Aspen Group, Inc. · OTC:ASPU
Aspen — SeeThruEquity Conference 2014
15 slides from Aspen's conference presentation, Sep 11, 2014
Slide 1: SeeThruEquity Conference – Aspen Group, Inc.
SeeThruEquity ConferenceSeptember 11, 2014 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, and our strategic plans and projections. The words “believe,” “ma
Slide 3: The Opportunity
THE OPPORTUNITY * The for-profit education business model is broken; industry is ripe for change $1.2 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 Master of Science in Nursing (MSN) program CCNE accredited; BSN decision this fallMSN and RN-to-MSN programs grew from inception to 886 students in 2.5 years (34% of Aspen full-time degree student body) Other key programs include Business Administration (BSBA/MB
Slide 8: Student Enrollment Trends
STUDENT ENROLLMENT TRENDS * 74% of previous fiscal year enrollment growth was Nursing students FY’2014 33% Y/O/Y Student Enrollment Growth
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 brandedAverage customer acquisition costs of $705 i
Slide 10: Operating Metrics
OPERATING METRICS * Marketing budget decreased 28% y/o/y (CY 2014 to date) Enrollments up 15% y/o/y (CY 2014 to date) Conversion rate on all leads rose y/o/y from 5.2% to 8.2% (FY Q4) Cost per enrollment dropped y/o/y from $1,102 to $705 (FY Q4) New Class Starts are up 36% since start of FY’15 (May
Slide 11: 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 – 70%+ Gross Margins at scaleAverage course completions per student enrollment is 8 = $6,240 revenue (average $780 tuition/course today and rising)Customer acquisi
Slide 12: Innovative Business Model Now Proven, Time to Scale
INNOVATIVE BUSINESS MODEL NOW PROVEN, TIME TO SCALE * $5.4 million equity financing closed on 9/4/14Convertible debentures retired on 9/4/14, payoff of $2.31mmCash on Balance Sheet as of 9/5/14: $3.5 millionRevenue growth rate of 30%+ this fiscal year (FY’15), expect accelerated growth rate in FY’16
Slide 13: 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 14: Equity Snapshot
EQUITY SNAPSHOT Ticker on OTCBB: ASPU Share Price: $0.20 52 Week Range: $0.10 - $0.29 Market Cap: $22.5 Million Shares Outstanding : 112.7 Million Mgmt & BOD Ownership: 25%
Slide 15: Questions & Answers
QUESTIONS & ANSWERS ASPEN GROUP, INC.