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APEI Nasdaq· American Public Education Inc.
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APEI Nasdaq· American Public Education Inc.
Earnings report Q3 2023

APEI Reports Modest Revenue Growth in Latest Quarter

Segments of revenue

APEI's revenue for the three months ended September 30, 2023, was $150.8 million, representing a slight increase of $1.3 million, or 0.9%, compared to the same period in 2022. The revenue breakdown by segment is as follows:

  • APUS Segment: Generated $76.4 million in revenue, showing a significant increase of $7.7 million, or 11.2%, compared to the previous year's quarter. This growth in revenue contributed significantly to the overall increase in APEI's consolidated revenue.

  • RU Segment: Recorded revenue of $52.1 million, reflecting a decrease of $9.5 million, or 15.4%, compared to the same period in 2022. This decline in revenue in the RU Segment had a negative impact on APEI's overall revenue performance.

  • HCN Segment: Achieved revenue of $13.7 million, indicating a growth of $2.3 million, or 20.4%, compared to the previous year's quarter. The HCN Segment's strong revenue growth contributed positively to APEI's overall revenue performance.

  • Corporate and Other: Generated revenue of $8.6 million, representing an increase of $0.8 million, or 10.0%, compared to the same period in 2022. This increase in revenue in the Corporate and Other segment also contributed to APEI's overall revenue growth.

Strengths

APEI's APUS Segment demonstrated significant strength in the latest quarter, with a notable increase in revenue of $7.7 million, or 11.2%. This growth can be attributed to various factors, such as increased enrollment, higher tuition rates, or expanded course offerings. Management comments regarding the APUS Segment's performance were not provided in the report.

Challenges

APEI faced challenges in its RU Segment, which experienced a decline in revenue of $9.5 million, or 15.4%, compared to the same period in 2022. The report does not provide specific reasons for this decline, but it suggests that the RU Segment's performance negatively impacted APEI's overall revenue.

Noteworthy

It is worth noting that APEI's consolidated revenue growth in the latest quarter was modest, with a 0.9% increase compared to the previous year's quarter. The significant revenue growth in the APUS and HCN Segments was partially offset by the decline in the RU Segment. This mixed performance across segments indicates the need for further analysis to understand the underlying factors driving APEI's revenue trends.

Summary

APEI reported a modest increase in revenue for the three months ended September 30, 2023. The growth was primarily driven by a significant increase in the APUS Segment's revenue, while the RU Segment experienced a decline. The HCN Segment also contributed positively to APEI's overall revenue performance. Further analysis is required to determine the specific factors influencing the revenue trends in each segment.

Source documents

Form 10-Q  filed on Nov 07, 2023
69 pages scanned

Reference data

Company financials Q3 revenue 153M
Analyst estimates Q3 EPS beat by ∞%
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