Strategic Education(STRA) - 2024 Q4 - Annual Results

Financial Performance - Revenue increased 7.7% to $1,219.9 million in 2024 compared to $1,132.9 million in 2023[2] - Net income rose to $112.7 million in 2024 from $69.8 million in 2023, representing a 61.4% increase[2] - Adjusted EBITDA for 2024 was $233.8 million, up from $196.5 million in 2023, reflecting an 18.9% growth[2] - Diluted earnings per share increased to $4.67 in 2024 from $2.91 in 2023, marking a 60.5% rise[2] - Net income for the twelve months ended December 31, 2024, rose to $112,684 thousand, a 61.3% increase from $69,791 thousand in 2023[16] - Basic earnings per share for Q4 2024 decreased to $1.08 from $1.67 in Q4 2023, while diluted EPS fell to $1.05 from $1.63[16] - Net income for the three months ended December 31, 2024, was $30,784,000, compared to $39,129,000 in 2023, reflecting a decrease of 21.5%[25] - Operating margin improved from 11.6% in Q4 2023 to 13.0% in Q4 2024, indicating enhanced operational efficiency[25] - The company reported an operating income of $157,276,000 for the twelve months ended December 31, 2024, compared to $155,628,000 in 2023, a growth of 1.1%[28] Revenue Segments - Student enrollment in the U.S. Higher Education segment increased 6.4% in 2024 compared to 2023, reaching 88,860 students[7] - Revenue in the Education Technology Services segment surged 39.3% to $30.5 million in Q4 2024 compared to $21.9 million in Q4 2023[7] - The Australia/New Zealand segment saw a 5.4% revenue increase to $66.7 million in Q4 2024 compared to $63.3 million in Q4 2023[7] - U.S. Higher Education segment revenues for Q4 2024 decreased to $214,332 thousand from $217,551 thousand in Q4 2023[21] - Education Technology Services segment revenues for the twelve months ended December 31, 2024, increased to $104,921 thousand, up 30.4% from $80,453 thousand in 2023[21] - U.S. Higher Education segment revenues for Q4 2023 were $217.6 million, slightly down from $214.3 million in Q4 2024, while the twelve-month revenues increased from $819.0 million to $857.9 million, a growth of 4.7%[31] - Education Technology Services segment revenues for Q4 2023 were $21.9 million, up from $30.5 million in Q4 2024, with twelve-month revenues increasing from $80.5 million to $104.9 million, a growth of 30.3%[31] Cash Flow and Assets - Cash provided by operations in 2024 was $169.3 million, up from $117.1 million in 2023[7] - Cash provided by operating activities for the year ended December 31, 2024, was $169,331 thousand, an increase from $117,119 thousand in 2023[19] - The company reported a net cash used in investing activities of $64,360 thousand for 2024, compared to $48,545 thousand in 2023[19] - Total current assets decreased to $304,943 thousand in 2024 from $329,069 thousand in 2023, primarily due to a decline in cash and cash equivalents[18] - Total liabilities decreased to $387,236 thousand in 2024 from $472,695 thousand in 2023, reflecting a reduction in long-term debt[18] - Total stockholders' equity increased to $1,662,499 thousand in 2024 from $1,652,518 thousand in 2023, indicating a stable financial position[18] Costs and Expenses - Total costs and expenses for Q4 2024 were $271,029,000, down from $248,478,000 in Q4 2023, a reduction of 6.9%[25] - The total costs and expenses for the twelve months ended December 31, 2024, were $1,062,654,000, a slight decrease from $1,064,302,000 in 2023[28] - Consolidated bad debt expense as a percentage of revenue was 4.5% in Q4 2024, up from 3.7% in Q4 2023[8] Strategic Initiatives and Future Outlook - The company anticipates continued growth in revenues and operational improvements in the upcoming quarters[29] - Strategic initiatives include ongoing integration efforts from recent mergers and a focus on expanding educational offerings in international markets[29] - The company is focusing on market expansion and new product development, particularly in the Education Technology Services sector, to drive future growth[31] - The company incurred restructuring costs of $1.0 million in Q4 2023, with total restructuring costs for the twelve months amounting to $16.3 million, indicating ongoing efforts to streamline operations[31]