Slide 1: Q1 FY2022 Earnings Presentation
Q1 FY2022 Earnings Presentation October 19, 2021
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 solutions in a $100B+ addressable market
Career Advancement (Corp. Training & Upskilling) $100B+ addressable Leveraging over 20 years Job Placement market of experience with over 2 & Recruitment million students supported, and a scalable education services platform, Stride provides Early Career online and blended lifelong & Immersive learn
Slide 4: Compelling long-term investment thesis
Compelling long-term investment thesis Growing in $100B+ addressable market 01 02 03 04 05 Leading education Sustainable Career Learning Experienced, Financial services platform core business growth diverse leadership track record With scale, expertise & Secular shift toward Leveraging Deep educatio
Slide 5: First Quarter Highlights
First Quarter Highlights Q1 FY22 Performance 1. Strength in Enrollments and Revenue Per Enrollment • Revenue of $400.2M ➢ Guidance implies growth in both Revenue and Profitability • (+8% y-o-y) 2. Quarterly Results Show Demand Remains High for Virtual School Options • Adj. Operating Income* of $4.5
Slide 6: Guiding to Full Year Revenue and Profitability Growth
1. Guidance Guiding to Full Year Revenue and Profitability Growth Guidance Reflects Strong Demand for Virtual Education Q2 FY2022 FY2022 • FY22 Revenue: +3% Y-O-Y Low High Low High Mid-point of Guidance (in m illions) Revenue • FY22 AOI: +7% Y-O-Y $ 390 $ 400 $ 1,560 $ 1,600 Mid-point of Guidance Ad
Slide 7: Revenue Growth Accompanied by Normal Spending Pattern
2. Quarterly Results Revenue Growth Accompanied by Normal Spending Pattern Return to normal seasonality of school start Revenue ($M) Adjusted Operating Income ($M) expenses 450 70 65 400 400 400 371 8% 60 55 • Q1 expenses include 350 Y-o-Y 390 50 55 50 materials, computers, 300 38 40 37 media, and s
Slide 8: Career & Adult Learning Continue to Drive Growth
3. Lines of Revenue Career & Adult Learning Continue to Drive Growth Career Learning Quarter Ended Sept 30 • Enrollment growth of 36% 2021 2020 % change Adult Learning Revenue (in millions) General Education $ 306.3 $ 313.8 -2% • Continued growth Career Learning • Y-O-Y comparison Middle - High Scho
Slide 9: Liquidity & Low Debt Support Organic & Inorganic Growth
4. Balance Sheet Liquidity & Low Debt Support Organic & Inorganic Growth Normal decline in cash balance in first quarter. Select balance sheet and other information Expect increasing cash As of September 30, 2021 ($M) balance through rest of year. Cash and Cash Equivalents $218.5 Accounts receivable
Slide 10: Disciplined capital allocation
4. Balance Sheet Disciplined capital allocation Prioritizing free cash flow sustainability, educational platform development, and synergistic M&A • Invest in academic quality & student / customer experience to support Organic growth outcomes & retention • Implement innovative products across portfol
Slide 11: Appendix
Appendix
Slide 12: Reconciliation
ADJ. OPERATING INCOME AND ADJUSTED EBITDA TO GAAP FINANCIALS Reconciliation Three Months Ended September 30, (in millions) 2021 2020 Income (loss) from operations $ (7.0) $ 12.1 Stock-based compensation expense $ 8.3 $ 8.9 Amortization of intangible assets $ 3.2 $ 2.1 Adjusted operating income $ 4.5
Slide 13: Guidance Reconciliation
Guidance Reconciliation Three Months Ended Year Ended December 31, 2021 June 30, 2022 Low High Low High (In millions) Income from operations $ 44.3 $ 48.8 $ 123.0 $ 136.0 Stock-based compensation expense 7.5 8.0 29.0 31.0 Amortization of intangible assets 3.2 3.2 13.0 13.0 Adjusted operating income
Slide 14: Reconciliation
ADJ. OPERATING INCOME (FY2019 through FY2021) Reconciliation FY2019 FY2020 FY2021 Three Months Ended Three Months Ended Three Months Ended Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30, (in millions) 2018 2018 2019 2019 2019 2019 2020 2