Perdoceo Education (PRDO) Q4 2024 earnings summary

Executive summary

• Achieved strong operating efficiency in 2024, with improved student retention and engagement, supporting sustainable growth.

• Completed the acquisition of the University of St. Augustine for Health Sciences (USAHS) in December 2024, expanding into graduate health sciences and diversifying academic offerings.

• Over 12,000 students graduated in 2024, with increased marketing and admissions investments driving higher prospective student interest.

• Fourth quarter 2024 revenue rose 19.3% year-over-year to $176.4M, driven by organic growth at CTU and AIUS and the USAHS acquisition.

• Total student enrollments grew 20.0% year-over-year, with CTU up 8.1%, AIUS up 11.8%, and USAHS adding 3,800 students.

Financial highlights

• Reported full year net income of $147.6 million ($2.19 per diluted share) and adjusted EPS of $2.29, both higher than prior year despite a non-recurring tax benefit in 2023.

• Fourth quarter net income was $31.5 million ($0.47 per diluted share); adjusted EPS was $0.50, both up year-over-year.

• Full year operating income rose to $174.3 million, with adjusted operating income up 9.9% to $192.2 million.

• Full year revenue decreased by 4.0% to $681.3 million, offset by $52 million in lower operating expenses.

• Cash flow from operations increased to $161.6 million, ending the year with $591.5 million in cash and investments after $137.8 million outflow for USAHS acquisition.

Outlook and guidance

• 2025 adjusted operating income expected between $215 million and $235 million, driven by the USAHS acquisition and growth at AIU System and CTU.

• Adjusted EPS for 2025 projected at $2.31–$2.51, with incremental expenses from USAHS included.

• Revenue and total enrollments anticipated to increase in 2025, with organic improvements offsetting headwinds from expiring federal student loan initiatives.

• First quarter 2025 adjusted operating income expected at $61–$63 million, with adjusted EPS of $0.64–$0.67.

• Assumptions include stable student interest, no major regulatory changes, and continued positive enrollment trends.