STRATEGIC EDUCATION Reports 15.5% Decrease in Total Revenue for FY2022 Q4

Earnings Overview

For the fourth quarter of fiscal year 2022, STRATEGIC EDUCATION ($NASDAQ:STRA) reported total revenue of USD 18.3 million, representing a 15.5% decline from the same period in the prior year. Net income for the period ending December 31, 2022, was USD 269.9 million, a decrease of 0.8% compared to the same quarter in the prior fiscal year. The financial results were announced on February 22, 2023.

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SEI reported total enrollment across all of its segments was essentially flat and decreased 80 basis points in US higher education for the fourth quarter of 2022. US Higher Ed revenue for the quarter grew 1%, driven by strong enrollment results, with new employer affiliated enrollment increasing 17%, and total enrollments growing 13%. ETS revenue increased 20% to approximately $17 million.

Revenue in Australia/New Zealand saw 4% growth and was essentially flat on a constant currency basis. Visa processing issues and delays experienced throughout 2022 have improved and are close to returning to pre-pandemic levels.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Strategic Education. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Strategic Education. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Strategic Education. More…

Key Ratios Snapshot

Some of the financial key ratios for Strategic Education are shown below. More…

Price History

Despite this, the company maintains a positive outlook for its future, citing investments in new technology and strategies to expand into new markets for growth opportunities. Going forward, STRATEGIC EDUCATION will be focusing on the continued development of their education services and solutions. In an effort to drive further growth, they will be investing in new technologies and leveraging their existing partnerships in order to create innovative learning experiences. By doing so, they hope to capitalize on the growing demand for quality educational resources and better position themselves to rebound from the losses of FY2022 Q4. Live Quote…

Analysis

GoodWhale has analyzed STRATEGIC EDUCATION‘s financials using the Star Chart, and the results are impressive. According to the chart, STRATEGIC EDUCATION ranks strong in liquidity, and medium in asset, dividend, growth, and profitability. The company’s health score is 8/10, indicating that it has strong cashflows and is in good standing to continue long-term operations despite any potential crises. We have also classified STRATEGIC EDUCATION as a “cow”, a type of company that is consistent and sustainable when it comes to dividends. Given its impressive financials, investors seeking high yields and sustainable dividends may be interested in investing in STRATEGIC EDUCATION. More…

Peers

The company operates a network of schools, colleges and universities across the two countries. Strategic Education Inc is a publicly listed company on the Australian Securities Exchange and is a member of the S&P/ASX 200 index. The company’s major competitors are Top Education Group Ltd, Academies Australasia Group Ltd and Dadi Education Holdings Ltd.

– Top Education Group Ltd ($SEHK:01752)

The company has a market capitalization of 150.85 million as of 2022 and a return on equity of -1.05%. The company is engaged in the provision of educational services. It offers a range of services, including online and offline education, tutoring, and test preparation. The company has a wide network of schools and colleges across the world. It has a strong presence in China, with over 60% of its students coming from the country. The company is listed on the New York Stock Exchange.

– Academies Australasia Group Ltd ($ASX:AKG)

Academies Australasia Group Ltd is a provider of vocational and higher education. The company has a market capitalization of 49.77 million as of 2022 and a return on equity of -3.54%. The company offers a range of programs in areas such as business, management, accounting, hospitality, and information technology.

– Dadi Education Holdings Ltd ($SEHK:08417)

Dadi Education Holdings Ltd is a publicly traded company with a market capitalization of $29.76 million as of March 2022. The company operates in the education industry and provides educational services and products in China. Dadi Education Holdings Ltd has a negative return on equity of 7.15%. This is due to the company’s high debt levels and operating losses.

Summary

Investors analyzing Strategic Education for potential investment should take note of the company’s FY2022 Q4 financial results reported on February 22, 2023. Total revenue was USD 18.3 million, a decrease of 15.5% year-over-year, and net income was USD 269.9 million, a slight dip of 0.8%. These results may be due to the ongoing global pandemic and its effects on the higher education sector. With Strategic Education’s well-established presence in the sector and its focus on providing quality learning experiences to students, investors may still see potential in this company as it looks to strengthen its foothold in the industry.