Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $164.1 million, an increase of $11.3 million or 7.4% from the prior year [29] - Full year 2024 revenue reached $624 million, exceeding the top end of the original guidance [11] - Adjusted EBITDA for Q4 2024 was $31.4 million, representing a 22.2% increase compared to the prior year [31] - Diluted net income per common share for Q4 2024 was $0.63, slightly down from $0.64 in the prior year [31] - Cash flow from operations for the year was $48.9 million, up from $45.5 million in the prior year [35] Business Line Data and Key Metrics Changes - APUS revenue in Q4 2024 increased to $82.4 million, a 3.8% rise compared to the prior year [31] - Rasmussen's Q4 2024 revenue was $57.5 million, a 9.3% increase year-over-year, with online enrollment up 9% [32] - Hondros College of Nursing saw a 20% revenue increase in Q4 2024, with total enrollment rising 19.3% [34] - Adjusted EBITDA for Rasmussen in Q4 2024 was $5.5 million, compared to $0.6 million in the prior year [33] Market Data and Key Metrics Changes - Overall net course registrations at APUS increased by 7% year-over-year in Q4 2024 [22] - For the full year 2024, APUS total net course registrations increased by 3% compared to 2023 [23] - Rasmussen experienced a 4% year-over-year enrollment increase in Q4 2024, continuing into Q1 2025 with a 7% increase [16] Company Strategy and Development Direction - APEI plans to consolidate its three degree-granting institutions into a single entity, American Public University System, targeting completion by Q4 2025 [24] - The company aims to simplify operations and find revenue and cost synergies through this consolidation [12] - APEI is focusing on enhancing student outcomes and NCLEX pass rates to improve ROI for students [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, with 2025 expected to be a year of revenue and adjusted EBITDA growth [14] - The company anticipates 2025 revenue guidance of $650 million to $660 million and adjusted EBITDA of $75 million to $85 million [14][40] - Management acknowledged challenges in the first quarter due to portal maintenance affecting enrollments but expects recovery as systems are restored [46] Other Important Information - APEI's capital expenditures for 2024 were $21.1 million, with free cash flow for the year at $51.2 million [35] - The company remains net cash positive with total cash and equivalents at $158.9 million as of December 31, 2024 [36] Q&A Session Summary Question: Impact of portal timing on enrollments in Q1 - Management indicated that the portal outage impacted first quarter guidance, with an expected mid-single digits percentage effect [45][46] Question: Timeline for Rasmussen to achieve double-digit adjusted EBITDA margins - Management did not provide specific multi-year guidance but expressed confidence in significant revenue flow-through to the bottom line [50] Question: Drivers of EBITDA contraction year-over-year - Increased advertising and higher labor costs were cited as primary drivers for the expected EBITDA contraction in Q1 2025 [52][53] Question: G&A savings from portfolio consolidation - Management anticipates both revenue and cost synergies from the consolidation, with a focus on long-term growth rather than immediate cost reductions [57][60] Question: Drivers of online growth for Rasmussen - The shift to organic lead generation and hyperlocal marketing strategies were highlighted as key factors driving enrollment growth [62][66]