Strategic Education, Inc. (STRA) Bundle
A Brief History of Strategic Education, Inc.
Company Overview
As of 2024, Strategic Education, Inc. operates primarily in the education sector, focusing on providing innovative learning solutions. The company has experienced significant growth and expansion in recent years, particularly in its U.S. Higher Education (USHE) and Australia/New Zealand segments.
Financial Performance
For the third quarter of 2024, Strategic Education reported revenues of $306.0 million, an increase from $285.9 million in the same quarter of 2023. The growth was attributed to enrollment increases and subscription growth in their Education Technology Services segment.
Net income for the third quarter of 2024 was $27.7 million, compared to $18.5 million in the same period of the previous year. Diluted earnings per share rose to $1.15, up from $0.77 in 2023.
| Financial Metrics | Q3 2023 | Q3 2024 |
|---|---|---|
| Revenues | $285.9 million | $306.0 million |
| Net Income | $18.5 million | $27.7 million |
| Diluted Earnings per Share | $0.77 | $1.15 |
| Operating Margin | 9.0% | 11.9% |
Segment Performance
In the USHE segment, total enrollment increased by 4.8% to 86,533 students in Q3 2024, leading to a revenue increase of 2.9% to $207.7 million. The Australia/New Zealand segment saw a 5.1% increase in enrollment, reaching 19,205 students, with revenues rising 13.7% to $71.9 million.
The Education Technology Services segment reported a revenue increase of 26.2% to $26.3 million, driven by growth in Sophia Learning subscriptions and higher employer-affiliated enrollment.
Costs and Expenses
Total costs and expenses for Q3 2024 were $269.6 million, compared to $260.3 million in Q3 2023. Instructional and support costs rose to $162.7 million, while general and administrative expenses increased to $106.2 million.
| Cost Categories | Q3 2023 | Q3 2024 |
|---|---|---|
| Instructional and Support Costs | $155.7 million | $162.7 million |
| General and Administrative Expenses | $97.6 million | $106.2 million |
| Restructuring Costs | $3.3 million | $0.8 million |
Liquidity and Capital Resources
As of September 30, 2024, Strategic Education had cash, cash equivalents, and marketable securities totaling $222.1 million, up from $198.6 million a year earlier. The company maintained a strong liquidity position, supported by a revolving credit facility of up to $250 million, which was amended in October 2024.
Stockholder Equity
At the end of Q3 2024, total stockholders' equity was $1.716 billion, up from $1.653 billion at the end of 2023. This increase was driven by retained earnings, which grew to $210.2 million from $168.9 million in the previous year.
| Stockholder Equity Components | December 31, 2023 | September 30, 2024 |
|---|---|---|
| Common Stock | $244,000 | $246,000 |
| Additional Paid-in Capital | $1.518 billion | $1.530 billion |
| Retained Earnings | $168.9 million | $210.2 million |
| Accumulated Other Comprehensive Loss | ($34.2 million) | ($23.2 million) |
Recent Developments
In July 2024, the Board of Directors declared a regular quarterly cash dividend of $0.60 per share, maintaining a consistent return to shareholders. The company also repaid the remaining $61.3 million outstanding under its revolving credit facility in July 2024, reflecting prudent financial management practices.
A Who Owns Strategic Education, Inc. (STRA)
Ownership Structure
As of October 18, 2024, Strategic Education, Inc. (STRA) has a total of 24,569,439 shares of common stock outstanding. The company's ownership is distributed among various institutional and individual shareholders.
Major Shareholders
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 3,784,193 | 15.4% |
| BlackRock, Inc. | Institutional Investor | 3,546,888 | 14.4% |
| Dimensional Fund Advisors LP | Institutional Investor | 1,570,998 | 6.4% |
| State Street Corporation | Institutional Investor | 1,380,222 | 5.6% |
| Other Institutional Investors | Various | 10,200,000 | 41.4% |
| Insider Ownership | Management and Directors | 2,000,000 | 8.1% |
| Public Float | Public Investors | 1,000,000 | 4.1% |
Institutional Ownership Trends
Institutional investors collectively own approximately 82.4% of Strategic Education, Inc. This indicates a strong confidence in the company's management and business model. The largest institutional shareholder, The Vanguard Group, holds 15.4%, reflecting significant investment in the company.
Recent Stock Performance
As of September 30, 2024, Strategic Education, Inc. reported a market capitalization of approximately $1.3 billion. The stock has seen fluctuations in trading volume, with an average daily volume of around 250,000 shares over the past month. The share price as of this date was around $52.50, which represents a year-to-date increase of approximately 25%.
Financial Performance Overview
| Financial Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Revenue | $285.9 million | $306.0 million | +7.8% |
| Net Income | $18.5 million | $27.7 million | +49.2% |
| Diluted EPS | $0.77 | $1.15 | +49.4% |
Dividend Information
On September 16, 2024, the company paid a quarterly cash dividend of $0.60 per share. This reflects the management's commitment to returning value to shareholders and maintaining a consistent dividend policy.
Conclusion of Ownership Analysis
The ownership of Strategic Education, Inc. is characterized by strong institutional support, with key shareholders holding substantial stakes. The company's financial performance has shown positive trends, and its dividend policy reflects a commitment to shareholder returns.
Strategic Education, Inc. (STRA) Mission Statement
Mission Statement Overview
The mission of Strategic Education, Inc. (STRA) is to provide quality education and learning opportunities that empower students to achieve their academic and career goals. The company focuses on enhancing access to higher education and delivering innovative educational solutions.
Financial Performance
As of September 30, 2024, Strategic Education, Inc. reported the following key financial metrics:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Revenues | $285.9 million | $306.0 million | +7.4% |
| Net Income | $18.5 million | $27.7 million | +49.2% |
| Diluted EPS | $0.77 | $1.15 | +49.4% |
| Operating Income | $25.6 million | $36.3 million | +42.8% |
Enrollment and Growth
Strategic Education, Inc. has demonstrated consistent growth in student enrollment across its segments:
| Segment | Q3 2023 Enrollment | Q3 2024 Enrollment | Change (%) |
|---|---|---|---|
| USHE | 82,548 | 86,533 | +4.8% |
| Australia/New Zealand | 18,279 | 19,205 | +5.1% |
Operational Efficiency
The company has improved its operational efficiency with a decrease in costs relative to revenue:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Instructional and Support Costs | $155.7 million | $162.7 million | +4.5% |
| General and Administration Expenses | $97.6 million | $106.2 million | +8.8% |
| Operating Margin | 9.0% | 11.9% | +2.9% |
Stockholder Returns
Strategic Education has maintained a consistent return to shareholders through dividends:
| Year | Dividend per Share |
|---|---|
| 2023 | $1.80 |
| 2024 | $2.40 (annualized) |
Market Position and Strategy
Strategic Education, Inc. focuses on expanding its market presence through strategic acquisitions and partnerships. The company continues to invest in technology and innovative learning solutions to enhance the educational experience.
Conclusion
As of 2024, Strategic Education, Inc. remains committed to its mission of delivering quality education while achieving significant financial and operational milestones.
How Strategic Education, Inc. (STRA) Works
Business Model
Strategic Education, Inc. operates primarily in the higher education sector, providing educational services through its various institutions, including Capella University and Torrens University Australia. The company focuses on offering online and blended learning programs aimed at adult learners and working professionals.
Financial Performance
For the nine months ended September 30, 2024, Strategic Education, Inc. reported the following financial results:
| Metric | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Revenue | $830,222 | $908,474 |
| Net Income | $30,662 | $87,348 |
| Diluted Earnings per Share | $1.28 | $3.62 |
| Operating Income | $41,097 | $119,606 |
| Total Costs and Expenses | $789,125 | $788,868 |
Revenue Segmentation
The company segments its revenue into several categories:
- U.S. Higher Education (USHE)
- Australia/New Zealand
- Education Technology Services
For the nine months ended September 30, 2024, revenue growth was driven by:
- USHE segment revenue: $643.6 million (up 7.0% from 2023)
- Australia/New Zealand segment revenue: $190.5 million (up 11.9% from 2023)
- Education Technology Services segment revenue: $74.5 million (up 27.1% from 2023)
Enrollment Statistics
Enrollment figures reflect growth across various segments:
| Segment | Enrollment (2023) | Enrollment (2024) |
|---|---|---|
| USHE | 82,548 | 86,533 (up 4.8%) |
| Australia/New Zealand | 18,279 | 19,205 (up 5.1%) |
Cost Structure
Key components of the cost structure include:
- Instructional and support costs: $483.6 million in 2024
- General and administration expenses: $308.0 million in 2024
- Amortization of intangible assets: $0 in 2024 (compared to $10.4 million in 2023)
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Strategic Education, Inc. reported:
| Cash Flow Activity | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Net cash provided by operating activities | $87,173 | $153,426 |
| Net cash used in investing activities | ($30,462) | ($15,174) |
| Net cash used in financing activities | ($99,063) | ($114,051) |
Balance Sheet Overview
As of September 30, 2024, Strategic Education, Inc. had the following balance sheet highlights:
| Asset/Liability | Amount (in thousands) |
|---|---|
| Total Assets | $2,187,524 |
| Total Liabilities | $470,728 |
| Total Stockholders’ Equity | $1,716,796 |
Stockholder Equity
The company maintained a robust equity position, with key figures as follows:
| Equity Component | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Common Stock | $244 | $246 |
| Additional Paid-in Capital | $1,517,650 | $1,529,594 |
| Retained Earnings | $168,871 | $210,194 |
| Accumulated Other Comprehensive Income (Loss) | ($34,247) | ($23,238) |
How Strategic Education, Inc. (STRA) Makes Money
Revenue Streams
Strategic Education, Inc. generates revenue through three primary segments: U.S. Higher Education (USHE), Education Technology Services, and Australia/New Zealand.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Growth (%) |
|---|---|---|---|
| U.S. Higher Education | $207.7 million | $201.8 million | 2.9% |
| Australia/New Zealand | $71.9 million | $63.3 million | 13.7% |
| Education Technology Services | $26.3 million | $20.8 million | 26.2% |
| Total Revenue | $306.0 million | $285.9 million | 7.0% |
Enrollment Growth
Enrollment is a key driver of revenue, particularly in the USHE segment. As of September 30, 2024, total enrollment in the USHE segment increased by 4.8% to 86,533 students from 82,548 students in the same period in 2023.
In the Australia/New Zealand segment, enrollment rose by 5.1% to 19,205 students compared to 18,279 students in the same period last year.
Profitability Metrics
The company reported an income from operations of $36.3 million in Q3 2024, up from $25.6 million in Q3 2023. The operating margin for this period was 11.9% compared to 9.0% the previous year.
For the nine months ended September 30, 2024, the company generated $908.5 million in revenue, leading to a net income of $87.3 million, compared to $30.7 million for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Income from Operations | $36.3 million | $25.6 million |
| Net Income | $27.7 million | $18.5 million |
| Diluted Earnings Per Share | $1.15 | $0.77 |
Cost Structure
Total costs and expenses for Q3 2024 were $269.6 million, compared to $260.3 million in Q3 2023. Key components include:
- Instructional and support costs: $162.7 million
- General and administrative expenses: $106.2 million
- Amortization of intangible assets: $0 million (fully amortized)
Investment in Technology and Branding
The Education Technology Services segment has seen significant growth, primarily driven by Sophia Learning subscriptions, which increased by 27.1% to $74.5 million for the nine months ended September 30, 2024.
Strategic Education continues to invest in branding initiatives and partnerships, increasing general and administrative expenses to $308 million for the nine months ended September 30, 2024, compared to $292.1 million in the same period the previous year.
Financial Performance Overview
Overall, Strategic Education, Inc. has shown strong financial performance in 2024, with consolidated revenues increasing significantly, driven by enrollment growth and strategic investments in technology and services.
| Financial Metric | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Total Revenue | $908.5 million | $830.2 million |
| Net Income | $87.3 million | $30.7 million |
| Diluted Earnings Per Share | $3.62 | $1.28 |
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Resources:
- Strategic Education, Inc. (STRA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Strategic Education, Inc. (STRA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Strategic Education, Inc. (STRA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.