Aspen Group, Inc. · OTC:ASPU
Aspen — Roth Conference 2015
14 slides from Aspen's conference presentation, Mar 10, 2015
Slide 1: Roth Conference, March 10, 2015
Roth ConferenceMarch 10, 2015 www.aspen.edu ASPEN GROUP, INC.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT * Certain statements in this presentation and responses to various questions include forward-looking statements including statements regarding our opportunities and expectations from the nursing education sector, future liquidity, stock exchange listing, and our strategic plans
Slide 3: The Opportunity
THE OPPORTUNITY * The for-profit education business model is broken; industry is ripe for change $1.3 Trillion Student Debt BubbleTuition rates have increased by 500%+ since 1980’sThis is an enormous business$23 Billion for-profit education sectorOnly 39% of adults hold a college degree*Nursing expe
Slide 4: Aspen University Has Built a New Business Model
ASPEN UNIVERSITY HAS BUILT A NEW BUSINESS MODEL * Aspen University offers world class online education at half the cost of its competitors; committed to cash-based, pay-as-you-go educationAnnounced the ‘debtless’ education vision; “Let’s Change Higher Education Forever” Aspen University passes on co
Slide 5: The Nursing Dilemma
THE NURSING DILEMNA * Critical Nursing shortage projected next decade (260,000 RN shortage by 2025)Demand for RNs expected to grow next decade as baby boomers reach their 60’s and beyond More than 1 million RNs will reach retirement age within next 10-15 years (average age of RNs is 47 years old); 5
Slide 6: Nursing: Total Available Market to 2022
NURSING: TOTAL AVAILABLE MARKET TO 2022 * ONLY 55% OF RNs HAVE A BACHELOR OF SCIENCE IN NURSING (BSN) DEGREE OR HIGHER1.75mm RNs is the total targetable market size to 2022 (3.24mm workforce, minus 1.49mm of RNs that currently have BSN or higher degree) $9,750* x 1,750,000 = $17 Billion Opportunity*
Slide 7: Aspen's Progress in Nursing
ASPEN’S PROGRESS IN NURSING * Aspen’s CCNE Accredited Master of Science in Nursing (MSN) program has grown to 1,012 students since marketing began in 2012 We’re already ~40% of the size of DeVry’s Chamberlain School of Nursing MSN program
Slide 8: Aspen's Progress in Nursing
ASPEN’S PROGRESS IN NURSING * Aspen announced CCNE accreditation for Bachelor of Science in Nursing (RN to BSN) program on November 10In current quarter, new student enrollments are pacing to be up 81% y/o/y -- 2 of 5 new students enrollments per day are BSN!Aspen offering RNs the ability to pay the
Slide 9: How Aspen Offers Low Tuition While Achieving High Margins
HOW ASPEN OFFERS LOW TUITION WHILE ACHIEVING HIGH MARGINS * Best-in-class customer acquisitionManagement’s expertise in Internet marketing and lead generation led to vertically-integrating marketingDo not utilize third-party lead gen firmsAll Aspen branded adsAverage customer acquisition costs <$750
Slide 10: Unit Economics Among Best in Sector
UNIT ECONOMICS AMONG BEST IN SECTOR * Low customer acquisition costs and variable teaching costs create highly attractive unit economics – projecting 70%+ Adjusted Gross Margins at scaleAverage course completions per student enrollment is 8 = $6,000 revenue (average $750 tuition/course today and ris
Slide 11: Innovative Business Model Now Proven, Time to Scale
INNOVATIVE BUSINESS MODEL NOW PROVEN, TIME TO SCALE * Financial Forecast 2015 – 2020 10/31/14 Q4’FY 2017* Q4’FY 2020* (Q2’FY’15) (Target) (Target)Annual Revenue $5mm $15mm $100mmGross Margin 56% 64% 70%Adjusted EBITDA -19% 15% 30% (Loss) *Fiscal Year Ending April 30
Slide 12: Proven Management Team
PROVEN MANAGEMENT TEAM * Experienced team can deliver sustainable growth and strong results while maintaining high qualityCEO: Michael MathewsBuilt revenues from run rate of $6 Million in 2007 to$100+ Million in 2010 as CEO of Interclick (NASDAQ: ICLK)In 2011, Interclick sold to Yahoo for $270 Milli
Slide 13: Equity Snapshot
EQUITY SNAPSHOT Ticker on OTCBB: ASPU Share Price: $0.20 52 Week Range: $0.10 - $0.39 Market Cap: $22.7 Million Shares Outstanding : 113.3 Million Mgmt & BOD Ownership: 19.4%
Slide 14: Questions & Answers
QUESTIONS & ANSWERS ASPEN GROUP, INC.