Stride, Inc. · NYSE:LRN
Stride — Investor Presentation (December 2021)
23 slides from Stride's investor presentation, Dec 20, 2021
Slide 1: Winter 2021 Company Overview
Winter 2021 Company Overview
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: $100B+ addressable U.S. market
$100B+addressableU.S. market Career Advancement(Corp. Training & Upskilling) Job Placement & Recruitment Early Career & Immersive Training K-12 General Education & Career Prep Leveraging over 20 years of experience with over 3 million students supported, and a scalable education services platform, S
Slide 4: Secular Trends Driving Growth in Online Learning
4 Secular Trends Driving Growth in Online LearningGrowing mass acceptance of online learningParents are now digital natives and are used to learning and getting information online School districts shifting from print to digital format at an accelerating rateAcceptance of online teacher professional
Slide 5: Large & expanding Career Learning market
5 Large & expanding Career Learning market Middle / High School Online / Blended Career Corporate Upskilling & Reskilling $65B+ Strong Secular Market Trends Driving Demand for Our SolutionsBi-partisan support for workforce development at middle / high school and adult levelsIncreasingly competitive
Slide 6: Workforce demands are changing and the skills gap continues to grow
Workforce demands are changing, and students and employers are struggling to find and fill jobs – even with $164B in annual private sector spending on employee training and development, the skills gap continues to grow 6 Leading to increased demand for our solutions In student loan debt held by stud
Slide 7: Compelling long-term investment thesis
7 Compelling long-term investment thesis Growing in $100B+ addressable U.S. market Leading education services platformWith scale, expertise & broad, long-term customer relationships Career Learning growthLeveraging capabilities & assets addressing business needs Experienced, diverse leadershipDeep e
Slide 8: Deep political, regulatory & policy expertise
8 Deep political, regulatory & policy expertise Formidable national network of professional state and federal lobbyists, consultants, and advisors in highly collaborative, multi-disciplinary, bipartisan approachExtensive relationships with key third parties including allies, policy influencers, and
Slide 9: Strong customer relationships
9 Strong customer relationships Long-standing relationships built over 20+ year history with high retention rates and over 2 million students supported 100+ Schools & Programs75+ general education schools, including 2 private schools40+ career learning programsNew schools added annually 189,600+ Stu
Slide 10: Consistent general education business
10 Consistent general education business Growing mass acceptance of online learning Parents are now digital natives and are used to learning and getting information online School districts shifting from print to digital format at accelerating rate Acceptance of online teacher professional developmen
Slide 11: High-growth career learning business
11 High-growth career learning business Bi-partisan support for workforce development at K-12 and adult levels Increasingly competitive global market Technology advancement driving need to reskill / upskill talent Economics require rethinking of college vs. skill attainment “New collar jobs” no long
Slide 12: Industry-leading management team with diverse expertise
12 Industry-leading management team with diverse expertise 12 Dr. Jodi MarshallSVP, Stride Learning Solutions Vincent MathisEVP and General Counsel Todd GoldthwaiteChief Marketing Officer Donna BlackmanChief Accounting Officer & Treasurer Les OttolenghiChief Information and Technology Officer Doug M
Slide 13: ESG factors engrained in company culture
13 Online schools – no transportation75+% employees work remotelySchool supply / computer refurbishment & recycling policyEnsure supply chain reflects communities we serve – target 10% minority-ownedEducate K-12 students through environmental studies / sustainability course selection ESG factors eng
Slide 14: Execution track record
14 Execution track record 1,560 – 1,600 12% CAGR(2) 11% CAGR Total Revenue ($M)FYE 6/30 Total Enrollment(1) (K)QE 9/30 Number based on the number of students enrolled at the end of Q1 (September 30th) of each fiscal year Number based on high end of guidance Depicts high-low number for guidance or ta
Slide 15: Execution track record
15 Execution track record Excluding impact from Galvanize acquisition 36% CAGR(2) Adj. Operating Income(1) ($M)FYE 6/30 62 165 - 180 …leading to consistent profitability growth and free cash flow Adj. Operating Income is a non-GAAP measure. For a reconciliation to the most directly comparable GAAP m
Slide 16: Long-term General Education Growth Drivers
16 Long-term General Education Growth Drivers 7% CAGR Total Enrollment(1) (K)QE 9/30 Based on the number of students enrolled at the end of Q1 (September 30th) of each fiscal yearPrograms includes Private and Public programs, States includes only Public programs FY21 Actuals FY25 Expectations Revenu
Slide 17: Long-term Career Learning Growth Drivers
17 Long-term Career Learning Growth Drivers 126% CAGR Total Enrollment(1) (K)QE 9/30 Based on the number of students enrolled at the end of Q1 (September 30th) of each fiscal year Programs includes Private and Public programs, States includes only Public programs FY21 Actuals FY25 Expectations Reven
Slide 18: Financial Outlook
18 Financial Outlook Support improving learner outcomes while delivering strong growth and sustainable long-term value creation Strategic priorities supporting outlook Enrollment growth in K-12 and Adult programs Expand capacity in existing and new programs Develop innovative and mainstream products
Slide 19: Strategic approach to M&A
19 Strategic approach to M&A Strategic CriteriaFocus on businesses that align to strategy & create long-term valueOperates in $1B+ or fast-growing nascent addressable market Strong U.S. presenceCultural fit & experienced management team Financial FiltersRevenue growth relative to business size of 10
Slide 20: Disciplined capital allocation
20 Disciplined capital allocation Prioritizing free cash flow sustainability, educational platform development, and synergistic M&A Organic growth Invest in academic quality & student / customer experience to support outcomes & retentionImplement innovative mainstream products across portfolio Strat
Slide 21: Appendix
Appendix
Slide 22: Reconciliation: Adj. Operating Income to GAAP Financials
22 Reconciliation ADJ. OPERATING INCOME TO GAAP FINANCIALS
Slide 23: Reconciliation: Guidance
23 Reconciliation GUIDANCE *Note: The MedCerts acquisition included contingent consideration that could become due in the fourth quarter of fiscal year 2022. If, due to performance, the actual amount differs from the current estimate of $11.2 million, Stride would exclude this from our adjusted non-