Slide 1: Q1 FY2024 Earnings Presentation
Q1 FY2024 Earnings Presentation October 24, 2023
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: Quarterly Highlights
Quarterly Highlights Q1 Performance • Revenue: $480.2M 1 Record First Quarter Revenue of $480.2M +13% y-o-y • Increase of 13% y-o-y driven by enrollment and revenue per enrollment growth in General Education and Career Learning • Adj. Operating Income1: $14.8M +34.7M y-o-y • Adj. EBITDA1: $39.8M 2 H
Slide 4: Year-over-year growth in key financial metrics
Year-over-year growth in key financial metrics Revenue ($M) Adjusted Operating Income2 ($M) 120 90 600 510 100 76 80 480 80 69 500 61 64 425 54 400 60 400 40 300 15 20 5 200 0 100 (20) (20) 0 (40) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Guidance Q1 Q1 Q1 Guidance Q2 Q2 FY22 FY23 FY24 FY22 FY23 FY24 Continued gro
Slide 5: Total Enrollments 50% higher than pre-pandemic levels
Total Enrollments 50% higher than pre-pandemic levels Three Months Ended September 30, 2023 2022 Change Enrollments Revenue ($M) • General Education returns to General Education 299.3 271.7 ↑ 10.2% enrollment growth following Career Learning pandemic driven highs Middle – High School 151.0 125.5 ↑ 2
Slide 6: Guiding to Strong Revenue and Profitability Growth
Guiding to Strong Revenue and Profitability Growth Q2 FY24 FY24 Guidance Reflects Guidance1 Guidance1 Continued Demand for Low High Low High Offerings Revenue $490.0M $510.0M $1.96B $2.03B • FY24 Revenue: +9% Y-O-Y Mid-point of Guidance Adj. Operating Income2 $80.0M $90.0M $250.0M $275.0M • FY24 AOI
Slide 7: FY25 Financial Outlook
FY25 Financial Outlook Strategic priorities supporting outlook Support improving learner outcomes while delivering strong growth and sustainable long-term value creation – FY24 Guidance outpacing Enrollment growth in K-12 FY25 Outlook from November 2020 Investor Day and Adult programs FY24 FY25 Expa
Slide 8: Liquidity & Low Debt Support Organic & Inorganic Growth
Liquidity & Low Debt Support Organic & Inorganic Growth Select balance sheet and other information As of September 30, 2023 ($M) Strong cash Cash and Cash Equivalents 254.6 position Marketable Securities 126.4 Cash balance balance reflects Accounts Receivable, Net 629.6 normal seasonality Accounts P
Slide 9: 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 10: Appendix
Appendix Stride
Slide 11: Reconciliation of Income (Loss) from Operations to Adjusted Operating Income (Loss)
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME (LOSS) Three Months Ended Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30, ($, M) 2021 2021 2022 2022 2022 2022 2023 2023 Income (loss) from (7.0) 56.9 60.6 46.1 (28.7) 68.1 72.2 53.9 operations Sto
Slide 12: Reconciliation of Income (Loss) from Operations to Adjusted Operating Income (Loss)
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME (LOSS) Three months ended September 30, ($, M) 2023 2022 Income (loss) from operations 3.3 (28.7) Stock-based compensation expense 8.5 5.5 Amortization of intangible assets 3.0 3.3 Adjusted operating income (loss) 14.8 (19.
Slide 13: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA Three Months Ended September 30, ($, M) 2023 2022 Net income (loss) 4.9 (22.7) Interest (income) expense, net 2.1 2.0 Other (income) expense, net (5.2) (1.0) Income tax expense 1.5 (7.5) (Income) loss from equity method investments 0.
Slide 14: Reconciliation of Income from Operations to Adjusted Operating Income
RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME Three months ended Year ended December 31, 2023 June 30, 2024 (In Millions) Low High Low High Income from operations $ 70.5 $ 79.0 $ 210.5 $ 228.5 Stock-based compensation expense 6.5 7.5 28.0 33.0 Amortization of intangible asset