Covista (CVSA) Baird 2024 Global Consumer, Technology & Services Conference summary

Company Overview and Market Positioning

• Focuses on healthcare education through five post-secondary institutions, serving over 85,000 students, with 90–95% of programs delivered online or in healthcare-related fields as of March 31, 2024.

• Operates the largest and third-largest nursing schools in the U.S., plus two medical and one veterinary school.

• Maintains clinical relationships with major U.S. healthcare providers, supporting workforce needs.

• Only nationally scaled platform in healthcare education, benefiting from regulatory and accreditation barriers.

• Emphasizes a purpose-driven approach focused on student and societal outcomes, with a strategy to deliver long-term growth and shareholder value.

Growth Strategy and Operational Performance

• Enrollment is growing across all institutions and programs, with Q3 2024 total enrollment up 7.8% year-over-year and record trends.

• Revenue is expected to grow at mid-single digits annually, with operating margins expanding by 100 basis points per cycle.

• Early investments in brand campaigns, student persistence tools, and technology have reduced enrollment costs and improved retention.

• New program launches, pricing optimization, and specialty nursing curriculums are key growth drivers.

• Integration of Walden University catalyzed a new operating model, centralizing key capabilities and capturing synergies.

Market and Competitive Dynamics

• Post-COVID normalization has benefited enrollment, with market-responsive, flexible, and affordable programs driving growth.

• The company’s scale, execution, and operational excellence are seen as competitive advantages.

• No current market signals suggest a slowdown; inquiries and brand search trends are strong.

• Positioned as a leading healthcare educator in a structurally attractive market, with a clear roadmap for growth.