Q2 2024 Grand Canyon Education Inc Earnings Call Transcript
Key Points
- Grand Canyon Education Inc (LOPE) reported a strong quarter with online enrollment growth of 7.5% and hybrid growth of 12.1%.
- The company exceeded revenue guidance estimates at midpoint by $4.5 million, producing a $0.17 beat in adjusted diluted earnings per share.
- Service revenue increased by 8% year-over-year, reaching $227.5 million for Q2 2024.
- Operating income for Q2 2024 was $42.7 million, an increase of $7.3 million compared to the same period in 2023.
- Net income increased by 20.4% to $34.9 million for Q2 2024, compared to $29 million for the same period in 2023.
- The traditional ground campus enrollment is anticipated to be flat year-over-year, which is a disappointing result given the significant increase in discovery visits.
- FAFSA processing issues caused delays and errors, impacting enrollment figures and creating uncertainty for low and middle-income families.
- The hybrid pillar continues to lose money due to mature sites remaining significantly below pre-COVID student health.
- Contract modifications with university partners resulted in reduced revenue per student.
- The effective tax rate increased year-over-year to 25.5% from 23.8% in Q2 2023, impacting net income.
Good day, and thank you for standing by. Welcome to the Q2 2024 Grand Canyon Education earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Dan Bachus, Chief Financial Officer. Please go ahead.
Hello. Joining me on today's call is our Chairman and CEO, Brian Mueller. Please note that many of our comments today will contain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements. These factors are discussed in our SEC filings, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. We undertake no obligation to provide updates with regard to the forward-looking statements made during this call, and we recommend that all investors review these reports thoroughly
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