Stride Rockets On Q1 Results: Enrollments Up 18.5%, EPS Smashes Estimates

Stride, Inc. LRN shares are rocketing premarket today after it reported first-quarter results on Tuesday. Revenue improved 14.8% year-over-year to $551.1 million, beating the consensus of $506.1 million.

Adjusted operating income escalated 295.4% to $58.360 million. Adjusted EBITDA increased 111.1% to $83.93 million.

Enrollments reached 222.6K, an increase of 18.5% on year. Of this, career Learning enrollments accounted for 91.7K, up 30.4% over prior year.

Revenue per enrollment was $2,303, a 0.5% growth over the prior year. General Education revenue per enrollment rose 0.8% to $2,400, while Career Learning revenue per enrollment increased 1.0% to $2,166.

Changes in enrollment mix may impact total revenue if averages differ significantly. EPS of $0.94 beat the consensus of $0.20.

As of September 30, cash, cash equivalents, and marketable securities totaled $539.4 million.

Outlook: Stride expects second-quarter sales of $560 million – $580 million (vs. consensus of $535.35 million) and adjusted operating income of $115 million – $125 million.

For FY25, the company projects sales of $2.225 billion – $2.300 billion (vs. estimate of $2.17 billion) and adjusted operating income of $395 million – $425 million.

Price Action: LRN shares are up 26.85% at $81.77 premarket at the last check Wednesday.

Read Next:

• GM ‘Working Hard’ To Resume Driverless Cruise Vehicles By End Of Year, Says CEO Mary Barra: ‘We Want To Make Sure We’re Investing In Autonomy As Efficiently As Possible’