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LAUR Nasdaq· Laureate Education Inc.
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LAUR Nasdaq· Laureate Education Inc.
Earnings report Q4 2023

LAUR Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

LAUR reported total revenues of $1.48 billion in the latest quarter, representing a significant increase compared to the previous year's revenue of $1.24 billion. This growth can be attributed to strong performance across multiple segments.

Strengths

LAUR's strong revenue growth in the latest quarter can be attributed to several factors. Firstly, the company experienced increased enrollment intakes during the first and third quarters, which are traditionally weaker revenue quarters due to summer breaks. This indicates the effectiveness of their enrollment strategies and the ability to attract new students. Additionally, LAUR's geographic diversity and the timing of summer breaks in different regions contributed to stronger revenue in the second and fourth quarters, as the majority of their institutions were in session during these periods. Management comments suggest that the company's focus on optimizing operations and cost management also played a role in driving revenue growth.

Challenges

Despite the overall strong revenue performance, LAUR faced challenges in certain areas. The company incurred significant costs and expenses, including direct costs and general and administrative expenses, which impacted their operating income. Additionally, LAUR recorded a loss on impairment of assets, indicating potential weaknesses in their asset management and investment decisions.

Noteworthy

It is worth noting that LAUR made a strategic decision to wind down certain support functions related to the Laureate network and discontinue investment in the Laureate tradename beyond 2021. This decision resulted in an impairment charge of approximately $51.4 million. While this may have impacted their financial results for the year, it demonstrates the company's commitment to optimizing their operations and focusing on core business areas.

Summary

LAUR delivered a strong performance in terms of revenue growth in the latest quarter, with total revenues reaching $1.48 billion. The company's ability to attract new students and effectively manage the seasonality of their business contributed to this positive outcome. However, challenges such as significant costs and expenses, as well as an impairment charge, highlight areas that require attention. Overall, LAUR's strategic decisions and focus on operational efficiency position them well for future growth.

Source documents

Form 10-K  filed on Feb 22, 2024
84 pages scanned

Reference data

Company financials Q4 revenue 409M
Analyst estimates Q4 EPS beat by 42.32%
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