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Dec 31, 2019
Stride Q2 2020 Earnings Report
K12 Inc. reported second quarter fiscal year 2020 results, with revenues of $257.6 million.
Key Takeaways
K12 Inc. reported revenues of $257.6 million, income from operations of $30.3 million, and net income attributable to common stockholders of $20.6 million for the second quarter of fiscal year 2020.
Revenues reached $257.6 million, compared to $254.9 million in the second quarter of FY 2019.
Income from operations was $30.3 million, compared to $33.3 million in the second quarter of FY 2019.
Net income attributable to common stockholders was $20.6 million, compared to $23.7 million in the second quarter of FY 2019.
Diluted net income attributable to common stockholders per share was $0.52, compared to $0.59 per share in the second quarter of FY 2019.
Stride
Stride
Forward Guidance
The Company updated its full year outlook and provided an outlook for the third quarter to include the impact from the Galvanize Inc. acquisition, inclusive of the impact of purchase price accounting.
Positive Outlook
- Revenue in the range of $1,033.0 million to $1,040.0 million for full year fiscal 2020.
- Capital expenditures of $45.0 million to $49.0 million for full year fiscal 2020.
- Tax rate of 28.0% to 30.0% for full year fiscal 2020.
- Adjusted operating income in the range of $48.0 million to $52.0 million for full year fiscal 2020.
- Revenue in the range of $252.0 million to $255.0 million for the third quarter, fiscal 2020.
Challenges Ahead
- The reduction in guidance for adjusted operating income is largely due to purchase price accounting adjustments relating to the Galvanize Inc. acquisition.
- Capital expenditures of $8.0 million to $10.0 million for the third quarter, fiscal 2020.
- Adjusted operating income in the range of $18.0 million to $20.0 million for the third quarter, fiscal 2020.
- Forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from those expressed or implied.
- Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.