Slide 1: Q4 FY2021 Earnings Presentation
Q4 FY2021 Earnings Presentation August 10, 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 with $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: Company Highlights
Company Highlights Stride delivered a landmark year in FY21 and laid the groundwork for next FY21 Performance phase of growth: • Revenue of $1,536.8M (+48% y-o-y) o Growth driven by increased demand across all product lines • Adjusted Operating Income* of $161.4M (+160% y-o-y) o Record enrollments
Slide 5: Strong momentum in Career Learning business
Strong momentum in Career Learning business In just five years, Stride has built the assets and capabilities to reach today’s $250M+ scale and is well-positioned to sustain high growth into the future Career Preparation Career Development / Enterprise • 28.2K students enrolled as of June • Acquired
Slide 6: Significant growth in key financial metrics for the year ended June 30, 2021
Significant growth in key financial metrics for the year ended June 30, 2021 Adjusted Operating Adjusted Revenue ($M) Gross Profit ($M) Income* ($M) EBITDA* ($M) 1600 1537 1400 48% 1200 54% 1041 87% 1000 160% 800 600 400 200 0 FY20 FY21 *Note: To supplement our financial statements presented in acco
Slide 7: Revenue growth in General Education and Career Learning
Revenue growth in General Growing Demand for Online Education and Career Learning Education and Career Learning Year Ended June 30 2021 2020 % change • COVID-19 accelerated Revenue (in millions) awareness and acceptance of online and hybrid learning General Education $ 1,280.2 $ 933.8 37% Career Lea
Slide 8: Strong balance sheet & liquidity
Strong balance sheet & liquidity Flexibility to maintain long-term low leverage ratios Year-over-year cash balance increased $173.8M driven by an increase in cash from Select balance sheet and other information operations and issuance of As of June 30, 2021 ($M) convertible notes Cash and Cash Equiv
Slide 9: 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 Organic growth outcomes & retention • Implement innovative products across portfolio • Leverage pla
Slide 10: Compelling long-term investment thesis
Compelling long-term investment thesis Growing in the $100B+ addressable market 01 02 03 04 05 Leading Sustainable & New high-growth Experienced Strong education resilient core & higher-margin & diverse financial services platform business career learning leadership team track record With scale, exp
Slide 11: Appendix
Appendix
Slide 12: Reconciliation: Adj. Operating Income and EBITDA to GAAP
ADJ. OPERATING INCOME AND EBITDA TO GAAP FINANCIALS Reconciliation Three Months Ended Year Ended June 30, June 30, (in millions) 2021 2020 2021 2020 Income from operations $ 21.4 $ 7.0 $ 110.5 $ 32.5 Stock-based compensation expense $ 8.5 $ 5.8 $ 39.3 $ 23.6 Amortization of intangible assets $ 3.6 $
Slide 13: Reconciliation: Effective Tax Rate
EFFECTIVE TAX RATE Reconciliation Year Ended June 30, 2021 Federal Statutory Tax Rate 21.0% State Blended Statutory Tax Rate 5.6% Non-Deductible Executive Compensation 5.7% Tax Benefit from Stock-Based Compensation -5.9% R&D Tax Credit -0.7% Other Tax Adjustments -0.1% FY2021 Effective Tax Rate 25.6