Free Research Report as 2U's Quarterly Revenues Advanced 42.36%
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LONDON, UK / ACCESSWIRE / June 7, 2018 / If you want access to our free earnings report on 2U, Inc. (NASDAQ: TWOU), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TWOU. On May 03, 2018, 2U reported financial results for the first quarter of 2018 ending March 31, 2018. The Company surpassed analysts' estimates for earnings as well as revenue in Q1 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, 2U most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
2U's total revenues reached $92.29 million for Q1 FY18, reflecting an increase of 42.36% from $64.83 million in Q1 FY17 led by better than expected enrollment in early presentations of several new short courses. The reported revenue number exceeded analysts' consensus estimates of $91.40 million.
During Q1 FY18, 2U incurred total costs and expenses of $108.31 million, 58.20% higher than $68.46 million in Q1 FY17. In the quarter under review, the Company's general and administrative (G&A) expenses advanced 60.05% to $21.87 million on a y-o-y basis, while marketing and sales expenses jumped 53.04% to $53.06 million on a y-o-y basis. 2U's loss from operations widened to $16.02 million in Q1 FY18 from $3.64 million in Q1 FY17. The Company had an adjusted loss before interest, taxes, and depreciation of $1.52 million in the reported quarter versus an adjusted EBITDA of $3.91 million in the year ago comparable quarter.
2U had a net loss of $14.87 million, or $0.28 per share, for the quarter ending March 31, 2018, after a net loss of $3.44 million, or $0.07 per share, in the same period in the previous year. 2U had a comprehensive loss of $10.24 million in Q1 FY18, after a net loss of $3.44 million in Q1 FY17. The reported earnings included foreign currency loss, amortization of acquired intangible assets, and stock-based compensation expense. Excluding these special items, 2U had an adjusted net loss of $6.13 million in Q1 FY18, after an adjusted net income of $0.46 million in Q1 FY17. The Company had an adjusted loss per share of $0.12 in the reported quarter, after an adjusted income per share of $0.01 in the previous-year same quarter. Analysts expected a loss of $0.13 per share for Q1 FY18.
2U's Segment Details
The Graduate Program segment had full course equivalent enrollments of 29,770 in Q1 FY18, up 24.79% on a y-o-y basis. The segment's average revenue per full course equivalent enrollment was $2,706 in Q1 FY18, 0.40% lower than $2,717 in Q1 FY17.
The Short Course segment had full course equivalent enrollments of 6,002 in Q1 FY18. The segment's average revenue per full course equivalent enrollment was $1,954 in the reported quarter.
Cash Matters
2U had cash and cash equivalents of $182.11 million as on March 31, 2018, 18.47% lower than $223.37 million as on December 31, 2017.
2U's cash outflow from operating activities was $18.83 million in Q1 FY18 compared to cash outflow of $11.60 million in Q1 FY17. The Company spent $1.86 million on purchases of property and equipment in the reported quarter compared to $9.38 million in the prior year's same quarter.
During Q1 FY18, 2U generated $2.12 million from exercise of stock options in the quarter under review compared to $0.52 million in the year ago same quarter.
Outlook
For the second quarter of 2018, 2U expects revenue to be in the range of $95.10 million to $96.10 million. The Company expects net loss to be between $22.10 million and $21.60 million and net loss per share to be between $0.42 - $0.41 in Q2 FY18. Also, 2U expects adjusted net loss of $11.60 million to $11.10 million and adjusted net loss per share of $0.22 to $0.21 in Q2 FY18.
For full year 2018, 2U expects revenue to be in the range of $406.60 million to $410.60 million. The Company expects net loss to be between $46.60 million and $44.70 million and net loss per share to be between $0.87 and $0.84 in FY18. Also, 2U expects adjusted net loss of $7.20 million to $5.30 million and adjusted net loss per share of $0.13 to $0.10 in FY18.
Stock Performance Snapshot
June 06, 2018 - At Wednesday's closing bell, 2U's stock marginally climbed 0.95%, ending the trading session at $94.20.
Volume traded for the day: 555.75 thousand shares.
Stock performance in the last month - up 6.67%; previous three-month period - up 5.89%; past twelve-month period - up 110.83%; and year-to-date - up 46.02%
After yesterday's close, 2U's market cap was at $4.95 billion.
The stock is part of the Technology sector, categorized under the Application Software industry. This sector was up 0.5% at the end of the session.
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