Stride, Inc. (LRN): Business Model Canvas [10-2024 Updated]

Stride, Inc. (LRN) has carved a niche in the education sector with its innovative approach to online learning. By leveraging a comprehensive school-as-a-service model, Stride is transforming how K-12 education is delivered. With strategic partnerships and a focus on personalized learning, the company serves a diverse range of customer segments, including students, educational institutions, and employers. Discover how Stride’s unique business model integrates key components to drive success in the evolving landscape of education.

Stride, Inc. (LRN) - Business Model: Key Partnerships

Collaborations with public and private schools

Stride, Inc. engages with a diverse array of public and private educational institutions to provide its comprehensive school-as-a-service model. As of the 2024-2025 academic year, Stride supports 89 schools in 31 states and the District of Columbia within the General Education market, and 56 schools or programs in 27 states and the District of Columbia within the Career Learning market. The average duration of these agreements exceeds five years, with most contracts including provisions for automatic renewals unless a non-renewal notice is issued by the customer.

Partnerships with educational technology providers

Stride has made significant investments in educational technology to enhance the learning experience. Over the last two decades, the company has invested more than $700 million to develop curriculum, technology systems, and instructional practices that serve hundreds of thousands of students. The technology platform integrates proprietary and third-party systems, which allows for a high-quality educational environment that supports growth in customer programs and enrollment.

Provider	Type of Collaboration	Investment Amount	Year Established
Banc of America Leasing & Capital, LLC	Finance leases for student computers	$41 million	2020
CSI Leasing, Inc.	Finance leases for technology hardware	$54 million	2022

Relationships with state education departments

Stride maintains strong relationships with state education departments to ensure compliance with educational standards and funding requirements. These partnerships are essential for securing per-student funding which is a significant revenue driver for the company. The average revenue per student can vary based on the state and type of enrollment, impacting overall financial performance. For the three months ended September 30, 2024, Stride reported revenues of $551.1 million, with $329.4 million derived from General Education and $221.7 million from Career Learning, highlighting the importance of these relationships.

Alliances with curriculum developers

Stride has established alliances with various curriculum developers to provide a robust digital curriculum portfolio. This collaboration ensures access to high-quality, research-based content tailored to meet state standards. Stride's capitalized curriculum development costs were $5.3 million for the three months ended September 30, 2024, with amortization expenses also recorded at $4.6 million. These figures reflect the ongoing investment in curriculum development necessary to maintain a competitive edge in the online education market.

Stride, Inc. (LRN) - Business Model: Key Activities

Development of online curriculum and learning platforms

Stride, Inc. has invested over $700 million over the last twenty years in developing curriculum, systems, instructional practices, and support services. As of September 30, 2024, the total capitalized curriculum development additions were $5.3 million, compared to $4.4 million for the same period in the previous year. The company provides a large digital research-based curriculum portfolio, including hundreds of high-quality online courses and state-customized versions.

Providing instructional and administrative support

Stride offers extensive instructional services, which include recruitment of state-certified teachers, training in online instruction methods, and ongoing professional development. For the three months ended September 30, 2024, instructional costs and services were $335.2 million, representing 60.8% of total revenues. The company also provides administrative support, including budget proposals and financial reporting.

Marketing and enrollment management

For the three months ended September 30, 2024, Stride reported total enrollments of 222.6 thousand, which is an increase of 34.7 thousand or 18.5% compared to the previous year. The marketing and enrollment management activities are essential for driving student admissions and retention, which directly influence revenue generation.

Continuous improvement of educational technology

Stride continuously innovates to enhance its educational technology, focusing on providing a secure and reliable platform that integrates proprietary and third-party systems. The technology platform supports curriculum and content hosting, as well as data reporting and analytics. For the three months ended September 30, 2024, Stride recognized $28.1 million in depreciation and amortization expense, reflecting ongoing investment in technology.

Key Activity	Investment/Cost	Impact on Revenue	Year-on-Year Change
Curriculum Development	$5.3 million	Supports high-quality online courses	+20.5%
Instructional and Administrative Support	$335.2 million	60.8% of total revenues	+9.1%
Marketing and Enrollment	N/A	222.6 thousand enrollments	+18.5%
Educational Technology	$28.1 million	Enhances learning experience	N/A

Stride, Inc. (LRN) - Business Model: Key Resources

Proprietary educational technology platform

The proprietary educational technology platform of Stride, Inc. integrates various systems for content management, learning management, and student information. This platform allows for a personalized educational experience and supports over 222,600 enrollments as of September 30, 2024, reflecting an 18.5% increase from the previous year.

Experienced instructional staff and state-certified teachers

Stride employs a substantial number of instructional staff, including state-certified teachers. The company has made significant investments in training and professional development for these educators to ensure high-quality instruction. The instructional costs and services for the three months ended September 30, 2024, amounted to $335.2 million.

Extensive digital curriculum library

Stride has developed one of the largest digital curriculum libraries in the K-12 online education sector, with over 700 million dollars invested in curriculum development over the last two decades. This library includes a wide range of engaging online coursework that meets state educational standards.

Curriculum Type	Number of Courses	Investment in Development (in millions)
General Education	Hundreds	700+
Career Learning	Varied by program	Included in total

Strong brand recognition in online education

Stride, Inc. has established strong brand recognition within the online education market. The company reported revenues of $551.1 million for the three months ended September 30, 2024, representing a 14.8% increase from the same period in the prior year. This growth is attributed to the company's comprehensive school-as-a-service offerings and effective marketing strategies.

Stride, Inc. (LRN) - Business Model: Value Propositions

Comprehensive school-as-a-service model

The school-as-a-service model offered by Stride, Inc. integrates a full suite of educational services, including curriculum, technology, and administrative support. This model has been implemented across 89 schools in 31 states and the District of Columbia for the General Education market and 56 schools or programs in 27 states for the Career Learning market as of the 2024-2025 school year. The average duration of these agreements exceeds five years, indicating strong customer retention and long-term partnerships.

Personalized learning experiences for students

Stride focuses on providing personalized learning experiences tailored to individual student needs. For the three months ended September 30, 2024, total enrollments reached 222.6 thousand, a significant increase of 34.7 thousand or 18.5% year-over-year. This growth reflects the effectiveness of personalized learning strategies in attracting and retaining students.

Access to high-quality online coursework

Stride boasts one of the largest digital research-based curriculum portfolios for K-12 online education, with hundreds of high-quality courses available. For the three months ended September 30, 2024, total revenues were $551.1 million, an increase of 14.8% from $480.2 million in the same period the previous year. This growth can be attributed to the increasing demand for quality online coursework.

Flexibility and scalability for educational institutions

Stride’s services offer flexibility and scalability, catering to various educational institutions' needs. The instructional costs and services for the three months ended September 30, 2024, were $335.2 million, which is 60.8% of total revenues, demonstrating efficient cost management while scaling operations.

Financial Metric	Q3 2024	Q3 2023	Year-Over-Year Change (%)
Revenues	$551,084,000	$480,181,000	14.8%
Net Income	$40,882,000	$4,878,000	7.4%
Total Enrollments	222,600	187,900	18.5%
Instructional Costs and Services	$335,231,000	$307,293,000	9.1%

Stride, Inc. (LRN) - Business Model: Customer Relationships

Dedicated customer support teams

Stride, Inc. has established dedicated customer support teams to enhance the experience of its educational institutions. For the three months ended September 30, 2024, Stride reported a net income of $40.88 million, a significant increase compared to $4.88 million for the same period in 2023, highlighting the effectiveness of their customer engagement strategies.

Regular communication and updates with schools

The company maintains regular communication with its partner schools, ensuring they are updated on curriculum changes, enrollment procedures, and technology support. For the fiscal year ending June 30, 2024, Stride's total revenues reached $551.08 million, reflecting a 14.8% increase from $480.18 million in the previous year. This revenue growth is indicative of strong relationships built through consistent communication with educational partners.

Personalized onboarding and training for educators

Stride provides personalized onboarding and training programs for educators, focusing on the integration of their curriculum and technology platforms. The company reported instructional costs and services of $335.23 million for the three months ended September 30, 2024, representing 60.8% of total revenues. This investment in training is crucial for facilitating effective teaching practices and ensuring educator satisfaction.

Community-building initiatives for students and parents

Stride actively engages in community-building initiatives aimed at fostering connections among students and parents. In the latest reporting period, total enrollments increased by 34.7 thousand, or 18.5%, reaching 222.6 thousand students. These initiatives not only improve retention rates but also enhance the overall educational experience by creating a supportive learning environment.

Customer Relationship Aspect	Details	Financial Impact
Dedicated Customer Support Teams	Establishment of teams focused on educational institutions.	Net income increased to $40.88 million for Q3 2024.
Regular Communication with Schools	Frequent updates on curriculum and technology support.	Total revenues reached $551.08 million in FY 2024.
Personalized Onboarding for Educators	Customized training programs for effective curriculum integration.	Instructional costs and services were $335.23 million in Q3 2024.
Community-Building Initiatives	Programs to engage students and parents.	Enrollments increased by 34.7 thousand, totaling 222.6 thousand.

Stride, Inc. (LRN) - Business Model: Channels

Direct sales to schools and districts

Stride, Inc. directly engages with schools and districts, primarily through its comprehensive school-as-a-service offering. For the 2024-2025 school year, Stride provided services to 89 schools across 31 states and the District of Columbia in the General Education market, along with 56 schools or programs in the Career Learning market. The average duration of these agreements exceeds five years, with most contracts featuring automatic renewals unless a customer opts out. In the three months ended September 30, 2024, Stride generated revenues of $551.1 million, a 14.8% increase compared to $480.2 million in the same period the previous year.

Online marketing and social media outreach

Stride utilizes various online marketing strategies and social media platforms to connect with prospective students and educational institutions. The company has significantly invested in digital marketing campaigns, which have contributed to a 18.5% increase in total enrollments, reaching 222.6 thousand students as of September 30, 2024. This growth is essential as Stride's revenue model heavily relies on student enrollments, impacting overall revenue generated from its educational programs.

Partnerships with educational institutions

Stride has established partnerships with numerous educational institutions to expand its reach and improve service offerings. These collaborations enable Stride to leverage shared resources and expertise, thereby enhancing its curriculum and instructional services. For instance, Stride's partnerships facilitate the provision of focused post-secondary career learning programs for adult learners in sectors like software engineering and healthcare. This strategic approach not only diversifies Stride's revenue streams but also strengthens its market position within the educational sector.

Educational conferences and trade shows

Stride actively participates in educational conferences and trade shows, providing an avenue for direct engagement with educators, administrators, and decision-makers within the education sector. These events allow Stride to showcase its innovative educational solutions, gather feedback, and build relationships that can lead to new business opportunities. In the three months ended September 30, 2024, Stride's revenues were significantly bolstered by these outreach efforts, contributing to a net income of $40.9 million.

Channel	Details	Recent Performance
Direct Sales	Engagement with 89 schools in General Education and 56 in Career Learning.	Revenues of $551.1 million, a 14.8% increase year-over-year.
Online Marketing	Utilization of digital campaigns to attract students.	Total enrollments increased to 222.6 thousand, an 18.5% rise.
Partnerships	Collaborations with educational institutions for enhanced curriculum.	Diverse revenue streams from adult learning programs.
Conferences	Participation in trade shows for networking and showcasing solutions.	Contributed to a net income of $40.9 million in Q1 2025.

Stride, Inc. (LRN) - Business Model: Customer Segments

K-12 students in virtual or blended learning environments

Stride, Inc. serves a significant number of K-12 students through its online and blended learning platforms. For the three months ended September 30, 2024, revenues from the General Education sector amounted to $329.4 million, an increase from $299.3 million in the same period of 2023, reflecting a growth of 10%. The total enrollments for K-12 education as of September 30, 2024, reached 222,600, which was an increase of 34,700 students or 18.5% compared to the previous year.

Adult learners seeking career advancement

Stride, Inc. provides targeted educational programs for adult learners, particularly in fields such as software engineering and healthcare. The Career Learning segment generated revenues of $221.7 million for the three months ended September 30, 2024, up from $180.8 million in 2023, marking a 22.6% increase. Specifically, revenues from adult education decreased to $22.8 million from $29.9 million, indicating a decline of 23.7%, which reflects shifting market dynamics.

Public and private educational institutions

Stride, Inc. collaborates with both public and private educational institutions, delivering comprehensive school-as-a-service offerings. As of the 2024-2025 school year, Stride supports 89 schools across 31 states and the District of Columbia in the General Education market. The average duration of agreements within this segment is greater than five years, with most contracts providing for automatic renewals unless a non-renewal notice is issued.

Employers and government agencies looking for training solutions

Stride also partners with employers and government agencies to deliver training solutions. The company’s school-as-a-service model for career learning programs includes an integrated package of curriculum, technology systems, and instructional support, which is tailored to meet the needs of employers. The growth in the Career Learning market, particularly in the middle and high school segments, saw revenues rise to $198.9 million, a 31.7% increase from the previous year.

Customer Segment	Revenue (Q3 2024)	Revenue (Q3 2023)	Growth (%)	Total Enrollments
K-12 Students	$329.4 million	$299.3 million	10%	222,600
Adult Learners	$22.8 million	$29.9 million	-23.7%	N/A
Public & Private Institutions	N/A	N/A	N/A	89 Schools
Employers & Government Agencies	$221.7 million	$180.8 million	22.6%	N/A

Stride, Inc. (LRN) - Business Model: Cost Structure

Operational costs for technology and platform maintenance

The operational costs for technology and platform maintenance are significant for Stride, Inc. In the three months ended September 30, 2024, the company's total revenues were $551.1 million, with instructional costs and services amounting to $335.2 million, which includes technology-related expenses. Stride has invested over $700 million in the last twenty years to develop its curriculum, systems, instructional practices, and support services. The technology platform integrates proprietary and third-party systems, providing a high-quality educational environment.

Salaries for instructional and administrative staff

Salaries for instructional and administrative staff are a major component of Stride's cost structure. Instructional costs and services, which include salaries, accounted for 60.8% of revenues in the most recent quarter. The company has been increasing its personnel in growth states, contributing to the rise in instructional costs, which increased by $27.9 million or 9.1% year-over-year. The total salary-related expenses are embedded within the instructional costs and services figure of $335.2 million.

Marketing and enrollment expenses

Marketing and enrollment expenses are essential for driving student enrollments, which are crucial for revenue generation. Stride's selling, general, and administrative expenses for the three months ended September 30, 2024, were $168.5 million, representing 30.6% of total revenues. This figure includes costs associated with marketing campaigns aimed at attracting new students and retaining existing ones. The company reported a 14.8% increase in total revenues, driven partly by a 11.3% increase in enrollments.

Research and development for curriculum improvement

Research and development (R&D) for curriculum improvement is another crucial cost area for Stride. The company capitalized $5.3 million in curriculum development additions for the three months ended September 30, 2024. This investment reflects Stride's commitment to enhancing its educational offerings and maintaining a competitive edge in the online education market. The amortization expense related to curriculum development for the same period was $4.6 million.

Cost Category	Q3 2024 Amount (in thousands)	Q3 2023 Amount (in thousands)	Year-over-Year Change (%)
Instructional Costs and Services	$335,231	$307,293	9.1%
Selling, General, and Administrative Expenses	$168,509	$169,568	-0.6%
Research and Development for Curriculum	$5,300	$4,400	20.4%
Marketing and Enrollment Expenses	Included in SG&A	Included in SG&A	N/A

Stride, Inc. (LRN) - Business Model: Revenue Streams

Per-student funding from state and local governments

For the three months ended September 30, 2024, Stride, Inc. reported total revenues of $551.1 million, an increase of 14.8% from $480.2 million in the same period of the prior year. A significant portion of this revenue, particularly in the General Education segment, is derived from per-student funding provided by state and local governments. In this period, General Education revenues increased by $30.1 million, or 10.0%, largely attributed to an 11.3% increase in student enrollments.

Subscription fees for online curriculum access

Stride generates revenue through subscription agreements for online curriculum services provided to schools and school districts. These revenues are recognized on a ratable basis over the subscription period. Stride's subscription model allows for the licensing of curriculum to various educational institutions, with revenues from these contracts expected to grow as they expand their offerings.

Fees for additional instructional and support services

In addition to the core curriculum, Stride charges fees for various instructional and support services. These include training for teachers, administrative support, and technology assistance. The company reported that its revenues from Career Learning programs, which encompass adult education and job training, increased by $40.8 million, or 22.6%, driven by a 30.4% increase in enrollments.

Revenue from enterprise contracts for job training programs

Stride also engages in enterprise contracts to provide job training programs. Each contract is treated as a single performance obligation, with revenue recognized based on the number of students trained. During the three months ended September 30, 2024, the company’s total revenues from these contracts contributed significantly to its overall growth.

Revenue Source	Q3 2024 Revenue (in thousands)	Q3 2023 Revenue (in thousands)	Change (%)
General Education Funding	$329,407	$299,338	10.0%
Career Learning (Middle-High School)	$198,885	$150,974	31.7%
Career Learning (Adult)	$22,792	$29,869	(23.7%)
Total Career Learning	$221,677	$180,843	22.6%
Total Revenues	$551,084	$480,181	14.8%

Article updated on 8 Nov 2024

Resources:

1. 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.
2. 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.