Perdoceo Education Corp (PRDO) Reports 6.8% Revenue Increase and 46. ...
Perdoceo Education Corp (NASDAQ:PRDO) reports a 6.8% increase in Q3 2023 revenue, reaching $179.9 million.
Operating income for Q3 2023 rose by 46.9% to $43.1 million.
Year to date revenue and operating income also increased by 8.3% and 25.7% respectively.
Despite positive financial results, total student enrollments decreased by 12.7% as of September 30, 2023.
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Perdoceo Education Corp (NASDAQ:PRDO) released its Q3 and year to date 2023 earnings report on November 2, 2023. The company reported significant increases in both revenue and operating income for the quarter and year to date, despite a decrease in total student enrollments.
Financial Highlights
For Q3 2023, PRDO's revenue increased by 6.8% to $179.9 million, driven by a 23.6% increase at CTU. Operating income also saw a substantial increase of 46.9% to $43.1 million. Earnings per diluted share were $0.62, compared to $0.32 in the prior year quarter. However, total student enrollments decreased by 12.7%, with AIUS experiencing a 34.2% decrease.
Year to date results also showed positive growth, with revenue increasing by 8.3% to $562.1 million and operating income increasing by 25.7% to $134.5 million. Earnings per diluted share were $1.92, compared to $1.16 in the prior year to date.
CEO Commentary
We performed well during the quarter, as we continued to see meaningful improvements in student retention and engagement, said Andrew Hurst, Chief Executive Officer. We remain committed to making targeted investments in our student-facing and support processes as well as selected technology enhancements that we believe will drive operational improvements and efficiencies while further enhancing academic outcomes and experiences.
Balance Sheet and Cash Flow
PRDO ended the quarter with $603.7 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments. Net cash provided by operating activities for the quarter was $32.6 million, compared to $52.9 million for the prior year quarter. For the year to date, net cash provided by operating activities was $98.8 million, compared to $107.6 million in the prior year to date.
Outlook
PRDO has increased its full year outlook and is also providing the fourth quarter outlook, subject to key assumptions identified in the report. The company expects quarterly dividend payments to be an integral part of its balanced capital allocation strategy while also prioritizing investments in organic projects, particularly technology-related initiatives designed to benefit students and maintaining a strong balance sheet.
Explore the complete 8-K earnings release (here) from Perdoceo Education Corp for further details.
This article first appeared on GuruFocus.
