Stride, Inc. Announces Second Quarter Revenues Increased 46% to $376.1 Million
Total Enrollments of 191.5 Thousand, up nearly 60% Year-over-Year
HERNDON, Va.–(BUSINESS WIRE)–Stride, Inc. – formerly K12 Inc. (NYSE: LRN), one of the nation’s leading tech-enabled education companies, today announced its results for the second fiscal quarter ended December 31, 2020.
Financial Highlights for the Second Quarter Fiscal 2021 compared with the Second Quarter Fiscal 2020
- Revenues of $376.1 million, compared with $257.6 million. The increase is due largely to increased enrollments.
- Income from operations of $38.5 million, compared with $30.3 million.
- Net income of $24.5 million, compared with $20.6 million.
- Diluted net income per share of $0.60, compared with $0.52.
- Cash and cash equivalents as of December 31, 2020 of $258.1 million, compared with $212.3 million as of June 30, 2020.
- Adjusted operating income of $50.1 million, compared with $37.2 million. (1)
- Adjusted EBITDA of $70.7 million, compared with $53.7 million. (1)
Second Quarter Fiscal 2021 Summary Financial Metrics
|
Three Months Ended December 31, |
Change 2020 / 2019 |
|||||||||||
|
2020 |
2019 |
$ |
% |
|||||||||
| (In thousands, except percentages) | ||||||||||||
| Revenues |
$ |
376,145 |
$ |
257,559 |
$ |
118,586 |
46.0 |
% |
||||
| Income from operations |
|
38,452 |
|
30,305 |
|
8,147 |
26.9 |
% |
||||
| Adjusted operating income (1) |
|
50,050 |
|
37,224 |
|
12,826 |
34.5 |
% |
||||
| Net income |
|
24,501 |
|
20,594 |
|
3,907 |
19.0 |
% |
||||
| EBITDA (1) |
|
61,613 |
|
47,534 |
|
14,079 |
29.6 |
% |
||||
| Adjusted EBITDA (1) |
|
70,687 |
|
53,711 |
|
16,976 |
31.6 |
% |
||||
Financial Highlights for the Six Months Ended December 31, 2020 Compared to the Six Months Ended December 31, 2019
- Revenue of $747.1 million, compared with $514.7 million.
- Income from operations of $50.5 million, compared with $10.9 million.
- Net income of $37.2 million, compared with $10.9 million.
- Diluted net income per share of $0.89, compared with $0.27.
- Adjusted operation income of $73.1 million, compared with $24.1 million. (1)
- Adjusted EBITDA of $109.9 million, compared with $57.0 million. (1)
Six Months Ended December 31, 2020 Summary Financial Metrics
|
Six Months Ended December 31, |
Change 2020 / 2019 |
|||||||||||
|
2020 |
2019 |
$ |
% |
|||||||||
| (In thousands, except percentages) | ||||||||||||
| Revenues |
$ |
747,105 |
$ |
514,680 |
$ |
232,425 |
45.2 |
% |
||||
| Income from operations |
|
50,516 |
|
10,917 |
|
39,599 |
362.7 |
% |
||||
| Adjusted operating income (1) |
|
73,059 |
|
24,101 |
|
48,958 |
203.1 |
% |
||||
| Net income |
|
37,167 |
|
10,864 |
|
26,303 |
242.1 |
% |
||||
| EBITDA (1) |
|
91,954 |
|
45,293 |
|
46,661 |
103.0 |
% |
||||
| Adjusted EBITDA (1) |
|
109,921 |
|
56,992 |
|
52,929 |
92.9 |
% |
||||
|
(1) |
To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income, EBITDA and adjusted EBITDA. Management believes that these additional metrics provide useful information to our investors as an indicator of performance because they exclude stock-based compensation expense and the amortization of intangible assets. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. |
Cash Flow and Liquidity
As of December 31, 2020, the Company’s cash and cash equivalents totaled $258.1 million, compared with $212.3 million reported at June 30, 2020. The increase in the cash balance is largely the result of the $348.3 million in proceeds the Company received from its issuance of convertible senior notes during the first quarter, partially offset by the use of $100 million to pay down its revolving credit facility and $72.8 million in cash used to acquire Tech Elevator and MedCerts.
Capital Expenditures
Capital expenditures for the six months ended December 31, 2020 were $23.6 million, a decrease of $2.7 million from the six months ended December 31, 2019 and comprised of,
- $2.0 million on property and equipment,
- $14.1 million on capitalized software development, and
- $7.5 million on capitalized curriculum development.
Organization Announcement
The company today announced that Nathaniel (Nate) A. Davis is retiring from his role as Chief Executive Officer. He will remain active in the business as the Executive Chairman of Stride’s Board of Directors supporting the company’s strategy, public policy, and external relations initiatives. The Board of Directors has selected James J. Rhyu to replace Mr. Davis as Chief Executive Officer. “With a solid foundation and clear strategies in place, I believe this is the appropriate time for me to retire from my role as CEO,” said Nate Davis, Executive Chairman of the Board of Directors. “Having known James and the quality of his work for fifteen years, I have complete faith in his broad set of skills, which he’s developed through managing multiple functional areas both at Stride and throughout his career. He is the right person, at the right moment for this role.” Mr. Rhyu assumes the role of CEO from his current position as President of Corporate Strategy, Marketing, and Technology. During his eight-year tenure at Stride, Mr. Rhyu has also served as the company’s Chief Financial Officer and President of Product and Technology. With more than two decades of business experience, Mr. Rhyu brings significant strategic, financial management, and operational expertise to his new role.
Revenue and Enrollment Data
During the first quarter of fiscal year 2021, the Company revised its lines of revenue reporting into two categories:
|
a. |
General Education – products and services that are predominantly focused on kindergarten through twelfth grade students for core subjects including math, English, science, and history to help build a common foundation of knowledge, and |
|
|
b. |
Career Learning – products and services that are focused on developing skills for students, in middle school through high school and adult learners, to enter careers in high-growth, in-demand industries—including information technology, business, and health services. Middle and high school students also take general education courses per state standards in addition to coursework in career pathways. |
The Company believes that the change in the lines of revenue will facilitate a better understanding of its business strategy and the markets in which the Company competes. Additional information on the new lines of revenue, including revenue and enrollments for the three months ended December 31st, 2020 and 2019 revised to reflect the new lines of revenue format can be found in Appendix A. Additional information on the new lines of revenue for fiscal years 2020 and 2019 revised to reflect the new lines of revenue format can be found in our first quarter, fiscal year 2021 press release. This information is provided for investor reference only. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2020, including all financial statements contained therein and the footnotes thereto, filed with the SEC.
Revenue
The following table sets forth the Company’s revenues for the periods indicated:
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||
|
December 31, |
Change 2020 / 2019 |
December 31, |
Change 2020 / 2019 |
|||||||||||||||||||||
|
2020 |
2019 |
$ |
% |
2020 |
2019 |
$ |
% |
|||||||||||||||||
| (In thousands, except percentages) | ||||||||||||||||||||||||
| General Education | $ |
313,989 |
$ |
232,619 |
$ |
81,370 |
35.0 |
% |
$ |
627,838 |
$ |
466,185 |
$ |
161,653 |
34.7 |
% |
||||||||
| Career Learning | ||||||||||||||||||||||||
| Middle – High School |
51,376 |
24,940 |
26,436 |
106.0 |
% |
100,147 |
48,495 |
51,652 |
106.5 |
% |
||||||||||||||
| Adult |
10,780 |
— |
10,780 |
100.0 |
% |
19,120 |
— |
19,120 |
100.0 |
% |
||||||||||||||
| Total Career Learning |
62,156 |
24,940 |
37,216 |
149.2 |
% |
119,267 |
48,495 |
70,772 |
145.9 |
% |
||||||||||||||
| Total Revenues | $ |
376,145 |
$ |
257,559 |
$ |
118,586 |
46.0 |
% |
$ |
747,105 |
$ |
514,680 |
$ |
232,425 |
45.2 |
% |
||||||||
Enrollment Data
The following table sets forth total enrollment data for students in our General Education and Career Learning lines of revenue. Enrollments for General Education and Career Learning include those students in full service public or private programs where Stride provides a combination of curriculum, technology, instructional and support services inclusive of administrative support.
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
|
December 31, |
2020 / 2019 |
December 31, |
2020 / 2019 |
|||||||||||||||
|
2020 |
2019 |
Change |
Change % |
2020 |
2019 |
Change |
Change % |
|||||||||||
| (In thousands, except percentages) | ||||||||||||||||||
| General Education (1) |
161.2 |
106.8 |
54.4 |
50.9 |
% |
162.0 |
107.8 |
54.2 |
50.3 |
% |
||||||||
| Career Learning (1) (2) |
30.3 |
13.1 |
17.2 |
131.3 |
% |
30.4 |
13.2 |
17.2 |
130.3 |
% |
||||||||
| Total Enrollment |
191.5 |
119.9 |
71.6 |
59.7 |
% |
192.4 |
121.0 |
71.4 |
59.0 |
% |
||||||||
| (1) |
This data includes enrollments for which Stride receives no public funding or revenue. |
|
| (2) |
No enrollments are included in Career Learning for Galvanize, Tech Elevator or MedCerts. |
Revenue per Enrollment Data
The following table sets forth revenue per average enrollment data for students for the period indicated. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different. Revenue per enrollment in the three and six months ended December 31st declined from 2019 to 2020 due to state budgetary pressures resulting from COVID-19 and a higher mix of lower-funded states.
|
Three Months Ended December 31, |
Change 2020 / 2019 |
Six Months Ended December 31, |
Change 2020 / 2019 |
||||||||||||||||||||
|
2020 |
2019 |
$ |
% |
2020 |
2019 |
$ |
% |
||||||||||||||||
| General Education | $ |
1,755 |
$ |
1,953 |
$ |
(198 |
) |
(10.1 |
%) |
3,491 |
3,847 |
(356 |
) |
(9.2 |
%) |
||||||||
| Career Learning |
1,681 |
1,866 |
(185 |
) |
(9.9 |
%) |
3,258 |
3,619 |
(361 |
) |
(10.0 |
%) |
|||||||||||
Outlook
The Company is updating its outlook for the third quarter and full fiscal year, 2021. The Company is forecasting the following for the full fiscal year 2021:
- Revenue in the range of $1.500 billion to $1.525 billion.
- Capital expenditures in the range of $50 million to $60 million. Note that capital expenditures include the purchase of property and equipment and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.
- Tax rate of 26% to 29% after discrete items.
- Adjusted operating income in the range of $145 million to $155 million. (1)
The Company is forecasting the following for the third quarter, fiscal 2021:
- Revenue in the range of $375 million to $385 million.
- Capital expenditures in the range of $12 million to $15 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.
- Adjusted operating income in the range of $47 million to $52 million. (1)
|
(1) |
In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. Please also see Special Note on Forward Looking Statements below. |
|
Three Months Ended March 31, 2021 |
Year Ended June 30, 2021 |
|||||||||||
|
Low |
High |
Low |
High |
|||||||||
|
(In millions) |
||||||||||||
| Income from operations |
$ |
30.5 |
$ |
34.5 |
$ |
90.5 |
$ |
98.5 |
||||
| Stock-based compensation expense |
|
13.0 |
|
14.0 |
|
43.0 |
|
45.0 |
||||
| Amortization of intangible assets |
|
3.5 |
|
3.5 |
|
11.5 |
|
11.5 |
||||
| Adjusted operating income |
$ |
47.0 |
$ |
52.0 |
$ |
145.0 |
$ |
155.0 |
||||
Conference Call
The Company will discuss its second quarter 2021 financial results during a conference call scheduled for Tuesday, January 26, 2021 at 5:00 p.m. eastern time (ET).
Participants can access a live webcast of the call at https://event.on24.com/wcc/r/2948484/F4CDE03D7AFE81652B2C24482A4B7C99. Please access the website at least 15 minutes prior to the start of the call. To participate in the live call, investors and analysts should dial (833) 900-1536 (domestic) or (236) 712-2276 (international) at 4:45 p.m. (ET). The conference ID is 7723219.
A replay of the call will be available starting on January 26, 2021 at 8:00 p.m. (ET) through February 26, 2021 at 8:00 p.m. (ET) at 1-800-585-8367 (domestic) or 416-621-4642 (international) and entering the conference ID 7723219. A webcast replay will be available at https://event.on24.com/wcc/r/2948484/F4CDE03D7AFE81652B2C24482A4B7C99 for 30 days.
About Stride Inc.
At Stride, Inc. (NYSE: LRN) – formerly K12 Inc. – we are reimagining learning – where learning is lifelong, deeply personal, and prepares learners for tomorrow. The company has transformed the teaching and learning experience for millions of people by providing innovative, high-quality, tech-enabled education solutions, curriculum, and programs directly to students, schools, the military, and enterprises in primary, secondary, and post-secondary settings. Stride is a premier provider of K-12 education for students, schools, and districts, including career learning services through middle and high school curriculum. For adult learners, Stride delivers professional skills training in healthcare and technology, as well as staffing and talent development for Fortune 500 companies. Stride has delivered millions of courses over the past decade and serves learners in all 50 states and more than 100 countries. The company is a proud sponsor of the Future of School, a nonprofit organization dedicated to closing the gap between the pace of technology and the pace of change in education. More information can be found at stridelearning.com, K12.com, destinationsacademy.com, galvanize.com, techelevator.com, and medcerts.com.
Special Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “expects,” “plans,” “intends” and similar expressions to identify forward looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model; failure to replace students who have graduated from the terminal grade in a school or have left our programs for other reasons with new students of a sufficient number; inability to maintain our current rate of retention of students enrolled in our courses; an increase in the amount of failures to enter into new school contracts or renew existing contracts, in part or in their entirety; the failure of perceived industry trends and projections resulting from the expected effects of COVID-19 on virtual education; failure of the schools we serve or us to comply with federal, state and local regulations, resulting in a loss of funding, an obligation to repay funds previously received or contractual remedies; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve as curriculum standards, testing programs and state accountability metrics evolve; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school in which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction in the scope of services with schools; failure to develop the career learning education business; entry of new competitors with superior technologies and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures, failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including but not limited to our data storage systems, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; and other risks and uncertainties associated with our business described in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this presentation is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.
Financial Statements
The financial statements set forth below are not the complete set of Stride Inc.’s financial statements for the three and six months ended December 31, 2020 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2020, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s website at www.stridelearning.com.
|
STRIDE INC. |
||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| (In thousands except share and per share data) | ||||||||||||||||
| Revenues | $ |
376,145 |
|
$ |
257,559 |
|
$ |
747,105 |
|
$ |
514,680 |
|
||||
| Instructional costs and services |
246,754 |
|
167,470 |
|
487,823 |
|
336,828 |
|
||||||||
| Gross margin |
129,391 |
|
90,089 |
|
259,282 |
|
177,852 |
|
||||||||
| Selling, general, and administrative expenses |
90,939 |
|
59,784 |
|
208,766 |
|
166,935 |
|
||||||||
| Income from operations |
38,452 |
|
30,305 |
|
50,516 |
|
10,917 |
|
||||||||
| Interest income (expense), net |
(5,024 |
) |
441 |
|
(7,131 |
) |
1,351 |
|
||||||||
| Other income, net |
1,361 |
|
365 |
|
1,790 |
|
357 |
|
||||||||
| Income before income taxes and loss from equity method investments |
34,789 |
|
31,111 |
|
45,175 |
|
12,625 |
|
||||||||
| Income tax expense |
(10,642 |
) |
(10,392 |
) |
(8,266 |
) |
(1,574 |
) |
||||||||
| Income (loss) from equity method investments |
354 |
|
(125 |
) |
258 |
|
(187 |
) |
||||||||
| Net income attributable to common stockholders | $ |
24,501 |
|
$ |
20,594 |
|
$ |
37,167 |
|
$ |
10,864 |
|
||||
| Net income attributable to common stockholders per share: | ||||||||||||||||
| Basic | $ |
0.61 |
|
$ |
0.52 |
|
$ |
0.93 |
|
$ |
0.28 |
|
||||
| Diluted | $ |
0.60 |
|
$ |
0.52 |
|
$ |
0.89 |
|
$ |
0.27 |
|
||||
| Weighted average shares used in computing per share amounts: | ||||||||||||||||
| Basic |
40,160,362 |
|
39,450,017 |
|
40,072,360 |
|
39,369,287 |
|
||||||||
| Diluted |
41,102,425 |
|
39,973,933 |
|
41,681,061 |
|
40,692,822 |
|
||||||||
|
STRIDE INC. |
||||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
December 31, |
June 30, |
|||||||
|
2020 |
2020 |
|||||||
| (audited) | ||||||||
| (In thousands except share and per share data) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
258,107 |
|
$ |
212,299 |
|
||
| Accounts receivable, net of allowance of $20,924 and $6,808 |
435,254 |
|
236,134 |
|
||||
| Inventories, net |
28,618 |
|
28,300 |
|
||||
| Prepaid expenses |
21,525 |
|
13,058 |
|
||||
| Other current assets |
24,973 |
|
11,480 |
|
||||
| Total current assets |
768,477 |
|
501,271 |
|
||||
| Operating lease right-of-use assets, net |
104,010 |
|
111,768 |
|
||||
| Property and equipment, net |
78,503 |
|
38,668 |
|
||||
| Capitalized software, net |
50,296 |
|
48,493 |
|
||||
| Capitalized curriculum development costs, net |
48,147 |
|
48,849 |
|
||||
| Intangible assets, net |
106,547 |
|
77,451 |
|
||||
| Goodwill |
240,799 |
|
174,939 |
|
||||
| Deposits and other assets |
75,175 |
|
71,824 |
|
||||
| Total assets | $ |
1,471,954 |
|
$ |
1,073,263 |
|
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
39,251 |
|
$ |
40,428 |
|
||
| Accrued liabilities |
41,514 |
|
27,351 |
|
||||
| Accrued compensation and benefits |
42,501 |
|
47,227 |
|
||||
| Deferred revenue |
62,635 |
|
24,417 |
|
||||
| Credit facility |
— |
|
100,000 |
|
||||
| Current portion of finance lease liability |
21,506 |
|
13,304 |
|
||||
| Current portion of operating lease liability |
21,204 |
|
20,689 |
|
||||
| Total current liabilities |
228,611 |
|
273,416 |
|
||||
| Long-term finance lease liability |
37,796 |
|
4,634 |
|
||||
| Long-term operating lease liability |
86,977 |
|
96,544 |
|
||||
| Long-term debt |
291,624 |
|
— |
|
||||
| Deferred tax liability |
34,645 |
|
13,771 |
|
||||
| Other long-term liabilities |
39,872 |
|
9,569 |
|
||||
| Total liabilities |
719,525 |
|
397,934 |
|
||||
| Commitments and contingencies |
— |
|
— |
|
||||
| Stockholders’ equity | ||||||||
| Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding |
— |
|
— |
|
||||
| Common stock, par value $0.0001; 100,000,000 shares authorized; 46,893,934 and 46,341,627 shares issued; and 41,559,191 and 41,006,884 shares outstanding |
4 |
|
4 |
|
||||
| Additional paid-in capital |
777,409 |
|
730,761 |
|
||||
| Accumulated other comprehensive income (loss) |
(369 |
) |
93 |
|
||||
| Retained earnings |
77,867 |
|
46,953 |
|
||||
| Treasury stock of 5,334,743 shares at cost |
(102,482 |
) |
(102,482 |
) |
||||
| Total stockholders’ equity |
752,429 |
|
675,329 |
|
||||
| Total liabilities and stockholders’ equity | $ |
1,471,954 |
|
$ |
1,073,263 |
|
||
|
STRIDE INC. |
||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
Six Months Ended December 31, |
||||||||
|
2020 |
2019 |
|||||||
| (In thousands) | ||||||||
| Cash flows from operating activities | ||||||||
| Net income | $ |
37,167 |
|
$ |
10,864 |
|
||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Depreciation and amortization expense |
41,438 |
|
34,376 |
|
||||
| Stock-based compensation expense |
17,967 |
|
11,699 |
|
||||
| Deferred income taxes |
5,375 |
|
346 |
|
||||
| Provision for (recovery of) doubtful accounts |
6,382 |
|
(344 |
) |
||||
| Amortization of discount and fees on debt |
4,973 |
|
— |
|
||||
| Other |
16,871 |
|
7,116 |
|
||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable |
(208,870 |
) |
(59,650 |
) |
||||
| Inventories, prepaid expenses, deposits and other current and long-term assets |
(23,231 |
) |
2,556 |
|
||||
| Accounts payable |
(7,202 |
) |
(14,141 |
) |
||||
| Accrued liabilities |
4,346 |
|
690 |
|
||||
| Accrued compensation and benefits |
(5,401 |
) |
(13,943 |
) |
||||
| Operating lease liability |
(10,364 |
) |
(4,089 |
) |
||||
| Deferred revenue and other liabilities |
40,592 |
|
3,255 |
|
||||
| Net cash used in operating activities |
(79,957 |
) |
(21,265 |
) |
||||
| Cash flows from investing activities | ||||||||
| Purchase of property and equipment |
(1,969 |
) |
(1,338 |
) |
||||
| Capitalized software development costs |
(14,061 |
) |
(12,978 |
) |
||||
| Capitalized curriculum development costs |
(7,524 |
) |
(11,991 |
) |
||||
| Sale of long-lived assets |
223 |
|
— |
|
||||
| Acquisition of MedCerts, LLC, net of cash acquired |
(54,775 |
) |
— |
|
||||
| Acquisition of Tech Elevator, Inc., net of cash acquired |
(15,981 |
) |
— |
|
||||
| Other acquisitions and investments, net of distributions |
(188 |
) |
(4,114 |
) |
||||
| Net cash used in investing activities |
(94,275 |
) |
(30,421 |
) |
||||
| Cash flows from financing activities | ||||||||
| Repayments on finance lease obligations |
(11,455 |
) |
(14,959 |
) |
||||
| Repayments on credit facility |
(100,000 |
) |
— |
|
||||
| Issuance of convertible senior notes |
408,610 |
|
— |
|
||||
| Purchases of capped calls in connection with convertible senior notes |
(60,354 |
) |
— |
|
||||
| Proceeds from exercise of stock options |
303 |
|
48 |
|
||||
| Withholding of stock options for tax withholding |
(10,885 |
) |
— |
|
||||
| Repurchase of restricted stock for income tax withholding |
(6,108 |
) |
(4,883 |
) |
||||
| Net cash provided by (used in) financing activities |
220,111 |
|
(19,794 |
) |
||||
| Net change in cash, cash equivalents and restricted cash |
45,879 |
|
(71,480 |
) |
||||
| Cash, cash equivalents and restricted cash, beginning of period |
213,299 |
|
284,621 |
|
||||
| Cash, cash equivalents and restricted cash, end of period | $ |
259,178 |
|
$ |
213,141 |
|
||
| Reconciliation of cash, cash equivalents and restricted cash to balance sheet as of December 31st: | ||||||||
| Cash and cash equivalents | $ |
258,107 |
|
$ |
211,641 |
|
||
| Other current assets (restricted cash) |
571 |
|
500 |
|
||||
| Deposits and other assets (restricted cash) |
500 |
|
1,000 |
|
||||
| Total cash, cash equivalents and restricted cash | $ |
259,178 |
|
$ |
213,141 |
|
||
Contacts
Stride Inc.
Investor Contact:
Mike Lawson, 513-432-2358
Vice President, Investor Relations
mlawson@k12.com