Q3 2024 Grand Canyon Education Inc Earnings Call Transcript
Key Points
- Grand Canyon Education Inc (LOPE) reported a solid quarter with online enrollment growth of 5.8% and hybrid growth of 12.6%, excluding closed sites.
- The company continues to produce strong retention rates, which are attributed to the relevancy of programs and their direct tie to students' career aspirations.
- Grand Canyon Education Inc (LOPE) has rolled out 148 new programs, emphases, and certificates since the pandemic, directly tied to labor market opportunities.
- Service revenue increased by 7.4% year-over-year, primarily due to a 4% increase in GCU enrollments and an 8.1% increase at off-campus sites.
- Operating income for the quarter increased by $6.7 million, with an operating margin improvement from 18.7% to 20.2% year-over-year.
- Ground enrollment for traditional students was down slightly year-over-year, attributed to FAFSA processing issues and industry-wide challenges.
- Service revenue was slightly lower than expected due to lower-than-expected revenue per student and enrollments.
- There was a decline in professional study students and working adult students attending GCU's ground traditional campus in the evening.
- Ancillary revenues were less than expected, attributed to lower student spend due to inflationary pressures.
- The hybrid pillar is expected to continue losing money for the remainder of 2024, with mature sites significantly below pre-COVID student counts.
Good day, and thank you for standing by. Welcome to the Q3 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, CFO. Please go ahead.
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 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 before taking a position
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