On October 31, 2024, Laureate Education Inc (LAUR, Financial) released its 8-K filing detailing the financial results for the third quarter and nine months ended September 30, 2024. Laureate Education Inc, an international community of universities, provides higher education programs and services through a network of licensed universities and higher education institutions, primarily in Peru and Mexico.
Third Quarter Financial Performance
Laureate Education Inc reported a 2% increase in revenue to $368.6 million for the third quarter of 2024, surpassing the analyst estimate of $361.80 million. On an organic constant currency basis, revenue saw a robust 9% increase. Operating income rose to $72.0 million from $58.7 million in the same quarter of the previous year, while net income surged to $85.3 million, up from $36.0 million, driven by a discrete tax benefit of approximately $37.9 million and increased operating income.
Nine-Month Overview and Enrollment Growth
For the nine months ended September 30, 2024, revenue increased by 6% to $1,143.2 million. New enrollments grew by 4%, and total enrollments increased by 5%, reflecting the company's strong market position in Mexico and Peru. The net income for this period was $202.8 million, a significant rise from $65.5 million in the previous year, attributed to favorable foreign currency exchange rates and higher operating income.
Balance Sheet and Cash Flow Insights
Laureate Education Inc maintains a solid balance sheet with $134.4 million in cash and cash equivalents and a net debt of $20.4 million as of September 30, 2024. The company completed a $100 million stock repurchase program and announced a new $100 million repurchase initiative, indicating strong liquidity and confidence in its financial health.
Key Financial Metrics and Achievements
Adjusted EBITDA for the third quarter was $91.4 million, up from $78.4 million in the previous year, highlighting improved operational efficiency. For the nine-month period, Adjusted EBITDA reached $308.9 million, compared to $287.3 million in 2023. These metrics underscore the company's ability to generate consistent earnings and cash flow, crucial for sustaining growth and investment in the education sector.
Eilif Serck-Hanssen, President and Chief Executive Officer, stated, “The macroeconomic recovery in Peru contributed to strong operating performance for the third quarter. We believe that we are well-positioned to meet our 2024 goals, with continued revenue growth and margin expansion across all markets. Our results demonstrate the resilience of our business model and the strength of our brands in Mexico and Peru, reinforcing our commitment to driving long-term value for all stakeholders.”
Analysis and Outlook
Laureate Education Inc's performance in the third quarter reflects its strategic focus on expanding its market presence and enhancing operational efficiencies. The company's ability to exceed revenue estimates and achieve significant net income growth is a testament to its robust business model and effective management strategies. With a strong balance sheet and ongoing stock repurchase programs, Laureate is well-positioned to capitalize on future growth opportunities in the higher education sector.
As the company continues to navigate currency fluctuations and market dynamics, its focus on enrollment growth and financial discipline will be key to sustaining its competitive edge and delivering value to stakeholders.
Explore the complete 8-K earnings release (here) from Laureate Education Inc for further details.
