Ed Goodwin SVP, IR
Chip Paucek Chief Executive Officer
Paul Lalljie Chief Financial Officer
Brent Thill Jefferies
Tom Singlehurst Citi
Stephen Sheldon William Blair
Jeff Meuler Baird
Brad Zelnick Credit Suisse
Call transcript
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Ladies and gentlemen, thank you for standing by. And welcome to the 2U, Inc.

Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. now today hand Relations. Ed would to conference I speaker your Goodwin, instructions] like the to over [Operator SVP, Investor you, ahead. please Thank go

Ed Goodwin

XU's conference operator. quarter you, Good everyone welcome Thank afternoon XXXX call. to earnings and second

On Paul our and our Lalljie, we the CFO. have call, Paucek, CEO; Chip

may XX-Q annual information including Commission Form recent and actual our on Any such filed set statements. ended duty XXXX to available well the Following to report Chip issued our risks, or forth find as reflect will and of factors and The the and the press our plans which results from was risks, remarks, no prepared this press uncertainties and the presentation. year the new and the take has close call market educational Investor quarterly call can those other December the that demand refer we next are have earnings the Securities This we and of be described financial forward-looking for XX-K where statements analysis our to for on webcast statements COVID-XX XX, risk Relations assumptions simultaneously on pandemic, for cause as you Paul's after webcast subject our documents report of release and forward-looking call been this differ on on update. on results, today, the we of earnings with questions. our Please as our regarding call in to XX-days the website Company release, website Form university most replay will matters. impact and student materially the include made offerings, These and on this made uncertainties link. Exchange our statements in assumptions. Statements operating under continued

non-GAAP measures from in we and a believe supplemental addition in of should we These to today's are for results. will financial be non-GAAP not during isolation measures or addition, XU's GAAP useful as call, considered performance. In discuss as measures which substitute

additional can With reconciliations the it press disclosures including let measures page our Chip. over website. release me comparable find results non-GAAP our to You hand GAAP regarding earnings and of on that, Investor in these Relations with

Chip Paucek

Thanks Ed.

As mark the that XXXX confronting opportunities and Lives the be impact as it's a Black we're it's society. we lives now to personal Matter year, any movement, passed COVID, both of the experienced. the other and challenges ever halfway of the our we've clear unlike will changes, in effects professional Whether of profound or

impact XU. of have For mission, We're the on Lives and XXXX the our results. our to served XU, is course in model. this strength begin this growth year-over-year our new by accelerated and our growth resiliency since highlighting grew I'll environment, environment. to an quarter We progression in rescale But year enrollments strong margin the delivering the improved XXXX. revenue while and Organic up-skill business unlevered XXX.X increase Revenue very Matter our the model, of entered most society's come these about and of past. Black reinforce directly issues critical with call, over back capacity We needs. maintaining and a I'll on goal did with throughout bottom by earnings and these with about the to short great far of strong positive We norms speak X.XX% cash movement meet an start pleased flow. free posted important priorities only remainder help those to importance the improvements to our an delivered company's universities business and of people as demonstrating thus driving We so towards feel another free growth accelerating flow. cash of in the uncertain driven XX% million. organic value of

flow. was in driven outperformance to in last go unlevered COVID-XX. bottom for our adjusted to for increased we quarter, this X.X moment. quarter. EBITDA more the as in a the with due of Similar business quarter as bottom cash is came the Year-over-year, in loss third Paul million line, straight of importantly, plan improvement. On the delivered And improved costs this free into line efficiencies a our above a well we lower will well by detail XX.X million

clear unmistakably change the happening structural Turning in is the higher back COVID, it's impact business to of environment that and now education. a

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are more Now More than that. to consider half prospects of online. much about think likely

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to So, these new exploring online. are all together converts

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in XX Classes indicators leading applicant the initially starting pool. first in like projected, current undergrad a us and countries. a facts also from quality We range the shows in start August global to and our Expect about XXX This offering. education more world and a to stronger near portfolio. reach high power seeing hear the of Applicants future. about XX expect hailed we to in few from years fun we're old, our be undergrad lot online age and class

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The overall specifically. worth Our years. for Simmons University is relationship newly partnership calling material out expanded has Simmons two

the a offerings, on expanded and two and courses entire over fully we'll undergraduate In XXX institution years. undergraduate Studio for fall existing COVID includes our first addition support when Box. existing to out to a online relationship digital graduate both our resumed XXXX begins of classes campus build due notable now This online, using in

internet Simmons our can based receive the of shared will resources in in to college cost tech which physical a of time as campus of campus 'XX, the not including barrier example online students model generation well. freshmen will need, will offerings. beginning technology we'll begin below this education. they for front. scale powerful the largest forward, Going supporting of we'll thought they'd revenue used Simmons but access With technology fall bend will curve Simmons attending currently they off demand first on our And be will percentages fall. priced disciplines offer scarce the to in they're they the programs announcing can These support a and one the fully experience, University fund offer fully Simmons These committed in which laptops XXXX women is in that and high A a XU eligible and higher will young degrees participate class, for be completely portfolio one the incoming and Pell across online. September, of be ensure help be this access how success help online ensure is revenue history. be The campus online campus, includes a there the quality share school's now access

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and growth impact bigger this have financial beyond. would on So XXXX a

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positioned We here. uniquely are

courses short Our seeing record enrollments. are

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Paul Lalljie

everyone. Thanks, good afternoon and Chip,

the discuss flow experiencing flexibility. is the profitability I'll year. our top and financial second over quarter, with that objective the of go provide color we're thinking about we taken best on improving we've continue the Our cash execute results we're demonstrate against line momentum financial quarter while improve results flexibility, our delivering rest growth our strong some to to how increasing and for the our as

quarter. is us with the year. on for $XXX.X the for XXXX, results Now million, from of year-over-year May a look in quarter, quarter a million XX% closer second XX, the the increase We Trilogy business. for of for a the last $XXX.X total partial Revenue boot financials acquired at comparison results camp giving

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and as Course in FCE acceleration from becomes decline increased total. up $X in per partial year-over-year Revenue A growth going to results year. Trilogy quarter while XX% revenue quarter’s XX%, LSE revenue our growth. $X larger of having point the Short primary a expect XX% two last revenue FCEs Credential from of increased year, million XX% here. primarily percentage There We segment, million the programs, continue a last FCE only the driven drivers in year FCEs Simmons from last increased year for forward XX over a newer to and basis. are by enrollment Alternative in strong

at camp has they're first students' our fully come were $XX.X move the we million only into demand come satisfaction year, conference In we experience On call, of to to product not of seeing put trending XX. we strong this of we do new launched what very revenue courses; delivered dip on-ground existing shelter-in-place last expect higher. we First, courses year, conversion response, XX% the orders this online and as an revenue start. to a but we Boot offering. perspective, to our quarter. we our revenue beginning been for and on To increased Today, in conversion the and from second, a our XX of portfolio online, expected rates that mentioned rates our across this a all offering. to from off are beginning in ground

in grew including Let's operating XX% expense over category year. against grew Sales cost quarter. Alternative for operating $XX.X last costs which expense take organic expenses. expense of on of basis Marketing quarter was and incremental varies Trilogy expense Total consolidated with growth $XXX.X a growth teaching XX%. million revenue, and On look at This expense. a Credential also the the XX% XX% operating of against revenue is year-over-year Curriculum an up basis, total and million XX% XX%. grew revenue

related we benefits lower achieve focus recent in travel $XX.X last starting those This long scaling going new track and resulted or we is It of million overtime. the quarter. also million, the $XX.X year. how costs, loss improvement Adjusted to the travel profitable objectives the $XX million which EBITDA including a million increase highly are on the debt profile to and loss to direct us in second renewed of number managing and Regardless totaled normal part of the benefit our resulting year the of net important forward. costs. have efficiency a operating in tax a term this efficiencies. improvement million margins infrastructure and EBITDA to a variable We're repayment positive our a driving through and that loss pandemic spend. Also puts $XX.X million the growth, quarter greater extinguishment looks what This $X.X on quarter out of remain It from compared of operational for see in has should While was year. quarter of there validation is and from marketing overall, our loss year. last, puts demonstrates reflected focused be and next margin is costs of from pandemic on more in the a $X.X loan. from takes, Net improvement last the efficient cost reflects set like, and to note, In we've to marketing operational had quarters, included million and recorded the first due the of beginning last $XX.X initiatives.

the driven the offset partially $X.X for Now million. was $XX.X quarter the $XX.X discussion in performance primarily $XX.X March million, driven first $XX.X increase CapEx from balance was million, the capital discussed, with net improvement for we've by to of quarter. convertible $X.X Unlevered of free EBITDA, a the cash the notes adjusted balance improvement offering million expenditures. flow we was This and of in a sheet, decrease provided cash from from a usage a by months by impact million free ended $XX.X XX cash a operations, million which by of flow trailing million our cash $XXX already This primarily and up quarter. million

come net prudently payments from boot We quarter. Credential camp. course focused revenue $X also a $X.X We remain our managing where segments, million Alternative on March the a or growth by in of million increase at to driven capital, from in the in beginning tend which benefited working improved deferred

$X.X quarter. Accounts from In a an million $X.X last down in million, million $XX.X emphasis benefited $X.X increase addition, prepaid totaled $X.X increased we million, from collection. expenses accrued on increased reflecting Receivable million Accounts expenses. quarter, while payable this

not a place balance increase To of put quarter, our the we calendar. case financial improve the date in receivable also flexibility, and points credit year, seasonal our due of every rate to business covenants $XX interest XXX we've timing million and in do execution December, expect LIBOR of further academic to plus a As constrain plan. the is a basis XXXX our next facility. that accounts has the we revolving expect This maturity of facility

the the Now color on thinking back of about for some half year. how we're

my we conclusion, from the rest an to in to we of As and remarks, growth in continue we're education, for In the and half have EBITDA this resulting momentum results third deliver More solutions accelerating for the significant positive pointedly, our the Chip only that year online positive we second organic change and next earlier demonstrate that experiencing of expect leading fundamental importantly, and our this year. strong in quarter, that improvements a resulting the full in and the to increased is right fourth future the heard higher organic of education and this you've is This quarters our impact quarter, the have expect from indicators. this demand students revenue innovation increase strong in We year, the revenue growth. seen saw in environment. in results future into year. in EBITDA the we partners for we current expect driving

plays you execution back change out, flows. sharpen profitability And I'd this call next further to I our towards updating and and to As the quarter. will to drive hand forward cash Chip. look with to we like continue that, improve

Chip Paucek

doing systemic turned is the meet by work to society, of important addressing for critical issues close moment XU racism. by want for seminal George society. Paul. a Floyd our Thanks, XU. needs most helping pressing I of into higher education the one

the Over Lives to we happening in reverberated movement the a and and in company Matter intensively important at Board. protests leadership XU. Black America years, team build The to diverse strive ways

the but how Company, more inside and on do. moment an the been unfold the can and team what must I'm about quite through products. much our of we intense As positively I how we our can leadership aware and world became can It's of bullish increasingly journey, internally we personally improve the impact impact

inclusion is needed by in this course education clear our business and At the equity societal of Professor organization of issue. grappling with and much critically leaders power this launch demonstrates of this Alvin a progress leading inclusive a foster taught is how every important greater example and Tillery diversity, the announcement to morning time compelling and to to develop more help Tillery's drive Northwestern's on diversity Our Professor equity, short course, and of practice. when

with listening want that my Co-Founder and For building as company legacy of up become our part now, our and that as I truly legacy and to right a employees CEO. equitable diverse, XU it know and that, we'll to a partners And are you inclusive open Q&A. will personal


from Okay. line of the [Operator Instructions] of And Brent Jefferies. Thill your first question

Your open. line now is

Brent Thill

you detail you. outperformance if us the Curious what more course afternoon. give on on Thank the short Good also drove and particularly growth EBITDA? could in on

Chip Paucek

we've Well, in time side, I environment. are we're on the long never upfront, of enrollment. tremendous short seeing as There's the also a seeing of this definitely very highs the it programs many the revenue. to guess older degree historical on side, degree cohort. that in know, I think We're before up record side. lifecycle seeing we're people But, as rescaling our I at Clearly, degree say, honestly But cycle degree. the takes at show momentum their on this in seen what business, courses, would point in the you various

Get great new the doing pleased we're we not course of short would acquisition Smarter. the has what extraordinarily XX balanced say, the portfolio but the side, over through well, growth, just more space really I last since and is the our courses entered that years most three become On about are

many aperture So is courses. significantly, broadening sort types what of the different functional years we've the of we're Economics generally School diversity and with tech types Oxford model were of more courses, the including expansion courses brands, Northwestern you've we're course. global and different today of disruptive today from with to the had And rapid leadership seen ago, the many Three portfolio and the London the widening of with like seeing courses. quite

over are more pass can Paul certainly maybe over it And to of year. we our been past address. efficient. focus side, a This part the getting has to On big the EBITDA I

Paul Lalljie

on is savings the aside, stated things thanks, that in Chip. sets one this, a embarking cost of the off to XXXX, with of were that A EBITDA things couple initiatives. the front third of up start several we of Yes, we quarter

now is fruition. initiatives seeing and we're the what to efficiency some those of coming think, I

teams, Our students success technology organization. our

we to see We as are the forward. pay those And continue dividend. that initiatives truly a And in those organizations. seeing go scalability will we

Now, also that travel COVID environment. the lack would I the see of

We there the quarter. XX% travel for around have the million $X to of initiative. cost about pertains And type in related of savings of, million But rest it is to XX% expenses. maybe coming perhaps the that $X travel from savings

We of are that to is positive explicitly positive. The that cash out XXXX mission. end We we're continuing at on a be and the mission and EBITDA very flow set to on fact. March forward

Chief on done marching Mark and job Our Officer, that focused Operating are Turnes, and very it, incredible teams that our is focused on an they've in direction.

the that's equation. the the So EBITDA side contributor on of


the question Citi. next Your from from Tom of line comes Singlehurst

open. now is line Your

Tom Singlehurst

skilling. thank questions, Chip, Hey I couple big debate. of is go clearly, the back Citi for short the uptick in hey courses of and part A here you from Tom first you've cannibalization of attribute programs, countercyclical sales on sort seen It's Paul, of And Obviously, it taking question. of the and that in sort for any London. up one, big to the enrollment you sort student is it effect? but -- graduate in longer and there is rescaling very risk a for cycles

Chip Paucek

was over that education, it's generally trend the really, very gradual long years what's there specifically bit see but bit Company feel very question to an a We and to we And as we XXXX that So, counter was by know, cyclical there this the but across cyclical, covering difficult we is plain economy a period. time that headwind as we it as interesting business. you clear, XX entire about for And arguing was. in started appearing we got day and Are moment. are counter use. a to really saw the until XU, increasing

seen exciting across sizable, are we us demand. to allow relevant platform we So, across it is, think offerings products. have bunch now all I a different And will that the a three of increased whole meet scalable what's

we like of for So the next years. means this really couple what

Tom Singlehurst

existing three number of add sort obviously repurposing At ended new much felt I on lot are a of you very added helping last of the of with done what's that's months a suppose, ago. then of key differentiation I on number we platforms, sitting a we've to day-to-day is, learning? since of The competitive in critically on-campus only that Or about for when But some landscape it campus that. second for I the been player helping thing this work Thank point, talked with platform? was to and the learning just the partners stuff. sort was new use like you. part interested open for in there mean, the partners.

Chip Paucek

where revenue also And fall comprehensive been that doing I of there in I most compelling, great and with has think in demand and in side opportunities really more university a really both the is contract. acceleration excited has this for shared historical to been like for our about Amherst an now XUOS proposition is our or offer well, whether did model share demand They're offers, so of invest that the platform think demand. the online comprehensive even we like what for on value do a there the be we something bringing success received long question, we over acceleration undergrad. the in means. revenue we're an and of Without somebody

we'll about that more so have overtime. to And say

Tom Singlehurst

and progress and a flow the partnerships conflict number the there free add you between towards breaking? Is EBITDA can of here cash additional

Paul Lalljie

say, things, saying couple And my we had not how about response question. yes. of it's last think it's similar Tom, quarter, was, yes, a a I I

you add, expenses And where have parking doing the We are you in that that It models add different do every a to find we're this. is efficiency the can seeing, that ways objectives. balance we platform is business. expense and think in there is And not fashion. various the I an what way scalable. incremental base same of two right? our have We're seeing to

find all that get will to different Simmons I yes. us that will our example. said, very, continue in think They're you help think we example, And I way our Amherst to So there. very the

of to all going it in it inform I outlined fundamentally, times when inform more in particularly with I of think investment this can each us move they forward. as when I have think opportunities, us will framework think forward, tremendous will our And partners. framework we we we're are make inform there two in we that opportunities. we a we scarcity go that because becomes will the It's think our a I strong times, around balance are relationship us North decisions And as framework times that Star.

things balance that in respected the we is, quantity. very well are that high We and with the our space We very, a framework. provided of

think your both I together. it is, require do can does does and which that. out It forward question. we balance guess, But we continue to inherent of do portion balancing, the as to us will we require I it some go


Your comes from the Ryan next line question Needham. MacDonald of from

Your now is open. line

Ryan MacDonald

I currently reversing just that here, COVID you the you're trend of the back that first we potentially the seeing. back of seeing think thinking year. do that are? but guess and sustainability you're from for if sort start things demand there's to vaccine the sustainable benefits How about Obviously, see half some last get

Chip Paucek

we demand. think from it. you're to is you the consider experience, Gallup Ryan, board, campus. getting on The like, the And don't real. programs, incredible, talk you is opportunity shift will show share show students they're metric better the have people really do we sustainability think happening to good. we And you you did When be that about word almost even I single I a our have there's survey of my and took the every that the survey this could that and this, one take across you tell it. than they're And what's of

So will win. online I think quality

just the is think here pulled what's curves forward. been happening adoption I

So, share survey. you it on shift see our

today, you've seen what if also can see You not that's put sure a Strata out look. it I'm in that worth

what's delivering, is, bit there's record to It's that incredible think this a been I do recognized. really happening have think we we of programs to a going on rush here. quality run wonderful really little that track of see get

right the it's and so And across portfolio now.

So, not we're seen that we've some things seeing before.

I how have think about you, we're tell thoughtful call we're trying ready impressive. be in it, to So, to we it's when to but

Ryan MacDonald

close five that the already recent results the increase survey that, partner working reliance. really we're with to willingness data a follow-up a as showed to from And universities

running preparing guess doing your much up anything be. your to will during in on of help of their programs partners Is version question online existing I for with a grad So a move XU when, campus their period? interim fall you're campus there's we're how the as on there with there the

Chip Paucek


a have fortunate partners embracing got now that whole been that's bold current we're campus we ways. of you her take and part a in Simmons think, team. highlighting in about time of an terms XUOS short for in to Simmons partners are bunch really sort do we And careful them call, based program. of very talked So, is plus, We're a their that just more what whole working online a doing of been if it's, And big our period of in But of sort we of we've of active being we've choices. much totally variety I feel lot worth the a extraordinary the opportunities. on in format of how really But the with helping institution. transform as

balanced how but it's So, what's a key right now. that as to we progression is happening our pretty remarkable company,

partner of good to getting and support doing the response everything really we we're from think can the really, universities So I it. we're base because

Ryan MacDonald

cash revenue for that or sequential, Is in the acceleration back Paul. organic a growth? year-over-year half like growth qualification increase. And the first Thanks. an respecting mentioned from Paul, you

Paul Lalljie

quarter. number back it the an expect the the half front at year. increase. a that higher increase versus number second a also half to XX% year-over-year is a the we We of year sequential in were it to half at the look If one year. that back of growth is And It in in can saw be

So it's both.


line of question comes the next Your Sheldon Blair. Stephen from from William

Your is line now open.

Stephen Sheldon

demand I are credentials and degrees. get wanted drive could new of a need as thoughts the guess sources accelerate at and seen in lower to first the you stackable overall over offerings, few look on students to indications the guess, differentiate I years, there? early Are next with environment potentially academic you seeing the any concept what enrollment for revenue these adoption especially to need universities and ways updated of

Chip Paucek

validate And for move seen think to course we the boot opportunities. here our and short really Alternative certainly Well, increase definitely are side on does our And and Credentials into compelling that schools. short courses the new we've camps. it stay. do the a to both significant seen in full Having set continue think revenue definitely partners really product interest we've is university an the expand

once it the harder period university of we're financial think has to universities see for large, it's as demand also, us what question human demand, really about, I there's And going continue everybody This because were I to different through are cause pandemic. partners issue worrying positing certainly up to of in that or the universities I no reality sort some evidenced being like The by do do showed lack just more. was all a the companies things, of them themselves. this credentials on that doing have worrying understanding we themselves, think time, or is were with seeing. fundamental people as got would to a pretty everything going impossible and about think significantly. we're that many that when initial not. significant is COVID us that for stackable broke, first numbers Since, do very a that the to and themselves picked record so are going

long-term we announced. variety Now, I question, as we see this quite really we critical to tell success. have of you'll a We that love the have in leadership we position interesting you portfolio our would do now it's the The over happening whole think across are but that time things that segment.

Stephen Sheldon

an seen are of Is fall? quantify generation the you've increase student think trends some the on how like metrics been we demand as of are talks frame then way you lead there about record seen. student, on the over about those or to much And enrollments any applications

Chip Paucek

would half to Paul, in to like. I characterization we some jump think tried looks what give guess, second you here? want the say, I of we

Paul Lalljie

board get driven to it seeing the X, demand, point are day, that the we're gestation period the But efficiency in the look, X, the months the Yes, XX demand across while Stephen, an grad demand by takes marketing we primarily end spend. marketing is before X, XX that the enrollment. you to of seeing the as a is at yes. we're and of direct seeing business, sometimes in know,

we've So, goes side it I you to is short mean, business. if in happening been pointed I something second And had that not do one course trying business, the the quarter the the we're short the to in We the things short stages very call tremendous will. of in through and we time from of what's to think funnel, other of various before sides be same course at business. We're success course measured, the going right? see the

the summer We continue to the into education. on pandemic more have of to that business of the we the Europe of, instead in quarter, When expect think of are participating folks right, it vacation, it in to that, seeing tends year. that bit comes low little the online the half a we're think and we're seeing active fourth with that instead and back months not of being of we when

we best as an we in specificity dollars of of here, business. space. in and to and we move into in forward and that the Alternative for short measured that with Being visibility marketing are it's being which better So, prudent here efficiency environment in think today. better is more have everyone conversion it, early I call us we're undergrad kind things Credential that for our seeing is probably the And business particularly


question next line from the Meuler comes from Jeff Your Baird.

is line open. Your now

Jeff Meuler

and I lunching. that about you'll a think comment degree to time there was be shorter cash positive flow each a

the you be curious like to which the this numbers that efficiently? then in And more just planning how any extent would changing might willing too you're to as are are to but put be to timelines offer doing would to So interested? early, that, you you or do around what and what be

Chip Paucek

you're that it's And we in concerted too effort I you early and the high the detail, what's Jeff. think drive important on a that the We're think efficient Company capital would in I can most do quality to I most know say successful, to manner. as and behalf seeing a programs the of results. bit them it's

put the you journey three slide earnings impressive we are working cash that's about you last intentionally out definitively achieve. quarters, the making had believe as last Company the something on. the If look deck, think on and that do a promises And we there at we flows what strongly be was particularly able to the we're to over if year all about a in I public that company good today, the of going pretty

on can everybody. to to we how playbook we're The don't we I So need it? think, how it? advertise doing do certainly

Jeff Meuler

some, is then, And remarks in or different from think a in the a quality comment could universities scrambled I thoughtful there of the kind and in past. about implementing solutions be the things prepared doing implemented was way, high that maybe have

you don't environment contingency may just maybe So, want based and/or their into kind where universities this go solutions, where where you need you of to play to as there? more can want approach you play

Chip Paucek

about significant in of we're partner We in mean, super doing have those we're a Forbes interest I the I actually in wonderful we're a more in play the that like there that conversations today, how meeting talks positive story schools. deployments of think would about a great builds, was from our assisting important. helping more deployment offerings. the and actually the standpoint where in need with we detail built. is the was course Amherst our want Being to course

of that revenue increasing associated with I then to it's on driving that business very, was So set see We've partners. we are to has a focused the pleased fair share and very had laser that Company to offering for years it, positive And our in XX it. obviously, forward. say demand -- have to to flow And partners. cash way the regard with to that existing from and desire, do but, in more get new that both we balanced to and that's a still

really we margin create long-term. we strong go Fortunately, as

feel two, like for I run over years. we, three the next really we're set good a So really


question next Zelnick Your of from Suisse. comes Brad Credit from the line

Your now line is open.

Brad Zelnick

education. invest for all discipline support the How in appreciate what the in given decision opportunity? need And and to to investments on what's prioritizing into the distance are further world But lean increasing and internally? would you and the the you and I cause going profitability. focus on cost

Chip Paucek

investing our the think, in any I we're that opportunity. shouldn't not and way in Brad, commentary leaning measured indicate Well, in

did it's matter about I and the think with think a our how yes. say what you we we over If actually of I'm months, four team, last thrilled

to a if So didn't a we studio a is shuttered. an was we it side. broadly in would as did more being on as it and we approach or we operations a believed And that because be when do hadn't with more COVID entirely candidly, done response, our example able way Studio employ now in right innovate degree it, COVID obviously, to building Box, the to in really innovative

you able next to are have what a situation timeline the them fortunately, where as out. And we believe broader to years apply a we So we large can that want many we couple me mentioned, and how to of take kind them matter we in. the over today. how I of in that will do scale deployments you from roll and heard I logic of be weren't to leaning It's wouldn't you we on where portfolios. think, increase

Paul Lalljie

we have little for have If efficiency. here, we're opportunities what, opportunities, bit we in about than deploy by spend. find new a we means, and to to operational faster more of by a no what doing, we're to chime can way don't we so saying, cheaper If capital screening enough I and things may do are talking a lot better and money

things We are do finding better. ways to

focusing things more that. a in Studio a is prime on We of are in example doing efficiently Box

Brad Zelnick

actually. have think about larger time? organically, the Are this pipeline the the on makes that segment? you're how Credentials, pace more, you program launches add. free Thank seeing prospective students growth should we And follow new I of that now more might up acceleration you within one I nice with seeing Alternative sense, Paul Maybe a and Chip, in in lot of if that really could

Chip Paucek

of pipeline good challenge shortly if We this are we courses. pipeline acquiring a are you get and a And after of was seeing seeing It's seeing smarter. larger really pipeline story. remember, large a students, larger a of we universities, are

inclusive and how opportunity So and for morning. That's boot one and incredible company. this the a side. State companies We a equity we of Ohio diversity, diverse, for be camp couple to on announced learn equitable ago weeks inclusion announced and individuals to

Our camps substantial in is on of plan the ahead up-sell a way. pretty rate internal

tend that look definitely the taken number leadership exposure increased functional technical our I'm see of of to topics faculty And brands kinds you large of, very demand. most sort we've courses. is entering global basically be down a there a quality briefing on in pleased number at because for to portfolio substantially course all down, to short of even and the high if large the So courses. short more different taken courses, and and driven, disruptive hit now way build just are risk

So, really job. we a feel done going, likely that is team's like we've and business partners, offerings more more got the a great large of runway very


I'll on the All to And call call the as time, you. you're for right. returning Thank Chip remarks. closing turn back

Chip Paucek

Thank take who thank information out everyone Dan, to you our to is only Vice will and really team, technology see XX to on to I give shout and a Dan moment particular to you, who team, today. brief anniversary running, and you running thank So, Information Infrastructure, your XU our and President road. kept but performing celebrated we not his of Berman, a Technology out year wanted outperforming, the


you Thank Thank all gentlemen conclude you calls. and joining. very these ladies conference much. And today's for

disconnect. now may You