NYSE$LRN

Stride Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

K12 Inc. reported second quarter fiscal year 2020 results, with revenues of $257.6 million.

K12 Inc. reported revenues of $257.6 million, income from operations of $30.3 million, and net income attributable to common stockholders of $20.6 million for the second quarter of fiscal year 2020.

  • Revenues reached $257.6 million, compared to $254.9 million in the second quarter of FY 2019.
  • Income from operations was $30.3 million, compared to $33.3 million in the second quarter of FY 2019.
  • Net income attributable to common stockholders was $20.6 million, compared to $23.7 million in the second quarter of FY 2019.
  • Diluted net income attributable to common stockholders per share was $0.52, compared to $0.59 per share in the second quarter of FY 2019.

Headline financials

Total Revenue

$258M

Previous: $255M+1.1%
EPS (adj)

$0.52

Previous: $0.59-11.9%
Capital Expenditures

-$1.34M

Previous: -$1.91M+30.1%
Free Cash Flow

$19.3M

Previous: $21.8M-11.7%
Net Income

$20.6M

Previous: $23.7M-13.1%
Operating Income

$30.3M

Previous: $33.3M-9.0%
Gross Profit

$90.1M

Previous: $94.5M-4.7%
Cash & Equivalents

$212M

Previous: $203M+4.1%
Total Assets

$827M

Previous: $784M+5.5%
Stock-Based Comp

$6.18M

Previous: $4.14M+49.2%

Revenue & EPS history

Stride · Revenue · Quarterly

$258M

Q2 2020+1.1%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Stride · $450M total across 2 segments · Q1 2024

  • General Education
    $299M+10.2%
  • Career Learning - Middle/High School
    $151M+20.3%

Forward guidance

The Company updated its full year outlook and provided an outlook for the third quarter to include the impact from the Galvanize Inc. acquisition, inclusive of the impact of purchase price accounting.

Tailwinds

  • Revenue in the range of $1,033.0 million to $1,040.0 million for full year fiscal 2020.
  • Capital expenditures of $45.0 million to $49.0 million for full year fiscal 2020.
  • Tax rate of 28.0% to 30.0% for full year fiscal 2020.
  • Adjusted operating income in the range of $48.0 million to $52.0 million for full year fiscal 2020.
  • Revenue in the range of $252.0 million to $255.0 million for the third quarter, fiscal 2020.

Headwinds

  • The reduction in guidance for adjusted operating income is largely due to purchase price accounting adjustments relating to the Galvanize Inc. acquisition.
  • Capital expenditures of $8.0 million to $10.0 million for the third quarter, fiscal 2020.
  • Adjusted operating income in the range of $18.0 million to $20.0 million for the third quarter, fiscal 2020.
  • Forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from those expressed or implied.
  • Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.8%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.8%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+38.8%

Q1 2025

Best reaction

-54.3%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+2.2%-0.3%-1.1%
Q2 2026+13.3%+19.5%+16.5%
Q1 2026-54.3%-53.3%-58.6%
Q3 2025-0.2%+12.7%+6.2%
Q2 2025+6.0%+14.1%+13.4%
Q1 2025+38.8%+41.2%+60.0%
Q4 2024+9.6%+15.1%+14.2%
Q3 2024+8.8%+15.5%+23.0%
Q2 2024-2.0%-3.0%-10.0%
Q1 2024+19.9%+24.3%+34.2%
Q4 2023+3.0%+4.7%+14.7%
Q3 2023+12.2%+12.8%+5.7%
Q2 2023+25.6%+26.0%+32.9%
Q1 2023-29.1%-28.4%-23.0%
Q4 2022-12.7%-15.9%-8.4%
Q3 2022+16.5%+5.7%+4.1%
Q2 2022+22.5%+25.0%+21.1%
Q1 2022+6.2%+0.6%+11.0%
Q4 2021+7.6%+15.8%+10.2%
Q3 2021-2.0%+2.5%-8.6%
Q2 2021-1.8%+1.7%-0.9%
Q1 2021+0.8%-16.8%-19.8%
Q4 2020-6.1%-4.7%-36.4%
Q3 2020-10.5%-6.6%-1.5%
Q2 2020-15.6%-18.1%-17.0%
Q1 2020-16.8%-15.3%-20.0%
Q4 2019-6.8%-1.1%-8.0%
Q3 2019-11.4%-11.6%-10.4%
Q2 2019+15.8%+14.9%+27.6%
Q1 2019+22.5%+28.5%+36.4%
Q4 2018+11.5%+8.3%+4.8%
Q3 2018+10.7%+11.5%+15.1%
Q2 2018+8.0%+5.0%-7.0%
Q1 2018-4.4%-10.0%-11.5%
Q4 2017-6.8%-5.9%-2.8%
Q3 2017-7.7%-0.3%-5.9%
Q2 2017+15.4%+17.4%+6.5%
Q1 2017-22.1%-24.6%+1.3%
Q4 2016-10.9%-8.3%+1.9%
Q3 2016+17.3%
Q2 2016+18.0%
Q1 2016-15.3%
Q4 2015+0.9%
Q3 2015+10.5%
Q2 2015+28.7%
Q1 2015-18.2%
Q4 2014-12.3%
Q3 2014+10.7%
Q2 2014-8.2%
Q1 2014+9.1%
Q4 2013+13.6%
Q3 2013+3.0%
Q2 2013+4.7%
Q1 2013-1.3%
Q4 2012+11.1%
Q4 2010+11.1%
Q3 2011+2.0%
Q3 2012-14.8%
Q2 2011-5.8%
Q2 2012-8.8%
Q1 2011+3.6%
Q4 2011+3.6%
Q1 2012-9.6%
Q3 2010+7.1%

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