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Mar 31, 2023
Grand Canyon Education Q1 2023 Earnings Report
Grand Canyon Education reported an increase in revenue and net income for Q1 2023, but a decrease in operating income and adjusted EBITDA.
Key Takeaways
Grand Canyon Education, Inc. reported financial results for the quarter ended March 31, 2023. Service revenue increased by 2.5% to $250.1 million, driven by growth in GCU traditional campus enrollments. Net income rose by 2.6% to $59.6 million, while diluted net income per share was $1.94. However, operating income decreased to $74.5 million, and adjusted EBITDA fell by 4.2% to $86.6 million.
Service revenue increased by 2.5% to $250.1 million due to growth in GCU traditional campus enrollments.
Partner enrollments totaled 112,588, including 4,315 at off-campus sites.
Operating income decreased to $74.5 million, with an operating margin of 29.8%.
Net income increased by 2.6% to $59.6 million, and diluted net income per share was $1.94.
Grand Canyon Education
Grand Canyon Education
Grand Canyon Education Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.com Forward Guidance
Grand Canyon Education provided outlook for Q2, Q3, Q4 and Full Year 2023.
Positive Outlook
- Service revenue of between $206.0 million and $209.0 million for Q2 2023.
- Operating margin of between 14.8% and 15.7% for Q2 2023.
- Diluted EPS of between $0.79 and $0.85 for Q2 2023.
- Service revenue of between $940.1 million and $965.1 million for full year 2023.
- Diluted EPS between $5.94 and $6.49 for full year 2023.
Challenges Ahead
- Operating margin of between 15.8% and 18.1% for Q3 2023.
- Diluted EPS of between $0.88 and $1.04 for Q3 2023.
- Service revenue of between $268.5 million and $283.0 million for Q4 2023.
- Operating margin of between 33.5% and 36.4% for Q4 2023.
- Effective tax rate of 23.8% for full year 2023.