NYSE$LRN

Stride Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Achieved record enrollment growth and increased revenue driven by enrollment strength, increases in revenue per enrollment, and Adult Learning growth.

Stride, Inc. reported strong second quarter fiscal year 2023 results, with revenue increasing to $458.4 million compared to $409.5 million in the prior year. Net income also increased to $50.7 million, or $1.19 per share, compared to $42.0 million, or $1.00 per share in the prior year.

  • Revenue increased to $458.4 million, compared with $409.5 million.
  • Income from operations was $68.1 million, compared with $56.9 million.
  • Net income reached $50.7 million, compared with $42.0 million.
  • Diluted net income per share was $1.19, compared with $1.00.

Headline financials

Total Revenue

$458M

Previous: $410M+11.9%
EPS (adj)

$1.19

Previous: $1.00+19.0%
Capital Expenditures

-$2.82M

Previous: -$2.71M-4.4%
Free Cash Flow

$47.9M

Previous: $39.3M+21.8%
Net Income

$50.7M

Previous: $42M+20.7%
Operating Income

$68.1M

Previous: $56.9M+19.6%
Gross Profit

$170M

Previous: $148M+15.3%
Cash & Equivalents

$318M

Previous: $257M+23.9%
Total Assets

$1.62B

Previous: $1.53B+6.1%
Stock-Based Comp

$4.94M

Previous: $602K+720.8%

Revenue & EPS history

Stride · Revenue · Quarterly

$458M

Q2 2023+11.9%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Stride · $429M total across 2 segments · Q2 2023

  • General Education
    $275M-12.3%
  • Career Learning - Middle/High School
    $154M+104.3%

Forward guidance

The Company is raising its revenue and adjusted operating forecast and narrowing its capital expenditures forecast for the full year fiscal 2023.

Tailwinds

  • Revenue in the range of $1.775 billion to $1.815 billion.
  • Capital expenditures in the range of $70.0 million to $75.0 million.
  • Note that capital expenditures include the purchase of property and equipment, and capitalized software, and curriculum development costs as defined on our Statement of Cash Flows.
  • Effective tax rate of 27% to 29%.
  • Adjusted operating income in the range of $180.0 million to $200.0 million.

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 2023

Historical avgQ2 2023

+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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