Slide 1: Q4 FY2024 Earnings Presentation
Q4 FY2024 Earnings Presentation August 6, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation are forward-l
Slide 3: Compelling Long-term Investment Thesis
Compelling Innovator with the scale, expertise & long-term customer Long-term Disruptor in Education relationships to change education Investment Thesis Sustainable & Growing Accelerating secular shift toward virtual education and Virtual School Business school choice New Products & Leveraging capab
Slide 4: FY2024 Highlights
FY2024 Highlights 01 02 03 04 Another record year for Enrollments top pandemic On track to achieve FY28 Organic and revenue and profitability highs Targets Inorganic Opportunities Finished the year with over Parent demand for school Remain on-track to achieve Strong balance sheet and $2B in revenues
Slide 5: Growth in Key Financial Metrics
Growth in Key Financial Metrics Revenue ($M) Adjusted Operating Income1 ($M) $2.4B $350M $2.04B $294M $2.0B $1.84B $300M $1.69B $1.54B $250M $1.6B $201M $200M $188M $1.2B $1.04B $161M $150M $0.8B $100M $62M $0.4B $50M - - FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 Demonstr
Slide 6: Strong Enrollment Trends
Strong Enrollment Trends Year Ended June 30, 2024 2023 Change Revenue ($M) General Education 1,289.2 1,131.4 ↑ 13.9% Enrollments Trends Career Learning • Finished the year with • Middle – High School 651.2 586.8 ↑ 11.0% more enrollments than Q1 • Adult 99.7 119.2 ↓ (16.4%) • General Education enroll
Slide 7: Strong Balance Sheet with Low Debt
Strong Balance Sheet with Low Debt Cash position, low leverage ratio, and consistent cash flows provide options for capital allocation Select balance sheet and other information As of June 30, 2024 ($M) Cash, Cash Equivalents $714.2 & Marketable Securities Accounts Receivable, Net 472.8 Leverage Acc
Slide 8: Disciplined Capital Allocation
Disciplined Capital Allocation Prioritizing organic growth, new product and technology development and synergistic M&A • Invest in academic quality and student/customer experience to support outcomes and Organic retention Growth • Technology advancements to improve personalization and outcomes • Imp
Slide 9: Compelling Long-Term Growth Targets
Compelling Long-Term Growth Targets Total Revenue ($B) Adj. Operating Income ($M) EPS ($) 10% CAGR $800M 20% CAGR $9.00 20% CAGR to mid-point (FY23-28) to mid-point (FY23-28) $8.35 $3.50B $3.30B to mid-point (FY23-28) $8.00 $3.00B $585M $7.00 $600M $2.50B $2.70B $6.00 $6.15 $2.04B $1.84B $5.00 $4.69
Slide 10: Appendix
Appendix Stride 10
Slide 11: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA Three months ended Year ended June 30, June 30, ($, M) 2024 2023 2024 2023 Net income 62.8 43.4 204.2 126.9 Interest expense, net 2.3 2.1 8.8 8.4 Other (income) expense, net (7.5) (5.9) (26.9) (15.4) Income tax expense 16.1 14.4 64.5 45.3 (I
Slide 12: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Three months ended Year ended June 30, June 30, ($, M) 2024 2023 2024 2023 Income from operations 73.7 53.9 249.6 165.5 Amortization of intangible assets 4.0 5.4 12.9 15.2 Stock-based compensation expense 10.2 5.1 31.4 20.3 Adjust
Slide 13: Reconciliation of Income from Operations to Adjusted Operating Income
Reconciliation of Income from Operations to Adjusted Operating Income Year Ended June 30, ($, M) 2020 2021 2022 Income from operations 32.5 110.5 156.6 Stock-based compensation expense 23.6 39.3 13.0 Amortization of intangible assets 6.0 11.6 18.6 Adjusted operating income 62.1 161.4 188.2 13 13
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Year Ended June 30, ($, Millions) 2024 2023 Net Cash Provided by Operating Activities 278.8 203.1 Purchases of property and equipment (2.3) (4.3) Capitalized software development costs (40.7) (45.0) Capitalized curriculum