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2U Reports Results for Fourth Quarter and Full-Year 2023

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LANHAM, Md., Feb. 12, 2024 /PRNewswire/ — 2U, Inc. (Nasdaq: TWOU), a leading online education platform company, today reported financial and operating results for the quarter and full-year ended December 31, 2023.

“I am proud to lead 2U through the next chapter of its journey,” said Paul Lalljie, Chief Executive Officer of 2U. “We finished the year with strong performance, particularly in our executive education business, and a new organizational structure designed to enhance transparency and alignment across the company. We are resetting and enhancing our operations with renewed financial discipline. Looking ahead, we believe this renewed focus, along with our market-proven offerings, robust partner network, and scalable technology and services, will allow us to take advantage of increasing demand for high-quality online education and continue to deliver on our mission.”

“Our immediate focus in 2024 is to strengthen the fundamentals of our business in order to extend our debt maturities and restore a healthy balance sheet,” added Matthew Norden, Chief Financial Officer of 2U. “The measures we have already implemented are good first steps to enhancing our operational efficiency and improving our adjusted EBITDA and free cash flow, but we are not done. We are undergoing a comprehensive review of our business to streamline and consolidate costs, implement rigorous criteria for new programs, and optimize staffing levels in key functional areas while maintaining the quality of our offerings to partners and students. We are approaching the future with new financial discipline, providing us with the foundation to actively manage our upcoming maturities and build a scalable business.”

Results for Fourth Quarter 2023 compared to Fourth Quarter 2022

Revenue increased 8% to $255.7 millionDegree Program Segment revenue increased 19% to $163.5 millionAlternative Credential Segment revenue decreased 7% to $92.2 millionNet loss was $42.4 million, or $0.52 per share, and includes non-cash impairment charges of $62.8 million

Non-GAAP Results for Fourth Quarter 2023 compared to Fourth Quarter 2022

Adjusted EBITDA increased 54% to $90.2 million; a margin of 35%Adjusted net income was $49.5 million, or $0.48 per share

Results for Full-Year 2023 compared to Full-Year 2022

Revenue decreased 2% to $946.0 millionDegree Program Segment revenue decreased 2% to $561.0 millionAlternative Credential Segment revenue decreased 2% to $384.9 millionNet loss was $317.6 million, or $3.93 per share, and includes non-cash impairment charges of $196.9 million

Non-GAAP Results for Full-Year 2023 compared to Full-Year 2022

Adjusted EBITDA increased 37% to $170.8 million; a margin of 18%Adjusted net income was $15.4 million, or $0.19 per share

Discussion of 2023 Results

Revenue for the quarter totaled $255.7 million, an 8% increase from $236.0 million in the fourth quarter of 2022. Revenue from the Degree Program Segment increased $26.4 million, or 19%, and included $54.6 million of revenue recognized from the mutually negotiated exit of certain degree programs, also referred to as portfolio management activities. Revenue from the Alternative Credential Segment decreased $6.7 million, or 7%, primarily due to lower enrollments in coding boot camp offerings, partially offset by 8% growth in FCE enrollments in executive education offerings.

Revenue for the year totaled $946.0 million, a 2% decrease from $963.1 million in 2022. Revenue from the Degree Program Segment decreased $10.6 million, or 2%, and included $88.0 million of revenue recognized from portfolio management activities. Revenue from the Alternative Credential Segment decreased $6.6 million, or 2%, primarily due to lower enrollments in coding boot camp offerings, partially offset by 8% growth in FCE enrollments in executive education offerings.

Costs and expenses for the quarter totaled $278.2 million, a 21% increase from $230.6 million in the fourth quarter of 2022. Fourth quarter costs and expenses included $62.8 million of non-cash impairment charges to goodwill for which the company did not have a corresponding expense in the fourth quarter of 2022. The remaining change in costs and expenses, a decrease of $15.2 million, was primarily driven by a $27.2 million decrease in personnel and personnel-related expense and a $4.6 million decrease in depreciation and amortization expense. These decreases were partially offset by a $9.6 million increase in restructuring charges, primarily driven by changes to the company’s organizational structure, a $4.0 million increase in paid marketing costs, and a $3.1 million increase in transaction and integration expense.

Costs and expenses for the year totaled $1.17 billion, a 4% decrease from $1.22 billion in 2022. This $49.5 million decrease in costs and expenses includes a $58.6 million increase in non-cash impairment charges to goodwill and indefinite-lived intangible assets. The remaining change in costs and expenses, a decrease of $108.1 million, was primarily driven by a $66.6 million decrease in personnel and personnel-related expense, a $25.5 million decrease in paid marketing costs, a $12.8 million decrease in depreciation and amortization expense, and an $11.5 million decrease in lease and facility expense.

Liquidity and Cash Flow

As of December 31, 2023, the company’s cash, cash equivalents, and restricted cash totaled $73.4 million, a decrease of $109.2 million from $182.6 million as of December 31, 2022. As of December 31, 2023, the company’s total debt was $904.7 million, including borrowings of $40.0 million under the company’s revolving credit facility.

In January 2024, the company entered into a receivables factoring transaction with Morgan Stanley Senior Funding (“Morgan Stanley”) whereby Morgan Stanley has committed to purchase up to $86.2 million of receivables owing to the company related to portfolio management activities at a purchase rate of 88%.

The company expects that if it does not amend or refinance its term loan, or raise capital to reduce its debt in the short term, and in the event the obligations under its term loan accelerate or come due within twelve months from the date of its financial statement issuance in accordance with its current terms, there is substantial doubt about its ability to continue as a going concern. The company’s financial statements will be included in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. 

Business Highlights

Transitioned to a new organizational structure with an executive leading each of the company’s business segments. Andrew Hermalyn has been appointed President of the Degree Program Segment, and Aaron McCullough has been appointed President of the Alternative Credential Segment.Announced new offerings under our flexible degree partnership model:The University of Birmingham – seven new online master’s degrees across in-demand fields including data science, digital media, and marketing;The University of Surrey – fifteen online master’s degrees to be launched over three years, plus more than 15 professional certificate programs in the fields of technology, business, healthcare, communications technologies, and sustainability.Added 98 new edX courses from 41 unique institutions.Added new edX members including the University of Birmingham, Howard University, and Avado.

Forward-Looking Guidance

As of February 12, 2024, the company is initiating its first quarter and full-year 2024 guidance as follows:

First quarter 2024

Revenue to range from $195 million to $198 millionNet loss to range from $60 million to $55 millionAdjusted EBITDA to range from $10 million to $12 million

Full-year 2024

Revenue to range from $805 million to $815 millionNet loss to range from $90 million to $85 millionAdjusted EBITDA to range from $120 million to $125 million

The company is undergoing a comprehensive performance improvement exercise, the potential results of which are not reflected in the guidance above. This effort aims to improve our profitability through cost control and contribution margin improvement across both segments, optimize our operating model, ensure staffing levels align with business priorities across functional areas, and deleverage our balance sheet. In addition, guidance assumes the following: (i) no new portfolio management activities in 2024 and (ii) revenue from 2023 portfolio management activities of $10 million in the first quarter of 2024 and $15 million in full-year 2024.

For full-year 2024, we anticipate approximately $45 million in capital expenditures and weighted average shares outstanding of 85 million.

Non-GAAP Measures

To provide investors and others with additional information regarding 2U’s results, the company has disclosed the following non-GAAP financial measures: adjusted EBITDA (loss), adjusted EBITDA margin, adjusted free cash flow, adjusted unlevered free cash flow, adjusted net income (loss), and adjusted net income (loss) per share. The company has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. The company defines adjusted EBITDA (loss) as net income or net loss, as applicable, before net interest income (expense), other income (expense), net, taxes, depreciation and amortization expense, transaction costs, integration costs, restructuring-related costs, stockholder activism costs, certain litigation-related costs, consisting of fees for certain non-ordinary course litigation and other proceedings, impairment charges, debt modification expense and loss on debt extinguishment, and stock-based compensation expense. The company defines adjusted EBITDA margin as adjusted EBITDA divided by revenue. The company defines adjusted free cash flow as net cash provided by (used in) operating activities, less capital expenditures, payments to university clients, and certain non-ordinary cash payments. The company defines adjusted unlevered free cash flow as adjusted free cash flow less cash interest payments on debt. The company defines adjusted net income (loss) as net income or net loss, as applicable, before other income (expense), net, acquisition-related gains or losses, deferred revenue fair value adjustments, transaction costs, integration costs, restructuring-related costs, stockholder activism costs, certain litigation-related costs, consisting of fees for certain non-ordinary course litigation and other proceedings, impairment charges, debt modification expense and loss on debt extinguishment, and stock-based compensation expense. Adjusted net income (loss) per share is calculated as adjusted net income (loss) divided by diluted weighted-average shares of common stock outstanding for periods that result in adjusted net income, and basic weighted-average shares outstanding for periods that result in an adjusted net loss. Some of the adjustments described above may not be applicable in any given reporting period and may vary from period to period.

The company’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, to understand cash that is generated by or available for operational expenses and investment in the business after capital expenditures, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate the company’s financial performance. Management believes these non-GAAP financial measures reflect the company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in the company’s business as they exclude expenses that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the company’s operating results and prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies.

The use of adjusted EBITDA (loss), adjusted free cash flow, adjusted unlevered free cash flow, adjusted net income (loss), and adjusted net income (loss) per share measures has certain limitations, as they do not reflect all items of income and expense that affect the company’s operations. The company compensates for these limitations by reconciling the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review the company’s financial information in its entirety and not rely on a single financial measure.

Conference Call Information

What:

2U’s fourth quarter and full-year 2023 financial results conference call

When:

Monday, February 12, 2024

Time:

4:30 p.m. ET

Live Call:

(888) 330-2446

Conference ID #:

1153388

Webcast:

investor.2U.com

About 2U, Inc. (Nasdaq: TWOU)

2U is a global leader in online education. Guided by its founding mission to eliminate the back row in higher education, 2U has spent 15 years advancing the technology and innovation to deliver world-class learning outcomes at scale. Through its global online learning platform edX, 2U connects more than 83 million people with thousands of affordable, career-relevant learning opportunities in partnership with 260 of the world’s leading universities, institutions, and industry experts. From free courses to full degrees, 2U is creating a better future for all through the power of high-quality online education. Learn more at 2U.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains forward-looking statements regarding 2U, Inc.’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding future results of operations and financial position of 2U, including financial targets, business strategy, and plans and objectives for future operations, are forward-looking statements. 2U has based these forward-looking statements largely on its estimates of its financial results and its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs as of the date of this press release. The company undertakes no obligation to update these statements as a result of new information or future events. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from the results predicted, including, but not limited to:

trends in the higher education market and the market for online education, and expectations for growth in those markets;the company’s ability to maintain minimum recurring revenues or other financial ratios through the maturity date of its amended term loan facilities;the acceptance, adoption and growth of online learning by colleges and universities, faculty, students, employers, accreditors and state and federal licensing bodies;the impact of competition on the company’s industry and innovations by competitors;the company’s ability to comply with evolving regulations and legal obligations related to data privacy, data protection and information security;the company’s expectations about the potential benefits of its cloud-based software-as-a-service technology and technology-enabled services to university clients and students;the company’s dependence on third parties to provide certain technological services or components used in its platform;the company’s expectations about the predictability, visibility and recurring nature of its business model;the company’s ability to meet the anticipated launch dates of its offerings;the company’s ability to acquire new clients and expand its offerings with existing university clients;the company’s ability to successfully integrate the operations of its acquisitions, including the edX acquisition, to achieve the expected benefits of its acquisitions and manage, expand and grow the combined company;the company’s ability to refinance its indebtedness on attractive terms, if at all, to better align with its focus on profitability and address impending maturities;the company’s ability to service its substantial indebtedness and comply with the covenants and conversion obligations contained in the indentures governing its 2.25% convertible senior notes due 2025 and 4.50% convertible senior notes due 2030 and the credit agreement governing its revolving credit facility; the company’s ability to implement its platform strategy and achieve the expected benefits; the company’s ability to generate sufficient future operating cash flows from recent acquisitions to ensure related goodwill is not impaired;the company’s ability to execute its growth strategy, including internationally and growing its enterprise business;the company’s ability to continue to recruit prospective students for its offerings;the company’s ability to maintain or increase student retention rates in its degree programs;the company’s ability to attract, hire and retain senior management and other key personnel;the company’s expectations about the scalability of its cloud-based platform;potential changes in laws, regulations or guidance applicable to the company or its university clients;the company’s expectations regarding the amount of time its cash balances and other available financial resources will be sufficient to fund its operations;the impact and cost of stockholder activism;the potential negative impact of the significant decline in the market price of the company’s common stock, including the impairment of goodwill and indefinite-lived intangible assets;the expected impact of our 2022 Strategic Realignment Plan, or similar performance improvement initiatives, and the estimated savings and amounts expected to be incurred in connection therewith;the impact of any natural disasters or public health emergencies, such as the COVID-19 pandemic;the company’s expectations regarding the effect of the capped call transactions and regarding actions of the option counterparties and/or their respective affiliates; andother factors beyond the company’s control.

These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and other SEC filings. Moreover, 2U operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for 2U management to predict all risks, nor can 2U assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements 2U may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated.

Investor Relations Contact: investorinfo@2U.com

Media Contact: media@2U.com

 

2U, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

December 31,
2023

December 31,
2022

(unaudited)

Assets

Current assets

Cash and cash equivalents

$           60,689

$         167,518

Restricted cash

12,710

15,060

Accounts receivable, net

115,944

62,826

Other receivables, net

28,293

33,813

Prepaid expenses and other assets

33,828

43,090

Total current assets

251,464

322,307

Other receivables, net, non-current

12,507

14,788

Property and equipment, net

40,233

45,855

Right-of-use assets

63,986

72,361

Goodwill

651,498

734,620

Intangible assets, net

371,198

549,755

Other assets, non-current

68,797

71,173

Total assets

$      1,459,683

$      1,810,859

Liabilities and stockholders’ equity

Current liabilities

Accounts payable and accrued expenses

$         103,378

$         110,020

Deferred revenue

81,949

90,161

Lease liability

15,158

13,909

Accrued restructuring liability

14,506

6,692

Other current liabilities

44,348

58,210

Total current liabilities

259,339

278,992

Long-term debt

896,514

928,564

Deferred tax liabilities, net

323

282

Lease liability, non-current

83,297

99,709

Other liabilities, non-current

1,165

1,796

Total liabilities

1,240,638

1,309,343

Stockholders’ equity

Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued

Common stock, $0.001 par value, 200,000,000 shares authorized, 82,260,619 shares issued

and outstanding as of December 31, 2023; 78,334,666 shares issued and outstanding as of

December 31, 2022

83

78

Additional paid-in capital

1,741,657

1,700,855

Accumulated deficit

(1,497,579)

(1,179,972)

Accumulated other comprehensive loss

(25,116)

(19,445)

Total stockholders’ equity

219,045

501,516

Total liabilities and stockholders’ equity

$      1,459,683

$      1,810,859

 

2U, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

2022

(unaudited)

(unaudited)

(unaudited)

Revenue

$         255,661

$         236,049

$         945,953

$         963,080

Costs and expenses

Curriculum and teaching

30,219

32,953

129,304

129,886

Servicing and support

27,120

35,002

128,298

147,797

Technology and content development

40,607

49,823

176,218

190,472

Marketing and sales

79,816

80,504

372,129

422,147

General and administrative

23,972

28,272

132,680

159,418

Restructuring charges

13,674

4,067

36,256

33,239

Impairment charges

62,754

196,871

138,291

Total costs and expenses

278,162

230,621

1,171,756

1,221,250

(Loss) income from operations

(22,501)

5,428

(225,803)

(258,170)

Interest income

862

398

1,961

1,165

Interest expense

(19,533)

(18,525)

(74,573)

(62,234)

Debt modification expense and loss on debt extinguishment

(16,735)

Other (expense) income, net

(52)

427

(803)

(3,815)

Loss before income taxes

(41,224)

(12,272)

(315,953)

(323,054)

Income tax (expense) benefit

(1,224)

429

(1,654)

903

Net loss

$          (42,448)

$          (11,843)

$       (317,607)

$       (322,151)

Net loss per share, basic and diluted

$              (0.52)

$              (0.15)

$              (3.93)

$              (4.17)

Weighted-average shares of common stock outstanding, basic and diluted

82,140,194

78,261,601

80,891,146

77,327,850

Other comprehensive loss (income)

Foreign currency translation adjustments, net of tax of $0 for all periods presented

1,448

2,448

(5,671)

(3,534)

Comprehensive loss

$          (41,000)

$            (9,395)

$       (323,278)

$       (325,685)

 

2U, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

Year Ended

December 31,

2023

2022

2021

(unaudited)

Cash flows from operating activities

Net loss

$           (317,607)

$           (322,151)

$           (194,766)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Non-cash interest expense

13,652

19,835

25,403

Depreciation and amortization expense

115,322

128,153

108,448

Stock-based compensation expense

39,688

80,220

97,766

Non-cash lease expense

17,404

21,020

18,933

Restructuring

866

9,555

5,014

Impairment charges

196,871

138,291

Provision for credit losses

10,017

8,610

8,036

Loss on debt extinguishment

12,123

1,101

Gain on sale of investment

(27,762)

Other

965

5,443

2,515

Changes in operating assets and liabilities, net of assets and liabilities acquired:

Accounts receivable, net

(58,972)

(3,041)

(31,756)

Other receivables, net

2,980

(517)

(27,001)

Prepaid expenses and other assets

13,504

4,833

(7,636)

Accounts payable and accrued expenses

(436)

(42,735)

21,212

Deferred revenue

(8,657)

5,326

9,388

Other liabilities, net

(41,151)

(41,915)

(26,969)

Net cash (used in) provided by operating activities

(3,431)

10,927

(18,074)

Cash flows from investing activities

Purchase of a business, net of cash acquired

5,010

(761,118)

Additions of amortizable intangible assets

(44,010)

(62,445)

(60,546)

Purchases of property and equipment

(6,021)

(11,755)

(9,788)

Purchase of investments

(1,000)

Proceeds from investments

38,818

Advances made to university clients

(310)

Advances repaid by university clients

200

200

200

Other

(50)

Net cash used in investing activities

(49,831)

(69,350)

(793,434)

Cash flows from financing activities

Proceeds from debt

329,223

696

569,477

Payments on debt

(375,283)

(7,181)

(4,334)

Prepayment premium on extinguishment of senior secured term loan facility

(5,666)

Payment of debt issuance costs

(4,411)

(11,575)

Tax withholding payments associated with settlement of restricted stock units

(1,093)

(2,850)

(18,780)

Proceeds from exercise of stock options

110

1,128

6,489

Proceeds from employee stock purchase plan share purchases

2,102

1,282

3,583

Net cash (used in) provided by financing activities

(55,018)

(6,925)

544,860

Effect of exchange rate changes on cash

(899)

(1,983)

(2,309)

Net decrease in cash, cash equivalents and restricted cash

(109,179)

(67,331)

(268,957)

Cash, cash equivalents and restricted cash, beginning of period

182,578

249,909

518,866

Cash, cash equivalents and restricted cash, end of period

$               73,399

$             182,578

$             249,909

 

2U, Inc.

Reconciliation of Non-GAAP Measures – Adjusted EBITDA

(unaudited)

The following table presents a reconciliation of adjusted EBITDA to net loss for each of the periods indicated.

Three Months Ended

December 31,

Year Ended

December 31,

2023

2022

2023

2022

(in thousands, except share and per share amounts)

Revenue

$      255,661

$      236,049

$      945,953

$      963,080

Net loss

$      (42,448)

$      (11,843)

$    (317,607)

$    (322,151)

Stock-based compensation expense

3,702

17,480

39,688

80,220

Other expense (income), net

52

(427)

803

3,815

Amortization of acquired intangible assets

7,688

10,901

34,225

53,417

Income tax benefit on amortization of acquired intangible assets

(19)

(1)

(76)

(1,202)

Impairment charges

62,754

196,871

138,291

Debt modification expense and loss on debt extinguishment

16,735

Restructuring charges

13,674

4,067

36,256

33,239

Other*

4,079

(1,677)

8,462

3,348

  Adjusted net income (loss)

49,482

18,500

15,357

(11,023)

Net interest expense

18,671

18,127

72,612

61,069

Income tax expense (benefit)

1,243

(428)

1,730

299

Depreciation and amortization expense

20,788

22,182

81,097

74,736

  Adjusted EBITDA

$        90,184

$        58,381

$      170,796

$      125,081

Adjusted EBITDA margin

35 %

25 %

18 %

13 %

Net loss per share, basic and diluted

$          (0.52)

$          (0.15)

$          (3.93)

$          (4.17)

Adjusted net income (loss) per share, basic

$            0.60

$            0.24

$            0.19

$          (0.14)

Adjusted net income (loss) per share, diluted**

$            0.48

$            0.23

$            0.19

$          (0.14)

Weighted-average shares of common stock outstanding, basic

82,140,194

78,261,601

80,891,146

77,327,850

Weighted-average shares of common stock outstanding, diluted

112,909,097

78,921,457

82,331,052

77,327,850

*

Includes (i) transaction and integration expense of $3.3 million and $0.2 million for the three months ended December 31, 2023 and 2022, respectively, and $3.6 million and $3.6 million for the years ended December 31, 2023 and 2022, respectively and (ii) litigation-related expense (recoveries) of $0.8 million and $(1.9) million for the three months ended December 31, 2023 and 2022, respectively, and $4.9 million and $(0.3) million for the years ended December 31, 2023 and 2022, respectively.

**

For the purposes of calculating adjusted net income per share on a diluted basis, interest expense associated with the company’s convertible notes of $5.0 million has been added back to adjusted net income for the three months ended December 31, 2023.  For all other periods presented, no such adjustment was made as the result would be anti-dilutive.

 

2U, Inc.

Reconciliation of Non-GAAP Measures – Adjusted EBITDA by Segment

(unaudited)

The following table presents a reconciliation of adjusted EBITDA (loss) to net income (loss) by segment for each of the periods indicated.

Degree Program Segment

Alternative Credential Segment

Consolidated

Three Months Ended

December 31,

Three Months Ended

December 31,

Three Months Ended

December 31,

2023

2022

2023

2022

2023

2022

(in thousands)

Revenue

$   163,466

$   137,109

$     92,195

$     98,940

$   255,661

$   236,049

Net income (loss)

$     38,120

$     15,093

$    (80,568)

$    (26,936)

$    (42,448)

$    (11,843)

Adjustments:

Stock-based compensation expense

2,180

9,754

1,522

7,726

3,702

17,480

Other expense (income), net

2

(806)

50

379

52

(427)

Net interest expense (income)

18,778

18,197

(107)

(70)

18,671

18,127

Income tax expense (benefit)

100

132

1,124

(561)

1,224

(429)

Depreciation and amortization expense

14,777

16,506

13,699

16,577

28,476

33,083

Impairment charges

62,754

62,754

Restructuring charges

12,701

3,292

973

775

13,674

4,067

Other

4,079

(1,705)

28

4,079

(1,677)

Total adjustments

52,617

45,370

80,015

24,854

132,632

70,224

Total adjusted EBITDA (loss)

$     90,737

$     60,463

$         (553)

$      (2,082)

$     90,184

$     58,381

Adjusted EBITDA margin

56 %

44 %

(1) %

(2) %

35 %

25 %

 

2U, Inc.

Reconciliation of Non-GAAP Measures – Adjusted EBITDA by Segment

(unaudited)

The following table presents a reconciliation of adjusted EBITDA (loss) to net loss by segment for each of the periods indicated.

Degree Program Segment

Alternative Credential Segment

Consolidated

Year Ended

December 31,

Year Ended

December 31,

Year Ended

December 31,

2023

2022

2023

2022

2023

2022

(in thousands)

Revenue

$   561,044

$   571,608

$   384,909

$   391,472

$   945,953

$   963,080

Net income (loss)

$        3,934

$    (10,797)

$ (321,541)

$ (311,354)

$ (317,607)

$ (322,151)

Adjustments:

Stock-based compensation expense

23,382

44,378

16,306

35,842

39,688

80,220

Other (income) expense, net

(1,398)

882

2,201

2,933

803

3,815

Net interest expense (income)

73,041

61,341

(429)

(272)

72,612

61,069

Income tax expense (benefit)

415

5

1,239

(908)

1,654

(903)

Depreciation and amortization expense

57,029

57,779

58,293

70,374

115,322

128,153

Impairment charges

196,871

138,291

196,871

138,291

Debt modification expense and loss on debt extinguishment

16,735

16,735

Restructuring charges

33,127

24,528

3,129

8,711

36,256

33,239

Other

8,434

2,611

28

737

8,462

3,348

Total adjustments

210,765

191,524

277,638

255,708

488,403

447,232

Total adjusted EBITDA (loss)

$   214,699

$   180,727

$    (43,903)

$    (55,646)

$   170,796

$   125,081

Adjusted EBITDA margin

38 %

32 %

(11) %

(14) %

18 %

13 %

 

2U, Inc.

Reconciliation of Non-GAAP Measures – Adjusted Free Cash Flow and Adjusted Unlevered Free Cash Flow

(unaudited)

The following table presents a reconciliation of adjusted unlevered free cash flow to net cash (used in) provided by operating activities for each of the twelve-month

periods indicated.

Trailing Twelve Months Ended

December 31,

2023

September 30,

2023

June 30,

2023

March 31,

2023

(in thousands)

Net cash (used in) provided by operating activities

$            (3,431)

$            (5,149)

$          (16,536)

$           38,472

Additions of amortizable intangible assets

(44,010)

(44,733)

(50,619)

(55,544)

Purchases of property and equipment

(6,021)

(7,313)

(8,640)

(11,210)

Payments to university clients

1,050

1,050

3,550

6,425

Non-ordinary cash payments*

36,653

34,618

36,101

32,282

Adjusted free cash flow

(15,759)

(21,527)

(36,144)

10,425

Cash interest payments on debt

61,194

53,473

47,802

48,118

Adjusted unlevered free cash flow

$           45,435

$           31,946

$           11,658

$           58,543

*

Includes transaction, integration, restructuring-related, stockholder activism, and litigation-related expense.

 

2U, Inc.

Reconciliation of Non-GAAP Measures

(unaudited)

The following table presents a reconciliation of adjusted EBITDA guidance to net loss guidance, at the midpoint of the ranges

provided by the company, for the periods indicated.

Three Months Ending

March 31, 2024

Year Ending

December 31, 2024

(in millions)

Net loss

$                 (57.5)

$                 (87.5)

Stock-based compensation expense

12.0

30.0

Amortization of acquired intangible assets

8.0

32.5

Restructuring charges

3.0

12.0

Other

5.5

7.5

  Adjusted net income

(29.0)

(5.5)

Net interest expense

20.0

70.0

Depreciation and amortization expense

20.0

58.0

  Adjusted EBITDA

$                   11.0

$                122.5

 

2U, Inc.

Key Financial Performance Metrics

(unaudited)

Full Course Equivalent Enrollments

Degree Program Segment

The following table presents FCE enrollments and average revenue per FCE enrollment in the company’s Degree Program Segment for the last eight quarters.

Q4 ’23

Q3 ’23

Q2 ’23

Q1 ’23

Q4 ’22

Q3 ’22

Q2 ’22

Q1 ’22

Degree Program Segment FCE enrollments

43,309

45,284

50,490

55,491

53,631

57,092

60,303

62,609

Degree Program Segment average revenue per FCE enrollment*

$  3,774

$  3,039

$  2,367

$  2,532

$  2,557

$  2,404

$  2,373

$  2,462

*

Average revenue per FCE enrollment includes revenue from portfolio management activities.

 

Alternative Credential Segment*

The following table presents FCE enrollments and average revenue per FCE enrollment in the company’s Alternative Credential Segment for the last eight quarters.

Q4 ’23

Q3 ’23

Q2 ’23

Q1 ’23

Q4 ’22

Q3 ’22

Q2 ’22

Q1 ’22

Alternative Credential Segment FCE enrollments

24,499

25,318

25,840

21,990

24,236

23,128

23,443

22,664

Alternative Credential Segment average revenue per FCE enrollment

$  3,500

$  3,428

$  3,591

$  4,193

$  3,840

$  3,850

$  3,891

$  4,012

*

FCE enrollments and average revenue per FCE enrollment exclude the impact of enrollments in edX offerings and the related revenue of $6.4 million and $5.9 million for the three months ended December 31, 2023 and 2022, respectively, and $27.4 million and $27.2 million for the years ended December 31, 2023 and 2022, respectively.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/2u-reports-results-for-fourth-quarter-and-full-year-2023-302059834.html

SOURCE 2U, Inc.

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Walden Group, one of the main players in European healthcare logistics, officially enters the Italian market

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The group’s goal is to position itself as a key player in the Italian market and continue to strengthen the offer of logistics solutions for its customers throughout Europe

MILAN and PARIS, March 1, 2024 /PRNewswire/ — Walden Group, one of the main players in the area of healthcare logistics in Europe, officially enters the Italian market after  the acquisition of the two Italian companies XCM Healthcare, a healthcare logistics company, and Unitex, a temperature-controlled last-mile network dedicated to the healthcare sector, belonging to the Marzano family, founder of the Farmacia S. Caterina group, and CEO Gaetano Colella.

 

 

With a 2.4% share of the global market in terms of drug consumption, Italy has always been a focus of Walden; the high level of expertise in the field of R&D, especially in the biotech sector, are among the main reasons that convinced the group in this decision. As a major player in the pharmaceutical supply chain and a provider of distribution solutions, the acquisitions have proven to be essential to enter the Italian market.

In addition, Italy is the third European country where the group will expand its operations within a year, following the recent extensions of transport activities in Romania and Germany. The group has significant ambitions for the future, with further projects already in the planning stages.

“I am thrilled to announce what we have achieved together; we share the same values and entrepreneurial mindset with the Marzano family and the CEO Gaetano Colella. This was certainly a key element in the decision to merge our companies,” says Stéphane Baudry, President of the Walden Group.

In recent years, the Marzano family and the CEO Gaetano Colella have developed Unitex, a robust transportation network organized around two main hubs strategically located in the north (Milan) and south (Naples) Italy, to offer comprehensive national coverage through a consolidated network of twenty-four regional depots.

The network will be incorporated into Eurotranspharma, Walden’s subsidiary specializing in last-mile pharmaceutical solutions, which makes daily deliveries to pharmacies, hospitals, wholesalers and other healthcare providers in nine countries. Thanks to the new acquisition, Eurotranspharma will extend its presence to ten European countries to provide an extensive and reliable service to all its customers.

Eurotranspharma will introduce its services to the Italian market while maintaining high quality standards and impeccable distribution practices. This will be supported by Walden Digital’s sophisticated IT systems, specifically dedicated to the healthcare sector, which enable the complete traceability of crucial healthcare products at every stage of the supply chain.

In parallel, XCM Healthcare has developed a promising healthcare logistics business that will be enhanced by integration within Movianto, Walden’s core healthcare logistics solution, which is already present in twelve European countries.

Movianto provides complete solutions for supply chain management, ensuring a reliable transfer of products from the manufacturer to the patient. Its expertise extends particularly to sensitive healthcare products such as biotechnology, vaccines and in vitro diagnostics. In addition to logistics management, the company offers high value-added services, such as order and collection management and laboratories dedicated to quality control. These services cover the entire supply chain, allowing manufacturers to focus solely on their core business.

“The recently completed acquisition marks the first step in our development in Italy. We are excited to collaborate with the Unitex and XCM teams to start the implementation of Eurotranspharma and Movianto solutions in Italy. I’m confident that we will achieve outstanding results, considering the expertise of the Unitex and XCM teams, combined with our international presence in Europe, which contributes to a deep understanding of the global market and experience in different business management models.”

“Of course, continuing to expand our presence in Europe is a priority, but we are a flexible organization and always ready to seize opportunities. Therefore, we are ready to grow wherever we can bring value to our customers and new healthcare markets, expanding beyond Europe,” concludes Baudry.

Logo – https://mma.prnewswire.com/media/2206749/Walden_Group_Logo.jpg

For press enquiries
Laure Murat
laure.murat@walden-group.com

View original content:https://www.prnewswire.co.uk/news-releases/walden-group-one-of-the-main-players-in-european-healthcare-logistics-officially-enters-the-italian-market-302076944.html

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GeeTest Introduces Device Fingerprinting, a front-line defence mechanism that effectively combats evolving cyber threats

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WUHAN, China, March 1, 2024 /PRNewswire/ — GeeTest, a leader in innovative bot management solutions, proudly presents its latest offering – GeeTest Device Fingerprinting. The advanced cybersecurity solution designed to fortify online platforms against evolving digital threats. Leveraging sophisticated algorithms and cutting-edge technology, it intelligently identifies and tracks devices, providing a robust defense mechanism against malicious activities. Existing security measures often struggle to identify and prevent malicious activities originating from seemingly legitimate devices. GeeTest Device Fingerprinting steps in as a proactive and advanced solution to bridge this gap.

Embrace the future of security with GeeTest Device Fingerprinting – where innovation meets protection. Elevate your risk management strategy with our advanced solution that not only identifies risks but adapts to the evolving landscape of digital threats. GeeTest Device Fingerprinting provides the following 5 key features.

1. Risk Labels

Monitor traffic credibility from both behavioral and device dimensions, providing up to 34 black industry risk labels for reference. It facilitates the identification of devices with similar risk labels, offering optimization references for your security and business strategies.

2. Relation Map

By identifying connections among risky traffic, automating the organization of risk details, frequency information, and associated data for high-risk devices, this process provides data references for business departments.

3. Application Management

You can add as many applications as you need. Each application’s data is distinguished through unique IDs and keys, facilitating secure data analysis for different modules of the business.

4. Access Control

According to your needs, you can manually add blacklists or whitelists to facilitate the management of access permissions to specific objects or resources.

5. Data Studio

Our Device Fingerprinting product includes a robust Data Studio feature, offering users an intuitive analytics dashboard for comprehensive insights. It enables informed decisions, pattern detection, and effective security strategy optimization.

GeeTest Device Fingerprinting leverages cutting-edge technologies such as Triple-Dimensional Review Technology, GCN Knowledge Graph, and Weak Feature Identification Technology. These technologies ensure comprehensive device identification and analysis while prioritizing user privacy. To learn more about key technologies at play you can download the product brochure of GeeTest Device Fingerprinting by clicking here.

In the fast-paced digital landscape, GeeTest’s Device Fingerprinting emerges as a beacon of defense. By intelligently identifying and tracking devices, it offers a robust defense mechanism against a multitude of threats faced by industries today.

For more about GeeTest, follow the company on LinkedIn.

About GeeTest:

GeeTest, a CAPTCHA and bot management provider, protects websites, mobile apps, and APIs from automated bot-driven attacks, like ATO, credential stuffing, web scalping, etc. GeeTest has been developing human-bot verification technology since 2012. Now it processes 2.9 billion CAPTCHA requests daily and serves 320,000+ companies in sectors like blockchain, online games, e-commerce, etc. In November 2021 GeeTest was recognized as a selected vendor in Forrester’s Now Tech: Bot Management, Q4 2021. In Aug 2023, GeeTest CAPTCHA Awarded 2023 Best Ease of Use and Best Value Badges by Capterra.

View original content to download multimedia:https://www.prnewswire.com/news-releases/geetest-introduces-device-fingerprinting-a-front-line-defence-mechanism-that-effectively-combats-evolving-cyber-threats-302076908.html

SOURCE GeeTest

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Toray ACS Exhibits at Texprocess in Frankfurt, Germany

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European Debut of Integrated 2D/3D Fashion CAD Software “CREACOMPO®GLOBAL”

TOKYO, March 1, 2024 /PRNewswire/ — Toray Advanced Computer Solution, Inc. (hereinafter “Toray ACS”) will be exhibiting at Texprocess, held at Messe Frankfurt from April 23rd to 26th, 2024.

Under our purpose “Uplifting the fashion industry, with our love for fashion creation and the power of IT.”, we are proud to offer cutting-edge CAD software to customers worldwide, boasting the No. 1 market share for 2D pattern making software in Japan.

At the exhibition, we will introduce the innovative 2D/3D integrated fashion CAD software “CREACOMPO®GLOBAL”, which revolutionizes our customers’ work efficiency.

CREACOMPO GLOBAL enables advanced 2D pattern making and accurate 3D simulations through simple operations, even without the need for CG skills or high-spec professional PCs.

You can find us at booth No. C65 in Exhibition Hall 8.0.

We look forward to your visit.

How to get there:
https://texprocess.messefrankfurt.com/frankfurt/en/planning-preparation/arrival-stay.html

For more information about CREACOMPO GLOBAL, please visit https://www.toray-acs.co.jp/en/creacompo-global-lp/

Company information:
Location: 1-1-3, Toranomon, Minato-ku, Tokyo, Japan
President: Kouichirou Ikeda

Company website: https://www.toray-acs.co.jp/en/   

Note: CREACOMPO is either a registered trademark or a trademark of Toray Advanced Computer Solution, Inc. in Japan and/or other countries.

Photo – https://mma.prnewswire.com/media/2340244/Toray_ACS_Inc.jpg

View original content:https://www.prnewswire.co.uk/news-releases/toray-acs-exhibits-at-texprocess-in-frankfurt-germany-302074061.html

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