EDU (EDU) H2 2024 earnings summary

Executive summary

• Revenue increased 96% year-over-year to $42.3m, driven by strong enrolment growth in both higher education and vocational segments.

• Net profit after tax (NPAT) turned around to $2.6m from a $3.0m loss in the prior year, with a 10% NPAT margin in 2H24.

• Operational efficiency improved through integration of business units and a shared services model.

• Expanded course offerings, including entry into the postgraduate market with new accreditations.

Financial highlights

• Gross profit rose 114% to $24.3m, with gross margin up 5 percentage points to 58%.

• EBITDA increased to $7.9m from $0.5m, with EBITDA margin up 16 points to 19%.

• Cash balance at year-end was $6.5m, up $4.2m year-over-year, after a $0.9m share buyback and $0.5m debt repayment.

• Net assets increased 19% to $12.4m.

Outlook and guidance

• Revenue, EBITDA, and NPAT are expected to increase in FY25, building on strong 2H24 momentum.

• Full-year benefit anticipated from enrolment growth and new course launches in 1H25.

• Regulatory uncertainty and tighter visa settings may impact future international student enrolments.