Laureate Education Inc (LAUR, Financial), a leading higher education institution operator in Mexico and Peru, released its financial results for the third quarter and nine months ended September 30, 2023, on November 2, 2023. The company reported a 20% increase in revenue for Q3 2023, reaching $361.5 million. On an organic constant currency basis, the revenue increased by 8%. The operating income for Q3 2023 was $58.7 million, a slight increase from $56.3 million in Q3 2022. The net income for Q3 2023 was $36.0 million, compared to $31.0 million in Q3 2022.
Financial Highlights
For the nine months ended September 30, 2023, LAUR reported a 20% increase in revenue to $1,074.9 million. On an organic constant currency basis, the revenue increased by 11%. The operating income for the nine months ended September 30, 2023, was $228.8 million, compared to $192.0 million for the same period in 2022. The net income for the nine months ended September 30, 2023, was $65.5 million, compared to $29.9 million for the same period in 2022.
LAUR also announced that its Board of Directors has declared a special cash dividend of $0.70 per common share. The company's President and Chief Executive Officer, Eilif Serck-Hanssen, stated,
Laureate’s strong third quarter results were in line with expectations. Our operating performance reflects a robust macroeconomic backdrop in Mexico, including early signs of increased investments related to nearshoring, and a more subdued backdrop in Peru given recent softness in its economy. The financial results we delivered for the first nine months of the year demonstrate the unique value of Laureate’s diverse business model, which is based on a broad mix of product offerings at a range of price points. Our balance sheet remains strong, and today we are pleased to be announcing a special cash dividend of $0.70 per share, continuing our commitment to returning capital to our shareholders.”
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of the company's performance. For the third quarter of 2023, revenue on a reported basis was $361.5 million, an increase of $60.5 million, or 20%, compared to the third quarter of 2022. On an organic constant currency basis, revenue increased 8%. Operating income for the third quarter of 2023 was $58.7 million, compared to $56.3 million for the third quarter of 2022, an increase of $2.4 million.
For the nine months ended September 30, 2023, revenue on a reported basis was $1,074.9 million, an increase of $179.0 million, or 20%, compared to the nine months ended September 30, 2022. On an organic constant currency basis, revenue increased 11%. Operating income for the nine months ended September 30, 2023 was $228.8 million, compared to $192.0 million for the nine months ended September 30, 2022, an increase of $36.8 million.
Outlook for Fiscal 2023
LAUR is updating its full-year 2023 guidance, reflecting a narrower range on an organic constant currency basis as well as the impact of weaker foreign currency rates. Total enrollments are now expected to be approximately 447,000 students, reflecting growth of approximately 6% versus 2022. Revenues are now expected to be in the range of $1,457 million to $1,465 million, reflecting growth of 17%-18% on an as-reported basis and 10% on an organic constant currency basis versus 2022. Adjusted EBITDA is now expected to be in the range of $410 million to $416 million, reflecting growth of 21%-23% on an as-reported basis and 14%-16% on an organic constant currency basis versus 2022.
Explore the complete 8-K earnings release (here) from Laureate Education Inc for further details.
