- Despite FQ4 earnings beat , Stride ( NYSE: LRN ) shares plunged on ambiguous FY2023 outlook.
- The company saw revenue growth of 14.5%, Adjusted operating income growth of 59.8% and net income growth of ~168%.
- Total career learning revenue grew 73.3% Y/Y.
- The company expects career learning business will have strong enrollment growth in FY2023.
- FY2023 tax rate will be in line with FY2022.
- CFO comment: We expect some inflationary impact to both instructional costs and SG&A in fiscal year ‘23. While some of the pressure will be offset by increased funding and continuing efficiency efforts we made the decision to fully fund salary increases for teachers and employees to ensure consistency and remain competitive in the labor market. This will result in a tightening of our margins in the short-term. However, we believe this is the right decision for our students and employees and will benefit us over the longer-term. We strongly believe in the long-term growth in demand for online education options, both for our full-time programs and General Education and Career Learning and the other new products we have been investing behind."
- A look at company's long term outlook:
- Stock is currently trading 13% down but gained ~12.6% on YTD basis.
For further details see:
Stride slide on ambiguous FY2023 outlook despite FQ4 earnings beat