Laureate Education(US:LAUR)2021-11-06 17:07Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $268 million, with adjusted EBITDA at $76 million, both exceeding previous guidance [17] - Year-over-year revenue growth was 13% and adjusted EBITDA increased by 68% on a comparable basis and at constant currency [18] - For the first nine months of 2021, revenue grew by 9% and adjusted EBITDA increased by 89% [20] Business Line Data and Key Metrics Changes - New enrollments in Peru increased by 35% year-over-year during the smaller secondary intake, with total enrollments up 30% [24] - In Mexico, new enrollments rose by 11% during the primary intake, leading to a total enrollment growth of 6% [21] - Adjusted EBITDA for Mexico was up 61% year-over-year, driven by revenue growth and timing of expenses [23] Market Data and Key Metrics Changes - Total enrollments reached 390,000 students, up 16% year-over-year, surpassing pre-pandemic levels by 5% [7] - The combined population of Mexico and Peru exceeds 160 million, with significant growth potential in higher education participation rates [11] Company Strategy and Development Direction - The company aims to accelerate revenue growth from mid-single digits to high single digits or even double digits in the coming years [10] - Focus on digital transformation and online education capabilities to expand the addressable market [30] - Commitment to maintaining a strong balance sheet while pursuing growth initiatives [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery from the COVID-19 pandemic and the strong enrollment trends [7][14] - The digital enablement of the company has made growth more capital efficient, with future investments funded by internally generated free cash flows [14] - The company remains committed to sustainability and ESG initiatives despite discontinuing the B Corp certification process [45] Other Important Information - The divestiture of Walden University was completed, returning $1.3 billion to shareholders [9] - The company maintains a net cash position of approximately $1.7 billion as of September 30, 2021 [27] Q&A Session Summary Question: Impressive results in Peru, what is the limit for volumes and margins? - Management noted that online capabilities are expanding the addressable market, allowing for growth in both Peru and Mexico [34] Question: What is the level of capacity utilization of on-campus facilities? - Management indicated that they can grow by 25% in the face-to-face environment without adding physical plant due to improved online delivery [38] Question: What capital investments are necessary for organic revenue growth? - Management stated that the growth agenda is capital light, with most investments already made in online capabilities [40][42] Question: What does the discontinuation of B Corp certification mean for sustainability? - Management confirmed that they remain committed to sustainability and will continue to advance their ESG agenda despite dropping the B Corp certification [45][47]