Aspen Group, Inc. · OTC:ASPU
Aspen — Investor Presentation (September 2021)
28 slides from Aspen's investor presentation, September 2021
Slide 1: Creating Value by Transforming the College Education Experience
Michael Mathews CREATING VALUE BY Chairman & Chief Executive Officer TRANSFORMING THE COLLEGE Matt LaVay Chief Financial Officer EDUCATION EXPERIENCE September 2021 Nasdaq: ASPU
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our expectations with respect to the continued effect of using the EdTech platform; future stron
Slide 3: Aspen Group Is an Education Technology Company
Focused on high LTV nursing programs to drive 1 revenue growth and margin improvement ASPEN GROUP EdTech platform drives low Customer Acquisition IS AN EDUCATION Cost (CAC) that enables lower tuition rates and TECHNOLOGY COMPANY 2 monthly payment plans, while improving student WITH A MISSION OF outc
Slide 4: Evolving Our Business to Drive Growth
EVOLVING OUR BUSINESS TO DRIVE GROWTH 2014 2018 Launches Monthly Launches Bachelor of Science in Nursing pre- Q4 FY21 Revenue Payment Plans for online licensure program (BSN-PL) in Phoenix, AZ Breakdown degree programs BSN-PL delivers the largest TAM, lowest Customer Shifts entire marketing Acquisit
Slide 5: Trends Fueling Strong Demand for Nurses
TRENDS FUELING STRONG DEMAND FOR NURSES The Bureau of Labor Statistics (BLS) estimated in BLS cites core reasons 2016 that demand for fueling the nursing industry’s RNs will grow by growth: A recent study by HR 15% over the next consulting firm Mercer found decade to ~3.4 million Baby Boomers’ highe
Slide 6: Acceptance Rates in Pre-Licensure Programs Not Meeting High Demand
ACCEPTANCE RATES IN PRE-LICENSURE DEGREE PROGRAMS NOT MEETING HIGH DEMAND U.S. nursing schools only accept 70% of Nursing applicants are turned In 2017 nursing schools applicants creating away due to budget turned away over wait lists up to 2-3 constraints and 56,000 qualified years at public and in
Slide 7: Aspen Group's Nursing Degree TAM Over $4B
ASPEN GROUP’S NURSING DEGREE TAM OVER $4B Strong demand for ASPU programs targeting high LTV degrees with large student populations TAM AU and USU Nursing Degree Program Total Annual Tuition Bachelor of Science in Nursing (RN to BSN) and Master of Science in Nursing (MSN) $478 million Doctor of Nurs
Slide 8: Nursing - Fastest Growing ASPU Student Body
NURSING - FASTEST GROWING ASPU STUDENT BODY ASPU offers affordable nursing degrees from bachelor to doctorate, including highly sought-after MSN-FNP and BSN pre-licensure programs Nursing represents 87% of total ASPU active student body 13,879 12,128 12,058 +14% Nursing Student Growth Drivers: 10,42
Slide 9: EdTech Platform Lowers Enrollment Costs and Improves Student Outcomes
EDTECH PLATFORM LOWERS ENROLLMENT COSTS AND IMPROVES STUDENT OUTCOMES Student portal is interface to all student transactional Vertically-integrated activity lead acquisition platform Student Acquires highly Portal qualified leads Vertically Integrated Student CRM Data Student Information System War
Slide 10: Proprietary Tech Platform Delivers Significant Savings for Nursing Students
PROPRIETARY TECH PLATFORM DELIVERS SIGNIFICANT SAVINGS FOR NURSING STUDENTS Aspen Group, Inc. Competitive Degrees DEGREE PROGRAM ASPEN / USU AVERAGE* SAVINGS CHAMBERLAIN WALDEN RN to BSN (AU) $9,750 $25,200 61% $26,550 $23,850 MSN (AU) $11,700 $24,380 52% $23,440 $25,320 DNP (AU) $18,900 $35,105 46%
Slide 11: Transforming the College Financing Experience Through Monthly Payment Plans
TRANSFORMING THE COLLEGE FINANCING EXPERIENCE THROUGH MONTHLY PAYMENT PLANS Aspen is transforming the college education experience for students pursuing higher paying careers that require advanced degrees and skills AFFORDABLE DEBT MINIMIZATION Lower tuition costs than comparable Monthly payment pla
Slide 12: EdTech Platform Drives Better Student Outcomes
EDTECH PLATFORM DRIVES BETTER STUDENT OUTCOMES ASPEN UNIVERSITY $ STUDENT RN TO BSN MONTHLY SATISFACTION GRADUATION RATE PAYMENT MODEL 95% 81% 86% Aspen University alumni As compared to the 60% Aspen University alumni that that felt they achieved national average of nursing graduated without federal
Slide 13: Enrollment and Bookings Impacted by Strategic Marketing Spend Reduction in FY'22
Enrollment and Bookings Impacted by Strategic Marketing Spend Reduction in FY’22 First Quarter FY2022 Enrollment • New student enrollments increased sequentially from 2,182 to 2,276 or 4%. On a year-over- Q1 FY’22 Y-O-Y Q1 FY’22 Y-O-Y year basis, new student Enrollment Bookings* enrollments for the
Slide 14: New Campus Drive Future Gross Margin Improvement
New Campus Drive Future Gross Margin Improvement Revenue & Gross Profit Y-O-Y Compare (in millions) Anticipate meeting or exceeding historical gross margins in future quarters: $19.4 ü Increased percentage of total revenue coming $15.2 from BSN P-L and USU REVENUE +28% $10.4 ü Aspen 2.0 limits YoY a
Slide 15: Improving Operating Metrics with Targeted Ad Spending and Five BSN-PL Campuses
Improving Operating Metrics with Targeted Ad Spending and Five Operational BSN-PL Campuses Q1 FY22 Y-O-Y G&A and Revenue Comparison (in millions) $19.4 Anticipate achieving operational scale going forward, due to: $15.2 ü Increasing revenue from recently opened pre- $10.9 licensure campuses in FY 20
Slide 16: Prioritize Investment to Accelerate Growth
PRIORITIZE INVESTMENT TO ACCELERATE GROWTH Focusing our spending and investment to generate maximum long-term returns FOCUS “GROWTH SPEND” ON OPEN NEW PRE-LICENSURE BSN 1 HIGHEST EFFICIENCY BUSINESSES 2 CAMPUSES (WITH A TOTAL OF THREE MSN-FNP WEEKEND IMMERSION LOCATIONS)
Slide 17: Aspen 2.0 Business Plan Designed to Deliver Maximum Efficiency
Aspen 2.0 Business Plan Designed to Deliver Maximum Efficiency Highest Efficiency Businesses ~$5 ~$12 ~$60 ~$10 REVENUE EARNED PER MARKETING DOLLAR SPENT LTV $7,350 LTV $17,820 LTV $30,000 LTV $30,000 COE $1,400 COE $1,500 COE $500 COE $3,0002 LIFETIME VALUE AND PROJECTED COST OF ENROLLMENT 1 BSN BS
Slide 18: BSN Pre-Licensure Campuses >$100 MM Opportunity
BSN PRE-LICENSURE CAMPUSES >$100 MM OPPORTUNITY Aspen University's BSN Pre-licensure program carries the highest LTV of all our nursing programs Targeting 12+ campuses by 2025 CY 2018/19 Launched two Each new campus Approximately $9 campuses in Phoenix reaches maturity after million average CY 2020
Slide 19: Focused Growth Spending and Managing New Investments
Focused Growth Spending and Managing New Investments Focus “growth spend” on highest efficiency businesses, as defined by return on marketing dollar spent • Decrease advertising spend on lowest efficiency unit and in Phoenix BSN P-L market: • Aspen University legacy online unit (excluding Doctoral)
Slide 20: Aspen Group Key Investment Takeaways
Targeting high-growth nursing education sector with a comprehensive degree offering EdTech platform provides key ASPEN GROUP competitive advantages of lower tuition KEY INVESTMENT costs, flexible financing options and better student TAKEAWAYS outcomes Focused marketing spend on highest LTV nursing p
Slide 21: Appendix
APPENDIX
Slide 22: Equity Snapshot
EQUITY SNAPSHOT AS OF 09/17/2021 NASDAQ TICKER ASPU SHARE PRICE $5.77 52 WEEK RANGE $4.70 - $12.80 MARKET CAP $145 Million SHARES OUTSTANDING 1 24.9 million MANAGEMENT & DIREC TOR OWNERSHIP 8.2% 1. Shares outstanding as of September 10, 2021 from the Company’s Form 10-Q filed with the SEC on Septemb
Slide 23: First Quarter Fiscal Year 2022 Financial Results
First Quarter Fiscal Year 2022 Financial Results
Slide 24: Income Statement
Income Statement Three Months Ended July 31, 2021 2020 Revenue $ 19,430,995 $ 15,165,562 Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 8,593,568 5,847,523 General and administrative 10,946,477 8,793,756 Bad debt expense 350,000 400,000 Deprec
Slide 25: Balance Sheet (Assets)
Balance Sheet (Assets) July 31, 2021 April 30, 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 6,554,423 $ 8,513,290 Restricted cash 3,722,831 5,152,789 Accounts receivable, net of allowance of $3,272,977 and $3,289,816, respectively 17,190,238 16,724,744 Prepaid expenses 914,216
Slide 26: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity) July 31, 2021 April 30, 2021 (Unaudited) Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,627,731 $ 1,466,488 Accrued expenses 2,361,271 2,040,896 Deferred revenue 4,691,087 6,825,014 Due to students 2,905,192 2,747,4
Slide 27: Subsidiary KPIs (Percentage of Revenue)
Subsidiary KPIs (Percentage of Revenue) Three Months Ended July 31, 2021 Consolidated AU USU Revenue $19,430,995 $13,249,652 $6,181,343 Percentage of Revenue Consolidated AU USU Instructional costs 23% 23% 24% Marketing costs 21% 21% 16% General and Administrative expenses 56% 34% 39% Depreciation a
Slide 28: Thank You!
THANK YOU! IR Contact CREATING VALUE BY Kimberly Rogers TRANSFORMING THE COLLEGE Hayden IR (385) 831-7337 EDUCATION EXPERIENCE Kim@HaydenIR.com IRcontact@aspen.edu