Q3 2024 Laureate Education Inc Earnings Call Transcript
Key Points
- Laureate Education Inc (LAUR) reported strong financial performance for Q3 2024, with revenue of $369 million and adjusted EBITDA of $91 million, both exceeding prior guidance.
- New enrollments in Peru increased by 12% year-over-year for the third quarter, with expectations of a 16% increase upon completion of the intake cycle.
- The company announced an increase in its constant currency outlook for 2024, raising revenue guidance by $50 million and adjusted EBITDA by $6 million.
- Laureate Education Inc (LAUR) completed a $100 million stock repurchase program and introduced a new $100 million authorization, demonstrating a strong commitment to returning capital to shareholders.
- The company's balance sheet remains strong, with $134 million in cash and a net debt position of $20 million, supporting further capital returns to shareholders.
- Currency headwinds from a weaker Mexican peso are expected to offset some of the improved operating performance.
- Following the Mexican Presidential election, there was a pullback in economic activity, impacting new enrollment growth, which was only 4% year-over-year for the third quarter.
- The macroeconomic recovery in Peru, while positive, still reflects softer conditions experienced during the first half of 2024, affecting total enrollments.
- Adjusted EBITDA margins in Peru are expected to decline slightly in the fourth quarter due to the shifting of expenses from the third quarter.
- The proposed expansion of public university capacity in Mexico by the Sheinbaum administration could potentially impact Laureate Education Inc (LAUR)'s market share in the future.
Good day. And thank you for standing by. Welcome to the Q3 2024 Laureate Education Inc earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the call over to Adam Morse, Senior Vice President of Corporate Finance. Please go ahead.
Good morning and thank you for joining us on today's call to discuss Laureate Education's third quarter, 2024 results. Joining me on the call today are Eilif Serck-Hanssen, President and Chief Executive Officer; and Rick Buskirk, Chief Financial Officer.
Our earnings press release is available on the Investor Relations section of our website at laureate.net. We have also posted a supplementary presentation to the website which we'll be referring to during today's call. The call is being webcast and a complete recording will be available after the call.
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