Q1 2021 Zovio Inc Earnings Call
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Okay.
Good day, and thank you for standing by and welcome to the OBL Q1, 2021 and earnings call.
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And I can hand, the conference over to your speaker today, and there's a lot of the teaching and thank you. Please go ahead.
Yeah.
Thank you and good afternoon day, Leos first quarter 'twenty 'twenty. One earnings release was issued earlier today and is posted on the company's website at Www Dot Silvio Dotcom joined.
Joining me on the call today are George Prince Diner interim CEO on.
Office of the CEO and board Chair Crisp on executive Vice President of operations and office of the CEO and COO.
Kevin Royal Executive Vice President and Chief Financial Officer.
We would like to remind you that some of the statements. We make today may be considered forward looking.
Including statements regarding University partners and other programs and services.
Our ability to grow through acquisition and our ability to successfully integrate and leverage acquired companies.
Future revenue growth EBITDA financial and related guidance and commentary regarding fiscal year 2021 and later.
These forward looking statements are subject to a number of risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements.
Please note that these forward looking statements speak only as of the date of this presentation and we undertake no obligation to update these forward looking statements in light of new information or future events, except to the extent required by applicable securities laws.
On the call today, and we will also discuss certain non-GAAP financial measures and our earnings release, you will find additional disclosures regarding these measures, including reconciliations of these measures with U S. GAAP.
Note that these non-GAAP financial measures are intended to supplement GAAP financial information and should not be considered a substitute for our GAAP results.
Please refer to our SEC filings, including our annual report on form 10-K for the year ended December 31, 2020 as well as our quarterly report on form 10-Q for the quarter ended March 31, 2021, which we've filed with the SEC earlier today.
For a more detailed description of the risk factors that may affect our results you may obtain copies from the SEC or by visiting the Investor Relations section of our website.
At this time it is my pleasure to introduce our interim CEO George Prince diner.
Thank you Ilana and welcome to our first quarter 2021 earnings call.
As you likely saw in late March we announced a leadership transition and Silvio if the company is entering a new era and the board felt this presented an opportunity to make a shift at the CEO level.
Andrew Clark had founded Silvio and then with the company for almost 18 years.
During his tenure he developed a solid foundation for Zalviso to transform from operating a single University into and Education Technology services company, serving many clients and all of their students.
We are excited for what the future holds for Silvio and our ability to play an important role in enabling learners to advance their educational goals to that and the board of directors has established a search committee to find our next CEO.
The committee is comprised of three directors led by John Kylie, Our audit Committee chair and a former partner at Pwc.
We have retained the search firm Russell Reynolds associates to facilitate the process and have launched a comprehensive national search that will consider both internal and external candidates.
We are confident the search will yield a leader with the right blend of vision and operational expertise to advance Adobe OS strategy and deliver shareholder value for many years to come.
And the interim we have established the office of the CEO, which I lead.
And includes crisp on who will be speaking with you and a few minutes and Diane Thompson and our general counsel.
And as interim CEO My primary focus will be on strategy finance and University partnerships, including the very important one with the University of Arizona Global campus or you a G C.
Chris will be responsible for overseeing operations and client facing services, while Diane will continue to lead the legal and compliance department as well as overseeing other corporate functions. We believe this structure will enable a seamless leadership and operational transition, allowing us to continue to execute on our.
Strategic priorities.
In addition to our CEO transition and late March we announced the appointment of two new directors, which will enhance our board leadership and expertise as well as increasing the overall diversity of our directors. It is my pleasure to welcome Dr. John Wilson, the former Morehouse College, President who serves as the <unk>.
Getting scholar at the Harvard Business School, and Ron Hubert <unk>, Chief Executive Officer of benchmark analytics, and who formerly was the leader of Chicago public schools.
And John and Ron brings significant higher education government policy business and human capital management experience to the Soviet aboard.
And this all in.
In addition to their long standing commitment to diversity equity and access to education.
For those of you, whom I have not had the pleasure of meeting yet let me extend and give you a quick overview of my background.
I've served as a director on <unk> Board since August 2017, and currently serve as chair of that board.
Higher education is where I spent most of my career I served as Chancellor of the Oregon University system from 2004 through 2013 and more recently as the president of the state higher Education Executive officers Association, which represents chancellors and commissioners of higher education institutions from every state.
As a result, I have considerable knowledge of the opportunities and challenges. We face is the education landscape rapidly evolves and something that matters as we further expand our university partnerships and enhanced our relationship with you AGC.
When I had the opportunity to join <unk> Board I was excited.
And I was excited to become a part of an organization that was well positioned to become a leader in the future of higher education.
Bringing technology and innovative services to help learners succeed silver.
Silvio has a great future we are in the process of developing a strong partnership with <unk>.
Which will provide a solid footing to launch additional services to more universities and.
In fact, we have already signed an agreement with a new partner something Chris will discuss in more detail shortly and we are in discussions with several other institutions. Furthermore, our zalviso growth segment has been a significant contributor to growth.
True full stack and tutor me, we are delivering high quality services that are in great demand and the marketplace.
That being said, we have experienced lower enrolment for you AGC and the first quarter of 2021 than we had anticipated.
Chris and Kevin will discuss this and much more detail momentarily. However.
However, given the slower enrollment as well as our desire to better position the company, both internally and externally as and education technology services company, rather than and owner of one institution.
Since March we have taken decisive actions to realign our operations.
This included working to break down silos internally and to increase collaboration across the team. In addition, this morning, we communicated broad based cost reductions that will deliver annualized savings of about $40 million.
The cost reductions were largely focused on administrative and non students facing functions in order to enhance efficiencies while at the same time, maintaining the resources necessary to drive and serve enrollment for our University partners.
We also remain focused on realizing the full benefit of our robust offerings, including full stack tutor and me and our University partner group services that to ensure our team is aligned around a common goal to be a world class education technology services company.
As I said before I look forward to listening to and speaking with many of you throughout this transition period.
With that let me turn the call over to Chris to run through the highlights of the quarter.
Thank you George let me begin by introducing myself after having been away from the company for a number of years I rejoined <unk> and early 2020 and <unk>.
<unk> been tasked with providing strategic leadership and direction for student engagement and student success and financial services, and Silvio and employer services.
I have over 20 years of experience and online higher education and technology service industries. Most recently I was the president.
Rocky Mountain College of Art and design, where I led a total reengineering of all operations related to the University.
I'm pleased to be serving and the opposite CEO.
And believe we are all well positioned to execute on our strategic priorities as we work through this transition period.
Turning to our results from the first quarter of 2021, we delivered revenue and other revenue.
$76 9 million and incurred a net loss of $9 5 million.
For a loss of 29 cents per diluted share.
Excluding non-GAAP items, our non-GAAP net loss for the first quarter 2020 one.
It was $3 3 million.
Or a loss of <unk> 10 cents per diluted share.
Our Zalviso growth segment continues to generate momentum delivering strong topline growth, new university partnerships acquisitions and better than anticipated enrollment.
For our University partners group or E. N P. J, we have made early progress with.
With regard to you AGC and while we are and the early stages of this new relationship.
We have made great strides and getting our services up and running.
Beyond New AGC as George mentioned, we signed our first new partnership for N P. G.
And I will discuss boat and more detail and just a moment.
As the team as discussed before the way and learners access education has been changing rapidly and was only accelerated by the COVID-19 pandemic.
Universities are adding and enhancing their online programs to meet learners, where they are.
Further expanding educational opportunities for the underrepresented students and non traditional students who work or parent full time is driving structural changes and the education landscape.
Educators are looking for strong partners that have demonstrated a track record and supporting the student lifecycle and delivering strong student outcomes and Zalviso is that partner.
We continue to make strategic investments and our growth engines full stack and tutor me while at the same time, enhancing our robust and flexible offerings for our University partners and Hugh P. G.
These efforts are creating value today, and we believe they position us well to drive further value over the long term.
With a differentiated and flexible value proposition that spans and the student lifecycle. We are meeting the growing needs of our current and future partners, both at the undergraduate and graduate level, especially and engaging working adults.
Now turning to our <unk> growth segment, which includes our subsidiaries full stack and tuned on me.
It continued to perform exceptionally well.
And the first quarter of 2021, Zilvia growth and delivered revenues of $7 2 million growing 79, 2% year over year.
Today.
And we serve more than 200 institutional customers covering 44 states and the Zilvia ecosystem.
Services that full stack and tutor me provide and hats zoghby iOS ecosystem to support learners education and career aspirations by building on our existing capabilities to meaningfully serve higher education institutions bridge, the education to employment GAAP and help.
Enterprises, Upskill and educate their employees.
We have the opportunity to be a premier player and a large evolving and growing industry.
And the <unk> growth and a critical piece of that strategy.
Our track record of innovation will allow us to offer services to our University partners that spanned the student journey and.
Support the best possible outcomes.
With that and mind tutor me continues to execute.
New partnership agreements during the quarter from universities to corporations two school districts tutor me continued to add new partners. During the first quarter of 2021, bringing the total to 225 and increase of nearly 200% year over year.
As we continue to see robust demand for online tutoring services and the first quarter total customer and partner our usage increased over 215%.
Year over year, continuing the strong momentum we saw in 2020.
During the first quarter full stack also added new partners and continue to leverage new partnerships that came online and the prior year and March full stack signed an agreement with a well known and West Coast University and we are really excited about the prospects of this deal has to offer.
As of March 30, <unk> full stack is now up to 13, new partnerships since our acquisition of the business and April of 2019.
Our outlook for Soviet growth remains strong.
For the full 2021, we anticipate full stack, adding and total between seven and 10, New University partners and tutor me, adding and a total between 50 and 60 new partners.
We'll continue to invest for growth and this segment, including strategic sales and marketing initiatives to bring our new partners online while at the same time, maintaining our mone momentum with new partner acquisition.
Turning to University and partners group.
As I mentioned, we've made strides and bringing our support services online for <unk> and that relationship continues to develop.
That said after a strong start in December 2020.
From a new and total enrollment perspective, we like many other higher education institutions have faced enrollment headwinds driven by the impact of.
And the COVID-19 pandemic.
In addition.
We are assisting our partner University with building, a new brand, which has presented its own unique challenges and adversely impacted new and total enrollment and the first quarter.
First the geographic mix of students shifted which has changed the competitive landscape and as a result highlighted the need to refine our value proposition.
Ashford and University had a great brand recognition with the military that has not transferred to <unk> as we originally had expected and third the organic traffic to the website, we experienced and December did not continue in the first quarter.
Once we identified some of these roadblocks, we moved quickly to enhance the training of our enrollment counselors to better position <unk> value proposition.
In addition, we have made adjustments to our marketing efforts, including placement content and value proposition.
With these changes we have started to see some stabilization over the last several weeks why do we believe we are on the right path. The headwinds we experienced in the first quarter will likely continue to a lesser extent and impact our full year outlook, which Kevin will discuss shortly.
In terms of our new partnership we have signed an agreement with a midsized University.
This is more and this is a more narrow and engagement as compare to our relationship with <unk>. Initially we will focus on enhancing their student response center as well supporting their enrollment services.
This new partner clearly sees the value that <unk> is able to bring us and strives to achieve its objectives and we look forward to building long lasting relationship.
Zalviso remains well positioned as we bring a clearly differentiated offering to our clients. We have a robust platform of technology and services that institutions corporations and learners clearly value that will set the stage for diversified growth firm.
Yeah.
We provide and end to end solution that spans the entire student lifecycle marketing and enrollment to retention and course development tools.
And our offerings are tailored and flexible and can be unbundled or bundled enterprise solutions third we are aligned to operate at scale to support our clients' rapid growth initiatives and objectives and.
Additionally, all of our solutions are powered by signals, our proprietary predictive analytics platform.
In addition to our recently signed partners, we continue to build and attractive pipeline of opportunities with institutions. As many are seeing the opportunity to enhance student engagement and improve the likelihood of student success to our services.
As a result, we remain very confident and our ability to add and total one to three deals and U P. G. During 2021 net.
Now I'll turn the call over to Kevin Royal to review, our financials and operating results.
Thank you Chris before I begin.
Minder, our business model period over period has shifted significantly as a result of our transition to and education technology services company with a divestiture of Ashford University.
As such for comparability purposes. In addition to providing the GAAP results for the first quarter of 2020.
I will be highlighting certain related pro forma amounts.
Revenue and other revenue for the first quarter of 2021 was $76 9 million.
Share to $97 9 million for the same period and the prior year.
On a pro forma basis revenues for the first quarter of 2020 were estimated to be $75 9 million.
The decrease on a GAAP basis is primarily related to the divestiture of Ashford University, and the shift to and Ed Tech business.
Model, partially offset by an increase and the growth segment revenues.
For the first quarter of 2021.
Technology and academic services were $19 1 million or 24, 9% revenue.
And <unk> to $18 5 million or 18, 9% of revenue for the first quarter of the prior year.
On a pro forma basis, the technology and academic services for the first quarter 2020 were estimated to be $17 3 million or 22, 8% of revenue.
Costs on a GAAP basis as a percentage of revenue increased year over year. It was primarily driven by increased labor costs and license fees, partially offset by decreases and outside services and facilities costs.
Counseling services and support for the first quarter of 2021 for $25 3 million or 32, 9% of revenue compared to $23 3 million from.
23, 8% of revenue for the comparable prior period.
On a pro forma basis counseling services and support for the first quarter of 2020 were estimated to be $22 4 million or 29, 6% of revenue.
These costs on a GAAP basis as a percentage of revenue increased primarily due to employee costs, partially offset by a decrease and facilities costs.
Marketing and communication expenses for the first quarter of 2021 were $25 8 million or 33, 6% of revenue compared to $25 1 million or 25, 6% of revenue for the prior year on.
A pro forma basis marketing and communication expenses for the first quarter of 2020 were estimated to be $24 9 million or 32, 9% of revenue.
These costs on a GAAP basis as a percentage of revenue increased due to advertising costs and increased employee costs.
General and administrative expenses for the first quarter of 2021 for $15 9 million or 28% of revenue.
And to $13 4 million.
Or 13, 7% of revenue for the comparable prior period.
On a pro forma basis general and administrative expenses for the first quarter of 2020 were estimated to be $10 million or 13, 1% of revenue.
<unk> expenses on a GAAP basis as a percentage of revenue increased due to the severance cost of $4 6 million for our recent leadership change.
Increased employee costs and other administrative costs.
We did not have any university related expenses for the first quarter of 2021 as compared to $25 3 million or 25, 9% of revenue for the prior year period.
On a pro forma basis. These costs would not have existed in the prior year. These expenses on a GAAP basis represent costs related to the university and prior to the sale in December 2020.
We did not have any restructuring and impairment charges for the first quarter of 2021 as compared to $2 8 million or two eight percentage of revenue for the prior period.
During the first quarter of 2021, we recorded an income tax expense of $1 million.
Our effective tax rate before discrete items for the first quarter of 2021 was low single digits and we anticipate this trend to continue for the remainder of the year.
As a result net loss for the first quarter of 2021 was $9 5 million or net loss of 29 cents per diluted share.
This is compared to net income of $2 million or net income of six cents per diluted share for the first quarter of the prior year.
Our non-GAAP net loss for the first quarter of 2021 was $3 3 million or a loss of 10 cents per diluted share compared to the non-GAAP net loss of $3 2 million or a loss of 10 cents per diluted share for the first quarter of the prior year.
The non-GAAP net loss for the first quarter of 2021 excludes separation and conversion cost.
$8 million acquisition costs of <unk> 8 million and severance cost of $4 6 billion for the recent leadership transition.
As of March 31, 2021, we had combined unrestricted cash and cash equivalents of $35 1 million compared to $35 5 million as of December 31, 2020.
In addition, we had restricted cash of $20 million at both March 31, 2021 and December 31 2020, respectively.
As we fully transition to an education technology services company their requirements that had previously restricted the majority of these funds will no longer be relevant.
We expect and approximately $8 million of the restricted cash amount will become unrestricted during 2021, and we will move to unrestricted cash and cash equivalents.
We generated $8 million of cash from operating activities. During the year to date period ended March 31 2021.
By comparison, we used $6 2 million of cash and operating activities during the same period and the prior year.
The year over year change and the cash provided by operating activities was primarily driven by the changes and the working capital accounts, partially offset by the decrease in earnings.
The net accounts receivable was $6 8 million as of March 31, 2021, compared to $7 2 million as of December 31 important and 20 <unk>.
Decreased balance is consistent with our business cycles.
Capital expenditures for the year to date period ended March 31 2021.
<unk> 2 million as compared to $1 2 million for the same period last year.
Turning to our outlook for 2021 for Soviet growth from a revenue perspective, we still anticipate the segment's revenue to grow approximately 30% year over year and anticipate generating an EBITDA loss of between six to eight.
Yeah.
This planned investment will decrease consolidated EBITDA margins and the near term.
Longer term, we expect this segment to grow.
30, plus percent through 'twenty, and 'twenty, five and be profitable beginning in 2023.
On a consolidated basis as Chris alluded to many higher education institutions have already announced reduced guidance due to headwinds and student recruitment as the economy begins to emerge from the effects of the COVID-19 pandemic.
And <unk> has experienced these headwinds as.
As well as the more specific issues with launching our new online brand for <unk>.
As a result for 2020. One we now expect total <unk> revenues to be and the range of 265 million to 275 million and non-GAAP EBITDA to be breakeven to a slight loss.
We recognize this is a substantial reduction in our anticipated revenues for 2021 and as George mentioned, we have taken proactive and deliberate actions to reduce our cost structure to more appropriately align it with our revised revenue expectations.
To that and as of today, we have identified and implemented approximately $40 million of annualized cost reductions.
For 2021 we expect to realize $30 million of savings due to some savings in 2021 and that will not reoccur in 2022.
While these cost actions were broad based across the organization to drive overall efficiencies. They were centered primarily on administrative non student facing functions to ensure we are able to maintain the necessary resources to support enrollment for our University partners.
We know these revised expectations are disappointing, but believe we are making the necessary changes to support the long term opportunity ahead of <unk> and full stack.
Two from me.
And our University partner group.
In addition to enhancing engagement with all of our stakeholders.
At this time I will ask our operator to open the phone lines for your questions.
And as a reminder to ask a question and you will need to press star one on your telephone to.
To withdraw your question press the pound key.
We will pause for a moment to compile the Q&A roster.
Your first question comes from Alex Paris from Barrington Research.
Hey, guys. Thanks for taking my question per day I wanted to dive first into obviously guidance.
And your cost reduction initiatives just to make sure I have it clear so.
The total is OBL revenues of $270 million at the midpoint down from your previous guidance of 310 million and <unk>.
$8 million reduction and.
Adjusted EBITDA breakeven.
The versus our previous expectation of mid single digit margin.
Can you.
Is this cost reduction and what's your.
And that you allude to in the 10-K.
Thank you all so 65 employees expected to be completed by June 30th is is that what we're talking about.
Yes, that's correct. Okay. So that's expected to yield a $40 million and cost savings and there'll be a $2 $3 million charge and the second quarter are there any other charges or expenses associated with that reduction in force.
There are no other charges currently contemplated and associated with the reduction just to clarify the reductions that we'll experience and calendar 2021 or about $31 million. When you take items that won't recur in 2022, but then you annualize a portion of.
And those cost reductions and a portion of that $31 million in 2022, the cost reductions will be $40 million and that makes sense.
Okay.
Just so I understand it you will you will.
You will reap $31 million and cost savings in 2020, one and then you'll have you'll have the full $40 million savings and so a pickup of about $9 million and savings year over year and 22 versus 21, that's correct.
Okay.
And yet still.
EBITDA is getting reduced from guidance from.
Say $17 million to zero and despite the fact that you're going to have $30 million and savings and my understanding that correctly.
Correct.
Okay.
Alright, and then I'll follow up with you Kevin offline.
To kind of discuss more granular details there.
I'm interested and the new University partner that you announced within the University partner group, which is exciting news and faster than expected.
And I gathered by your prepared.
Our prepared comments that you are not at Liberty to say, who yet, but perhaps you can tell us what does it and tail I think the small and medium sized partnerships.
Are usually less than $1 million a year and the term is usually less than one year is this consistent with that expectation.
Yes that is correct Alex and.
Small and medium or less and a million dollars and would be completed within within the year.
Yeah.
Okay.
And then.
I was going to ask.
And while revenues were where we expected them to be and the first two lines of expense.
Communications and.
And counseling.
Counseling.
Technology and counseling.
And we're actually less than I expected marketing communication and general administrative where more than I expected part of that is the <unk>.
Severance of $4 6 million, where does that come in on the G&A line, Kevin Yeah, all of the severance associated with the leadership transition will flow.
Low through our has flown through the general and administrative classification.
Okay and then.
And then the CEO search and I'm glad to see that that.
It has commenced how long do you think this process will take you said youre looking at both inside and outside the company what other characteristics, you're looking for and the next leader of the company.
Why don't we ask George who is not with us in this room, George Bernstein and or to <unk>.
Talk about the CEO search.
Thank you Kevin and thank you.
And Mr. Harris for further questions.
We have charged a committee to to develop the characteristics that we will be seeking and they are working with Russell Reynolds associates to refine those right now.
And we were looking for really a blend of vision and.
And of our operational experience and the question really.
And have to have an industry experienced and have to have operational.
Operational experience, but they also have to have and in my view and I think on the committee's view a real customer service focus because we are transitioning from being the provider sole provider running and the university to now wanting to engage with a broader range of customers.
Including you a D C and that will require then it almost on a different way of thinking then perhaps we required in the past. So that's part of what we're looking at and in the next CEO for the next CEO.
Good that's helpful. I appreciate that additional color.
That's the guidance and then I'll get back in the queue.
So.
And what it would.
Planes the Delta in adjusted EBIT expectations is it primarily revenue.
For our marketing expenses expected to increase significantly.
It's primarily revenue.
And Alex.
Alright, and because zalviso growth guidance is unchanged. This is all on the University partners segment. So after that strong start in December as you had said it slowed down and in the first quarter and you attribute that to the headwinds that everyone sitting in the industry as well as.
Military I guess and brand recognition and and just building the brand for <unk>.
And that's true, Alex and it's primarily brand and marketing and and certainly.
Heavy on ongoing COVID-19 challenges as well.
Okay, great. Thank you for the additional color and I'll get back in queue.
Our next question comes from Terry view from water Tower and research.
Yes, good afternoon, and thanks for taking my question.
Alex covered quite a bit of ground, but maybe if you could just.
Little household questions on the financials. The breakeven EBITDA does that include the severance expenses always disturbance.
To be to be.
On a pro forma basis, yes, so Terry the guidance that we've provided on EBITDA for the year is actually.
And are we referred to it as non-GAAP EBITDA.
So so that would be without that charge included.
Okay. Okay. Thank you.
On.
I was curious on the on the on.
On the brand issue and so on.
What are you seeing with University with <unk>.
Are you, having maybe a new mix of students. So are you starting to see that.
Okay.
There has been there's been.
And as we mentioned some challenges with.
With the with the new brand a lot of that stems from really refining our value proposition and how that resonates with.
With our prospective students and as mentioned on R. R.
Gripped here that we have a little bit of a geographic shift and the mix of the students they were looking at.
They're looking at the new brand.
Yeah.
Okay.
You're seeing new pocket, so only some reductions here and there.
We're seeing some new pockets not necessarily reductions per se, but we're seeing some geographic shifts of students that are looking at the new brand that we haven't seen before when we had the Ashford brand.
Okay, and the impact on the corporate partners.
From.
The most part that's remained fairly.
A fairly steady so we have not seen much if any impact on the corporate brand.
Okay.
On the new the new partner that you announced.
On one hand, you said these are.
Fairly small engagement and the last and.
And then on the other hand.
I think you made some commentary that would indicate you think it's going to be a longer term relationship.
And on that you want to add some color one way or another day.
Yes.
And the initial focus as I mentioned is primarily in.
And our student response center and enrollment.
<unk>.
Any type of new partner building that relationship is going to be very critical at the very beginning so.
And certainly it's our hope to build a strong partnership that would yield the longer term.
So we're in the early stages, but.
We will start on a very narrow basis and <unk>.
To build a build from there.
Okay.
In terms of Zalviso growth.
Are you seeing growth and existing contract and utilization or most of the new contracts and are being layered on.
We're seeing growth in both areas with our existing accounts that we have I think there's opportunities.
Opportunities that we're seeing to expand growth there and as we mentioned and both of the subsidiaries.
Full stack and tutor me, we're seeing opportunities for new partnerships as well.
Okay great.
Well that does it from me. Thank you very much. Thank you Terry Thanks Terry.
Your next question comes from Greg give us from Northland Securities.
Hey, George Chris and Kevin Thanks for taking the questions.
And are they the commentary as well.
First and now that we have a full quarter after the sale of Ashford.
I was just kind of wondering if you can comment I guess on the changes that you're seeing with respect to either web searches or inquiries or leads since that sale and brand name change and then I guess along with that kind of.
How much did enrollment decline I guess and the quarter maybe.
Maybe I'll speak to the first part.
On the.
And the web traffic.
And I'm sure we're aware of the Ashford brand name had.
Quite a bit of equity over the years. So when you are looking at both organic search and trade name you know.
You had.
So very very strong lead or inquiry generation with the new brand you know you've seen we've seen.
Some degradation on that traffic thats coming from search trade name and and.
And also from organic so we'll need to it's going to take time to build that brand.
And the market so we can.
You see the benefits so consequently, we've shifted.
Some of our marketing strategies into other.
Panels. So the total total inquiry volume has remained fairly constant.
Youre looking at a shift in terms of the media mix in terms of what we typically would experience.
And then Greg real real quickly related to the enrollment that's really information that.
And as data and is owned by the University proprietary to them and as we mentioned on on the call.
A couple of months ago, and we talked about year end results. That's information, we won't be providing and moving forward.
Okay fair enough and.
And if I could follow up I guess on the CEO search and thanks for the color on the type of candidate that Youre looking for there, but did you sorry, if I missed this but did you kind of.
Say anything with regards to when you expect that process to be completed.
Well it is just getting underway now and.
Our hope is that it will be completed certainly within just a few months, but I.
I can't predict that really.
I I can hope it though.
Yeah.
Okay, Yeah no problem.
Yes, you know I think.
And it's fair that you, maybe you don't disclose the enrollment or anything but.
Would you maybe be able to discuss kind of enrollment assumptions that youre using for the full year guidance.
Sorry about that Greg, but thats just information that we're just not able to talk through at this point or provide.
Okay got it.
With respect to you said discussions underway with several other institutions.
And the <unk> segment was just wondering kind of what stage those discussions are in and.
And maybe how those discussions were initiated.
So to your first question D. We've got.
And your potential.
Partners at different stages, and as we said we were looking at potential one to three and.
Additional so they're just at different stages.
The outcome and different shapes and sizes. If you will in terms of the types of services that they're looking.
Looking for so.
We have some interest and they have come from a variety of different ways in terms of how they.
Reached us and <unk>.
Contact and us.
Yeah.
Okay sounds good thanks, guys.
And that was on our last question at this time I will turn the call back over to the presenters.
Yes.
Okay.
Thank you that concludes our question and answer session I will now.
We now just sort of.
The the group for being part of our earnings call here today.
And we look for additional follow up meetings here later on thank you.
This concludes today's conference call and thank you for participating you may now disconnect.
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