Financial Data and Key Metrics Changes - Total net revenue for Q4 2024 was RMB109 million, a 20.7% increase from RMB83.6 million in Q4 2023, driven by Apollo training programs and overseas study services [15] - Gross profit for Q4 2024 was RMB53.7 million, up 21.6% from RMB52.4 million in Q4 2023, with a gross margin increase to 63.1% from 62.6% [15] - For the full year 2024, total net revenues increased by 21% to RMB268.1 million from RMB221.6 million in 2023, with gross profit rising 23.2% to RMB141.3 million [18][19] - Net income attributable to ATA Creativity Global for Q4 2024 was RMB13.3 million, compared to RMB8.6 million in the prior year [17] Business Line Data and Key Metrics Changes - Portfolio Credit Service accounted for the majority of revenues in Q4 2024, with project-based programs contributing 66.8% of total credit delivery [11] - Revenues from overseas study and other educational services increased by more than 46% [12] - Total student enrollment for 2024 increased by 15.8%, with portfolio training enrollment up 12.9% to 2,807 [21] Market Data and Key Metrics Changes - The demand for portfolio trading services remained strong, with credit hours delivered increasing significantly by 30.8% in 2024 [22] - The company expanded its partnership base, adding two higher education institutions during the quarter [14] Company Strategy and Development Direction - The company aims to be a leading provider of creative arts education services in China, focusing on organic growth, geographic expansion, and new service launches [25] - The opening of the ACG Japan Center in January 2025 and the London Center in September 2024 are part of the strategy to enhance geographic footprint [28] - The company is exploring potential M&A opportunities to supplement its service portfolio [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of creative arts education in China, supported by positive student feedback and increased interest in services [26] - For 2025, the company anticipates net revenues between RMB276 million to RMB281 million, representing a 3% to 5% year-over-year increase [23] - The company expects to return to normalized growth levels post-COVID-19 recovery [24] Other Important Information - The company made a strategic decision to discontinue its junior Arc service to improve operational efficiency, contributing to lower G&A expenses [14] - The company reported a net loss attributable to ATA Creativity Global for the full year 2024 of RMB36.1 million, compared to RMB33.7 million in 2023 [20] Q&A Session Summary Question: Are there any questions from participants? - There were no questions from participants during the call [32]

ATA Creativity Global NASDAQ: AACG 2024 FOURTH QUARTER EARNINGS CALL March 25, 2025 Speakers: Kevin Ma, Chairman & CEO Ruobai Sima, CFO Jun Zhang, President P A G E 1 Safe Harbor Statement This presentation was developed by ATA Creativity Global ("ACG" or the "Company") and is intended to be used solely in connection with ACG's earnings call for the fourth quarter (Q4 2024") and full year ("FY 2024") ended December 31, 2024. This presentation is not to be construed as an offer to sell or the solicitation of ...

Financial Data and Key Metrics Changes - In Q4 2024, total revenue 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, compared to $45.5 million in the prior year [35] Business Line Data and Key Metrics Changes - At APUS, Q4 2024 revenue increased to $82.4 million, a 3.8% increase year-over-year, with net course registrations up 7% [32] - Rasmussen's Q4 2024 revenue was $57.5 million, a 9.3% increase, with total enrollment increasing 4% to approximately 14,600 students [32] - Hondros College of Nursing saw a 20% increase in revenue in Q4 2024, with total enrollment up 19.3% to approximately 3,700 students [34] Market Data and Key Metrics Changes - Overall net course registrations at APUS increased by 7% year-over-year in Q4 2024, driven by military and military-affiliated registrations [22] - The nursing schools continue to be a significant driver of growth, with an annual shortage of approximately 200,000 nurses in the market [21] 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 optimizing marketing spend and enhancing student support to drive enrollment growth [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, highlighting positive enrollment trends and the achievement of positive EBITDA at Rasmussen [10][17] - 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 enrollment but expects recovery as the portal is now operational [46] Other Important Information - APEI plans to redeem preferred shares by the end of Q2 2025, which is expected to be accretive to net income and earnings per share [13][41] - The company remains net cash positive with total cash and equivalents of $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 [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 in Q1 - Increased advertising and higher labor costs were cited as primary drivers for the expected year-over-year EBITDA contraction [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 [59] Question: Drivers of online growth for Rasmussen - The optimization of marketing spend and a shift towards organic lead generation were highlighted as key factors driving enrollment growth [62]

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]

Core Viewpoint - American Public Education, Inc. (APEI) is expected to report its fourth-quarter 2024 results on March 6, with a focus on revenue growth and enrollment trends across its segments [1]. Financial Performance - In the last reported quarter, APEI's earnings per share (EPS) exceeded the Zacks Consensus Estimate by 300%, while revenues fell short by 0.3%. Year-over-year, revenues increased by 1.5% and EPS rose by 100% [2]. - The Zacks Consensus Estimate for the fourth-quarter EPS is stable at 54 cents, indicating a 15.6% decrease from the previous year's EPS of 64 cents. Revenue estimates are pegged at $161.6 million, suggesting a 5.7% year-over-year rise [3]. Enrollment and Revenue Growth - APEI's fourth-quarter revenues are anticipated to increase due to strong performance across all segments, particularly in the American Public University System (APUS) and Hondros College of Nursing (HCN) [4]. - APUS is expected to see total net course registrations grow by 4% to 6%, driven by military-affiliated programs. HCN's enrollment is projected to rise by 19% to 3,700 students, while Rasmussen University (RU) is expected to have a 4% increase in student enrollment to 14,600 [6]. Segment Revenue Expectations - For the fourth quarter, revenues in the APUS and HCN segments are expected to increase by 2.8% to $81.6 million and by 20.6% to $19 million, respectively. RU segment revenues are predicted to grow by 5.4% to $55.4 million [7]. Margin and Income Projections - APEI is expected to report net income between $9 million and $11 million, down from $11.5 million a year ago, translating to EPS between 47 cents and 56 cents [9]. - Adjusted EBITDA is projected to be between $23 million and $26 million, compared to $25.7 million a year ago, with adjusted EBITDA margins expected to decline by 70 basis points to 16.1% [9]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for APEI, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 (Hold) [10][11].

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Financial Data and Key Metrics Changes - For the full year 2024, revenue increased by 8% and operating income increased by 26%, resulting in almost 200 basis points of operating margin expansion [6] - Adjusted earnings per share grew by 31% for the year to $4.87 [7] Business Line Data and Key Metrics Changes - In US higher education, revenue increased by 5% for the year, but decreased in the fourth quarter due to higher scholarships and a shift towards employer-affiliated students [8] - The Australia and New Zealand segment saw revenue growth of 11% on a constant currency basis, driven by enrollment growth and higher revenue per student [9] - The education technology services segment achieved record revenue growth of over 30% to exceed $100 million, with operating income increasing by almost 50% [12] Market Data and Key Metrics Changes - US higher education average total enrollment grew by 6% in 2024, with employer-affiliated enrollment growing by 16% [7] - The Australia and New Zealand segment's average total enrollment grew by 5% for the year [8] Company Strategy and Development Direction - The company continues to focus on productivity and disciplined cost management, which allowed expense growth to remain below revenue growth in US higher education [8] - The network of corporate partners is a major competitive strength, with over 70% of incremental total enrollment in US higher education coming through these partnerships [14] - The company plans to market more towards the domestic Australian market to counteract potential enrollment caps [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, projecting mid-single-digit growth in US higher education and high single-digit growth in Australia and New Zealand [41] - The company is monitoring the evolving political and regulatory environment in Australia, particularly regarding international student immigration [11][22] Other Important Information - The company generated approximately $217 million pretax cash from operations in 2024, with $128 million of distributable free cash flow remaining after expenses and dividends [15] - The company repaid a $61 million balance on its revolver and refinanced a $250 million revolver, ending 2024 with just under $200 million in cash and marketable securities [16] Q&A Session Summary Question: Enrollment trends and growth expectations - Management noted that corporate partnership enrollment remains strong, and while growth may normalize to long-term trends, they expect fluctuations in quarterly performance [20] Question: Regulatory changes in Australia and New Zealand - Management explained that the proposed international student caps were replaced with a ministerial direction focusing on visa processing times, which may impact enrollment later in the year [22][25] Question: Impact of US government changes on business - Management indicated that they have a significant presence among federal government employees and are monitoring the situation as new political appointees are confirmed [27] Question: Adjusted operating expenses and future guidance - Management confirmed that the adjusted operating expense of $271 million in 2024 is expected to be appropriate for 2025, with some seasonality in marketing investments [38] Question: Revenue per student decline in US higher education - Management attributed the decline to a shift towards employer-affiliated students and higher scholarships, expecting revenue per student to remain stable in 2025 [54][55]