Aspen Group Q4 Revenue Beats Estimates; Aims To Be Profitable In Q4'22

Aspen Group Inc ASPU reported fourth-quarter sales growth of 35.46% year-on-year to $19.10 million, beating the consensus of $18.51 million.
Gross profit for the quarter was $9.9 million, while the gross margin fell 700 basis points Y/Y to 52%.
Operating loss widened to $(2.3) million in the quarter.
EBITDA loss was $(1.4) million compared to a profit of $0.2 million last year.
Net loss per share of $(0.09) missed the consensus for loss of $(0.05) per share.
Cash and equivalents totaled $8.5 million as of April 30, 2021.
Outlook: Aspen Group expects FY22 revenue of $85 million to $88 million, with the analysts’ consensus at $86.29 million. Adjusted EBITDA is expected at $2.0 million to $4.0 million, loss per share of $(0.18) to $(0.12), versus consensus for EPS of $0.04.
The company expects to achieve profitability in Q4 of FY22.
It also plans to delay the next BSN Pre-Licensure campus launch to the Spring of 2022 or at the end of FY22.
Price action: ASPU shares closed lower by 5.20% at $6.38 on Tuesday.