Laureate Education (LAUR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 8% to $499.2M, with net income surging to $128.4M, driven by strong enrollment, tuition growth, and favorable FX impacts.

• For H1 2024, revenue rose 9% to $774.6M and net income increased to $117.5M, supported by robust performance in Mexico and early recovery signs in Peru.

• Adjusted EBITDA for Q2 was $186.9M, up 7% year-over-year; for H1, Adjusted EBITDA reached $217.5M, a 4% increase.

• New enrollments rose 2% and total enrollments climbed 5% for the six months ended June 30, 2024.

• Full-year 2024 constant currency guidance reaffirmed; as-reported guidance adjusted for Mexican peso volatility.

Financial highlights

• Q2 2024 revenue was $499M, up 8% year-over-year; Adjusted EBITDA was $187M, up 7%.

• Q2 2024 operating income rose 8% to $166.6M; H1 2024 operating income increased 4% to $177.7M.

• Q2 2024 EPS was $0.83, up from $0.35 in Q2 2023; H1 2024 EPS was $0.75, up from $0.18.

• Free cash flow for H1 2024 was $50.1M, down from $64.0M in the prior year.

• Cash and cash equivalents stood at $128.8M as of June 30, 2024; net debt was $103.7M.

Outlook and guidance

• FY 2024 revenue guidance: $1,551M–$1,566M, up 5–6% as-reported and constant currency; Adjusted EBITDA expected at $441M–$451M, up 5–8%.

• Total enrollments projected at 467,000–473,000, up 4–5% from 2023.

• Q3 2024 revenue guidance: $358M–$362M; Adjusted EBITDA: $69M–$73M.

• Adjusted EBITDA to unlevered free cash flow conversion targeted in the high 30% range, ~50% excluding one-time items.

• Guidance reflects recent Mexican peso volatility; FX impact may change.