Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| These programs generated $151 million in revenues on double-digit enrollment and 6% revenue per enrollment growth |
| I think, the trajectory of improvements that we're going to make -- we've got a multi-year trajectory of improvements we're going to make, and market demand's going to continue to be strong |
| And our enrollment center really did incredible job looking at ways that we can improve conversion |
| And I want to add my congratulations on the -- very strong first quarter results and the equally strong guidance |
| So again, we feel good about sort of where we stand from a -- the 4% to 6% range |
| So we just -- we see a lot of strength in our business |
| And I think more importantly than the strength in new enrollment demand is our ability to convert new enrollments also continues to improve |
| We also see new enrollment demand continue to be very strong |
| I think our numbers for this quarter speak for themselves, record revenue, record career enrollments, record career revenue, and except for the pandemic year, our highest profitability also except for the pandemic year, our highest growth rate in the past decade |
| Adjusted operating income at the midpoint of our range is up over 400% from fiscal year 2020 and up well over 50% from fiscal year 2021 when we had the pandemic benefit |
| Meaning, you can see our academic outcomes improving, our state scorecard outcomes are improving |
| And our outcomes are also improving |
| And so I think both continue to perform strong |
| And our MedCerts certificate business continues to perform very well and we see sort of very long runway of growth for that business |
| And again, we had a really strong enrollment growth and revenue growth in Q1, and that's impacting obviously our full year numbers |
| We also see continued strength in our career programs, crossing 70,000 enrollments this year |
| It's quite something seeing a real enrollment break, which is very exciting |
| So striking the right balance, are all the things that contributed to us having a strong financial results in Q1 |
| This year, we didn't really have a lot of new career programs and so I think a lot of our enrollment strength overall is that a testament to that the fact that the market's still there for our business as a whole |
| And I expect our execution to improve through the coming years |
| And I think we improved it this year, and that's -- it's a real tribute to I think some of the team that we brought in, but also some of the turnaround that the team executed that -- they've been through a number of cycles and they were able to identify things that we could do better |
| As I've mentioned, our guidance suggests we are primed for record revenue and profitability performance for this year |
| We think this demonstrates the strength of our K through 12 full-time virtual school business, and all the indicators suggests we will continue to see strong demand for these offerings for the foreseeable future |
| One of our core advantages is in our ability to move and change and innovate with the needs of the marketplace |
| The numbers were really strong, I think a lot stronger than most people had thought |
| Our strong enrollment growth for this year is a testament to the incredible work that our teams put in day-in and day-out |
| We expect to see positive cash flow for the next three quarters |
| I'm very proud of the work we've put in to make every student successful in our program |
| This, coupled with the strengths in our enrollment, sets us up to be profitable every quarter this year and demonstrates the underlying financial strength of Stride |
| Historically, the first quarter has not been a profitable quarter for us, so the strength this year highlights the work that we've done to execute on efficiencies and improve teacher hiring |
| Statement |
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| And like I said, last year we did not execute well |
| But the specific technology focused bootcamp business as a whole in this country is down significantly |
| We believe we are down less, but there is definitely a macro headwind around that piece of our business, which just as a reminder represents less than -- was it less than 2% of our overall business |
| Parents of school aged children share these same concerns about our public education system and they're becoming more vocal about their dissatisfaction |
| But yes, on the technology side, specifically in a very small portion of our revenue, there is a little bit of softness |
| Over 60% of Americans said they are dissatisfied with the quality of K through 12 education in the US |
| I had hoped the significant learning loss and access to new educational tools would challenge schools to embrace change, and some have, but far too many have not |
| So I think there is something to read into that meaning that we have -- I think we have defied the overall market conditions around the tech sector, the tech education sector in that |
| One quick follow up, adult learning sequentially was down |
| The macro outlook today portrays an increasingly cloudy picture, economic volatility and uncertainty, chaos and divisiveness in our political system that is often extremist, unsustainable debt levels, geopolitical threats, just to name a few |
| Free cash flow defined as cash from operations less CapEx was negative $151 million compared to negative $160 million in the prior year period |
| Now, as we've returned to a sense of normalcy following the worst of the pandemic, while our programs have continued to flourish, unfortunately many public school systems have largely reverted back to doing exactly what they were doing pre-pandemic |
| Our re-reg cohort -- if you take away the pandemic year, because obviously that one year was very, very anomalous |
| When we ask parents why they selected a K-12 school, we're hearing they're coming to us to solve those same issues that are leading to dissatisfaction with our public school system |
| A question about execution |
| We don't see a lot of soft spots in either re-registration, withdrawal rates, or new enrollment trends |
| The company's actual results could differ materially from any forward-looking statements due to several important factors as described in the company's latest SEC filings |
| The first is, and I said this last year, and this is a hundred percent on me, but I think our execution last year was not great |
| And I know typically in the first quarter, I think, Donna, you had mentioned that you typically lose money, and I think the bottom line strength was also really surprising |
| Adjusted operating income was $14.8 million compared to an adjusted operating loss of $19.9 million in the same period last year |
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