Stride(US:LRN)2023-10-24 16:00Financial Performance - For the three months ended September 30, 2023, revenues increased to $480.2 million from $425.2 million in the prior year, an increase of 12.9%[175] - Operating income for the same period increased to $3.3 million from an operating loss of $28.7 million in the prior year, driven by revenue growth and an increase in gross margin[175] - Revenues for the three months ended September 30, 2023, were $480.2 million, an increase of $55.0 million, or 12.9%, from $425.2 million in the same period last year[197] - The gross margin for the three months ended September 30, 2023, was 36.0%, compared to 30.5% in the prior year[196] - Net income attributable to common stockholders was $4.9 million, or 1.0% of revenues, compared to a net loss of $22.7 million, or (5.3)% of revenues, in the prior year[196] Enrollment and Revenue Segments - Total enrollments for the three months ended September 30, 2023, were 187.9 thousand, an increase of 14.0 thousand, or 8.1%, over the prior year[175] - General Education revenues for the three months ended September 30, 2023, were $299.3 million, an increase of 10.2% from $271.7 million in the prior year[189] - Career Learning revenues for the same period totaled $180.8 million, an increase of 17.8% from $153.5 million in the prior year[189] - Total enrollments in Career Learning increased by 14.1% to 70.3 thousand for the three months ended September 30, 2023[186] - General Education revenues increased by $27.7 million, or 10.2%, year over year, driven by a 4.7% increase in enrollments[197] - Career Learning revenues rose by $27.4 million, or 17.8%, primarily due to a 14.1% increase in enrollments[197] Expenses and Costs - Instructional costs and services expenses were $307.3 million, representing an increase of $11.8 million, or 4.0%, from $295.5 million year over year, with expenses at 64.0% of revenues, down from 69.5%[198] - Selling, general, and administrative expenses were $169.6 million, an increase of $11.2 million, or 7.1%, from $158.4 million, with expenses at 35.3% of revenues, down from 37.2%[199] Cash Flow and Working Capital - As of September 30, 2023, net working capital was $781.1 million, including cash and cash equivalents of $254.6 million and accounts receivable of $629.6 million[202] - Net cash used in operating activities for the three months ended September 30, 2023, was $135.3 million, a decrease of $7.8 million from $143.1 million in the prior year[212] - Net cash used in investing activities was $7.1 million, a decrease of $19.4 million from $26.5 million in the same period last year, primarily due to higher net maturities of marketable securities[213] - Net cash used in financing activities was $13.8 million, a decrease of $11.4 million from $25.2 million in the prior year, mainly due to reduced stock repurchase and contingent consideration payments[214] Strategic Initiatives - The company continues to explore acquisitions, strategic investments, and joint ventures to enhance its business operations[211] - Stride has invested over $600 million in the last twenty years to develop curriculum, systems, instructional practices, and support services[190] - The average duration of agreements for the school-as-a-service offering is greater than five years, with most providing for automatic renewals[173] Diversity and Inclusion - The company is committed to promoting diversity and inclusion, with a leadership team that includes more minorities and women than the representative population[178] Graduation Rates - The company graduated 13,435 high school students in the most recent academic year ended June 30, 2023[167]