NYSE$LRN

Stride Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported increased revenue driven by Career Learning enrollments and improved gross margins.

Stride, Inc. reported an 8.9% increase in revenue for the second fiscal quarter ended December 31, 2021, driven by continued strength in middle and high school Career Learning enrollments, growth in Adult Learning, and increases in revenue per enrollment. Net income increased by 71.4% compared to the previous year, and diluted net income per share increased from $0.60 to $1.00.

  • Revenue increased to $409.5 million, compared to $376.1 million in the prior year.
  • Income from operations was $56.9 million, compared to $38.5 million in the prior year.
  • Net income was $42.0 million, compared to $24.5 million in the prior year.
  • Diluted net income per share was $1.00, compared to $0.60 in the prior year.

Headline financials

Total Revenue

$410M

Previous: $376M+8.9%
EPS (adj)

$1.00

Previous: $0.60+66.7%
General Education Revenue per Enrollment

$1.95K

No prior period
Career Learning Revenue per Enrollment

$1.79K

No prior period
Capital Expenditures

-$2.71M

Previous: -$1.97M-37.4%
Free Cash Flow

$39.3M

Previous: $22.5M+74.4%
Net Income

$42M

Previous: $24.5M+71.4%
Operating Income

$56.9M

Previous: $38.5M+48.0%
Gross Profit

$148M

Previous: $129M+14.0%
Cash & Equivalents

$257M

Previous: $258M-0.4%
Total Assets

$1.53B

Previous: $1.47B+3.7%
Stock-Based Comp

$602K

Previous: $9.07M-93.4%

Revenue & EPS history

Stride · Revenue · Quarterly

$410M

Q2 2022+8.9%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Stride · $389M total across 2 segments · Q2 2022

  • General Education
    $313M-0.2%
  • Career Learning - Middle/High School
    $75.3M

Forward guidance

The Company is raising its forecast for the full fiscal year 2022 and forecasting for the third quarter fiscal 2022.

Tailwinds

  • Revenue in the range of $1.62 billion to $1.64 billion for full fiscal year 2022.
  • Capital expenditures in the range of $65 million to $75 million for full fiscal year 2022.
  • Effective tax rate of 27% to 30% for full fiscal year 2022.
  • Adjusted operating income in the range of $175 million to $185 million for full fiscal year 2022.
  • Revenue in the range of $405 million to $415 million for the third quarter fiscal 2022.

Headwinds

  • Capital expenditures in the range of $15 million to $18 million for the third quarter fiscal 2022.
  • Adjusted operating income in the range of $60 million to $65 million for the third quarter fiscal 2022.
  • Reduction of per pupil funding amounts at the schools we serve.
  • Inability to achieve a sufficient level of new enrollments to sustain our business model.
  • Limitations of the enrollment data we present, which may not fully capture trends in the performance of our business.

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 2022

Historical avgQ2 2022

+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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