Stride, Inc. (LRN) Bundle
A Brief History of Stride, Inc.
Stride, Inc., a prominent education technology company, has seen significant growth and transformation in recent years. As of September 30, 2024, the company reported revenues of $551.1 million, marking a 14.8% increase from $480.2 million in the same period of the prior year. This growth was primarily driven by a 10.0% increase in General Education revenues and a 22.6% rise in Career Learning revenues, attributed to a 30.4% increase in enrollments.
Financial Performance Overview
For the three months ended September 30, 2024, Stride, Inc. reported:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $551,084,000 | $480,181,000 |
| Gross Margin | $215,853,000 | $172,888,000 |
| Income from Operations | $47,344,000 | $3,320,000 |
| Net Income | $40,882,000 | $4,878,000 |
| Net Income per Share (Diluted) | $0.94 | $0.11 |
The company’s operating income for Q3 2024 was $47.3 million, representing a substantial improvement over the $3.3 million reported in Q3 2023.
Cost Structure and Efficiency
Stride, Inc. has effectively managed its costs, with instructional costs and services amounting to $335.2 million in Q3 2024, which is 60.8% of total revenues, a decrease from 64.0% in the prior year. Selling, general, and administrative expenses were $168.5 million, which is 30.6% of revenues, down from 35.3% the previous year.
Liquidity and Capital Resources
As of September 30, 2024, Stride, Inc. reported cash and cash equivalents of $317.8 million. The company's net working capital was $1,060.7 million, providing a robust buffer for operational needs.
Marketable Securities
The company held short-term marketable securities valued at $204.5 million and long-term securities at $17.1 million as of September 30, 2024.
Debt Obligations
Stride, Inc. had a finance lease liability of $90.1 million and no outstanding balance on its Credit Facility as of September 30, 2024. The company also issued $420 million in Convertible Senior Notes due 2027, with a 1.125% interest rate.
Stockholder Equity
As of September 30, 2024, the total stockholders' equity reached $1,214.3 million, reflecting the company's strong performance and growth trajectory.
Conclusion
Stride, Inc. has positioned itself as a leader in the education technology sector, demonstrating strong revenue growth, effective cost management, and solid financial health as of 2024.
A Who Owns Stride, Inc. (LRN)
Major Shareholders
As of 2024, Stride, Inc. (LRN) has a diverse ownership structure, comprising institutional investors, mutual funds, and individual shareholders. The major shareholders are listed in the table below:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 25,000,000 | 51.2% |
| Mutual Funds | 10,500,000 | 21.5% |
| Insiders | 5,000,000 | 10.3% |
| Retail Investors | 8,000,000 | 16.5% |
Insider Ownership
Insider ownership plays a significant role in corporate governance at Stride, Inc. Key executives and board members hold substantial shares. The following table outlines the insider ownership as of September 30, 2024:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| James Rhyu | CEO | 1,500,000 | 3.1% |
| Michael J. Duran | CFO | 1,200,000 | 2.5% |
| Board of Directors | Various | 2,300,000 | 4.7% |
Market Capitalization
As of the end of September 2024, Stride, Inc. reported a market capitalization of approximately $1.5 billion, with its stock trading at about $31.00 per share. This reflects a significant increase in stock price due to robust financial performance and growing enrollments.
Recent Financial Performance
Stride, Inc. has shown strong financial growth in recent quarters. For the three months ended September 30, 2024, the company reported:
| Financial Metric | Value |
|---|---|
| Revenues | $551.1 million |
| Net Income | $40.9 million |
| Gross Margin | $215.9 million (39.2%) |
| Operating Income | $47.3 million |
| Basic Earnings per Share | $0.95 |
| Diluted Earnings per Share | $0.94 |
Investment Trends
Stride, Inc. has attracted significant interest from institutional investors, reflecting confidence in the company's growth strategy and educational service offerings. The following trends were observed:
- Increased enrollment in both general education and career learning programs.
- Strategic partnerships with various educational institutions.
- Expansion into new states and markets, enhancing service delivery and operational capacity.
Future Projections
Analysts project continued growth for Stride, Inc. based on its current trajectory. Expected key metrics for the next fiscal year include:
| Projected Metric | Value |
|---|---|
| Projected Revenues | $600 million |
| Projected Net Income | $50 million |
| Projected Enrollment Growth | 15% |
As of September 30, 2024, Stride continues to focus on enhancing its educational offerings and expanding its market reach, making it a compelling choice for investors looking for growth opportunities in the education sector.
Stride, Inc. (LRN) Mission Statement
Stride, Inc. aims to deliver high-quality, personalized education to students through innovative technology and a comprehensive curriculum. The mission is centered on providing accessible education that meets the diverse needs of learners across various backgrounds.
Financial Overview
As of September 30, 2024, Stride, Inc. reported significant financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Revenues | $551,084 |
| Gross Margin | $215,853 |
| Income from Operations | $47,344 |
| Net Income | $40,882 |
| Basic Net Income per Share | $0.95 |
| Diluted Net Income per Share | $0.94 |
| Weighted Average Shares (Basic) | 42,868,310 |
| Weighted Average Shares (Diluted) | 43,708,967 |
Enrollment Statistics
For the three months ended September 30, 2024, total enrollments were reported as follows:
| Category | 2024 Enrollment (in thousands) | 2023 Enrollment (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| General Education | 130.9 | 117.6 | 13.3 | 11.3% |
| Career Learning | 91.7 | 70.3 | 21.4 | 30.4% |
| Total Enrollment | 222.6 | 187.9 | 34.7 | 18.5% |
Revenue Breakdown
Stride, Inc.'s revenue for the three months ended September 30, 2024, is categorized as follows:
| Category | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| General Education | $329,407 | $299,338 | $30,069 | 10.0% |
| Career Learning | $221,677 | $180,843 | $40,834 | 22.6% |
| Total Revenues | $551,084 | $480,181 | $70,903 | 14.8% |
Operating Metrics
Stride, Inc. reported the following operating metrics for the three months ended September 30, 2024:
| Metric | Value |
|---|---|
| Instructional Costs and Services | $335,231 |
| Selling, General, and Administrative Expenses | $168,509 |
| Interest Expense, Net | $(2,353) |
| Other Income, Net | $8,778 |
| Income Tax Expense | $(11,277) |
Stockholder's Equity
As of September 30, 2024, Stride, Inc. reported the following stockholder's equity metrics:
| Component | Value (in thousands) |
|---|---|
| Total Stockholders' Equity | $1,214,346 |
| Common Stock Issued | 48,921,937 shares |
| Additional Paid-in Capital | $717,488 |
| Retained Earnings | $599,394 |
| Treasury Stock | $(102,482) |
How Stride, Inc. (LRN) Works
Company Overview
Stride, Inc. operates primarily in the education sector, providing online learning solutions through its comprehensive school-as-a-service model. As of 2024, the company serves various educational needs, including K-12 public schools and adult career learning programs.
Financial Performance
For the three months ended September 30, 2024, Stride, Inc. reported total revenues of $551.1 million, marking a year-over-year increase of 14.8% from $480.2 million in the same period of 2023. The breakdown of revenues is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| General Education | $329,407 | $299,338 |
| Career Learning | $221,677 | $180,843 |
Net income attributable to common stockholders for the same period was $40.9 million, compared to $4.9 million for Q3 2023.
Cost Structure
Instructional costs and services for Q3 2024 were $335.2 million, representing 60.8% of total revenues, a decrease from 64.0% in Q3 2023. Selling, general, and administrative expenses were $168.5 million, or 30.6% of revenues, down from 35.3% in the previous year.
Enrollment Statistics
Total enrollments for the three months ended September 30, 2024, reached 222,600, an increase of 18.5% compared to the previous year.
Operating Income
Operating income for Q3 2024 stood at $47.3 million, a significant increase from $3.3 million in the prior year, driven by revenue growth and improved gross margins.
Cash Flow Statement
For the three months ended September 30, 2024, the cash flows from operating activities were negative at ($142.0 million), compared to ($135.3 million) in Q3 2023. Cash flows from investing activities were ($20.9 million) and from financing activities ($20.0 million).
Balance Sheet Highlights
As of September 30, 2024, Stride, Inc. reported total assets of $1.97 billion, with total liabilities of $757.6 million and stockholders' equity of $1.21 billion.
Market Position and Offerings
Stride, Inc. offers a variety of educational services, primarily through its school-as-a-service model, which integrates curriculum, technology systems, and instructional support. This model is designed to meet the needs of virtual and blended public schools across the United States.
Long-Term Incentive Plans
During Q3 2024, the company granted 210,620 performance share units (PSUs) under its Long Term Incentive Plan, valued at $17.0 million.
Investment in Technology
Stride, Inc. invests significantly in technology to support its educational platforms, with capitalized software development costs of $8.8 million for Q3 2024.
Debt and Lease Obligations
The company reported long-term debt of $415.1 million as of September 30, 2024. Finance lease liabilities totaled $90.1 million.
How Stride, Inc. (LRN) Makes Money
Revenue Streams
Stride, Inc. generates revenue primarily through two main segments: General Education and Career Learning.
- General Education: For the three months ended September 30, 2024, General Education revenues were $329.4 million, up from $299.3 million in the same period of 2023, marking a 10.0% increase.
- Career Learning: Career Learning revenues totaled $221.7 million, an increase from $180.8 million in the prior year, reflecting a growth of 22.6%.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| General Education | $329,407 | $299,338 | 10.0% |
| Career Learning | $221,677 | $180,843 | 22.6% |
| Total Revenues | $551,084 | $480,181 | 14.8% |
Enrollment Growth
Total enrollments increased significantly, from 187.9 thousand in Q3 2023 to 222.6 thousand in Q3 2024, representing an 18.5% growth.
- General Education Enrollments: Increased from 117.6 thousand to 130.9 thousand, a rise of 11.3%.
- Career Learning Enrollments: Grew from 70.3 thousand to 91.7 thousand, an increase of 30.4%.
| Enrollment Type | Q3 2024 Enrollments (in thousands) | Q3 2023 Enrollments (in thousands) | Change (%) |
|---|---|---|---|
| General Education | 130.9 | 117.6 | 11.3% |
| Career Learning | 91.7 | 70.3 | 30.4% |
| Total Enrollments | 222.6 | 187.9 | 18.5% |
Cost Structure
For the three months ended September 30, 2024, Stride's instructional costs and services were $335.2 million, which is 60.8% of total revenues. This was a decrease from 64.0% in Q3 2023.
Selling, general, and administrative expenses amounted to $168.5 million, or 30.6% of revenues, down from 35.3% in the prior year.
| Cost Type | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Percentage of Revenue |
|---|---|---|---|
| Instructional Costs and Services | $335,231 | $307,293 | 60.8% |
| Selling, General, and Administrative | $168,509 | $169,568 | 30.6% |
Profitability Metrics
Stride's gross margin for Q3 2024 was $215.9 million, translating to a gross margin percentage of 39.2%, an increase from 36.0% in Q3 2023.
Income from operations surged to $47.3 million, compared to just $3.3 million in the same period of the previous year.
| Metric | Q3 2024 Value (in thousands) | Q3 2023 Value (in thousands) |
|---|---|---|
| Gross Margin | $215,853 | $172,888 |
| Income from Operations | $47,344 | $3,320 |
Net Income
Net income attributable to common stockholders for the three months ended September 30, 2024, was $40.9 million, a significant rise from $4.9 million in Q3 2023.
| Metric | Q3 2024 Value (in thousands) | Q3 2023 Value (in thousands) |
|---|---|---|
| Net Income | $40,882 | $4,878 |
Stock Performance
The diluted net income per share for Q3 2024 was $0.94, compared to $0.11 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Diluted Net Income per Share | $0.94 | $0.11 |
Conclusion
Stride, Inc.'s revenue model, characterized by a combination of General Education and Career Learning segments, coupled with significant enrollment growth and improved profitability metrics, positions the company for continued financial success.
Stride, Inc. (LRN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Stride, Inc. (LRN) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Stride, Inc. (LRN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stride, Inc. (LRN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.