Q3 2024 Strategic Education Inc Earnings Call
Operator: Welcome to Strategic Education's 3rd Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
Welcome to strategic Education's third quarter 2024 results conference call.
At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
To ask a question during the session you will need to press star one one on your telephone.
We'll then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again please.
Please be advised that today's conference is being recorded.
Terese Wilke: I will now turn the call over to Terese Wilke, Senior Director of Investor Relations for Strategic Education.
Speaker Change: I will now turn the call over to Terry's Wilkey Senior director of Investor Relations for strategic Education. Mrs. Wilkie. Please go ahead.
Terese Wilke: Mrs. Wilke, please go ahead.
Terese Wilke: Thank you. Hello, everyone, and welcome to Strategic Education's conference call, in which we will discuss third quarter 2024 results. With us today are Robert Silberman, Chairman, Karl McDonnell, President and Chief Executive Officer, and Daniel Jackson, Executive Vice President and Chief Financial Officer.
Terry Wilkey: Thank you Hello, everyone and welcome to strategic Education's Conference call in which we will discuss third quarter 2024 results with US today are Robert Silberman, Chairman, Karl Mcdonnell President and Chief Executive Officer, and Daniel Jackson, Executive Vice President and Chief financial.
Terese Wilke: Following today's remarks, we will open the call for questions. Please note that this call may include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements are based on current expectations and are subject to a number of assumptions, uncertainties, and risks that strategic education has identified in today's press release that could cause actual results to differ materially. Further information about these and other relevant uncertainties may be found in Strategic Education's most recent annual report on Form 10-K, the 10-Q to be filed, and other filings with the Securities and Exchange Commission, as well as Strategic Education's future 8-Ks, 10-Qs, and 10-Ks.
Speaker Change: Following today's remarks, we will open the call for questions. Please.
Speaker Change: Please note that this call may include forward looking statements made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Speaker Change: Statements are based on current expectations and are subject to a number of assumptions uncertainties and risks that strategic education has identified in today's press release that could cause actual results to differ materially.
Speaker Change: Information about these and other relevant uncertainties, maybe found in strategic education.
Speaker Change: Most recent annual report on Form 10-K the.
Speaker Change: 10-Q to be filed and other filings with the Securities and Exchange Commission as well as strategic Education's future eight Ks 10, Qs and 10-Ks copies of these filings and the full press release are available for viewing on the website at strategic education Dot com.
Terese Wilke: Copies of these filings and the full press release are available for viewing on the website at strategiceducation.com.
Karl McDonnell: And now I'd like to turn the call over to Karl.
Speaker Change: Now I'd like to turn the call over to Carl Carl Please go ahead.
Karl McDonnell: Karl, please go ahead.
Karl McDonnell: Thank you, Terese.
Karl McDonnell: And good morning, everyone. Our third quarter 2024 results reflect continued growth across all of our businesses. For the third quarter, SCI's revenue grew 6% to $304 million, and operating income grew 13% to $37 million. Our operating margin increased to 12.1%. Expenses in the quarter were slightly lower than we expected due to the timing of expenses and lower than expected bad debt. Adjusted earnings per share were $1.15 during the quarter, an increase of 19% from the prior year.
Carl: Thank you Teresa and good morning, everyone.
Carl: Our third quarter 2024 results reflect continued growth across all of our businesses.
Carl: For the third quarter <unk> revenue grew 6% to $304 million and operating income grew 13% to $37 million.
Carl: Our operating margin increased to 12, 1% expense.
Carl: Expenses in the quarter was slightly lower than we expected due to the timing of expenses and lower than expected bad debt.
Carl: Adjusted earnings per share were $1.15 during the quarter, an increase of 19% from the prior year.
Karl McDonnell: Turning now to our segment... U.S. higher education delivered another quarter of growth driven primarily by our employer-affiliated enrollment. Total enrollment in U.S. higher education grew by 5%, with employer-affiliated enrollment increasing 13% compared to last year, reflecting the ongoing strength of our corporate partnership. During the quarter, the percentage of U.S. higher education enrollment coming from our corporate partnerships increased by 200 basis points to 30 percent. Student retention in U.S. higher education remains stable at 87%. In the third quarter, revenue from U.S. higher education grew by 3% while operating income increased by 10% compared to last year.
Carl: Turning now to our segments.
Carl: U S higher education delivered another quarter of growth driven primarily by our employer affiliated enrollment.
Carl: Total enrollment in U S higher education grew by 5% with employer affiliated enrollment increasing 13% compared to last year, reflecting the ongoing strength of our corporate partnerships.
Carl: During the quarter.
Carl: <unk> of U S higher education enrollment coming from our corporate partnerships increased by 200 basis points to 30%.
Carl: Student retention in U S higher education remains stable at 87%.
Carl: In the third quarter revenue from U S higher education grew by 3%, while operating income increased by 10% compared to last year.
Karl McDonnell: Our Australia New Zealand segment posted another quarter of total enrollment growth with enrollment increasing 5% from the prior year to more than 19,000 students. In the third quarter, revenue grew 11% on a constant currency basis from the prior year, driven by higher enrollment and revenue per student. The higher enrollment was driven predominantly by strong continuing student enrollment. ANZ's revenue per student increased by 6% due to a higher course load and a one-time benefit from non-refundable student deposits. On a constant currency basis, ANC's operating income increased by 5% compared to the previous year.
Carl: Our Australia, and New Zealand segment posted another quarter of total enrollment growth with enrollment increasing 5% from the prior year to more than 19000 students.
Carl: In the third quarter revenue grew 11% on a constant currency basis from the prior year, driven by higher enrollment and revenue per student.
Carl: The higher enrollment was driven predominantly by strong continuing student enrollment.
Carl: <unk> revenue per student increased by 6% due to a higher core slowed in a one time benefit from nonrefundable student deposits.
Carl: On a constant currency basis, <unk> operating income increased by 5% compared to the previous year.
Karl McDonnell: We are studying the proposed international student caps in Australia and expect to have a clear understanding of their potential impact if and when they are legislated. In the meantime, we are focused on domestic and other growth opportunities in Australia and New Zealand. Our education technology services segment continues to perform well, growing revenue by 26% and operating income by 30% compared to the prior year. Sophia Learning, our direct-to-consumer portal of college-level classes and a key component of many of our strategic corporate partnerships, increased its revenue by 35% in the third quarter and generated a 49% operating margin.
Carl: We're studying the proposed international student caps in Australia, and expect to have a clear understanding of their potential impact if and when they are legislated in the meantime, we are focused on domestic and other growth opportunities in Australia and New Zealand.
Carl: Our education Technology services segment continues to perform well growing revenue by 26% and operating income by 30% compared to the prior year.
Carl: Sophia learning, our direct to consumer portal of college level classes and a key component of many of our strategic corporate partnerships increased its revenue by 35% in the third quarter and generated a 49% operating margin. The average number of paid Sofia subscribers grew 33%.
Karl McDonnell: The average number of paid Sophia subscribers grew 33% to more than 45,000. During the quarter, Workforce Edge signed four new partnerships, including one with one of the nation's largest private sector employers and our largest ever corporate partner. As a result, the number of employees on the Workforce Edge platform now exceeds 3.7 million employees. Enrollments in Workforce Edge at Strayer or Capella University increased by 27%, reaching roughly 1,600 students.
Carl: 45000.
Carl: During the quarter workforce edge signed four new partnerships, including one with one of the nations largest private sector employers and our largest ever corporate partner.
Carl: As a result, the number of employees on the workforce edge platform now exceeds $3 7 million employees.
Carl: Enrollments in workforce edge at Strayer, or Capella University increased by 27%, reaching roughly 600 students.
Karl McDonnell: Lastly, a couple of points on capital allocation. First, during the third quarter, we paid down the remaining $60 million of our outstanding debt associated with the purchase of our Australian assets. Second, we paid $5 million to repurchase approximately 54,000 shares of common stock in the open market under our repurchase program. We now have $235 million of share repurchase authorization remaining through the end of 2025. In closing, we are pleased with the performance across our segments, and we continue to focus on the success of our students and aim for a strong finish to 2024. And once again, I'd like to thank all of my colleagues at SEI for their ongoing commitment to our students.
Carl: Lastly, a couple of points on capital allocation.
Carl: First during the third quarter, we paid down the remaining $60 million of our outstanding debt associated with the purchase of our Australian assets.
Carl: And second we paid $5 million to repurchase approximately 54000 shares of common stock in the open market under our repurchase program.
Carl: We now have $235 million of share repurchase authorization remaining through the end of 2025.
Carl: In closing we are pleased with the performance across our segments and we continue to focus on the success of our students a name for a strong finish to 2024.
Carl: And once again I'd like to thank all of my colleagues at Sci for their ongoing commitment to our students.
Karl McDonnell: And with that, Gigi, we'd be happy to answer questions.
Speaker Change: And with that Gee Gee, we'd be happy to answer questions.
Operator: Thank you.
Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster.
Gee Gee: Thank you.
Speaker Change: As a reminder to ask a question. Please press star one to one on your telephone and wait for your name to be announced toward the draw. Your question. Please press star one to one again.
Speaker Change: Please stand by while we compile the Q&A roster.
Ryan Griffin: Our first question comes from the line of Ryan Griffin from BMO Capital Markets.
Speaker Change: Our first question comes from the line of Ryan Griffin from BMO capital markets.
Jeff Silber: Good morning, it's actually Jeff Silber with BMO.
Speaker Change: Good morning, its actually Jeff Silber with BMO.
Karl McDonnell: Hey Jeff. How are you guys? Good.
Jeff Silber: I wanted to start first on the enrollment numbers. You guys have been posting very solid enrollment growth, including this past quarter, but it did slow a bit from what we've seen in prior quarters. Is there anything specifically going on? It's just that the comps are getting tougher. Any color would be great.
Speaker Change: Yes.
Speaker Change: Are you guys alright.
Speaker Change: I wanted to start first on the enrollment numbers you guys have been posting very solid enrollment growth, including this past quarter, but it did slow a bit from what we've seen in prior quarters is there anything specifically going on it's just that the comps are getting tougher any color would be great.
Karl McDonnell: There's nothing in particular going on, Jeff. We've commented a few times in prior quarters that we thought the high single-digit or even double-digit growth was outside of the norm of what we would normally expect over a longer cycle.
Speaker Change: Theres nothing in particular going on.
Speaker Change: We've commented a few times in prior quarters that we thought.
Speaker Change: High single digit or even double digit growth was outside of the norm of what we would normally expect over a longer cycle.
Karl McDonnell: We've said for a long time, including at our Investor Day last year, that You kind of see the U.S. higher education business in particular as a mid-single-digit growth business. where it is in the third quarter.
Speaker Change: We've said for a long time, including at our Investor Day last year that.
Speaker Change: We kind of see the U S higher education business in particular as a mid single digit growth business, which is where it is in the third quarter.
Jeff Silber: That's fair enough.
Jeff Silber: I appreciate that.
Speaker Change: Okay, that's fair enough I appreciate that.
Alex Harris: If I can move on to Australia and New Zealand. You mentioned that you're studying the potential for the international caps.
Speaker Change: If I can move on to Australia, New Zealand, you mentioned that you're studying the potential for the international caps for those of US that are baked herein are no not as close to the story can you just talk at a high level, what's been proposed and just so we can get an understanding what's going on there. Thanks.
Karl McDonnell: For those of us that are based here and are not as close to the story, can you just tell us at a high level what's been proposed, just so we can get an understanding of what's going on there? Sure, the Australian government has proposed limiting the number of international students who can physically immigrate into Australia to approximately 270,000 students. which would be, what is it Dan, 30? pre COVID. Yeah, pre COVID. So trying to get back to lower numbers than they had pre COVID.
Speaker Change: Sure the Australian government.
Speaker Change: Has proposed limiting the number of international students, who can physically immigrate into Australia to approximately 270000 students which would be true.
Speaker Change: What is it down 30.
Speaker Change: Half of what it was pre.
Speaker Change: Pre COVID-19 pre COVID-19, so trying to get back to a lower numbers than they had pre COVID-19.
Karl McDonnell: This, these caps have to be legislated, it has to make its way through the Australian Parliament, which is not done yet. I believe Parliament is scheduled to meet later in November. So that would be the opportunity for these caps to become actually legislated in in effectively ready for implementation in the first part of 2025. So we're obviously looking at the caps. We don't have anything more to say about them, given that they're not legislated currently. But if and when that happens, we would certainly have more to comment on at that point.
Speaker Change: This these caps have to be legislated it has to make its way through the Australian Parliament, which it is not done yet.
Speaker Change: I believe parliament is scheduled to meet later in November so that would be the opportunity for these caps to become actually legislated in effectively ready for implementation in the first part of 2025.
Speaker Change: So we're obviously looking at the caps.
Speaker Change: We don't have anything more to say about them given that theyre not legislated currently, but if and when that happens we would certainly have more to comment on at that point.
Alex Harris: Okay, I appreciate that. If I can just sneak in one more on Workforce Edge. You mentioned that large client that you signed up.
Speaker Change: Okay I appreciate that.
Speaker Change: Can just sneak in one more on the workforce that you mentioned that large client that you signed up I'm not expecting you to name the specific client.
Karl McDonnell: I'm not expecting you to name the specific client, but I'm just curious, you know, was this a company that had done this before and they shifted vendors or is this something new to them? And, you know, any insight there would be great. Yeah, I can't, I'm not at the liberty to disclose the partner today, but yes, this is a large company who had education benefits, had an existing relationship with another education benefit management partner, and elected to switch to Workforce Edge. We went live with this corporate partner last week and we're delighted to be serving them and look forward to a long relationship.
Speaker Change: I'm just curious what is this.
Speaker Change: A company that had done this before and they shifted vendors or is this something new to them.
Speaker Change: Any insight there would be great.
Speaker Change: Yeah.
Speaker Change: I can't I'm not at Liberty to disclose the partner today, but yes. This is a large company who had education benefits had an existing relationship with another education benefit management partner and elected to switch to workforce edge. We went live with this corporate partner last week.
Speaker Change: Weak and we're delighted to be serving them and look forward to a long relationship.
Alex Harris: All right, great. I'll get back in the queue. Thanks. Thank you.
Speaker Change: Alright, great ill get back in the queue. Thanks.
Speaker Change: Thank you one moment for next question.
Alex Harris: Our next question comes from the line of Alex Harris from Barrington Research.
Speaker Change: Our next question comes from the line of Alex Paris from Barrington Research.
Alex Harris: Hey, guys. Thanks for taking my call. Karl, first question. You said that expenses were lower than expected. I just wanted to get a little bit more color on the increased spending.
Speaker Change: Hey, guys. Thanks for taking my call Carl.
Speaker Change: First question.
Speaker Change: You said that expenses were lower than expected.
Speaker Change: I just wanted to get a little bit more color on the increase spending as our listeners will recall you said last quarter that.
Alex Harris: As listeners will recall, you said last quarter that adjusted operating margins would not expand by 200 basis points because of increased investment, primarily in ETS, but also in other areas, and instead maybe expand 150 to 175 basis points. So can I get a little bit more color on that comment?
Speaker Change: Adjusted operating margins would not expand by 200 basis points because of increased investment primarily in Etfs, but also in other areas and instead, maybe expand 150 to 175 basis points, so kind of get a little bit more color on that comment.
Daniel Jackson: Hey Alex, this is Dan. I think as you know, our expenses in the third quarter typically peak. for the year because of marketing spend going into the fall term.
Speaker Change: Hey, Alex this is Dan.
Speaker Change: I think as you know are our expenses in the third quarter typically peak for the year because of spend marketing spend going into the into the fall term.
Daniel Jackson: Karl's comment on lower than expected, related to some bad debt benefits, etc., it just reduced that slightly. Now at this point, we think the investments that we referred to in the last call we've made, you can see sequentially from quarter to quarter this year, expenses have been growing and we think now the expense base we've got is about where it'll be on a quarterly basis.
Speaker Change: Comment on lower than expected.
Speaker Change: Related to some bad debt benefits et cetera. It just reduced that slightly now at this point, we think the investments that we referred to in the last call. We've made you can see sequentially from quarter to quarter. This year expenses have been growing and we think now the expense base. We've got is about where it will be.
Speaker Change: On a quarterly basis through the end of the year.
Alex Harris: Good, that's helpful.
Alex Harris: And then again, I don't know if we discussed in detail last quarter what these increased investments are for in ETS, except that they're investments designed to accelerate growth. Can we get more specific about investments, marketing, technology, what have you? And then what are you doing in Australia, New Zealand, in terms of increased spending? Is that marketing and brand building?
Speaker Change: Good that's helpful and then again.
Speaker Change: I don't know if we've discussed in detail last quarter. What these increased investments are for.
Speaker Change: In Etfs.
Speaker Change: That their investments designed to accelerate growth can.
Speaker Change: Can we get more specific about our investments marketing technology, what have you and then what are you doing in.
Speaker Change: Australia, New Zealand in terms of increased spending is that the marketing and brand building.
Karl McDonnell: Well, in Australia, yes. Predominantly, it's marketing, increased advertising, brand building.
Speaker Change: Well it Australia, yes, predominantly its marketing increased advertising brand building in Etfs now that we've disclosed that we signed a large corporate partner a fair amount of these expenses were to hire.
Karl McDonnell: In ETS, now that we've disclosed that we signed a large corporate partner, a fair amount of these expenses were to hire advisors, coaches, other positions that are dedicated to this corporate client. As Dan just said, we've made those investments now. We have that staff on board. So the run rate that we have now is what we would expect through the balance of the year.
Speaker Change: Advisors coaches other positions that are dedicated to this corporate client.
Speaker Change: Dan just said we've made those investments now we have that staff on board.
Speaker Change: So the run rate that we have now is what we would expect through the balance of the year.
Alex Harris: Great.
Alex Harris: And then one last big picture question, again, just following up on the U.S. higher education enrollment growth. It's getting more into that mean. You were above mean in terms of growth rates. You're getting back into the mean mid-single digit sort of thing.
Speaker Change: Great and then one last Big picture question again, just following up on the U S higher education enrollment growth.
Speaker Change: It's getting more into that mean, you were above mean in terms of growth rates, you're getting back into the main mid single digit sort of thing I Wonder if you could.
Karl McDonnell: I wonder if you could offer us some additional color on the demand environment in general and cost per lead and things like that, cost per start. The demand environment remains healthy and strong. We continue to see increases on a year-over-year basis on inquiries into the university. As I said in my prepared remarks, our corporate partnership enrollment is very strong, more than double the growth rate than our non-corporate partners, so I'd say the overall demand environment is good. To your last question on acquisition costs, they've been trending down year over year this year.
Speaker Change: Offer us some additional color on that.
Speaker Change: The demand environment in general and cost per lead and things like that cost per start.
Speaker Change: The demand environment remains healthy and strong we continue to see increases on a year over year basis on inquiries into the universities.
Speaker Change: As I said in my prepared remarks, our corporate partnership enrollment is very strong more than double the growth rate than our non corporate partners.
Speaker Change: I'd say the overall demand environment is good.
Speaker Change: To your last question on acquisition costs, they've been trending down year over year this year.
Alex Harris: Excellent. Thank you. I appreciate the additional color.
Speaker Change: Excellent. Thank you I appreciate the additional color I'll get back in the pure thanks, Alex Thanks, Alex Thank you.
Alex Harris: I'll get back in the queue.
Operator: Sure. Thanks, Alex.
Operator: Thanks.
Operator: Thank you. One moment for our next question.
Speaker Change: One moment for our next question.
Jasper Bibb: Our next question comes from the line of Jasper Bibb from Truist Securities. Hey, good morning, everyone. I just wanted to clarify the earlier discussion on expense timing. Do you still think 24 operating margin expansion looks like 150 to 175 basis points based on what's in the 4Q plan or is it potentially higher than that?
Speaker Change: Our next question comes from the line of Jasper Bibb from <unk> Securities.
Speaker Change: Hey, good morning, everyone I just wanted to clarify the earlier discussion on the expense timing you still think.
Speaker Change: For operating margin expansion looks like the 130 to 175 basis points based on what's in the plan or is it potentially higher than that now.
Daniel Jackson: Jasper, this is Dan. It's going to likely be at the higher end of that.
Speaker Change: Yes, Dan its going to likely be at the higher end of that range.
Jasper Bibb: Okay, thank you.
Jasper Bibb: And then I wanted to follow up on the international student caps in Australia. My understanding of that rule was that the proposal was going to be allocated on a per-university basis. So could you just frame where international student enrollment has been running at Torrens relative to their proposed cap? And, you know, if this gets implemented, do you think where the cap is for Torrens right now would be a headwind for new enrollment growth in Australia and New Zealand next year?
Speaker Change: Okay. Thank you.
Speaker Change: And then I wanted to follow up on the international student caps in Australia.
Speaker Change: My understanding of that rule was that the proposal was going to be allocated on a per university basis.
Speaker Change: So could you just frame where international student enrollment has been running at Torrens relative to their proposed cap and if this gets implemented.
Speaker Change: Where the cap is towards Torrance, right now would be a headwind forget enrollment growth in Australia, New Zealand next year.
Karl McDonnell: Sure. International students, historically, going back several years, would, on average, represent about half. of the new cohort that we would have in any given term. Any cap whatsoever would be a reduction in that, but there's still some moving parts that haven't been clarified for us. For example, if a university, assuming the caps were implemented, if one university in Australia is not able to use their caps, there's been talk about transferring some of that headroom to other institutions. certainly think Torrance would be one of those.
Speaker Change: Sure International students historically going back several years wood wood on average represent about half.
Speaker Change: Of the new cohort that we would have in any given term.
Speaker Change: Any cap whatsoever would be a reduction in that but.
Speaker Change: There's still some moving parts that haven't been clarified for us to for example.
Speaker Change: If a university assuming the caps were implemented if one university in Australia is not able to use their caps there theres been talk about transferring some of that headroom to other institutions and we would certainly think towards would be one of those so until all of those questions get resolved.
Karl McDonnell: So until all of those questions get resolved, we think it's premature to talk about what exactly might the cap be for us.
Speaker Change: We think it's premature to talk about what exactly might be for us.
Karl McDonnell: The only other thing, Jasper, I would say is that we have the example of when we first acquired... It was an effective cap because of COVID. and there was very few international. Torrance University was able to grow its enrollment by growing domestic... So there's a lot of moving parts that affect enrollment. A governmental limit on the number of international students coming in is certainly a negative to that. But there are various other ways in which the university is attracting students. So it's hard to say at this point. ultimate resolution will be, or the ultimate impact will be, not the least of which is because we don't.
Speaker Change: The only other thing Jeff I would say is is that we have the example of when we first acquired institution.
Speaker Change: Was that effective cap because of Covid.
Speaker Change: And there was very few international students, who are coming in and the.
Speaker Change: Torrance University was able to grow its enrollment by growing domestic students. So theres a lot of moving parts that affect enrollment.
Speaker Change: A governmental limit on the number of international students coming in is certainly.
Speaker Change: <unk>.
Speaker Change: Negative to that but there are.
Speaker Change: It's other ways in which the University is attracting students. So it's hard to say at this point, where the ultimate resolution will be or the ultimate impact will be not the least of which is because we don't know.
Karl McDonnell: the actual regulation.
Speaker Change: The actual regulation.
Speaker Change: The details as it is associated with already University.
Jasper Bibb: Makes sense.
Jasper Bibb: And then, yeah, you took down the dad. This quarter, I think, you know, that had been priority number one from a capital deployment perspective for a while.
Speaker Change: Makes sense.
Speaker Change: And then you took down the debt.
Speaker Change: This quarter I think about it.
Speaker Change: Ben priority number one from a capital deployment perspective for a while so any color on how youre thinking about repurchases at this point and.
Robert Silberman: Just any color on how you're thinking about repurchase at this point and into 25 now that that's in the rearview mirror.
Speaker Change: And then to 25 now that that's in the rearview mirror.
Robert Silberman: Well, Jasper, it's Rob. You know, we look every quarter as a board at the opportunities to employ our capital. And the primary opportunity we always look at is investing in our existing businesses, particularly in improving the academic quality and success of our students, because over time, that's proven to be the longest and most durable high return investments, you know, for our, our owners. After that, we look to shore up our balance sheet. We went a long way towards that this quarter by paying down the remainder of that debt.
Speaker Change: Oh, well Jesper it's Rob.
Speaker Change: Every quarter as a board at the opportunities to employ our capital.
Speaker Change: And the primary opportunity we always look at is investing in our existing businesses, particularly in improving the academic quality and success of our students because over time, that's proven to be the longest and most.
Speaker Change: Durable.
Speaker Change: High return investments for our owners.
Speaker Change: After that we look to shore up our balance sheet, and we went a long way towards that this quarter by paying down the remainder of that debt and then the final user.
Robert Silberman: And then the, you know, the final use or the use that we look to after we have invest in everything we need to to support the business is returning capital to owners. We do it through both a common dividend and opportunistic share repurchases. We look to repurchase shares when we think they are trading at a significant discount to intrinsic value and when we have excess cash, cash that is distributable to our owners without any negative impact on the business. So we'll continue to do that analysis through the balance of 24 and the 25 and to the degree that the outcome of that analysis results in the opportunity to purchase shares, we certainly are eager to do that.
Speaker Change: Yeah.
Speaker Change: They use it we look to after we have.
Speaker Change: Invested everything we need to to support the business is returning capital to owners, we do it through both a common dividend and opportunistic share repurchases.
Speaker Change: We look to repurchase shares when we think they are trading at a significant discount to intrinsic value and when we have excess cash cash that is distributable to our owners without any negative impact on the business. So we'll continue to do that analysis.
Speaker Change: The balance of 'twenty four and in the 25.
Speaker Change: And to the degree that the outcome of that analysis results in the opportunity to repurchase shares.
Speaker Change: Certainly are eager to do that.
Jasper Bibb: Got it.
Jasper Bibb: Last one for me. Revenue per student at U.S. Higher Ed is down, I think, 2% in the quarter. I think The kind of long term algorithm you talked about that was was basically flat edge follow up on, you know, drivers of the decline in the quarter.
Speaker Change: Got it.
Speaker Change: Last one for me.
Speaker Change: Revenue per student at U S higher Ed was down 2% in the quarter I think.
Speaker Change: Kind of a long term algorithm you talked about that was basically flat, it's a follow up on.
Speaker Change: Drivers of the decline in the quarter and then.
Jasper Bibb: And then. As you look at, I guess, your 25 planning, should we think about that as flat or potentially down?
Speaker Change: As you look at.
Speaker Change: So you're 25 planning should we think about that as flat or potentially down 1% to 2%.
Daniel Jackson: Hey Jasper, this is Dan. Primary drivers are the continued mixed shift to employer. I think the planning metric going forward should still be roughly stable revenue per student.
Speaker Change: Hey, Josh this is Dan.
Speaker Change: The primary drivers are are the continued mix shift to employer.
Speaker Change: I think the planning metric going forward should still be roughly stable revenue per student, but if we continue to see a shift to more employer could be a little bit to.
Daniel Jackson: But if we continue to... shift to more employer could be a little bit to the downside.
Speaker Change: To the downside, but not much.
Jasper Bibb: Thanks for taking the questions, guys. Thank you.
Speaker Change: Got it thanks for taking the questions guys.
Karl McDonnell: This concludes the Q&A session.
Speaker Change: Thank you.
Karl McDonnell: I would now like to turn the conference back to Karl McDonnell for closing remarks. Thank you everyone for joining us this morning and we look forward to discussing our results next quarter with you.
Speaker Change: This concludes the Q&A session I would now like to turn the conference back to Carl Mcdonald for closing remarks.
Carl Mcdonald: Thank you everyone for joining us this morning, and we look forward to discussing our results next quarter with you. Thank you.
Operator: Thank This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Carl Mcdonald: Okay.
Carl Mcdonald: Okay.
Carl Mcdonald: [music].
Carl Mcdonald: Okay.
Carl Mcdonald: Okay.
Carl Mcdonald: [music].
Carl Mcdonald: Sure.
Carl Mcdonald: [music].