NYSE$LRN

Stride Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Stride's Q2 2024 earnings were released, showcasing record revenue and profitability, which led to an increased full-year guidance.

Stride, Inc. reported a strong second quarter with record revenue of $504.9 million, up 10.1% year-over-year, and net income of $66.8 million, a 31.8% increase. The company raised its full-year revenue and adjusted operating income guidance.

  • Revenue increased to $504.9 million, a 10.1% increase compared to the previous year.
  • Net income rose to $66.8 million, a 31.8% increase year-over-year.
  • Diluted net income per share increased to $1.54, compared to $1.19 in the prior year.
  • The company raised its full-year revenue forecast to a range of $1.99 billion to $2.04 billion.

Headline financials

Total Revenue

$505M

Previous: $458M+10.1%
EPS (adj)

$1.54

Previous: $1.19+29.4%
Capital Expenditures

-$1.7M

Previous: -$2.82M+39.7%
Free Cash Flow

$65.1M

Previous: $47.9M+36.0%
Net Income

$66.8M

Previous: $50.7M+31.8%
Operating Income

$84.3M

Previous: $68.1M+23.8%
Gross Profit

$201M

Previous: $170M+18.3%
Cash & Equivalents

$354M

Previous: $318M+11.3%
Total Assets

$1.78B

Previous: $1.62B+10.1%
Stock-Based Comp

$7.6M

Previous: $4.94M+53.7%

Revenue & EPS history

Stride · Revenue · Quarterly

$505M

Q2 2024+10.1%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
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

Stride is raising its revenue and adjusted operating income forecast for the full year fiscal 2024.

Tailwinds

  • Full year revenue is projected to be in the range of $1.99 billion to $2.04 billion.
  • Capital expenditures are expected to be in the range of $60 million to $65 million.
  • The effective tax rate is estimated to be between 25% and 27%.
  • Adjusted operating income is forecasted to be in the range of $265 million to $285 million.
  • Third quarter revenue is projected to be in the range of $500 million to $520 million.

Headwinds

  • Capital expenditures for the third quarter are expected to be in the range of $14 million to $17 million.
  • Adjusted operating income for the third quarter is forecasted to be in the range of $85 million to $95 million.
  • Forward-looking statements are subject to risks and uncertainties.
  • Actual results may differ materially from expectations.
  • The company undertakes no obligation to update forward-looking statements.

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 2024

Historical avgQ2 2024

+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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