Financial Performance - Strategic Education, Inc. generated net revenue of $1.1 billion in 2022[17]. U.S. Higher Education Segment - The U.S. Higher Education segment serves approximately 78,062 students, with 55% enrolled in bachelor's programs and 31% in master's programs[22]. - As of the 2022 fall term, approximately 69% of U.S. Higher Education students were age 31 or older, and 77% were female[22]. - The U.S. Higher Education business is seasonal, with enrollment typically lowest in the third quarter[23]. - Capella University focuses primarily on master's and doctoral degree offerings, with about 64% of its students enrolled in such programs[39]. - Strayer University offers an online MBA through the Jack Welch Management Institute, which is ranked in the Top-10 by Princeton Review[25]. Enrollment and Demographics - The acquisition of Torrens University and associated assets in Australia and New Zealand includes approximately 19,000 students[18]. - Capella University offers a total of 19,651 students enrolled in its Australia/New Zealand segment as of December 31, 2022, with 44% in bachelor's programs and 25% in master's programs[62]. - Approximately 32% of students at the ANZ institutions are aged 31 or older, and 64% of the student population is female[63]. - The ANZ institutions have a diverse student body, with 48% domestic students and 52% international students[64]. Educational Offerings and Partnerships - Torrens University, part of the ANZ segment, is the only investor-funded university in Australia, offering courses in five fields of study[59]. - The ANZ institutions maintain strong industry partnerships, designing most courses in collaboration with industry partners[65]. - Faculty members at the ANZ institutions are required to have a degree at least one level higher than the discipline they teach[69]. - Torrens University must maintain a robust research agenda to retain its university status, with a focus on areas like artificial intelligence and health[70]. Student Support and Affordability - Strategic Education emphasizes relationships with employers to build employee education benefits programs[16]. - The company provides scholarships and tuition discounts, including a Graduation Fund for qualifying students[37]. - Capella University provides scholarships and tuition discounts to promote affordability and encourage student retention[55]. - The company offers various affordability initiatives, including a Graduation Fund that allows students to earn free courses[93]. Technology and Innovation - The Education Technology Services segment is part of the company's strategy to enhance educational access and affordability[16]. - The Education Technology Services segment is a significant source of student enrollment, driven by employer relationships[81]. - The company focuses on innovation, leveraging technology such as artificial intelligence to improve student support and reduce operating costs[88]. - The company aims to enhance student success by hiring outstanding faculty and employing cutting-edge technology[90]. Workforce and Diversity - Strategic Education employed 3,907 full-time employees worldwide as of December 31, 2022, with 2,962 based in the U.S.[92]. - The representation of U.S. employees includes 21.1% Black or African American, 2.7% Hispanic or Latino, 4.9% Asian, and 61.5% White[94]. - The company has established a DEI Programs Team and appointed a Chief Diversity Officer to advance diversity initiatives across the organization[95]. Sustainability Initiatives - The company has reduced its overall physical footprint by more than 25% compared to 2020, leading to decreased energy consumption and waste generation[99]. - Between January 2021 and December 2022, the company securely recycled approximately 50 U.S. short tons of paper, contributing to significant environmental benefits[99]. - The corporate office in Minneapolis, MN is located in a LEED Gold certified building, reflecting the company's commitment to sustainability[99]. - The company encourages green commuting options and covers a portion of public transit costs for employees in Minneapolis, MN[99]. - The company has implemented energy-saving features in campus locations, including LED lighting and energy-efficient HVAC systems[99]. Accreditation and Compliance - Strayer University and Capella University are subject to accreditation rules and must comply with detailed substantive and reporting requirements under the Higher Education Act[104]. - Strayer University has been institutionally accredited since 1981, with accreditation reaffirmed in June 2017, extending to 2025[115]. - Capella University has been institutionally accredited since 1997, with the latest reaffirmation in January 2023, set for 2032-33[120]. - Both universities are subject to extensive regulation in states where they operate, affecting their ability to introduce new programs or establish campuses[126]. - Strayer University and Capella University are participants in the State Authorization Reciprocity Agreement (SARA), allowing them to offer online courses in participating states without additional state approval[138]. Financial Aid and Title IV Programs - Approximately 75% of students at Strayer University and Capella University participate in one or more Title IV programs[145]. - Strayer University derived approximately 82.95% of its cash-basis revenues from Title IV program funds in 2021, while Capella University derived approximately 67.06%[172]. - The Department of Education assesses financial responsibility using a composite score, which must be at least 1.5 for institutions to be deemed financially responsible[160]. - Institutions lose eligibility for Title IV programs if their cohort default rate exceeds 40%[165]. - Strayer University has a full certification for Title IV programs through September 30, 2025, while Capella University is under provisional certification until December 31, 2022[155]. Regulatory Changes and Impacts - The Department of Education's new regulations effective January 1, 2023, require proprietary institutions to count all federal education assistance funds as federal revenue in the 90/10 calculation[174]. - The 90/10 Rule prohibits proprietary institutions from deriving more than 90% of their revenues from federal funds, with potential penalties for non-compliance including provisional certification[171]. - The Department of Education has proposed new income-driven repayment plans aimed at reducing monthly payments for lower- and middle-income borrowers, potentially impacting future cohort default rates[169]. - The Department of Education is expected to publish draft gainful employment rules in spring 2023, following a failed consensus in the negotiated rulemaking committee[183]. - The Department of Education has extended the pause on student loan repayments, with payments set to resume 60 days after the implementation of the relief program or resolution of litigation[168]. Emergency Funding and Relief - The CARES Act established a $12.6 billion Higher Education Emergency Relief Fund, with Strayer University opting not to accept its allocation[207]. - The Consolidated Appropriations Act, 2021, appropriated an additional $22.7 billion for the Higher Education Emergency Relief Fund, with Strayer University eligible for $5,831,606 in direct grants[208]. - The American Rescue Plan Act of 2021 included $40 billion in emergency funding for higher education[209].

Forward-Looking Statements | --- | --- | |-------------------------|---------------------------------------------------------------------------------------------------------------------------------| | Segment | Description | | U.S. Higher Education | Strayer University, including the Jack Welch Management Institute, Devmountain, and Hackbright Academy, and Capella University | | Education Technology | Services Employer Solutions, Sophia Learning, and Workforce Edge | | Australia/New Zealand | Torrens Univer ...

Financial Data and Key Metrics Changes - The company's revenue for the full year declined 5.8% to just under $1.1 billion, with a fourth-quarter revenue decline of 1% to $270 million, although the rate of decline improved due to strong enrollment results throughout the year [12][13] - The company ended 2022 with $250 million in cash and marketable securities and $100 million in debt, with 23.9 million shares outstanding [8][9] Business Line Data and Key Metrics Changes - Total enrollment across Strategic Education, Inc. was essentially flat at just under 98,000 students, with a decrease of 80 basis points in the US higher education segment [11] - The US Higher Education segment saw revenue growth of almost 1% in the fourth quarter due to flat enrollment and an increase in revenue per student [14] - The Education, Technology and Services (ETS) segment's revenue increased by 20% to approximately $17 million, although operating income decreased slightly due to continued investments in technology and products [16] Market Data and Key Metrics Changes - Employer affiliated enrollments increased by 17% from the prior year, now comprising more than 24% of total US higher education enrollments, up approximately 350 basis points from the prior year [15] - The Australia/New Zealand segment grew by approximately 4% in the fourth quarter, with revenue essentially flat on a constant currency basis [18] Company Strategy and Development Direction - The company expects enrollment and revenue to be up in the mid-single digits for 2023, with adjustments to the academic calendar at Torrens University to accommodate visa processing delays [20] - The company anticipates that the majority of year-over-year expense growth will occur in the first half of the year, flattening out in the second half, with overall expenses expected to be up no more than 3% from the prior year [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2022 would be the trough year for earnings, positioning the balance sheet to support upcoming opportunities and return capital to shareholders [9] - Management noted that demand at Strayer and Capella University is among the strongest seen in several years, returning to pre-pandemic levels [14] Other Important Information - Visa processing issues have improved and are close to returning to pre-pandemic levels, with the Australian government mandating that all international students must be in the country attending classes in person by June [19] - The company does not foresee any material impact from China's recent ban on online foreign university studies, as it has relatively few Chinese students in its international cohort [41] Q&A Session Summary Question: Can you repeat the outlook for 2023? - Management expects revenue to be up in the mid-single digits for the full year, with expenses up no more than 3% [24] Question: Where is the demand coming from in US Higher Education? - Demand is consistently high across both Strayer and Capella, with significant new student growth throughout 2022 [25] Question: How are variable expenses managed with enrollment growth? - The bulk of expenses are fixed, and the current expense base can handle many more students, leading to high marginal contributions from incremental enrollments [35][36] Question: What caused the lower margins in the fourth quarter? - Higher than expected bad debt was noted, typical when new students pay at a lower rate than existing students [37] Question: Are visa processing delays impacting international student enrollment? - There has been some impact, but visa approvals are returning to normal, which is seen as a positive for 2023 [39] Question: Will the recent ban on online studies for Chinese students impact the company? - The company does not expect any material impact from this ruling due to the low percentage of Chinese students in its overall international cohort [41]

Financial Data and Key Metrics Changes - Revenue in Q3 2022 was down less than 1% from the prior year, excluding foreign currency fluctuations [8] - The company expects 2022 to be the trough year for revenue and earnings, with substantial increases anticipated in 2023 [19] Business Line Data and Key Metrics Changes - The U.S. Higher Education segment showed significant strength, with inquiries into Strayer and Capella increasing more than 30% from the prior year [8] - Capella's FlexPath program enrollment grew, now comprising approximately 21% of all U.S. higher education enrollments, an increase of 200 basis points from a year ago [10] - The Education Technology Services (ETS) segment grew revenue by 27% in Q3, although operating income remained flat due to ongoing investments [12] Market Data and Key Metrics Changes - The Australia/New Zealand segment experienced a 2% growth in total enrollment and a 1% revenue growth on a constant currency basis [16] - Visa application processing delays continue to impact international student enrollment in Australia/New Zealand, but the company remains optimistic about future growth as these issues are resolved [17] Company Strategy and Development Direction - The company is focused on improving enrollment through corporate partnerships, which have shown significantly higher growth rates compared to non-affiliated enrollments [9] - Investments in ETS are expected to moderate expense growth significantly in 2023, aiming for margins closer to 50% [13] - The launch of SEI's Faculty Action Center at Torrens is anticipated to enhance student satisfaction and retention [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for postsecondary education, even in the face of potential economic downturns [29] - The company does not foresee significant adverse impacts from a recession, provided that labor participation rates remain within a normalized range [32] Other Important Information - The adjusted tax rate for 2022 is expected to be slightly higher, around 31% [35] - The Australian government plans to rescind a waiver for education visa holders in June 2023, which could catalyze a return of international students [46] Q&A Session Summary Question: Insights on U.S. higher education enrollments - Management noted strength across all student types, with FlexPath and nursing programs at Capella being major growth drivers [24][26] Question: Impact of visa application issues on ANZ enrollment - Management indicated significant delays in visa processing, affecting hundreds of interested students, but expects improvements [27][28] Question: Potential impacts of a U.S. recession - Management believes demand for education will remain strong, with only minor impacts expected unless there is a major economic shock [30][32] Question: Modeling inputs for 2023 expectations - Management stated that total enrollment is likely to decline in the mid-single digits for 2022, with expectations for growth in 2023 [34][37] Question: Bad debt trends in the quarter - The increase in bad debt is attributed to a higher proportion of new students, who typically pay at a lower rate [42][44] Question: Regulatory updates and immigration impacts - Management highlighted the upcoming rescindment of the visa waiver in Australia as a positive catalyst for enrollment [46] Question: Effects of labor participation on business metrics - Management indicated that inquiries and applications for new enrollment would likely be adversely impacted by declines in labor participation [48][50]

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 0-21039 Strategic Education, Inc. (Exact name of registrant as specified in this charter) | Maryland | | 52-1975978 | | --- | ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 0-21039 Strategic Education, Inc. (Exact name of registrant as specified in this charter) | Maryland | | 52-1975978 | | --- | --- ...

D SM STRATEGIC EDUCATION INC Q2 2022 Results July 27, 2022 Forward-Looking Statements Statements Under the Private Securities Litigation Reform Act of 1995 Statements in this presentation are "forward-looking statements" under the federal securities laws. Such statements may be identified by the use of words such as "expect," "estimate," "assume," "believe," "anticipate," "may," "will," "forecast," "outlook," "plan," "project," "potential" and other similar words, and include all statements that are not his ...

Financial Data and Key Metrics Changes - The company reported a continued improvement in returning to earnings growth, with total enrollment expected to decline in the mid-single digits for the full year, an improvement from down 11% in Q1 and down 7% in Q2 [8][9] - Inquiry volume in the U.S. Higher Education segment increased by over 20% year-over-year, with Strayer University's branded search volume returning to pre-pandemic levels [9][10] - The Education Technology and Services segment saw a revenue increase of 24% from the prior year [14] Business Line Data and Key Metrics Changes - Strayer University experienced year-over-year improvements in core success and student retention, with total enrollment expected to grow year-over-year by the end of the year [10][11] - Employer Solutions within the Education Technology and Services segment grew total employer-affiliated enrollments by 10%, with the mix of students from employers increasing by 410 basis points [12] - Workforce Edge doubled its corporate partners from 20 to 45, with a total employee base growing from approximately 415,000 to over 1 million [13] Market Data and Key Metrics Changes - The Australia and New Zealand segment saw total enrollment increase slightly, but revenue declined by 10% year-over-year, attributed to timing of enrollments and foreign currency fluctuations [16] - The company expects ANZ revenue to be flat or slightly down for the full year, but remains confident in enrollment growth as international student processes normalize [17] Company Strategy and Development Direction - The company aims to finish the year strong and show significant earnings growth in 2023, focusing on improving academic performance and student outcomes [18] - The capital allocation strategy prioritizes reinvesting in high-returning investments, with dividends and share repurchases considered after ensuring sufficient reinvestment [37][46] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment for U.S. Higher Education has strengthened significantly, attributed to factors such as campus reopenings and improved employment confidence [22][33] - The company does not expect material adverse impacts from a modest recession, as demand for degrees typically remains strong during business cycles [35] Other Important Information - The company anticipates changes in the Department of Education's 90/10 rule but does not foresee exposure across Strayer and Capella [28] - Foreign exchange rates, particularly the Australian dollar, are expected to impact revenue and earnings, with management noting a historical fluctuation range [48][49] Q&A Session Summary Question: What is driving the improving trends at U.S. Higher Education, specifically at Strayer University? - Management attributed the recovery to campus reopenings and a significant increase in demand [22] Question: Can you discuss marketing expenses and cost per lead trends? - Marketing efficiency is approaching pre-pandemic levels, with solid new student growth across all universities [25][26] Question: What are the roadblocks for international students in ANZ? - Processing delays for visas exceeding 200 days are being addressed, with expectations for growth as these delays clear [31] Question: How does the company expect to perform in a potential recession? - Historically, demand for degrees remains strong during business cycles, with no material adverse impact expected from a modest recession [35] Question: What is the plan for share repurchases going forward? - The board has authorized $200 million for repurchases, with a focus on capital allocation prioritizing student outcomes [46][47]

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No. 0-21039 Strategic Education, Inc. (Exact name of registrant as specified in this charter) | Maryland | | 52-1975978 | | --- | --- ...

Strategic Education, Inc. (NASDAQ:STRA) Q1 2022 Earnings Conference Call April 28, 2022 10:00 AM ET Company Participants Terese Wilke - Director, Investor Relations Robert Silberman - Executive Chairman Karl McDonnell - President and Chief Executive Officer Daniel Jackson - Executive Vice President and Chief Financial Officer Conference Call Participants Jeff Silber - BMO Capital Markets Tobey Sommer - Truist Securities Operator Welcome to Strategic Education’s First Quarter 2022 Results Conference Call. I ...