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K12, Inc. Message Board

  • Claim_Digger Claim_Digger Feb 9, 2011 7:58 PM Flag

    The story continues

    Listened to the conference call closely. This company is hitting on all cylinders now and is the 8000 lb. gorilla in their space. It is hard to know where to begin.

    The core business is very solid with organic revenues up 26% versus last year. Students enrolled are up sharply and retention is increasing. The acquisitions have been integrated and have boosted revenue and profits. The Chinese venture is doing well and has enormous potential. The political environment has changed for the better ("like flipping a switch") and states are talking about removing their charter caps and increasing enrollment. The language venture is doing well. Private school enrollment is taking off and has higher margins. The Blackboard venture is going very well. Revenue guidance has been raised, EBITDA and cash flow are both up, etc. etc. etc.

    LRN is going to be a multi-billion company and the dominant player in their space. It is not often that one finds a company with so many avenues for growth and such a solid and competitive business model. There is no way that anyone else can touch them in the educational market. As they continue to grow they are going to leverage their market power into higher margins on higher revenue. I have never been more optimistic about K12. They are still selling for less than 2 times next years revenue and revenue is growing by over 30% a year. Oh my.


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