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Edited Transcript of ZVO.OQ earnings conference call or presentation 28-Oct-20 9:00pm GMT

·27 min read

Q3 2020 Zovio Inc Earnings Call San Diego Nov 27, 2020 (Thomson StreetEvents) -- Edited Transcript of Zovio Inc earnings conference call or presentation Wednesday, October 28, 2020 at 9:00:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Alanna Vitucci Zovio Inc - VP of Corporate Communications * Andrew S. Clark Zovio Inc - Co-Founder, CEO, President & Director * Kevin S. Royal Zovio Inc - CFO & Executive VP ================================================================================ Conference Call Participants ================================================================================ * Alexander Peter Paris Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Ladies and gentlemen, thank you for standing by, and welcome to the Zovio Q3 2020 Earnings Conference Call. (Operator Instructions) I would now like to hand the conference over to your speaker for today, Alanna Vitucci, our VP of Corporate Communications. Thank you. Please go ahead. -------------------------------------------------------------------------------- Alanna Vitucci, Zovio Inc - VP of Corporate Communications [2] -------------------------------------------------------------------------------- Thank you, and good afternoon. Zovio's third quarter 2020 earnings release was issued earlier today and is posted on the company's website at www.zovio.com. Joining me on the call today are Andrew Clark, Founder, President and Chief Executive Officer; and Kevin Royal, Chief Financial Officer. We would like to remind you that some of the statements we make today may be considered forward-looking, including statements regarding new enrollment growth; student retention; education partnerships and other programs and services; our ability to meet all required conditions and obtain all required approvals to close on the plans regarding Ashford University and our current planned timing to do so; our ability to transition to become an education technology services company; our ability to grow through acquisitions; our ability to successfully integrate and leverage acquired companies, future revenue growth, EBITDA, financial and related guidance, and commentary regarding fiscal year 2020 and later. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Please note that these forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to update these forward-looking statements in light of new information or future events, except to the extent required by applicable securities laws. On the call today, we will discuss certain non-GAAP financial measures. In our earnings release, you will find additional disclosures regarding these measures, including reconciliations of these measures with U.S. GAAP. Note that these non-GAAP financial measures are intended to supplement GAAP financial information and should not be considered as a substitute for our GAAP results. Please refer to our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2019, as well as our quarterly report on Form 10-Q for the quarter ended September 30, 2020, which we filed with the SEC earlier today for a more detailed description of the risk factors that may affect our results. You may obtain copies from the SEC or by visiting the Investor Relations section of our website. At this time, it is my pleasure to introduce Zovio's Founder, President and CEO, Andrew Clark. -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [3] -------------------------------------------------------------------------------- Thank you, Alanna, and welcome to our third quarter 2020 earnings call. After I discuss some of the highlights for the quarter, Kevin will review our financial results and key operating metrics. After Kevin concludes, I will offer my closing comments. We are incredibly pleased to report a strong third quarter for 2020. First and foremost, in line with our guidance, we delivered low single-digit new enrollment growth. Our team has remained focused and energized as the steady flow of new inquiries continued. Retention for the quarter also saw a significant improvement, increasing 320 basis points over the prior year, reaching 61.9% as of September 30, 2020. Ashford's superior offerings and reputation, combined with the initiatives we put in place earlier this year to increase resources and enhance overall efficiency, supported the best retention since the second quarter of 2016. As we look to the fourth quarter, we anticipate this momentum at Ashford to continue with new enrollment growth in the mid-single digits on a normalized basis. For the third quarter 2020, we delivered reported revenue of $102.2 million and net income of $1.1 million or $0.03 per diluted share. Excluding non-GAAP items, our non-GAAP net income for the third quarter of 2020 was $2.9 million or $0.09 per diluted share. Last quarter, we announced the signing of a definitive agreement with the University of Arizona to acquire Ashford University creating the University of Arizona Global Campus, or UAGC. This transaction marked a key moment for Zovio's evolution into a world-class education technology services company and also reinforce the strength of Ashford's value proposition to its students. In fact, the University's Net Promoter Score hit a new all-time high. As of the end of the third quarter, Ashford's NPS was 61.3, the highest since we began tracking this metric in January of 2017 and on par with other world-class global education leaders. Further, results from the 2020 National Survey of Student Engagement, or NSSE, indicated that Ashford provides an academic challenge that ranks with the top 10% of 4-year colleges in the United States that participated in the NSSE. Ashford's students rate their interactions with faculty and academic advising as high quality and say they experience high level of effective teaching practices. Participating institutions include Bachelor's degree granting colleges and universities, representing a broad diversity with respect to institution type, public or private control, size and region. We are incredibly excited to partner with UAGC in support of their vision. Building on the history of superior outcomes for students, UAGC will further expand access and provide innovative learning solutions to meet students where they are. We continue to target the transaction closing by the end of the year. However, this remains subject to approval by Ashford's accrediting body, WASC. As we discussed last quarter, through our strategic services agreement, we will continue to provide UAGC with our enterprise education technology and services, leveraging our unique advanced data analytics platform to provide personalized and innovative online education that enhances student engagement and improves the likelihood of student success. This agreement marks our inaugural university partnership client as we transition to world-class education technology services company and we'll create a strong foundation from which we can pursue diversified growth, providing technology and services to other institutions, corporations and learners. In our pursuit of growth, Zovio remains incredibly well positioned, leveraging our deep expertise, delivering personalized individual learning experiences across all credential levels, modalities and disciplines. We bring a clearly differentiated offering to our clients. First, we bring an end-to-end solution that spans the entire student life cycle, marketing and recruitment to retention and course development tools. Second, our offerings are tailored and flexible. Third, we are aligned to operate at scale to support our clients' rapid growth objectives. And lastly, all of our robust solutions are powered by signals. Signals is Zovio's proprietary predictive analytics platform that provides data-driven insights to enhance our client offerings and improve overall results and outcomes. This enables Zovio to develop solutions and engineer workflows that optimize performance metrics from marketing through graduation. The pandemic has, of course, presented significant challenges for everyone, making it clear that an increasingly virtual world will be our new normal. Higher education is at the forefront of this trend, yet not all institutions are prepared for this accelerated shift. Now more than ever, it will be critical to provide students with a robust online platform that meets them where they are and enables them to achieve success. At the same time, the employed and unemployed workforce is seeking opportunities to upskill. Zovio could not be better positioned to leverage these trends and execute our long-term strategy, which is centered on a number of key initiatives: First, deliver education services that meet the diverse and large-scale needs of higher education institutions; second, accelerate growth businesses through ongoing investment to support strong growth, expectations and diversification; third, expand our skills to employment, B2B and B2C offerings to empower learners to better connect with in-demand jobs, leveraging Learn@Forbes and education partners; and fourth, established leadership position as a data-first services provider to offer institutions a technology and data-first suite of solutions that will further differentiate Zovio's offerings. Zovio's subsidiaries, Fullstack, TutorMe and Learn@Forbes, all continued to perform better than expected. The addition of these services enhances Zovio's ecosystem to support learners education and career aspirations by building on our existing capabilities to meaningfully serve higher ed institutions, bridge the education to employment gap and help enterprise upskill and educate their most important asset, their people. During the quarter, Fullstack continued to outperform the anticipated number of university partnership agreement with meaningful partnership announcements, including Colorado State University, Emory University and University of Illinois, Chicago. As an example, Fullstack's partnership with Emory University's noncredit division, Emory Continuing Education, ECD, will offer programs aimed at developing qualified professionals to meet the staffing needs of Atlanta's prospering technology sector with Emory's impressive reputation across Georgia and its longstanding relationships with Atlanta's most prominent businesses, bringing this accelerated training to the region alongside Emory was a natural fit. As students and experienced professionals continue to look for opportunities to upskill, we are seeing increased opportunity for our offering. By the end of 2020, we expect Fullstack to have nearly doubled the university partners from our initial expectations, and we remain incredibly optimistic for its prospects as we move forward. In recognition of a superior offering in September, TutorMe was awarded HowtoLearn.com's 2020 Parent and Teacher Choice Award. The Parent and Teacher Choice award from HowtoLearn.com are among the most recognized international awards by both parents and teachers. As students, parents and teachers have pivoted to remote learning, the importance of online educational resources like TutorMe have become necessary to support learners. Given the dynamic of remote learning, companies are providing tutoring support as an employee benefit, while education institutions from higher education to K-12 districts are leveraging TutorMe to ensure their students have help when and where they need it. In this vein, TutorMe continued to execute new partnership agreements during the quarter from universities to corporations to school districts. In September, TutorMe announced its alliance with the Allendale County School District, which will provide over 1,150 K-12 students in the district with access to free online tutoring. Since 2017, Allendale County schools have been focused on increasing the successful outcomes of the district students. And TutorMe stood out as an effective online tutoring program because the platform gives its students access to a live tutor consistently within 30 seconds. TutorMe added another 60-plus partners at the end of the third quarter of 2020, bringing the total to 176, an increase of nearly 280% year-over-year. Further, as the COVID-19 pandemic has driven increased demand, remote learning has continued to support explosive growth for online tutoring services. In the third quarter, total customer and partner usage increased nearly 340% year-over-year, continuing the strong momentum we saw in the second quarter. As a self-paced, skills-based content platform for the consumer, Learn@Forbes attracted subscribers at a strong clip. At the end of the third quarter, we had 2,700 active subscribers, which increased as a percentage in the high teens from the second quarter of 2020. We continue to be very encouraged by the success of this offering, and we remain enthusiastic about the prospects ahead for Learn@Forbes. We are incredibly pleased with the progress and growth we achieved during the third quarter. We delivered a return to new enrollment growth in line with our expectations, student retention at levels not seen since 2016 and our broader offerings, including Fullstack, TutorMe and Learn@Forbes are firing on all cylinders. As we march towards the final step of Zovio's transition into a world-class education technology services company, we remain excited for the future. I want to thank our team for their hard work over the last several years to get us to this point. It is your commitment to superior student outcomes that has put Zovio on a path to take advantage of the attractive trends in higher education and deliver a long-term growth and value creation. Now I will turn the call over to Kevin Royal to review our financial and operating results. -------------------------------------------------------------------------------- Kevin S. Royal, Zovio Inc - CFO & Executive VP [4] -------------------------------------------------------------------------------- Thank you, Andrew. Let me begin by providing some key financial and operating information for the quarter ended September 30, 2020. Revenue for the third quarter of 2020 was $102.2 million compared to revenue of $104.3 million for the same period in the prior year. The decrease is primarily related to a year-over-year decline in average enrollment, partially offset by an increase in tuition rates year-over-year. For the third quarter of 2020, instructional costs and services were $44.9 million or 44% of revenue compared to $51.4 million or 49.4% of revenue for the comparable prior period. The cost as a percentage of revenue decreased year-over-year and was primarily driven by lower labor costs, partially offset by an increase in bad debt expense. Net bad debt expense in the third quarter 2020 was $3.4 million or 3.4% of revenue compared to $3 million or 2.9% of revenue for the comparable prior year period. Admissions, advisory and marketing expenses for the third quarter of 2020 were $41.6 million or 40.7% of revenue compared to $40.8 million or 39.2% of revenue for the comparable prior period. These costs increased as a percentage of revenue, primarily due to increases in advertising spend. General and administrative expenses for the third quarter of 2020 were $14.8 million or 14.5% of revenue compared to $17.4 million or 16.7% of revenue for the comparable prior period. The decrease as a percentage of revenue was primarily driven by the decrease in acquisition costs from the prior year as well as lower labor and facilities expense. Restructuring and impairment charges for the third quarter of 2020 were $0.2 million or 0.2% of revenue compared to $2.5 million or 2.4% of revenue for the comparable prior period. The charges in the third quarter of 2020 relate primarily to relocation costs. During the third quarter of 2020, we recorded an income tax benefit of $0.4 million. Our effective tax rate before discrete items for the third quarter of 2020 was low single digits, and we anticipate this trend to continue for the remainder of 2020. Net income for the third quarter of 2020 was $1.1 million, a net income of $0.03 per diluted share. This is compared to a net loss of $7.6 million or a net loss of $0.25 per diluted share for the third quarter of the prior year. Our non-GAAP net income for the third quarter of 2020 was $2.9 million or income of $0.09 per diluted share compared to the non-GAAP net loss of $1.6 million or loss of $0.05 per diluted share for the third quarter of the prior year. The non-GAAP net income for the third quarter of 2020 excludes restructuring and impairment charges of $0.2 million, separation and conversion costs of $1.5 million and acquisition costs of $0.5 million. As of September 30, 2020, we had combined cash and cash equivalents of $86.6 million compared to $69.3 million as of December 31, 2019. We generated $20.1 million of cash provided by operating activities during the year-to-date period ended September 30, 2020. By comparison, we used $38.2 million of cash in operating activities during the same period in the prior year. The year-over-year change in the cash provided by operating activities was primarily driven by the increase in earnings, partially offset by changes in working capital. The net accounts receivable was $39.7 million as of September 30, 2020, compared to $35 million as of December 31, 2019. The increased balance is consistent with our business cycles. Capital expenditures for the year-to-date period ended September 30, 2020, were $2.6 million as compared to $27 million for the same period last year. In terms of our outlook for the fourth quarter, we expect mid-single digit new enrollment growth. Beyond this, we will not be providing financial guidance for the remainder of 2020. For 2021, we anticipate total revenues to be in the range of $290 million to $310 million, and non-GAAP EBITDA margin in the high single digits. Please note, this assumes the successful completion of our transaction with University of Arizona by the end of 2020. Now I will turn the call back over to Andrew for his closing comments. -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [5] -------------------------------------------------------------------------------- Thank you, Kevin. The third quarter of 2020 was strong. We returned to new enrollment growth, retention levels were at highs not experienced since 2016 and our subsidiaries, Fullstack, TutorMe and Learn@Forbes continue to gain momentum. Pending accreditor approval, we continue to target the closing of the sale of Ashford University to University of Arizona by the end of this year, creating University of Arizona Global Campus and marking Zovio's final step in its transformation to a world-class education technology services company. As I have previously said, the future for Zovio is bright. We have a strong culture with an energized employee base, delivering innovative, data-driven insights to our clients and partners to ensure learners have the tools and resources needed to achieve superior outcomes. We are incredibly excited for what lies ahead of us and the value creation opportunities for our stakeholders. At this time, I will ask our operator to open the phone lines for your questions. ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) Your first question comes from the line of Alex Paris from Barrington Research. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [2] -------------------------------------------------------------------------------- First off, I would... -------------------------------------------------------------------------------- Operator [3] -------------------------------------------------------------------------------- (Operator Instructions) -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [4] -------------------------------------------------------------------------------- Thanks. I don't know what happened there. But I think -- again, congrats on the quarter. From a P&L perspective, your revenues were in line with my estimate. Earnings were above expectations, but more importantly, congrats on reaching the inflection point on starts. And I was happy to hear that we expect acceleration in that metric in the fourth quarter. And I would note, this is after 8 consecutive quarters of decline. So we've been waiting for this for a while. So first off, what do you attribute the growth to? And was it influenced by COVID or rising unemployment? And is it sustainable? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [5] -------------------------------------------------------------------------------- Yes. Sure, Alex. So I don't believe that it was influenced by COVID or rising unemployment. In fact, there's an argument that consumers were kind of heavily distracted by all of that. And I really believe that it was the value proposition that Ashford University brings of quality and convenience and 24/7 support. You've heard about the NPS score, that's the best we've ever seen since we started measuring it back in 2017, I think. And then we combine that with really some very strong internal operational execution and some things that we've been working on internally since really the first quarter. And when we bring our data-driven insights that we have and our capabilities to bear along with that operational capability, we end up with results like this. And I'm really proud of our team. I think it's definitely sustainable. And I would expect us to be in the mid-single digits in terms of new enrollment growth for Q4. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [6] -------------------------------------------------------------------------------- Great. And then once the transaction is completed, subject to your accreditor's approval, would you anticipate an acceleration in new student enrollment growth, given that the University will now be not-for-profit or more traditional and given the brand name that University of Arizona brings with it? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [7] -------------------------------------------------------------------------------- Well, I mean, I think there's a very kind of logical argument for what you just said. I think the affiliation with the University of Arizona, in addition to the value proposition that Ashford already enjoys, should incrementally bring, I think, more new students to the institution. I would say -- I'd caution it a little bit because you're rebranding the institution, Alex, from Ashford to UAGC. So there'd be a little bit of headwinds there, meaning I think new enrollment growth in the first half of the year would probably be not too dissimilar from what we're experiencing in the second half of '20 and in the third and the fourth quarter. So I'm really pleased that we do have new enrollment growth occurring at the institution. And handing over Ashford University to University of Arizona and having it become UAGC and having it growing as it is, is a really wonderful thing. And I think UAGC will do some wonderful things to enhance the university, make it even better. And I think all of that should accrue to the benefit of students, which is what we're all most focused on. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [8] -------------------------------------------------------------------------------- Absolutely. So what would be the headwinds with the name change? Would it be like Google Search terms and things like that kind of reestablishing the university? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [9] -------------------------------------------------------------------------------- Yes, exactly. I can tell you're a cagey veteran in the industry, you've been around for many, many years. So you could probably come in and run marketing at any of the -- any of our competitors. So yes, it's Google Search terms, right? It absolutely will be different as UAGC gets populated there in the Google Search algorithm. So that's a little bit of a headwind. But I think it's a headwind in the context of the new enrollment growth won't be quite as robust as it would be under what we might call kind of normal circumstances. In other words, once that algorithm catches up and it's similar to what Ashford is today, which I would expect would happen kind of in the back half of the year, then you would expect new enrollment growth rates that would be kind of more robust than what we're currently seeing in this quarter and what we anticipate to see in the fourth quarter. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [10] -------------------------------------------------------------------------------- That's great. Moving on to the subsidiaries, Fullstack, TutorMe and Learn@Forbes, I wanted to key in kind of on Fullstack specifically. I think you had said, by year-end, you're going to be double where you thought you would be in terms of university partners. By my count, you're at 12 right now, 11 or 12 right now, and that's up from 1 at the time of acquisition. Are you implying that there would be other university partnership agreements likely to be announced before year-end? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [11] -------------------------------------------------------------------------------- Yes. I think there's the potential for probably one more agreement before the year-end. You're right, we're at 12 currently. And our internal plan, when we acquired Fullstack, was for them to be at 6 partners at this point. So they have doubled that expectation. The team there has just done a fantastic job and really brought on some marquee universities. We mentioned Emory a little earlier in this call. It's just one example. I would expect that they would probably continue a similar kind of rate of university partner signings next year, Alex, probably like what we've seen this year. If you kind of expect them to do 2 to 3 partner signings a quarter next year, that means by the end of '21, they should be somewhere in the neighborhood of 22, 23, 25 university partners. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [12] -------------------------------------------------------------------------------- And then along the same line of questioning, have you noticed upticks in enrollment on a same program basis as a result of COVID or rising unemployment? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [13] -------------------------------------------------------------------------------- With regards to Fullstack? -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [14] -------------------------------------------------------------------------------- Yes. -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [15] -------------------------------------------------------------------------------- Well, I mean, I'll tell you the one headwind for Fullstack was -- has been understandably their New York location, which has been closed. And so that's been hard on them. But I would say their part-time online university partner offerings have been really pretty fantastic. And we've signed 12, we've launched 6 of the universities, so we don't have all 12 operational at this point. But in the 6 that we've signed, the part-time online programs are doing very well. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [16] -------------------------------------------------------------------------------- And then how does -- how is that launch? Is it one cohort at a time? And then you start a second cohort when that cohort is ending? Or do you have monthly starts? How does it work there? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [17] -------------------------------------------------------------------------------- Yes. No, exactly. We do one cohort at the time and there's usually kind of 2 cohorts a quarter, it depends on the quarter and kind of the timing. It can be either strictly web development or it could be cyber or it could be both, depends on the university partner. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [18] -------------------------------------------------------------------------------- Great. And then just a couple of questions on the sale of Ashford University. So we're waiting for WASC approval. They meet next, if I'm not mistaken, on November 4th. When -- you know if you got approval, and parenthetically, I would think that the approval would be academic, no pun intended, given you already received WASC approval for your initial plan prior to University of Arizona getting into the mix. If they meet on the 4th, I think the meeting will last a couple of days, when will you be notified? And then when will you notify The Street and how will you notify the street? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [19] -------------------------------------------------------------------------------- Yes. So I don't know, it's always kind of a guess, but I'd say a good guess of when we'd be notified would be sometime before Thanksgiving, before the holiday. Typically, I think we've seen WASC try to get out all their notifications, so the various institutions that were on their agenda out altogether, and it's usually within, I'd say, a couple of weeks' time. In terms of how we'd notify folks, we're definitely -- would notify The Street as quickly as possible, and we'd do that through an 8-K and most likely a press release as well. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [20] -------------------------------------------------------------------------------- Got you. And then I guess my last question, and I'll get back in the queue. Kevin reiterated guidance for next year, assuming successful completion of the transaction $290 million to $300 million -- $290 million to $310 million in revenue and high single-digit adjusted EBITDA margin. Obviously, 2021 is going to be a down year from a revenue perspective, just simply because of the structure of the agreement. What are your expectations for Zovio beyond 2021? How fast can you grow Zovio as you pursue diversified growth and as some of the subsidiaries continue to gain momentum? -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [21] -------------------------------------------------------------------------------- Well, I think what our objectives are to eventually see the company achieve kind of mid-teen revenue growth. And what we'll try and do for everybody at the end of the year, Alex, is pro forma 2020 as though the UAGC transaction had closed on January 1 of '20. So you kind of see, "Okay, what would '20 look like?" And then we'll give you, obviously, a view of '21, and you'll be able to compare then kind of the revenue growth that occurred despite what you just commented on, which is consolidated revenue being down. So you'll be able to kind of get a much better sense for that. And then, from that, we'll project out '22 and '23. I think you would see kind of a gradual increase in revenue growth over each year with us probably hitting that mid-teen number somewhere around 2023. We'd probably be in the neighborhood of high-single digits around '22. And '21 on a pro forma basis probably would be similar. -------------------------------------------------------------------------------- Alexander Peter Paris, Barrington Research Associates, Inc., Research Division - Director of Research and Education & Business Services Analyst [22] -------------------------------------------------------------------------------- Well, that's very helpful. I appreciate all the additional color. I am very pleased and relieved to see the growth in the student starts this quarter. We've been waiting for it for a long time. Inflection investing is a key in this space. I think last time that we went through this, your stock doubled in short order once you kind of went through that inflection. Unfortunately, it went negative again. But it just feels a little bit more durable to me here, given all the changes that you've made over the last couple of years, including expanding your enrollment advisor workforce. -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [23] -------------------------------------------------------------------------------- Yes. No, we've done a lot internally over this last year and really credit goes to the team internally. They've done a fantastic job, not just our data analytics people, our operational folks, people in IT. It really is a team effort and everybody here has contributed. So there's a lot of energy and excitement inside the company, just for the direction the organization is taking to be a world-class educational technology services company. So we're very excited about the future. Thank you. -------------------------------------------------------------------------------- Operator [24] -------------------------------------------------------------------------------- And I turn the call back to you for closing remarks. -------------------------------------------------------------------------------- Andrew S. Clark, Zovio Inc - Co-Founder, CEO, President & Director [25] -------------------------------------------------------------------------------- I just want to thank everybody for joining us on today's call and for your interest in Zovio. -------------------------------------------------------------------------------- Operator [26] -------------------------------------------------------------------------------- Thank you, everybody, for joining. That concludes today's conference call. You may now disconnect.