Slide 1: Q1 FY2023 Earnings Presentation
Q1 FY2023 Earnings Presentation October 25, 2022 stride
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 press release are forward-
Slide 3: Multiple touchpoints along a lifelong learner's education and career
Career Advancement (Corp. Training & Upskilling) Leveraging over 20 years addressable of experience with over Job Placement Market in U.S. & Recruitment 2 million students supported, and a scalable education services platform, Stride Early Career provides online and blended & Immersive lifelong lear
Slide 4: Compelling long-term investment thesis
Compelling long-term investment thesis Growing in $100B+ addressable market in U.S. 01 02 03 04 05 Leading education Sustainable core Career Learning Experienced, Financial services platform business growth diverse leadership track record With scale, Secular shift toward Leveraging Deep educational
Slide 5: Quarterly Highlights
Quarterly Highlights Q1 FY23 Performance • Revenue: $425.2M 1 Continued strong demand for Career and Adult Offerings + 25.0M y-o-y • Career Learning enrollments up 47% to over 61K • Adult Learning revenue up 24% y-o-y • Adj. Operating Income1: ($19.9M) - $24.4M y-o-y • Adj. EBITDA1: $3.0M 2 Guiding
Slide 6: Guiding to Full Year Revenue Growth and Strong Profitability
Guiding to Full Year Revenue Growth and Strong Profitability Q2 FY23 FY23 Guidance Reflects Strong Guidance1 Guidance1 Demand for Offerings Low High Low High • FY23 Revenue: +4% Y-O-Y Revenue $435.0M $465.0M $1.71B $1.79B Mid-point of Guidance Adj. Operating Income2 $70.0M $80.0M $160.0M $190.0M • S
Slide 7: Revenue Growth Accompanied by Normal Seasonal Spending, Impacted by Inflation
Revenue Growth Accompanied by Normal Seasonal Spending, Impacted by Inflation Revenue ($M) Adjusted Operating Income2 ($M) 100 500 465 80 425 400 80 69 400 61 60 50 55 54 300 37 34 40 22 23 16 200 20 5 0 100 (20) (13) 0 (20) (40) Q1 Q1 Guidance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Guidance Q2 Q2 F
Slide 8: Career & Adult Learning Continue to Drive Growth
Career & Adult Learning Continue to Drive Growth Three Months Ended September 30, 2022 2021 Change Career Learning Revenue ($M) • Enrollment growth of 47% General Education 271.7 306.3 ↓ (11.3%) Career Learning Adult Learning Middle – High School 125.5 71.4 ↑ 75.8% • Strong organic growth rate Adult
Slide 9: FY25 Financial Outlook
FY25 Financial Outlook Strategic priorities supporting outlook Support improving learner outcomes while delivering strong growth and sustainable long-term value creation Enrollment growth in K-12 and Adult programs FY23 FY25 Guidance1 Financial Outlook Expand capacity in existing Low High Low High a
Slide 10: Liquidity & Low Debt Support Organic & Inorganic Growth
Liquidity & Low Debt Support Organic & Inorganic Growth Select balance sheet and other information As of September 30, 2022 ($M) Strong cash position Cash and Cash Equivalents $194.5 Accounts receivable Accounts Receivable, Net 543.7 balance reflects seasonality and timing of payments Accounts Payab
Slide 11: Disciplined capital allocation
Disciplined capital allocation Prioritizing free cash flow sustainability, educational platform development, and synergistic M&A • Invest in academic quality & student/customer experience to support outcomes & retention Organic growth • Implement innovative products across portfolio • Leverage platf
Slide 12: Appendix
Appendix Stride
Slide 13: Reconciliation of Loss from Operations to Adjusted Operating Income and Adjusted EBITDA
RECONCILIATION OF LOSS FROM OPERATIONS TO ADJUSTED OPERATING INCOME (LOSS) AND ADJUSTED EBITDA Three months ended September 30, ($, M) 2022 2021 Loss from operations (28,719) (6,977) Stock-based compensation expense 5,510 8,286 Amortization of intangible assets 3,289 3,213 Adjusted operating income
Slide 14: 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. Dec. 31, Mar. 31, Jun. 30, Sept. Dec. 31, Mar. 31, Jun. 30, Sept. Dec. 31, Mar. 31, Jun. 30, ($, M) 30, 2019 2019 2020 2020 30, 2020 2020 2021 2021 30, 2021 2021 2022 2022 Income (loss) (19.4
Slide 15: Reconciliation of Income from Operations to Adjusted Operating Income (Guidance)
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME Three months ended Year ended December 31, 2022 June 30, 2023 (In Millions) Low High Low High Income from operations $ 62.0 $ 70.5 $ 127.5 $ 151.5 Stock-based compensation expense 5.0 6.0 20.0 25.0 Amortization of intangibl