Stride Q2 2025 Earnings Report

Stride EPS Results

• Actual EPS: $2.03
• Consensus EPS: $1.92
• Beat/Miss: Beat by +$0.11
• One Year Ago EPS: N/A

Stride Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $569.76 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Stride Announcement Details

• Quarter: Q2 2025
• Date: 1/28/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, January 28, 2025
• Conference Call Time: 5:00PM ET

Stride (NYSE:LRN), a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; software and services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brand names, as well as provides staffing and talent development services to employers. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was incorporated in 1999 and is headquartered in Reston, Virginia.

Stride Q2 2025 Earnings Call Transcript

Presentation

[Operator]

Good day, everyone, and welcome to the Stride in Just a reminder, today's call is being recorded. I would now like to hand things over to Mr. Tim Casey. Please go ahead, sir.

[Timothy Casey, VP Investor Relations at Stride]

Thank you, and good afternoon. Welcome to Stride's second quarter earnings call for With me on today's call are James Ryu, Chief Executive Officer and Donna Blackman, Chief Financial Officer. As a reminder, today's conference call and webcast are accompanied by a presentation that can be found on the Stride Investor Relations website. Please be advised that today's discussion of our financial results may include certain non GAAP financial measures. A reconciliation of these measures is provided in the earnings release issued this afternoon and and can also be found on our Investor Relations website.

[Timothy Casey, VP Investor Relations at Stride]

In addition to historical information, this call may also involve forward looking statements. The company's actual results could differ materially from any forward looking statements due to several important factors as described in the company's latest SEC filings. These statements are made on the basis of our views and assumptions regarding future events and business performance at the time we make them. And the company assumes no obligation to update any forward looking statements made during this call. Following our prepared remarks, we will answer any questions you may have.

[Timothy Casey, VP Investor Relations at Stride]

Now I'll turn the call over to James. James?

[James Rhyu, CEO at Stride]

Thanks, Tim. We have once again posted record enrollments, topping 230000 students. We continue to execute against the backdrop of ongoing strong demand. Coming out of the pandemic, we were all uncertain if the increase in demand for our programs was structural or temporary. And for three consecutive years now, we have seen increasing growth in our business.

[James Rhyu, CEO at Stride]

And also for three consecutive years, we see continued in year strength in demand. The macro environment for our business is as strong as ever.

[James Rhyu, CEO at Stride]

And as long as we

[James Rhyu, CEO at Stride]

can continue to execute effectively, I believe we can benefit from these conditions. While every business has challenges, I believe most of ours are currently within our control. Many of our most significant challenges are to just continue improving and executing well, not just in how we have traditionally run our core business, but across all of our initiatives. That includes initiatives that I believe can take our core business to a new level while also providing us with new market opportunities. We see some early signs that our investments will pay off, but we need to remain vigilant to ensure we are setting ourselves up for success over the long run.

[James Rhyu, CEO at Stride]

I remain very bullish on our prospects for future growth. We're seeing continued demand for our core offerings, growing support for school choice options, and a student base seeking real career training. As a company, we're in strong financial position and have an incredible team committed to delivering for our customers. Thank you. And I will now turn the call over to Donna.

[Donna Blackman, Chief Financial Officer at Stride]

Thanks, James, and good evening. This quarter confirms we're now in our third year of end year enrollment growth in our full time programs. We've talked a lot about market conditions that are pushing families to seek education alternatives. And our results demonstrate that our programs can be an effective solution for many of these students. In light of this continuing strength, we're raising both our revenue and profitability guidance for the full year, which I'll cover in more detail later.

[Donna Blackman, Chief Financial Officer at Stride]

Turning to our quarterly results, we reported revenue of $58,720,000,0.0 an increase of 16% from the Total average enrollments of $23,060,0.0 up 19.4%. Adjusted operating income of $13,560,000,0.0 up 43% from last year earnings per share of $2,.03 up 32% from last year and capital expenditures of $1,480,000,0.0 up from $1,270,000,0.0 last year. Revenue in our career learning middle and high school programs grew 29% to $21,310,000,0.0 This strength was driven by enrollment growth of 30.9% year over year. General education revenue was $35,430,000,0.0 up 13% from last year, also driven by continued enrollment growth in the quarter. Average enrollments were up 12.5% from last year to 135800.0.

[Donna Blackman, Chief Financial Officer at Stride]

During the quarter, we saw accelerating enrollment growth in both of these lines of revenue. As I mentioned earlier, this is now the third year in the role that we've seen strength in in year enrollment. Total revenue per enrollment across both lines of revenue was $2,395 essentially flat to last year. As we mentioned last quarter, we're seeing some impact from state mix, but we're still seeing a largely positive funding environment. Given these dynamics, we expect to finish the year down 1% to 2% in revenue per enrollment.

[Donna Blackman, Chief Financial Officer at Stride]

Softness in our adult learning business continues and we finished the quarter with revenue down $610,000,0.0 from last year to $1,980,000,0.0 Gross margins for the quarter were 40.8%, up 100 basis points from last year. We still expect to see gross margins improve 100 to 200 basis points for the full year. Selling, general and administrative expenses decreased marginally to $11,480,000,0.0 While we've seen declining SG and A spend in the first half of the year, as I mentioned in the I expect to see some increase in the back half of the year. We should finish the year up slightly compared to FY 2024. Stock based compensation for the quarter was $790,000,0.0 We now expect to finish the year with stock based compensation in the range of $33,000,000 to $37,000,000 Adjusted operating income for the quarter was $13,560,000,0.0 up 43 from last year.

[Donna Blackman, Chief Financial Officer at Stride]

Adjusted EBITDA was $16,040,000,0.0 up 36%. Interest expense for the quarter was $270,000,0.0 Our effective tax rate for the quarter was 25.7% Diluted earnings per share for the quarter were $2,.03 Our EPS calculation includes incremental shares related to our convertible notes on an as is converted basis for GAAP reporting purposes. These shares are included in our diluted share count, but are not yet issued. However, some of the dilutive impacts of these shares will be offset by the catcall transaction we completed at the time of a note issuance up to an upper strike price of $86,.17 per share. We're now including a table in our quarterly investor presentation that shows the potential dilution from our convertible note at various share prices, as well as the offset from the cap call.

[Donna Blackman, Chief Financial Officer at Stride]

Turning to our balance sheet and cash flow. Capital expenditures for the quarter were $1,480,000,0.0 up from $1,270,000,0.0 last year. Free cash flow defined as cash from operations less CapEx was $20,860,000,0.0 up $48,000,000 from the prior year period. We finished the quarter with cash and cash equivalents of $51,510,000,0.0 Given the continued growth in enrollments and margin improvements, we are raising our full year revenue and profit guidance and now expect revenue in the range of $2,320,000,000,.00 to $23,550,000,00.,000 up from $22,250,000,00.,000 to $230,000,000,0.0 last quarter adjusted operating income between $4.30,000,000 dollars and $4.50,000,000 dollars up from $3.95,000,000 dollars to $4.25,000,000 dollars last quarter. Capital expenditures between $60,000,000 and $65,000,000 unchanged from last quarter and an effective tax rate between 2426% also unchanged from last quarter.

[Donna Blackman, Chief Financial Officer at Stride]

For the we are forecasting revenue in the range of $5.85,000,000 dollars to $600,000,000 adjusted operating income between $130,000,000 and $140,000,000 and capital expenditures between $15,000,000 and $17,000,000 Thank you so much for your time this evening. And now I'll turn the call over to the operator for Q and A. Operator?

[Operator]

We'll go first to Jason Tilton, Canaccord Genuity.

[Jason Tilchen, Director & Senior Equity research Analyst at Canaccord Genuity Inc]

Great. Congrats on the strong results and thanks for taking my questions. I have 2, if there's time. The first, I'm just wondering if you can unpack some of that enrollment momentum a little bit. Maybe talk about some of the differences in the funnels you're seeing for Career Learning and General Education and how some of the enrollment numbers on a gross basis are trending versus how retention has been compared to last

[Jason Tilchen, Director & Senior Equity research Analyst at Canaccord Genuity Inc]

year?

[James Rhyu, CEO at Stride]

Yes. Hey there, Jason, it's James. I think the basic trend we continue to see is across the board strength in our enrollment funnel. I think we've been, I think, a little bit surprised by how strong it continues to be year over year.

[James Rhyu, CEO at Stride]

We're in a third year of year over year growth. And I think we're executing well against it, but I actually think a lot of the underlying demand that we see at least has been just really strong. It's been pretty broad based across the board. And I think if there's, I'll say, a lease spot, which we have said repeatedly that the incremental career funnel has not materialized as strongly as we would have expected or thought. We think that longer term that continues to be an opportunity for us.

[James Rhyu, CEO at Stride]

But I would say if there is a weakness that would probably be it.

[Jason Tilchen, Director & Senior Equity research Analyst at Canaccord Genuity Inc]

Great. That's really helpful. And just 1 follow-up. You recently announced the rollout of K-twelve tutoring nationwide. I'm just wondering if you could share any early learnings from that rollout and sort of any additional color on sort of how the go to market is going to develop there when you expect sort of more material contribution from that on the overall business?

[Jason Tilchen, Director & Senior Equity research Analyst at Canaccord Genuity Inc]

Thanks.

[James Rhyu, CEO at Stride]

Yes. I think the so for us, it's a clearly adjacent business. The way that I mean, this is kind of where the accounting works on it. We if you think about other businesses like a DoorDash or something like that, that has gross merchandise value and then sort of net revenue, we have a sort of a similar mechanic or dynamic with our tutoring business. So we have sort of gross tutor value, but we really record everything on a net basis.

[James Rhyu, CEO at Stride]

So in the context of our financial statements, I think for some very long period of time, it's just going to be immaterial. But strategically for us, I think it can be very important because 1 is we know that high dose tutoring is effective for learning. And we have a terrific pool of educators within our network. We can leverage those with the platform. It also gives those teachers opportunities to earn more.

[James Rhyu, CEO at Stride]

So we think it's a really good platform to assist teachers within our network earn more money. And we've already seen numerous cases both within our programs and outside of our programs in district programs where they're using our tutoring product and are very satisfied and are getting tremendous outcomes. So, while I don't know in the short term it will be financially significant, I do think it continues to be strategically significant. We're going to continue to invest in that product. And I think unlike other tutoring companies out there where I think this is in most cases where tutoring is their only product, they have to make margins to survive.

[James Rhyu, CEO at Stride]

We actually don't. We can invest in this product, grow the product. We get to test it out, I think, some different innovation around the product on our platform. We recently rolled out a sort of AI summary feature, which we've got 2 of the feedback around. So we're pretty happy with it.

[Jason Tilchen, Director & Senior Equity research Analyst at Canaccord Genuity Inc]

Great. Really helpful. Thanks a lot.

[Operator]

And we'll take the next question from Jeff Silber, BMO Capital Markets.

[Jeff Silber, Senior Analyst at BMO Capital Markets]

Thanks so much. Just wanted to drill down a bit on the prior question. There's not a lot of good industry data out there. But from what we've been able to see, you guys have really been dramatically outperforming the industry. Is there anything specific that you're doing that maybe some of your competitors are not to drive that outperformance?

[James Rhyu, CEO at Stride]

Yes. Hey, Jeff. So yes, I

[James Rhyu, CEO at Stride]

think I have

[James Rhyu, CEO at Stride]

to sort of I mean, I tend to agree with you. I hate to say it this way, but the data that we would see would I think suggest that we're probably over indexing on industry performance. I sort of hate to say it because I want all of our competitors actually to do well. I want the industry to grow. I think that would be our primary goal is to see the entire industry grow and let all those rise.

[James Rhyu, CEO at Stride]

But I think I would have to agree with you. I really credit I think to the team that's really I think honed in on our execution. You may remember it's just and it was just a couple of years ago where I got on the same call and talked about how we had execution issues that was hampering our ability to grow. And then if we can fix those issues, we should be able to accelerate growth. And I think we have I think that the team we've got in place now is executing much better.

[James Rhyu, CEO at Stride]

And I think that is I think when you execute well in any industry or in any company, you have the opportunity to take share from some of your competitors. And I think that's probably a little bit of what's happening. The good news for us, I think, and I won't sort of speak for the industry here, is that I see while we are executing better, I do think that overall, we still have a lot of opportunity to even perform better. So I don't think we're sitting here resting on our laurels and finished with the trajectory that we can put ourselves on.

[Jeff Silber, Senior Analyst at BMO Capital Markets]

All right. That's helpful. If I could switch gears and talk about the funding environment, we've been seeing a lot of noise out of Washington in terms of freezes or pauses, etcetera. I know you don't get a dramatic amount of revenues directly from the federal government, but is there anything maybe that indirectly comes to you from Washington through the states? I'm just wondering what kind of exposure you might have.

[Jeff Silber, Senior Analyst at BMO Capital Markets]

Thanks.

[James Rhyu, CEO at Stride]

Yes. So our exposure is pretty limited, very limited. It's, I think without getting into specific numbers, I think I've said previously around a similar question that it's well less than 5%. I think we saw the same thing that maybe some of you saw today.

[James Rhyu, CEO at Stride]

We just before getting on today, we did validate that it continues to be for this year well less than 5%. So I think our exposure is pretty limited. Listen, I think what I will say is that regardless of what the administration announces, I believe, I wanna believe, I think I do believe that the intent is and I wanna encourage everybody to focus on the intent is to help students. And, you know, I don't want to get into a political discussion or debate here. I have faith that the administration is going to try to do the things that are going to help students.

[James Rhyu, CEO at Stride]

And I think that's what hopefully all of our political governments are trying to do. That's what we're trying to do. And whatever impact it has to us, we're going to manage through it. If it's negative, we'll take it on the chin and just keep marching forward. If it's positive, I think hopefully, it can help our business.

[James Rhyu, CEO at Stride]

But I do think the administration is trying to figure out ways to ultimately to help students. And I think that the downstream impact that people maybe aren't yet seeing is maybe an approach or philosophy to empower states. I think that's sort of some of the state goals that this administration has talked about. And we support things that are going to help students.

[Jeff Silber, Senior Analyst at BMO Capital Markets]

I really appreciate the call, James. Thanks.

[Operator]

We'll take the next question from Alex Paris, Barrington Research.

[Alex Paris, President & Senior MD at Barrington Research Associates]

Hi, guys. First off, I'd like to ask you a couple of clarifying questions. In the first question, James, you responded about strength across the board in enrollment. I'm presuming you're talking about new student enrollment. The question would be how has retention been fairing?

[James Rhyu, CEO at Stride]

Yes. So, retention, I think, a couple of years ago, I think we talked about how we saw sort of what we believe was a structural improvement in retention post pandemic. I think generally speaking that trend continues. I think year over year, we're seeing retention numbers that are sort of plus or minus within the same ballpark. So we're not seeing ongoing dramatic improvements like we saw a couple of years ago.

[James Rhyu, CEO at Stride]

But I think for us, the retention game is also slightly longer term game, meaning what we're doing is we're identifying structural areas of the program that we can see based on all of the feedback that we get in areas that we can improve the program that we believe will have structural long term benefits to retention. And that is things that I think most people would expect. People, they think that sometimes that there's a lack of socialization in virtual programs. That's true. That's very valid feedback.

[James Rhyu, CEO at Stride]

We're investing in platforms that allow kids to safely interact with each other in an environment we call it the K-twelve zone, where they can go in and they can meet on a virtual playground, they can play games, they can have communication with each other. And so we're investing in those types of things that we think attack the thematic elements of why students and families may a trip. But year over year, I don't think we're seeing right now any sort of major plus or minus difference. But I do think longer term over the next three to five years, the structural things like the 1 I mentioned are going to provide some longer term benefit in our retention levers.

[Alex Paris, President & Senior MD at Barrington Research Associates]

Great. That's helpful. And then on that same question, the final comment you made was you said something about incremental career funnel has not materialized as strongly as we expected or hoped. But then I look at the career learning enrollment up 31% year over year. Did I misunderstand your response?

[Alex Paris, President & Senior MD at Barrington Research Associates]

Or perhaps you could always have more color?

[James Rhyu, CEO at Stride]

No. I think you got you understood the response correctly. I think that in spite of what I think the strong numbers suggest, it's my very strong and long held belief that, our career programs operated well, applied well, they can put kids on a trajectory to be career ready when they graduate high school. I think increasingly the macro trends around education support that as a larger need. I think the industry, dialogue, if you will, not education industry, I mean corporate industry dialogue supports that.

[James Rhyu, CEO at Stride]

And so I think that the market opportunity for those programs indicate something much larger than what we're seeing and doing. And so I think that there's just a lot more upside opportunity there if we can effectively go to market with it and capture it. I don't think we've done that effectively yet. And so I think that presents even more upside for us.

[Alex Paris, President & Senior MD at Barrington Research Associates]

Great. Good to hear. Last question, and I hate to pick it, the only negative thing in this report. Adult revenues were soft, $1,980,000,0.0 a little bit below where they were in the I guess the first question on that is, what's the makeup of that segment now? I realize there's 2 boot camps and med certs, maybe a proportion MedSerts I'm assuming is the largest, but whatever color you could give there would be helpful.

[Alex Paris, President & Senior MD at Barrington Research Associates]

I know it's very small as a percentage of the total, I think 4% on a last twelve month basis, but I was just curious.

[James Rhyu, CEO at Stride]

Yes. I think the we're not going to bring out the percentages exactly before I just don't get that productive for any of us. I think that, we're disappointed in the softness in the business, that's for sure. I think 1 of the factors and this is in no way shape or form an excuse because we didn't think it was going to be the soft as we go through this transition. But particularly for the MedServe business, we are longer term that business is a structurally better business for us and for our customers if it's structured as more of a B2B type of business.

[James Rhyu, CEO at Stride]

It has historically been a primarily B2C type of business. And so we are pivoting that business into a much more sort of B2B focused business. It doesn't mean that we're abandoning the B2B side of it. It's just that when you have a B2B business, 1 is obviously you don't have to deal with the daily customer churn as much. You have much more stable contracts.

[James Rhyu, CEO at Stride]

It's much more recurring revenue. It actually happens to be higher margin generally speaking. And so we're still very bullish about the business. I think there is I don't know exactly how long it's going to be, but there's going to be some period of time as we transition through. As you said, it's immaterial as it continues to decline for some period of time.

[James Rhyu, CEO at Stride]

I don't think it materially impacts our overall trajectory of the company or our ability to continue to grow in spite of those kinds of declines. But we remain invested in those businesses and we are going to continue to invest behind them and we do think there's long term value creation for our shareholders with those businesses.

[Alex Paris, President & Senior MD at Barrington Research Associates]

Great. And then just 1 more clarification question came into my mind. In answering the question about federal funding, you've said before it's well less than 5% of revenue. Is this ESSER we're talking about? Or are there other things in there like Title I and so on?

[James Rhyu, CEO at Stride]

Yes. So, it's a good clarifying question. There are other things in there. Like the ESSER now at this point is, I mean, it's basically nothing. So I don't even think that we should be talking about ESSER.

[James Rhyu, CEO at Stride]

It's not a thing for us anymore. But there is other very small revenue streams that sort of flow through from federal dollars, again, well less than 5%. And, yes, so I think it's so it is more than just what was historically answered.

[Alex Paris, President & Senior MD at Barrington Research Associates]

That's great. Thank you so much for answering my questions and congratulations on the strong quarter.

[Operator]

We'll go next to Stephen Sheldon, William Blair.

[Matt Flynn, Managing Director at William Blair]

Hey, Jason and Donna. You have Matt Filak on for Stephen. Great results this quarter and thank you for taking my questions. Has your optimism about being able to open new schools in new states changed at all, especially with the President pushing for universal school choice? Just curious how you're thinking about that.

[James Rhyu, CEO at Stride]

Yes. So, again, I try to keep us focused either way. You heard this four years ago, you heard this eight years ago, you're going to hear it now. Like, trying not to be too swayed in how we run the business either way, given changes in administration predominantly state level business anyway for us. I do think that the general tone and tenor of this current administration supports school choice and the types of programs that we run.

[James Rhyu, CEO at Stride]

I think broadly speaking, that is and can be a positive halo effect on our business. I don't see that the administration is going to specifically advocate for us or our programs in any given state. And I don't know that it will have a tailwind in opening new programs or states. To the extent that there is a tailwind from it, we will absolutely try to take advantage of that tailwind. I just don't know that I see that materializing right now.

[James Rhyu, CEO at Stride]

So I don't want anybody to believe that. And by the way, I hope in whatever period of time in the future, it's a different type of administration, people understand the flip side of this commentary, which is, we believe that this is a state business. And it historically, predominantly has been a state run business. And we respect, the state's views and the way that they manage these businesses. And I think the current administration also does, and we're supportive of that.

[James Rhyu, CEO at Stride]

So, you know, and I think above and beyond that, by the way, my understanding is, is that the current administration is also looking for other ways to again, help students. And to me, that's positive for the country. So, you know, that's to me the commentary from my view is, if the government's here to step in and try to help students, from their vantage point, that's a good thing. If it helps our business or not, it's almost secondary at this point. We're focused on running our business well, whatever conditions we're given.

[Matt Flynn, Managing Director at William Blair]

Got it. That's a helpful explanation, James. Thank you for that. And then wanted to ask 1 on career learning. I think you have talked about your desire to build out pilot programs for skilled trades like plumbers, HVAC, repair.

[Matt Flynn, Managing Director at William Blair]

So can you talk a little bit more about that and what that opportunity could look like?

[James Rhyu, CEO at Stride]

Yes. So, we have run a couple of tests already actually. I think the early indications of the test suggest that we still have a lot to learn. Clearly and you can see that in other public market comps out there that the overall demand for skilled trades appears to be growing. I think that's a good thing.

[James Rhyu, CEO at Stride]

I think the country needs it. I think that there's just a phenomenal career trajectory for a lot of people without having to incur college debt, to earn very, very lucrative living, doing skilled trades. We continue to think that's an opportunity for us. I think we've got to figure out where we can effectively play in that space. We're going to continue to explore it.

[James Rhyu, CEO at Stride]

But we want to be, we want to proceed cautiously about how we explore it because the last thing we want is to to make big bets on something that don't materialize for us because we haven't tested it properly. And so, and I don't think it's a trend that's going away tomorrow. I think that there's time for us to try to figure it out and see what we can explore in the space. So, but yes, we have already begun the testing of it and I think we still have a lot to do.

[Matt Flynn, Managing Director at William Blair]

Okay. Sounds good. And then lastly, just wanted to quickly confirm, are there any schools that are currently getting close to hitting enrollment caps, especially in light of the strong enrollment growth in the recent quarters?

[James Rhyu, CEO at Stride]

Well, we're always dealing with programs that have enrollment caps actually like that it's not a new thing. The good news is that in most of the programs, the enrollment caps are generally not long term fixed. So there's 2 flavors of enrollment cap generally speaking. 1 is I'll say a government imposed cap, I. E.

[James Rhyu, CEO at Stride]

State imposed enrollment cap in a certain state for a certain program. And the other is I'll say sort of a partner imposed cap or 1 of our partners for whatever good reason they have, imposes a cap. And in both of those cases over time, generally speaking, there is a conversation to be had to raise the caps when necessary. We historically have been reasonably successful in raising caps when the demand warrants it. Meaning, if there is an excessive amount of demand for a program, We go with the data to whoever whichever counterparty it is and we show them the data that suggests that there's strong demand, it's being unmet and where there's need and we usually go with the sort of the story that you will of need, meaning these are usually families that don't have other alternatives for 1 reason or another.

[James Rhyu, CEO at Stride]

They're very valid alternatives or they're sort of very valid reasons to not have other alternatives. And, and we want to just we want to be able to serve student. And where students and states aren't being served through another mechanism and we may be the only mechanism through which they can be served, we think it's justified to raise caps. And we've been fairly successful in our history and we think we can continue to be successful in having those conversations with our partners or with state government agencies to do that for the benefit of students.

[Matt Flynn, Managing Director at William Blair]

Great. Thank you, team. Appreciate the time.

[Operator]

And that does conclude our question and answer session. That also concludes our conference for today. We would like to thank you all for your participation. You may now disconnect.

Participants

Executives

• Timothy Casey, VP Investor Relations
• James Rhyu, CEO
• Donna Blackman, Chief Financial Officer

Analysts

• Jason Tilchen, Director & Senior Equity research Analyst at Canaccord Genuity Inc
• Jeff Silber, Senior Analyst at BMO Capital Markets
• Alex Paris, President & Senior MD at Barrington Research Associates
• Matt Flynn, Managing Director at William Blair