2U's revenue up 32% in Q2 as losses decelerate
- 2U, a software-as-a-service company that helps nonprofit higher ed institutions take degree programs online, on Wednesday issued its second quarter earnings release, reporting a 32% increase in revenue to $24.7 million from $18.7 million in the same quarter last year.
- The company's net loss for the quarter was $10.6 million, or 27 cents per share, up from $9 million, or $1.21 cents per share, though CEO and co-founder Chip Paucek notes that the company's losses have stopped accelerating as it continues to invest for growth.
- The company has also recently announced online master's programs with Southern Methodist University, the Family Institute at Northwestern University, Washington University in St. Louis' Law School, and Syracuse University's Martin J. Whitman School of Management — all of which are set to launch in 2015.
According to Paucek, the company is on track to improve adjusted EBITDA loss ($7.1 million in Q2) by 17% over 2013, and the four new programs mentioned above also fulfill 2U's annual goal for program launches through 2015.
Those who read our interview with Paucek in June may also be familiar with another of the company's Q2 successes: It hit its 10,000th student. The quarter also, however, saw the disbanding of the Semester Online program, which Paucek at the time chalked up to the complicated credit sharing between schools involved in the consortium (though he noted that it worked pedagogically). Regardless, this release reinforces 2U as an ed tech company you'll want to keep your eyes on.
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