On August 1, 2024, Laureate Education Inc (LAUR, Financial) released its 8-K filing reporting robust financial results for the second quarter and six months ended June 30, 2024. Laureate Education Inc is an international community of universities, providing higher education programs and services through an international network of licensed universities and higher education institutions, primarily in Peru and Mexico.
Q2 2024 Financial Highlights
Laureate Education Inc (LAUR, Financial) reported a significant increase in revenue and net income for the second quarter of 2024, surpassing analyst estimates. Key highlights include:
- Revenue increased by 8% to $499.2 million, exceeding the estimated $483.70 million.
- Operating income rose to $166.6 million, up from $154.5 million in Q2 2023.
- Net income surged to $128.4 million, compared to $56.3 million in the same period last year.
- Adjusted EBITDA increased to $186.9 million from $175.4 million in Q2 2023.
Performance Analysis
The company's performance was driven by favorable market dynamics in its key geographies. Revenue growth was particularly strong in Mexico, which saw a 14% increase, while Peru experienced a more modest 4% growth. The increase in net income was primarily attributed to favorable changes in foreign currency exchange rates on intercompany balances.
"We are pleased with our solid operating results for the second quarter. Market dynamics remain favorable for the private sector in both our geographies. We continue to deliver strong growth in Mexico, while muted growth in Peru over the past 12 months is expected to pivot to a recovery in the second half of this year," said Eilif Serck-Hanssen, President and Chief Executive Officer.
Six Months Ended June 30, 2024 Highlights
For the first half of 2024, Laureate Education Inc (LAUR, Financial) also reported strong financial metrics:
- Revenue increased by 9% to $774.6 million.
- Operating income rose to $177.7 million, up from $170.1 million in the same period last year.
- Net income surged to $117.5 million, compared to $29.6 million in the first half of 2023.
- Adjusted EBITDA increased to $217.5 million from $208.9 million in the first half of 2023.
Balance Sheet and Cash Flow
Laureate Education Inc (LAUR, Financial) maintains a strong balance sheet with $128.8 million in cash and cash equivalents and gross debt of $232.6 million as of June 30, 2024. The company repurchased approximately $72 million of its common stock during the first half of 2024 under its $100 million stock repurchase program.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $499.2 million | $462.1 million | 8% |
| Operating Income | $166.6 million | $154.5 million | 8% |
| Net Income | $128.4 million | $56.3 million | 128% |
| Adjusted EBITDA | $186.9 million | $175.4 million | 7% |
Outlook for Fiscal 2024
Laureate Education Inc (LAUR, Financial) maintains its full-year constant currency outlook but has adjusted its as-reported guidance to reflect recent foreign currency rate fluctuations. The company expects total enrollments to range between 467,000 to 473,000 students, with revenues projected between $1,551 million to $1,566 million, reflecting a growth of 5%-6%.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Laureate Education Inc for further details.
