Zovio, Inc. provides postsecondary education services. Through Ashford University and University of the RockiesSM, it offers online programs such as contemporary college experience. Its services also include mobile and other learning platform for students. The company was founded by Wayne Clugston and Andrew S. Clark in May 1999 and is headquartered in San Diego, CA.
Our financial results may suffer if we fail to successfully implement our restructuring plans and/or cost reduction initiatives aimed at right-sizing our operations to match revenue streams.
As we transition to become an education technology services company, the separation of Ashford University, either by sale to another university or via the Conversion Transaction, may not be completed on the terms or timeline currently contemplated and failure to complete, or any delay of, the separation of Ashford University from Zovio Inc may negatively impact our planned business, financial condition or results of operations.
Revenue. Our revenue for the three months ended September 30, 2019 and 2018, was $104.3 million and $112.8 million, respectively, representing a decrease of $8.5 million, or 7.6%. The decrease between periods was primarily due to a decrease of 6.4% in average weekly enrollment from 39,107 students for the three month period ended September 30, 2018 to 36,590 students for the three month period ended September 30, 2019. As a result of the decrease in enrollments, tuition revenue decreased by approximately $5.7 million. The decrease in revenue between periods was also due to higher scholarships for the period, an increase of $5.5 million. The overall revenue decrease was partially offset by net revenue from subsidiaries of $3.6 million, as well as an increase in net revenue generated from course digital materials of approximately $1.2 million, and a tuition increase, effective as of January 1, 2019.