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Sep 30, 2021
Grand Canyon Education Q3 2021 Earnings Report
Grand Canyon Education's third quarter results decreased due to decrease in operating income and net income.
Key Takeaways
Grand Canyon Education, Inc. reported financial results for the quarter ended September 30, 2021. Service revenue increased, primarily due to increases in university partner enrollments and revenue per student. However, operating income and net income decreased compared to the same period in 2020.
Service revenue was $206.8 million compared to $198.4 million for the third quarter of 2020, driven by increases in university partner enrollments and revenue per student.
Partner enrollments totaled 118,832, an increase of 0.9% compared to September 30, 2020.
Operating income was $45.3 million, a decrease of $5.7 million compared to the same period in 2020.
Net income decreased 8.4% to $47.7 million compared to the same period in 2020.
Grand Canyon Education
Grand Canyon Education
Grand Canyon Education Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.com Forward Guidance
The company provided outlook for Q4 2021 and Full Year 2021.
Positive Outlook
- Q4 2021 Service revenue of between $252.0 million and $255.0 million
- Q4 2021 As Adjusted Operating Margin of between 40.0% and 40.7%
- Q4 2021 As Adjusted Diluted EPS of between $2.08 and $2.13 using 40.9 million diluted shares
- Full Year 2021 Service revenue of between $897.2 million and $900.2 million
- Full Year 2021 As Adjusted Operating Margin of between 32.0% and 32.2%
Challenges Ahead
- Full Year 2021 As Adjusted Diluted EPS of between $6.05 and $6.10 using 44.3 million diluted shares
- Harm to our business, results of operations, and financial condition, and harm to our university partners resulting from epidemics, pandemics, including the continuing, and potential future, adverse effects of the COVID-19 pandemic, or public health crises
- The occurrence of any event, change or other circumstance that could give rise to the termination of any of our key university partner agreements
- Our ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions or divestitures of, or investments in, new businesses, acquisitions of new properties and new university partners, and expansion of services provided to our existing university partners
- Our failure to comply with the extensive regulatory framework applicable to us either directly as a third party education services provider or indirectly through our university partners, including Title IV of the Higher Education Act and the regulations thereunder, state laws and regulatory requirements, and accrediting commission requirements