Fiscal Q3 2020 revenue grew 48% to $12.5 million, while marketing expenses increased by only 9% year-over-year, driving a gross margin improvement of 700 basis points to 57% • Aspen BSN Pre-Licensure and USU Increased to 42% of Revenue, Up from 25% in Third
Slide 5: AGI Active Student Body Grows to 11,033; Nursing Students Represent 84% of Total
AGI Active Student Body Grows to 11,033; Nursing Students Represent 84% of Total AU and USU Active Student Body* and Nursing Students by University 9,274 9,016 8,261 7,784 7,562 7,393 7,299 6,595 6,164 5,718 1,605 1,702 1,678 1,759 1,407 1,491 868 961 1,049 1,148 January '19 April '19 July '19 Octob
Slide 6: Strong Bookings Growth and Increased ARPU Fueled by High LTV Program Enrollments
STRONG BOOKINGS GROWTH AND INCREASED ARPU FUELED BY HIGH LTV PROGRAM ENROLLMENTS Total Enrollments ARPU Total Bookings* $15,199 (in millions) 1,746 $26.5 $11,352 1,363 +28% +34% +72% $15.5 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 *“Bookings” are defined by multiplying LTV by new s
Slide 7: Improved Marketing Efficiency Ratio Results Driven by Cost of Enrollment Declining by 28%
Improved Marketing Efficiency Ratio (MER)* Results Driven by Cost of Enrollment Declining by 28% Third quarter weighted average customer acquisition cost (CAC) fell by 28% year-over-year Marketing Efficiency Ratio Enrollments CAC1 LTV2 MER Aspen University 1,371 961 14,4823 15.1X USU 375 1,103 17,82
Slide 8: Fiscal Year 2020 Outlook - Updated
THE FOLLOWING METRICS ARE FOR ANNUAL YEAR-OVER- YEAR ANTICIPATED GROWTH: Annual revenue growth to meet or Fiscal Year 2020 exceed 42% Outlook - Updated Bookings forecasted to exceed 54% to over $102 million ARPU to increase at least 18% to a full-year average over $13,440
Slide 9: Q3 Fiscal Year 2020 Financial Results
Q3 Fiscal Year 2020 Financial Results
Slide 10: Q3 FY'20 Income Statement
Q3 FY’20 Income Statement For the Quarter Ended January 31, 2020 Revenues $ 12,537,940 Operating expenses Cost of revenues 5,163,007 General and administrative 8,627,588 Depreciation and amortization 475,393 Total operating expenses 14,265,988 Operating loss from operations (1,728,048) Other income
Slide 11: Q3 FY'20 Net (Loss)/Income, Adjusted EBITDA and EPS for Consolidated and Subsidiaries
Q3 FY’20 Net (Loss)/Income, Adjusted EBITDA and EPS for Consolidated and Subsidiaries Consolidated AGI AU USU Net (Loss)/Income $ (2,281,052) $ (3,604,910) $ 1,283,830 $40,028 Adjusted EBITDA $ 222,415 $ (1,894,480) $ 1,868,821 $248,074 Net Profit/(Loss) Per Basic Share ($0.12) ($0.19) $0.07 $0.00
Slide 12: Subsidiary KPIs—Q3 FY'20 Ratios
Subsidiary KPIs—Q3 FY’20 Ratios Consolidated AU USU Revenues $12,537,940 +48% YOY $9,112,663 $3,425,277 Ratios as a Ratios as a Ratios as a Percentage of Percentage of Percentage of Total AGI Revenue AU Revenue USU Revenue Instructional costs $2,623,252 20.9% 19.4% 25.0% Marketing costs $2,539,755 2
Slide 13: Q3 FY'20 Net Loss to Adjusted EBITDA Reconciliation
Q3 FY’20 Net Loss to Adjusted EBITDA Reconciliation Net Loss ($2,281,052) Interest income, net 570,020 Taxes 98,173 Depreciation and Amortization 475,393 EBITDA (loss) ($1,137,466) Bad Debt Expense 2,547 Stock-Based Compensation 347,210 Non-recurring Charges 1,010,124 Adjusted EBITDA $222,415