Laureate Education (LAUR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 8% year-over-year to $499.2M, with net income up 128% to $128.1M, driven by strong enrollment, tuition growth, and favorable FX impacts.

• Adjusted EBITDA for Q2 2024 was $186.9M, up 7% year-over-year; for the first half, Adjusted EBITDA reached $217.5M, a 4% increase.

• New enrollments rose 2% and total enrollments climbed 5% for the six months ended June 30, 2024; Mexico led with 4% new and 9% total enrollment growth.

• Strong balance sheet and cash flow enabled over $72M in share repurchases in H1 2024 under a $100M program.

• Favorable market dynamics in Mexico and Peru, with Mexico benefiting from robust economic sectors and Peru expected to recover in H2 2024.

Financial highlights

• Q2 2024 revenue was $499.2M, up 8% year-over-year; Adjusted EBITDA was $186.9M, up 7%; net income for Q2 was $128.1M, up $72M from Q2 2023.

• Year-to-date revenue reached $774.6M, up 9% year-over-year; Adjusted EBITDA was $217.5M, up 4%; net income for H1 2024 was $117.5M, up from $29.6M.

• Q2 2024 EPS was $0.83, up from $0.35 in Q2 2023; H1 2024 EPS was $0.75, up from $0.18.

• Free cash flow for H1 2024 was $50.1M, down from $64.0M in the prior year; cash and equivalents at $128.8M as of June 30, 2024.

• Foreign currency exchange gains contributed $27.5M in Q2 2024, compared to a $32.4M loss in Q2 2023.

Outlook and guidance

• FY 2024 total enrollments expected between 467,000–473,000, up 4–5% year-over-year.

• FY 2024 revenue guidance: $1,551M–$1,566M, up 5–6%; Adjusted EBITDA expected at $441M–$451M, up 5–8%.

• Q3 2024 guidance: revenue $358M–$362M, Adjusted EBITDA $69M–$73M.

• Guidance reflects recent Mexican peso volatility; as-reported guidance adjusted down by $15M revenue and $5M EBITDA.

• Significant margin expansion expected in H2 2024, driven by Peru's recovery and operating efficiencies.