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Sep 30, 2024

Laureate Q3 2024 Earnings Report

Laureate's Q3 2024 financial results were reported, showing revenue increase and improved profitability.

Key Takeaways

Laureate Education reported a 2% increase in revenue to $368.6 million and a significant rise in net income to $85.3 million, driven by a discrete tax benefit and increased operating income. Adjusted EBITDA also grew to $91.4 million. The company is increasing its full-year constant currency outlook.

Revenue increased by 2% to $368.6 million, with organic constant currency revenue up by 9%.

Operating income rose to $72.0 million, compared to $58.7 million in the third quarter of 2023.

Net income increased to $85.3 million, which includes a discrete tax benefit of $37.9 million.

Adjusted EBITDA increased to $91.4 million, compared to $78.4 million in the third quarter of 2023.

Total Revenue
$369M
Previous year: $362M
+2.0%
EPS
$0.56
Previous year: $0.23
+143.5%
Adjusted EBITDA
$91.4M
Previous year: $78.4M
+16.6%
Gross Profit
$82.7M
Previous year: $70.4M
+17.4%
Cash and Equivalents
$134M
Previous year: $131M
+2.7%
Free Cash Flow
$111M
Previous year: $96.7M
+14.5%
Total Assets
$1.93B
Previous year: $2.1B
-8.1%

Laureate

Laureate

Forward Guidance

Laureate is increasing its full-year constant currency outlook and adjusting its as-reported guidance to reflect more recent foreign currency rates. Total enrollments are expected to be approximately 470,000 students, reflecting growth of approximately 5% versus 2023; Revenues are now expected to be in the range of $1,551 million to $1,556 million, reflecting growth of 5% on an as-reported basis and 7% on an organic constant currency basis versus 2023; and Adjusted EBITDA is now expected to be in the range of $447 million to $451 million, reflecting growth of 7%-8% on an as-reported basis and 9%-10% on an organic constant currency basis versus 2023.

Positive Outlook

  • Total enrollments are expected to be approximately 470,000 students, reflecting growth of approximately 5% versus 2023
  • Revenues are now expected to be in the range of $1,551 million to $1,556 million, reflecting growth of 5% on an as-reported basis and 7% on an organic constant currency basis versus 2023
  • Adjusted EBITDA is now expected to be in the range of $447 million to $451 million, reflecting growth of 7%-8% on an as-reported basis
  • Adjusted EBITDA reflecting growth of 9%-10% on an organic constant currency basis versus 2023
  • Company is increasing its full-year constant currency outlook

Challenges Ahead

  • Guidance is adjusted to reflect more recent foreign currency rates
  • Guidance is impacted by recent volatility in the Mexican peso.
  • Reconciliations of forward-looking non-GAAP measures are not being provided
  • Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such outlooks and reconciliations.
  • The Company cannot reconcile projected Adjusted EBITDA to projected net income without unreasonable effort.