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PRDO Nasdaq· Perdoceo Education Corporation
Earnings report Q4 2023

Perdoceo Education Corporation Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Perdoceo Education Corporation, a leading education services provider, reported robust revenue growth in its latest quarter. The company's revenue is primarily derived from two segments: tuition and fees, and other sources.

In the latest quarter, tuition and fees revenue reached $702.9 million, representing an increase of $15.2 million or 2.2% compared to the previous year. This growth can be attributed to higher enrollment numbers and increased tuition rates. The company's focus on employer-paid and direct-pay education programs, which typically have lower bad debt expenses, has also contributed to the positive revenue trend.

Revenue from other sources, including corporate engagements and additional educational services, amounted to $7.1 million, slightly lower than the previous year. This decrease can be attributed to the expiration of various federal aid initiatives, which impacted the number of students completing the financial aid process.

Strengths

Perdoceo Education Corporation demonstrated strong financial performance in the latest quarter. The company's operating income increased by 16.1% or $20.8 million compared to the previous year. This growth was primarily driven by higher revenue and cost savings in admissions, advertising and marketing, occupancy, and other areas.

Management's emphasis on employer-paid and direct-pay education programs has proven successful, resulting in lower bad debt expenses. The company's regular evaluation of reserve rates and analysis of historical student receivable collectability have contributed to a more efficient financial management approach.

Challenges

Despite the overall positive performance, Perdoceo Education Corporation faced challenges in its other revenue sources. The decline in revenue from other sources, such as corporate engagements and additional educational services, can be attributed to the expiration of federal aid initiatives. This highlights the company's dependence on external factors that impact student enrollment and financial aid availability.

Noteworthy

It is worth noting that Perdoceo Education Corporation's revenue growth in tuition and fees, despite the challenges in other revenue sources, showcases the company's ability to adapt to changing market conditions. The focus on employer-paid and direct-pay education programs has provided stability and lower bad debt expenses, contributing to the overall positive performance.

Summary

Perdoceo Education Corporation reported strong revenue growth in its latest quarter, primarily driven by increased tuition and fees revenue. The company's emphasis on employer-paid and direct-pay education programs, along with cost savings in various areas, has resulted in improved financial performance. However, challenges in other revenue sources, such as corporate engagements, highlight the company's dependence on external factors. Overall, Perdoceo Education Corporation's ability to adapt and its focus on financial management have positioned it well for continued growth in the education services sector.

Source documents

Form 10-K  filed on Feb 21, 2024
105 pages scanned

Reference data

Company financials Q4 revenue 148M
Analyst estimates Q4 EPS beat by 17.39%
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