Annuncio • Oct 04
2U Announces Chief Executive Officer Changes 2U announced that Paul S. Lalljie is stepping down as Chief Executive Officer of the company. Lalljie has been 2U's CEO since late 2023 and led the company through a successful financial restructuring completed in September. 2U's Board has initiated a thorough search for a permanent successor and has appointed Matthew Norden as interim CEO to lead 2U during this transition. Norden is currently 2U's Chief Financial Officer and he will continue serving in that role while acting as interim CEO. Annuncio • Sep 06
The Nasdaq Stock Market to Delist Common Stock of 2U The Nasdaq Stock Market announced that it will delist the common stock of 2U, Inc. The company's securities were suspended on August 7, 2024, and have not traded on Nasdaq since that time. Annuncio • Aug 07
2U, Inc.(OTCPK:TWOU.Q) dropped from NASDAQ Composite Index 2U, Inc. has been dropped from NASDAQ Composite Index. Annuncio • Aug 03
Nasdaq Determines to Delist 2U, Inc.'s Common Stock On July 29, 2024, 2U, Inc. was notified by the Listing Qualifications Department of The Nasdaq Stock Market LLC (Nasdaq") that Nasdaq had determined to delist the Company's common stock, par value $0.001 per share (the Common Stock"). Nasdaq reached its decision that the Company is no longer suitable for listing pursuant to Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1 as a result of the Debtors' commencement of the Chapter 11 Cases on the Petition Date. The Company does not intend to appeal this determination. Trading of the Common Stock will be suspended at the opening of business on August 7, 2024, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission (the SEC"), which will remove the Common Stock from listing and registration on Nasdaq. Annuncio • Jul 30
Interim DIP Financing Approved for 2U, Inc. The US Bankruptcy Court gave an order to 2U, Inc. to obtain DIP financing on an interim basis on July 29, 2024. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $60 million out of the aggregate $64 million with Wilmington Savings Fund Society, FSB acting as the administrative agent. The DIP loan would either carry an interest rate of SOFR plus 8.5% p.a., along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either on January 24, 2025, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $5 million towards unpaid professional fees / administrative expenses and priority lien upon and security interest in the debtor’s collateral. The final hearing has been scheduled for September 6, 2024. Annuncio • Jul 26
2U, Inc. Filed for Bankruptcy 2U, Inc., along with its eight affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York on July 25, 2024. The debtor listed both its assets and liabilities in the range of $1 billion to $10 billion. The debtor is represented by George A Davis of Latham & Watkins LLP as its legal counsel. AlixPartners, LLP and Moelis & Company LLC shall be appointed as financial advisor and investment banker, respectively. Epiq Bankruptcy Solutions, LLC is appointed as claims and noticing agent. Annuncio • Jun 15
Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of 2U, Inc. Investors Kirby McInerney LLP announced that a class action lawsuit has been filed in the U.S. District Court for the District of Maryland on behalf of those who acquired 2U, Inc. securities during the period of February 9, 2022 through February 12, 2024, inclusive (‘the Class Period’). Investors have until August 12, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit. On November 9, 2023, the Company announced that 2U and the University of Southern California (USC) would wind down their 15-year collaboration in the Company’s major programs, and that USC would pay approximately $40 million in connection with this exit. The Company also announced it would recognize a total of $80 million in the fourth quarter related to partners seeking a negotiated exit from certain degree programs, which the Company referred to as ‘portfolio management activities. The Company disclosed these portfolio management activities would offset a 21% decrease in full course equivalent enrollment, which was primarily driven by the impact of transition to a new marketing framework in mid-2022. The Company also revealed fiscal quarterly results, showing Degree Program revenue was flat year over year, that total revenue had decreased 1%, and that the Alternative Credential Segment revenue decreased 3%. On this news, the price of 2U shares declined by $1.35, or approximately 56.72%, from $2.38 on November 9, 2023 to close at $1.03 on November 10, 2023. Then, on February 12, 2024, after the market closed, 2U disclosed that due to the Company’s debt, there is substantial doubt about its ability to continue as a going concern. The Company further disclosed it recognized $88.0 million of revenue from portfolio management activities (i.e., fees negotiated for early partnership contract termination) in the year and it would assume another $10 million from such activities in the first quarter of 2024 and at least $15 million in full-year 2024. The lawsuit alleges that: the Company was unable to sustain relationships with key universities and organizations; as a result, certain degree programs and partnerships failed to materialize or were cancelled; the Company’s transition to a platform company would lead to a decrease in full course equivalent enrollments; and accordingly, the Company had overstated the stability and/or longevity of its contractual agreements and/or revenue sources. Annuncio • May 11
2U, Inc. Appoints Ivona Smith as Class II Director On May 9, 2024, 2024, the Board of Directors of 2U, Inc. increased its size to nine members in accordance with the Company’s Eighth Amended and Restated Certificate of Incorporation, and appointed Ivona Smith as a Class II Director to fill the vacancy created by such increase in size, both effective as of May 9, 2024. Ms. Smith’s term will expire at the Company's 2025 Annual Meeting of Stockholders, subject to the election and qualification of her successor and her earlier death, resignation or removal. The Company does not currently expect that Ms. Smith will serve on any committee of the Board. Reported Earnings • May 03
First quarter 2024 earnings released: US$0.66 loss per share (vs US$0.68 loss in 1Q 2023) First quarter 2024 results: US$0.66 loss per share. Revenue: US$198.4m (down 17% from 1Q 2023). Net loss: US$54.6m (loss widened 1.1% from 1Q 2023). Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Consumer Services industry in Europe. Annuncio • May 03
2U, Inc. Re-Affirms Earnings Guidance for the Second Quarter of 2024 and Full Year 2024 2U, Inc. re-affirmed earnings guidance for the second quarter of 2024 and full year 2024. For the quarter, the company expects revenue to range from $191 million to $194 million and Net loss to range from $37.5 million to $32.5 million.For the year, the company expects revenue to range from $805 million to $815 million and net loss to range from $103 million to $98 million. Annuncio • Apr 24
2U, Inc. to Report Q1, 2024 Results on May 02, 2024 2U, Inc. announced that they will report Q1, 2024 results on May 02, 2024 Annuncio • Mar 18
2U, Inc. Receives A Letter from the Listing Qualifications Department of the Nasdaq Stock Market LLC On March 14, 2024, 2U, Inc. (the Company") received a letter from the Listing Qualifications Department (the Staff") of The Nasdaq Stock Market LLC (Nasdaq") notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company's common stock, par value $0.001 per share (the Common Stock"), was below the $1.00 per share minimum required for continued listing on Nasdaq Global Select Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the Minimum Bid Price Rule"). The notification has no immediate effect on the listing of the Common Stock, which continues to trade on Nasdaq Global Select Market under the symbol TWOU." In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, or until September 10, 2024 (the Compliance Period"), to regain compliance with the Minimum Bid Price Rule. The Company has notified Nasdaq that it intends to cure the stock price deficiency and to return to compliance with the Minimum Bid Price Rule within the Compliance Period. The Company can regain compliance at any time during the Compliance Period if the Common Stock has a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days (unless the Staff exercises its discretion to extend this ten-day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H)). The Company intends to actively monitor the closing bid price of the Common Stock and may, if appropriate, evaluate available options, including, without limitation, seeking to effect a reverse stock split, in order to resolve the deficiency and regain compliance with the Minimum Bid Price Rule. The Company's Common Stock will continue to be listed and traded on Nasdaq Global Select Market during the Compliance Period, subject to the Company's compliance with the other Nasdaq continued listing requirements. Reported Earnings • Mar 09
Full year 2023 earnings released: US$3.93 loss per share (vs US$4.17 loss in FY 2022) Full year 2023 results: US$3.93 loss per share (improved from US$4.17 loss in FY 2022). Revenue: US$946.0m (down 1.8% from FY 2022). Net loss: US$317.6m (loss narrowed 1.4% from FY 2022). Revenue is forecast to stay flat during the next 3 years compared to a 4.2% growth forecast for the Consumer Services industry in Europe. Reported Earnings • Feb 13
Full year 2023 earnings released: US$3.93 loss per share (vs US$4.17 loss in FY 2022) Full year 2023 results: US$3.93 loss per share (improved from US$4.17 loss in FY 2022). Revenue: US$946.0m (down 1.8% from FY 2022). Net loss: US$317.6m (loss narrowed 1.4% from FY 2022). Revenue is forecast to stay flat during the next 3 years compared to a 2.0% growth forecast for the Consumer Services industry in Europe. Annuncio • Feb 13
2U, Inc. Provides Earnings Guidance for the First Quarter and Full Year of 2024 2U, Inc. provided earnings guidance for the first quarter and full year of 2024. For the quarter, the company expects revenue to range from $195 million to $198 million, Net loss to range from $60 million to $55 million. For the full-year 2024, the company expects Revenue to range from $805 million to $815 million and Net loss to range from $90 million to $85 million. New Risk • Feb 03
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -US$57m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$57m free cash flow). Share price has been highly volatile over the past 3 months (23% average weekly change). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (US$77m net loss in 2 years). Shareholders have been diluted in the past year (3.8% increase in shares outstanding). Market cap is less than US$100m (€60.3m market cap, or US$65.0m). Annuncio • Feb 02
2U, Inc. to Report Q4, 2023 Results on Feb 12, 2024 2U, Inc. announced that they will report Q4, 2023 results on Feb 12, 2024 Annuncio • Nov 19
2U, Inc. Announces Appointment of Paul Lalljie as Chief Executive Officer 2U, Inc. announced a change of leadership to spearhead the next stage of its evolution as it focuses on improving operational efficiency and delivering profitable growth and cash flow. The Board of Directors has appointed Paul Lalljie, the company's current Chief Financial Officer, to succeed Christopher Chip Paucek as Chief Executive Officer and as a member of the Board of Directors, effective immediately. Additionally, Matt Norden, the company's Chief Legal Officer, will also assume the role of Chief Financial Officer. Paucek will remain an employee of the company through December 15, 2023, at which time he will transition to Special Advisor. Lalljie brings significant experience in finance management in the high-growth technology sector to his new role. Before joining 2U in 2019, he spent 18 years at Neustar, Inc., a billion-dollar information services business, where he served as CFO for nine years. During his tenure, Lalljie had global financial and operational responsibility for repositioning Neustar as an information services company. Norden has over a decade of experience at 2U and played a leadership role in the company's IPO in 2014 and in all subsequent capital markets and M&A activities. Prior to 2U, he was the General Counsel at TOMS Shoes, where he played an integral role in the company's strategic planning, international expansion and business development efforts, in addition to overseeing the legal function. Prior to that, Norden was an associate in the M&A practice group in the Washington, DC office of Skadden, Arps, Slate, Meagher & Flom LLP. Annuncio • Nov 18
2U, Inc. Announces Appointment of Paul Lalljie as A Member of the Board of Directors 2U, Inc. announced a change of leadership to spearhead the next stage of its evolution as it focuses on improving operational efficiency and delivering profitable growth and cash flow. The Board of Directors has appointed Paul Lalljie, the company's current Chief Financial Officer, to succeed Christopher Chip Paucek as Chief Executive Officer and as a member of the Board of Directors, effective immediately. Additionally, Matt Norden, the company's Chief Legal Officer, will also assume the role of Chief Financial Officer. Paucek will remain an employee of the company through December 15, 2023, at which time he will transition to Special Advisor. Lalljie brings significant experience in finance management in the high-growth technology sector to his new role. Before joining 2U in 2019, he spent 18 years at Neustar, Inc., a billion-dollar information services business, where he served as CFO for nine years. During his tenure, Lalljie had global financial and operational responsibility for repositioning Neustar as an information services company. Norden has over a decade of experience at 2U and played a leadership role in the company's IPO in 2014 and in all subsequent capital markets and M&A activities. Prior to 2U, he was the General Counsel at TOMS Shoes, where he played an integral role in the company's strategic planning, international expansion and business development efforts, in addition to overseeing the legal function. Prior to that, Norden was an associate in the M&A practice group in the Washington, DC office of Skadden, Arps, Slate, Meagher & Flom LLP. New Risk • Nov 12
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €79.1m (US$84.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (23% average weekly change). Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$57m). Currently unprofitable and not forecast to become profitable over next 2 years (US$81m net loss in 2 years). Shareholders have been diluted in the past year (4.9% increase in shares outstanding). Market cap is less than US$100m (€79.1m market cap, or US$84.5m). Annuncio • Nov 11
2U, Inc. Provides Earning Guidance for 2023 2U, Inc. provided earning guidance for 2023. For the period, the company expects revenue to range from $965 million to $990 million, representing growth of 1.5% at the midpoint, including expected revenue of $80 million in the fourth quarter related to portfolio management activities and Net loss to range from $250 million to $240 million. Buying Opportunity • Nov 10
Now 36% undervalued after recent price drop Over the last 90 days, the stock is down 67%. The fair value is estimated to be €1.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 9.6% in 2 years. Earnings is forecast to grow by 73% in the next 2 years. Reported Earnings • Nov 10
Third quarter 2023 earnings released: US$0.58 loss per share (vs US$1.57 loss in 3Q 2022) Third quarter 2023 results: US$0.58 loss per share (improved from US$1.57 loss in 3Q 2022). Revenue: US$229.7m (down 1.1% from 3Q 2022). Net loss: US$47.4m (loss narrowed 61% from 3Q 2022). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 56% per year, which means it is performing significantly worse than earnings. Annuncio • Oct 25
2U, Inc. to Report Q3, 2023 Results on Nov 09, 2023 2U, Inc. announced that they will report Q3, 2023 results on Nov 09, 2023 Recent Insider Transactions • Aug 23
Insider recently bought €132k worth of stock On the 17th of August, Aaron Mccullough bought around 46k shares on-market at roughly €2.89 per share. This transaction amounted to 52% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. New Risk • Aug 11
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -US$76m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$76m). Currently unprofitable and not forecast to become profitable over next 2 years (US$17m net loss in 2 years). Shareholders have been diluted in the past year (5.1% increase in shares outstanding). Annuncio • Aug 10
2U, Inc. Provides Earnings Guidance for 2023 2U, Inc. provided earnings guidance for 2023. For the period, the company expects Revenue to range from $985 million to $995 million, representing growth of 3% at the midpoint. Net loss to range from $225 million to $220 million. Breakeven Date Change • Aug 09
Forecast to breakeven in 2025 The 12 analysts covering 2U expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 62% per year to 2024. The company is expected to make a profit of US$15.1m in 2025. Average annual earnings growth of 106% is required to achieve expected profit on schedule. Annuncio • Jul 29
2U, Inc. to Report Q2, 2023 Results on Aug 08, 2023 2U, Inc. announced that they will report Q2, 2023 results on Aug 08, 2023 Reported Earnings • Apr 28
First quarter 2023 earnings released: US$0.68 loss per share (vs US$1.65 loss in 1Q 2022) First quarter 2023 results: US$0.68 loss per share (improved from US$1.65 loss in 1Q 2022). Revenue: US$238.5m (down 5.9% from 1Q 2022). Net loss: US$54.1m (loss narrowed 57% from 1Q 2022). Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 05
Full year 2022 earnings released: US$4.17 loss per share (vs US$2.61 loss in FY 2021) Full year 2022 results: US$4.17 loss per share (further deteriorated from US$2.61 loss in FY 2021). Revenue: US$963.1m (up 1.8% from FY 2021). Net loss: US$322.2m (loss widened 65% from FY 2021). Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Annuncio • Feb 03
2U, Inc. Provides Earnings Guidance for the Fiscal Year 2023 2U, Inc. provided earnings guidance for the fiscal year 2023. For the year, the company's revenue to range from $985 million to $995 million, representing growth of 3% at the midpoint and net loss to range from $95 million to $90 million. Annuncio • Jan 27
2U, Inc. to Report Q4, 2022 Results on Feb 02, 2023 2U, Inc. announced that they will report Q4, 2022 results on Feb 02, 2023 Annuncio • Jan 10
2U, Inc. announced that it expects to receive $147 million in funding 2U, Inc. announced hat it has entered into a purchase agreement of 4.50% Senior Unsecured Convertible Notes due 2030 for gross proceeds of $147 million on January 9, 2023. The Notes will bear interest at 4.50% payable semi-annually in arrears and will mature on February 1, 2030. The notes are redeemable. The Notes will be convertible by holders thereof following issuance at an initial conversion price of $9.00 per share, or a conversion rate of 111.1111 shares of the company’s common stock per $1,000.00 principal amount of Notes. Board Change • Nov 17
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 11 highly experienced directors. Member of Advisory Board Joe Rospars was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 09
Third quarter 2022 earnings released: US$1.57 loss per share (vs US$0.81 loss in 3Q 2021) Third quarter 2022 results: US$1.57 loss per share (further deteriorated from US$0.81 loss in 3Q 2021). Revenue: US$232.2m (flat on 3Q 2021). Net loss: US$121.7m (loss widened 102% from 3Q 2021). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Annuncio • Nov 08
2U, Inc. Provides Earnings Guidance for the Fiscal Year 2022 2U, Inc. provided earnings guidance for the fiscal year 2022. For the year, the company expects to report revenue to exceed $960 million, representing growth of 2% and net loss to range from $320 million to $310 million. Annuncio • Nov 01
2U Announces the Launch of Edx Boot Camps 2U, Inc. announced the launch of boot camps with edX. Under the edX brand, 2U will continue to help universities upskill over 10,000 boot camp students annually in high-demand technology fields including web development, data analytics, UX/UI, cybersecurity, fintech, digital marketing, and project management. More than 200 online boot camp offerings from over 50 universities worldwide are now available at edX.org/boot-camps, alongside over 4,000 high-quality educational programs on the platform, from free courses to full degrees. edX plans to offer boot camp participants and alumni with complementary pathways of free technical courses and program recommendations beginning in 2023 to help support them as they advance their careers. Since 2016, more than 60,000 students have graduated from university boot camp programs delivered by 2U. Designed to meet the needs of working adults, these intensive technology training programs serve students across all educational backgrounds, and 31% of participants do not have a bachelor's degree. Over 6,700 companies have hired program graduates, including Google, Target, State Farm, H&R Block, Infosys, and many more. Annuncio • Oct 27
2U, Inc. to Report Q3, 2022 Results on Nov 07, 2022 2U, Inc. announced that they will report Q3, 2022 results on Nov 07, 2022 Annuncio • Aug 26
2U, Inc. Appoints Stephen Virostek as Senior Vice President, Investor Relations 2U, Inc. announced that Stephen Virostek will be joining the company as Senior Vice President, Investor Relations. Virostek will be responsible for communicating 2U's vision, strategy and performance to investors as the company transitions to a platform company under the edX brand. He will report to Paul Lalljie, 2U's Chief Financial Officer. Virostek's career includes more than 20 years of investor relations experience. He was most recently at Diebold Nixdorf, Inc., where he managed all investor relations communications and events. Prior to Diebold, he served as head of investor relations at Computer Sciences Corporation (CSC) and directed investor relations activities for the Sprint Nextel Corporation and Nextel Communications, Inc. Virostek received a bachelor's of business administration degree from James Madison University and a master's degree in business administration from The George Washington University. Reported Earnings • Jul 30
Second quarter 2022 earnings released: US$0.82 loss per share (vs US$0.29 loss in 2Q 2021) Second quarter 2022 results: US$0.82 loss per share (down from US$0.29 loss in 2Q 2021). Revenue: US$241.5m (up 1.8% from 2Q 2021). Net loss: US$62.9m (loss widened 188% from 2Q 2021). Over the next year, revenue is forecast to grow 2.1%, compared to a 47% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 9% per year, which means it is performing significantly worse than earnings. Annuncio • Jul 22
2U, Inc. to Report Q2, 2022 Results on Jul 28, 2022 2U, Inc. announced that they will report Q2, 2022 results on Jul 28, 2022 Annuncio • May 17
Byju’s Reportedly Eyes Chegg or 2U as It Weighs US Acquisition Byju’s, an India online education startup, is in discussions to acquire a US target and likely to bid for either Chegg, Inc. (NYSE:CHGG) or 2U, Inc. (NasdaqGS:TWOU), according to people familiar with the matter. The Bangalore-based company has held talks with both Santa Clara, California-based Chegg and Lanham, Maryland-based 2U and the total value of a deal could be about $2 billion, said the people, who asked not to be named because of the sensitive nature of the negotiations. Chegg’s market value was $2.3 billion as of Friday’s close, while 2U had a market value of $756 million and more than $1 billion in debt and other liabilities. Reported Earnings • May 06
First quarter 2022 earnings released: US$1.65 loss per share (vs US$0.62 loss in 1Q 2021) First quarter 2022 results: US$1.65 loss per share (down from US$0.62 loss in 1Q 2021). Revenue: US$253.3m (up 9.0% from 1Q 2021). Net loss: US$125.8m (loss widened 176% from 1Q 2021). Over the next year, revenue is forecast to grow 14%, compared to a 31% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 39% per year, which means it is performing significantly worse than earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 11 highly experienced directors. Member of Advisory Board Joe Rospars was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Annuncio • Apr 16
John Ellis Resigns from Position as Chief Accounting Officer of 2U On April 15, 2022, John Ellis resigned from his position as Chief Accounting Officer of 2U, Inc. (the “Company”), effective April 30, 2022, to pursue other professional opportunities. Mr. Ellis’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Mr. Paul S. Lalljie, Chief Financial Officer, will assume the role of Principal Accounting Officer, effective upon Mr. Ellis’s resignation. Recent Insider Transactions • Feb 17
Independent Chairman recently bought €918k worth of stock On the 14th of February, Paul Maeder bought around 110k shares on-market at roughly €8.34 per share. This was the largest purchase by an insider in the last 3 months. This was Paul's only on-market trade for the last 12 months. Reported Earnings • Feb 10
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: US$2.61 loss per share (up from US$3.22 loss in FY 2020). Revenue: US$945.7m (up 22% from FY 2020). Net loss: US$194.8m (loss narrowed 10.0% from FY 2020). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 18%, compared to a 21% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Annuncio • Feb 10
2U, Inc. Provides Earnings Guidance for the Year 2022 2U, Inc. provided earnings guidance for the year 2022. For the year, the company expects revenue to range from $1.05 billion to $1.09 billion, representing growth of 13% at the midpoint and net loss to range from $235 million to $215 million. Reported Earnings • Nov 10
Third quarter 2021 earnings released: US$0.81 loss per share (vs US$0.77 loss in 3Q 2020) The company reported a solid third quarter result with improved revenues and control over costs, although losses increased. Third quarter 2021 results: Revenue: US$232.4m (up 16% from 3Q 2020). Net loss: US$60.1m (loss widened 14% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Reported Earnings • Jul 30
Second quarter 2021 earnings released: US$0.29 loss per share (vs US$1.03 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: US$237.2m (up 30% from 2Q 2020). Net loss: US$21.8m (loss narrowed 67% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Annuncio • Jun 30
2U, Inc. (NasdaqGS:TWOU) entered into a definitive agreement to acquire Substantially All Assets of edX Inc. for $800 million. 2U, Inc. (NasdaqGS:TWOU) entered into a definitive agreement to acquire Substantially All Assets of edX Inc. for $800 million on June 28, 2021. The consideration is subject to customary adjustments based on, among other things, the amount of cash, debt, transaction expenses and working capital of edX. 2U will fund the transaction with cash on hand, which includes the proceeds from the new $475 million senior secured Term Loan B. For the year ended June 30, 2020, edX Inc. reported, on a non-profit basis, revenues of $84.7 million and an operating loss of $17.4 million. edX founder and CEO Anant Agarwal will continue to be deeply involved in the delivery of the edX mission and will determine his future role in the coming months. 2U plans to retain all current edX employees.
The completion of the transaction is subject to receipt of required regulatory and governmental approvals, including the expiration or termination of the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and certain other customary closing conditions. The transaction is also subject to the approval of the Massachusetts Attorney General related to the 8A Notice, and, if required in the view of Massachusetts Attorney General, approval of the Supreme Judicial Court of Massachusetts, sitting in single justice session, related to the 8A Notice. The transaction does not require approval of 2U’s stockholders and is not subject to any financing contingency. The transaction has been approved by 2U and edX’s Boards of Directors. The transaction is expected to close within 120 days. Proceeds of the transaction will flow to the nonprofit that will continue under the leadership of edX founders Harvard and MIT and will be dedicated to reimagining the future of learning for people at all stages of life, addressing educational inequalities, and continuing to advance next generation learning experiences and platforms. The transaction is expected to be accretive to 2U’s adjusted EBITDA in fiscal year 2023, and dilutive to adjusted EBITDA in fiscal year 2022 by a low single-digit percentage. Morgan Stanley and Co. LLC acted as financial advisor; and Brandon Bortner and Richard S. Radnay of Paul Hastings LLP acted as legal advisors to 2U. David V. Cappillo and Matthew E. Reardon of Goodwin Procter LLP acted as legal advisors; and M. Klein and Company, LLC acted as financial advisor to edX. Annuncio • Apr 30
2U, Inc. Provides Updated Earnings Guidance for the Full-Year 2021 2U, Inc. provided updated earnings guidance for the full-year 2021. For the year, the company expects revenue to range from $925.0 million to $955.0 million, or growth of 19% to 23% and net loss to range from $175.0 million to $165.0 million. Reported Earnings • Apr 30
First quarter 2021 earnings released: US$0.62 loss per share (vs US$0.94 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: US$232.5m (up 33% from 1Q 2020). Net loss: US$45.6m (loss narrowed 24% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Annuncio • Apr 29
2U, Inc. and Keypath Education Partner with Pepperdine University to Power Online Master of Public Policy and Leadership Degree 2U, Inc. and Keypath Education announced a joint initiative to power Pepperdine University's new online Master of Public Policy and Leadership (MPPL) degree. This program marks 2U's first partnership with the Pepperdine School of Public Policy and the 11th online degree offering that 2U powers across four schools at Pepperdine University. Designed for early- and mid-career professionals and set to launch in 2022, the program also includes three stackable certificates—a first of its kind for Pepperdine—focused on local government, education policy, and policy communications. Annuncio • Mar 10
2U, Inc. Appoints Lorin Thomas-Tavel as Managing Director of Boot Camps 2U, Inc. announced that longtime higher education leader Lorin Thomas-Tavel will become the company's new managing director of boot camps. Thomas-Tavel, who joins 2U from Kaplan where she recently served as chief experience officer for North America, will take over for Greg Calverase, who recently announced his retirement. At 2U, Thomas-Tavel will oversee the company's boot camp business, including future product innovations and improvements to the student experience that help further drive quality and outcomes. She will report to Mark Chernis, 2U's chief operating officer. Reported Earnings • Feb 28
Full year 2020 earnings released: US$3.22 loss per share (vs US$3.83 loss in FY 2019) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2020 results: Revenue: US$774.5m (up 35% from FY 2019). Net loss: US$216.5m (loss narrowed 8.0% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 65% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 28
Revenue beats expectations Revenue exceeded analyst estimates by 0.9%. Over the next year, revenue is forecast to grow 20%, compared to a 24% growth forecast for the Software industry in Germany. Reported Earnings • Feb 12
Full year 2020 earnings released: US$3.22 loss per share (vs US$3.83 loss in FY 2019) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2020 results: Revenue: US$774.5m (up 35% from FY 2019). Net loss: US$216.5m (loss narrowed 8.0% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 65% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue beats expectations Revenue exceeded analyst estimates by 0.9%. Over the next year, revenue is forecast to grow 18%, compared to a 26% growth forecast for the Software industry in Germany. Annuncio • Feb 10
2U, Inc. and the Institute for Management Development Announces New Partnership to Develop and Launch Suite of Professional Short Courses over Five-Year Collaboration 2U, Inc. and the Institute for Management Development (IMD) announced a new partnership to develop and launch a suite of professional short courses over a five-year collaboration. The new courses will focus on topics such as cybersecurity for business leaders, digital supply chain operations, and digital strategy, and they will be available later this year through GetSmarter, a 2U, Inc. brand. COVID-19 has underscored the importance of digital transformation for businesses and highlighted new and emerging topics that organizations will prioritize in the search for competitive executive leadership talent in a post-pandemic world. Professionals will increasingly need flexible, high-quality higher education opportunities to meet employer needs in these areas while strengthening their own skills and career paths. In particular, cybersecurity skills will continue to be in high demand post-pandemic as the rise of remote work further exposes gaps in data and network security. In fact, according to the Information Systems Security Association, there has been a 63% increase in cyberattacks related to the pandemic. At the same time, supply and demand shocks as a result of the pandemic have underscored existing global supply chain vulnerabilities that will have major implications on business across all industry sectors for years to come. With these new short courses, IMD and 2U will give leaders new opportunities to gain the skills and insights necessary to navigate the complexities of the ever-evolving, modern business landscape while building resilient and sustainable companies, NGOs, and nonprofits. Each of IMD's new 2U-powered short courses will be taught in English. Students will be eligible to receive a certificate of completion from IMD. Annuncio • Feb 03
Morehouse College in Partnership with 2U, Inc. Announces Online Undergraduate Experience for Non-Traditional Students Beginning Fall 2021 Morehouse College announced the planned launch of Morehouse Online, an online undergraduate program that will complement its heralded traditional on-campus experience. Morehouse Online is the centerpiece of Morehouse's digital transformation and part of a strategy to create innovative and robust programs for non-traditional students. In partnership with 2U, Inc. initial offerings will launch in August 2021 and will include a bachelor's degree completion program in business administration with a management concentration, as well as other disciplines. These programs are designed for non-traditional students with existing college credit and adult life experience seeking to complete their bachelor's degrees, and to serve men who enrolled at Morehouse but left before completing their undergraduate experience. Morehouse expects to announce information on fully online bachelor's degree programs in the near future. Admission requirements, application procedures, and course offerings will be announced over the coming months. Enrollment will open in spring 2021. Interested students can sign up to receive more information as it becomes available. Morehouse Online represents Morehouse's first major step in implementing its new strategic plan which provides a road map to extend Morehouse's reach beyond its traditional borders and other efforts to support its mission-driven approach to developing leaders who will pursue lives of leadership and service in the 21st century. Under the partnership with 2U, Morehouse will maintain control over hiring faculty, developing curriculum and course requirements, setting admissions standards and admitting students, as well as providing all academic instruction. The Morehouse Online degrees will be powered by 2U's comprehensive technology and services, enabling Morehouse to deliver an intentionally designed online educational experience for both students and faculty. Is New 90 Day High Low • Feb 03
New 90-day high: €37.31 The company is up 18% from its price of €31.66 on 04 November 2020. The German market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €53.85 per share. Annuncio • Jan 29
2U, Inc. to Report Q4, 2020 Results on Feb 11, 2021 2U, Inc. announced that they will report Q4, 2020 results on Feb 11, 2021 Is New 90 Day High Low • Dec 29
New 90-day high: €35.03 The company is up 14% from its price of €30.63 on 30 September 2020. The German market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is down 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €44.35 per share. Annuncio • Dec 10
Pepperdine Graziadio Business School and 2U, Inc. Launch FinTech and Digital Marketing Boot Camps Pepperdine Graziadio Business School announced the launch of its first two intensive online training programs in financial technology (fintech) and digital marketing in partnership with 2U, Inc. Geared toward adult learners and working professionals, the Pepperdine Graziadio FinTech Boot Camp and Pepperdine Graziadio Digital Marketing Boot Camp will teach students the technical skills critical to landing highly-competitive tech roles in the financial and marketing sectors. Both part-time online programs begin in April 2021. Enrollment for the 24-week Pepperdine Graziadio FinTech Boot Camp is now open at bootcamps.pepperdine.edu/fintech/, and enrollment for the 18-week Pepperdine Graziadio Digital Marketing Boot Camp is open at bootcamps.pepperdine.edu/digitalmarketing/. Participants in the Pepperdine Graziadio FinTech Boot Camp will learn how to use cutting-edge tools and technologies in the financial services sector, including but not limited to programming languages Python and Solidity, financial libraries, machine learning algorithms, Ethereum system software, and blockchain. Participants in the Pepperdine Graziadio Digital Marketing Boot Camp will learn in-demand digital marketing skills, including but not limited to marketing strategy and campaign development, user acquisition, digital advertising, content marketing, retention strategy, SEO, and optimization. Both boot camps are powered by 2U, Inc. brand Trilogy Education and will be offered through a dynamic virtual classroom experience, including live instruction with industry professionals, webinars with employers, and asynchronous coursework with tutoring assistance. Participants will benefit from a wide range of career-planning services, including access to trained coaches and recruiters, recruiting assistance, portfolio reviews, and employer events. Graduates will receive a Certificate of Completion from the Pepperdine Graziadio Business School at the end of the program. Pepperdine University has partnered with 2U since 2017 to offer a variety of online master's degree programs in business, law, and psychology. These are the university's first boot camp programs in partnership with 2U. Annuncio • Dec 06
2U, Inc. Partners with Employ Prince George's and the George Washington University College of Professional Studies to Launch the Access 2 Education Scholarship Fund 2U, Inc. has partnered with Employ Prince George's (EPG) to launch the Access 2 Education Scholarship Fund. This fund is designed to help build the Washington, D.C. metropolitan region's pipeline of technical talent and provide access to high-quality training programs for local residents with a particular focus on serving the Black and Latinx communities as well as women and individuals from low-income households. The fund will provide County residents with scholarships to enroll in career-accelerating online boot camps in Coding, Data Analytics, UX/UI, Digital Marketing, and Cybersecurity through a partnership with 2U and the George Washington University College of Professional Studies. Adult learners admitted into the program will receive a 65% tuition reduction, bringing the cost of the program down to $3,500. A 24-month, interest-free financing option will also be available. Prince George's County residents can apply for the scholarship through EPG beginning December 4, 2020 through Dec. 31, 2020 for courses beginning in January and February 2021. The scholarship will serve between 20 and 30 students to start. 