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Sep 30, 2023
Perdoceo Q3 2023 Earnings Report
Perdoceo Education Corporation reported an increase in revenue and operating income, driven by growth at CTU, but a decrease in total student enrollments.
Key Takeaways
Perdoceo Education Corporation reported a 6.8% increase in revenue to $179.9 million and a 46.9% increase in operating income to $43.1 million for the third quarter of 2023, driven by a 23.6% increase at CTU. Earnings per diluted share increased to $0.62 from $0.32 in the prior year quarter. Total student enrollments decreased by 12.7%, with AIUS experiencing a 34.2% decrease, while CTU remained relatively flat. The company ended the quarter with $603.7 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.
Revenue increased by 6.8% to $179.9 million, driven by a 23.6% increase at CTU.
Operating income increased by 46.9% to $43.1 million.
Earnings per diluted share increased to $0.62, compared to $0.32 in the prior year quarter.
Total student enrollments decreased by 12.7%, with a significant decrease at AIUS.
Revenue by Segment
Forward Guidance
The Company has increased its full year outlook and is also providing the following fourth quarter outlook, subject to the key assumptions identified below.
Positive Outlook
- Prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates
- No significant impact of new or proposed regulations
- No significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters
- The impact from federal student aid initiatives implemented by the current administration remains consistent with management's estimates
- Excludes any future impact from the Company’s stock repurchase program.
Challenges Ahead
- Changes in the legal or regulatory environment may require further operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students
- Settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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