Stride(LRN) - 2024 Q4 - Annual Report

Financial Performance - For the year ended June 30, 2024, revenues increased to $2,040.1 million, up 11.0$1,837.4 million in the prior year[225]. - Operating income rose to $249.6 million, reflecting a 50.8$165.5 million in the previous year, driven by revenue growth and improved gross margin[225]. - Total revenues for the year ended June 30, 2024, were $2,040,069 thousand, representing an 11.0$1,837,358 thousand in 2023[266]. - General Education revenue for 2024 was $1,289,193 thousand, a 13.9$1,131,391 thousand in 2023[266]. - Career Learning revenue for 2024 was $750,876 thousand, a 6.4$705,967 thousand in 2023[266]. - Net income attributable to common stockholders for 2024 was $204.2 million, or 10.0$126.9 million, or 6.9% in 2023[273]. - Other income for 2024 was $26.9 million, up from$15.5 million in 2023, primarily due to increased investments in marketable securities[277]. - Income tax expense for 2024 was $64.5 million, or 24.0$45.3 million, or 26.3% in 2023[278]. Enrollment and Market Expansion - Total enrollments for the year were 194.3 thousand, an increase of 16.1 thousand or 9.0% compared to the prior year[225]. - General Education enrollments increased by 8.3% to 121.6 thousand in 2024, while Career Learning enrollments increased by 10.3% to 72.7 thousand[265]. - The company provided its school-as-a-service offering to 91 schools in 31 states and the District of Columbia in the General Education market, and 56 schools or programs in 27 states in the Career Learning market[223]. - The company is pursuing expansion into new states for both virtual public and specialized charter schools, which will incur start-up costs[244]. - The company aims to increase revenues in other distribution channels, expand adult learning training programs, and add enrollments in private schools as part of its growth strategy[232]. Costs and Expenses - Instructional costs and services expenses for 2024 were $1,276.5 million, a 7.2$1,190.3 million in 2023, with expenses representing 62.6% of revenues[275]. - Selling, general, and administrative expenses for 2024 were $514.0 million, a 6.7$481.6 million in 2023, accounting for 25.2% of revenues[276]. - Instructional costs are variable and directly related to the number of schools and enrollments, with higher costs associated with high school offerings compared to K-8[242][243]. Investments and Development - The company has invested over $700 million in the last twenty years to develop curriculum, systems, instructional practices, and support services[267]. - The company plans to continue investing in additional curriculum development and related software in the future[246]. - The company continues to explore acquisitions, strategic investments, and joint ventures to enhance its business operations[294]. Cash Flow and Financial Position - Net cash provided by operating activities for the year ended June 30, 2024 was$278.8 million, compared to $203.2 million for the year ended June 30, 2023, reflecting a$75.6 million increase[295]. - Net cash used in investing activities for the year ended June 30, 2024 was $139.9 million, an increase of$21.7 million from $118.2 million in the prior year[297]. - Net cash used in financing activities for the year ended June 30, 2024 decreased to$49.1 million from $63.5 million in the prior year, a decrease of$14.4 million[299]. - As of June 30, 2024, net working capital was $1,001.2 million, including cash and cash equivalents of$500.6 million and accounts receivable of $472.8 million[286]. - The company issued$420.0 million of 1.125% Convertible Senior Notes due 2027, with net proceeds of approximately $408.6 million[288]. - The company had a finance lease liability of$55.6 million as of June 30, 2024, compared to $56.9 million in the previous year[291]. Sustainability and Corporate Responsibility - Environmental sustainability is supported by the nature of the business, with most employees working from home and students attending virtual classes, reducing carbon output[231]. - The company provides adult learning programs addressing skills gaps in information technology and healthcare sectors, offering both in-person and remote training[240]. - The company has entered into agreements to distribute products and services to international and domestic school partners, targeting significant demand for quality online education[238].