COVID-19 Remote Learning Play K12 Inc Posts 57% Increase In Q1 Enrollment

K12 Inc. reported first-quarter earnings Monday that showed a rise in revenue and enrollments.

What Happened: K12 Inc LRN reported a 44.3% year-over-year increase in revenue to $371 million in the first quarter.

Revenue was up 34.4% year-over-year to $313.8 million for the company's general education segment. Career learning segment revenue was up 143% year-over-year.

The company saw enrollment increase 57% year-over-year and top 195,000.

K12 Inc. reported net income of $12.7 million compared to a loss of $9.7 million in the same time period last year.

Related Link: P/E Ratio Insights For K12

Why It’s Important: K12 Inc. reported year-over-year enrollment growth of 49% for its general education segment and 127% for its career learning segment.

K12 forecast full-year revenue to come in a range of $1.45 billion to $1.47 billion. This would mark a year-over-year increase of 39% to 41%.

On Oct. 15, K12 announced that more than 150 new schools and districts representing more than 24,000 students have joined the network.

The number of new COVID-19 cases hit a new record of 79,303 in the U.S. on Friday, marking the second record-setting day in a row.

The rise in positive cases is leading more schools that were meeting in-person to switch to remote learning.

This could mean the guidance set by K12 Inc. is conservative at this point, as the company is a major benefactor of the remote learning switch.

The company covers over 30 states and 70% of the K-12 population. 

K12 Inc. will hold a virtual investor day Nov. 18.

LRN Price Action: Shares of K12 Inc. were trading 6.55% higher at $30.09 at last check Tuesday.

Shares have traded between $15.06 and $52.84 over the last 52 weeks.