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Dec 31, 2021
Stride Q2 2022 Earnings Report
Reported increased revenue driven by Career Learning enrollments and improved gross margins.
Key Takeaways
Stride, Inc. reported an 8.9% increase in revenue for the second fiscal quarter ended December 31, 2021, driven by continued strength in middle and high school Career Learning enrollments, growth in Adult Learning, and increases in revenue per enrollment. Net income increased by 71.4% compared to the previous year, and diluted net income per share increased from $0.60 to $1.00.
Revenue increased to $409.5 million, compared to $376.1 million in the prior year.
Income from operations was $56.9 million, compared to $38.5 million in the prior year.
Net income was $42.0 million, compared to $24.5 million in the prior year.
Diluted net income per share was $1.00, compared to $0.60 in the prior year.
Stride
Stride
Stride Revenue by Segment
Revenue by Segment
General Education Revenue
CapyFin.comCareer Learning (Middle/High School) Revenue
CapyFin.com Forward Guidance
The Company is raising its forecast for the full fiscal year 2022 and forecasting for the third quarter fiscal 2022.
Positive Outlook
- Revenue in the range of $1.62 billion to $1.64 billion for full fiscal year 2022.
- Capital expenditures in the range of $65 million to $75 million for full fiscal year 2022.
- Effective tax rate of 27% to 30% for full fiscal year 2022.
- Adjusted operating income in the range of $175 million to $185 million for full fiscal year 2022.
- Revenue in the range of $405 million to $415 million for the third quarter fiscal 2022.
Challenges Ahead
- Capital expenditures in the range of $15 million to $18 million for the third quarter fiscal 2022.
- Adjusted operating income in the range of $60 million to $65 million for the third quarter fiscal 2022.
- Reduction of per pupil funding amounts at the schools we serve.
- Inability to achieve a sufficient level of new enrollments to sustain our business model.
- Limitations of the enrollment data we present, which may not fully capture trends in the performance of our business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income