Why Technology-Based Education Company Stride's Shares Are Shooting Higher Today

Stride Inc (NYSE: LRN) shares are trading higher by around 16% after the company reported Q1 FY24 results.

Revenue of $480.2 million exceeded the consensus of $451.2 million. Revenue rose 12.9% Y/Y, aided by strength in General Education and Career Learning enrollment.

General Education revenue increased 10.2% Y/Y and Career Learning revenue was up 17.8% Y/Y. 

Total Enrollment grew 8.1% Y/Y to 187.9K in the quarter.

Revenue per Enrollment Data was up 7.4% Y/Y in General Education and 5.7% Y/Y in Career Learning businesses. 

Adjusted operating income stood at $14.8 million, vs. an operating loss of $(19.9) million a year ago.

EPS of $0.11 was better than the EPS loss estimate of $(0.35). 

As of September 30, 2023, the company's cash and cash equivalents stood at $254.6 million.

Outlook: Stride expects Q2 revenue of $490 million-$510 million vs. consensus of $450.77 million and adjusted operating income of $80.0 million-$90.0 million.

The company projects FY24 revenue of $1.96 billion-$2.03 billion vs. an estimate of $1.94 billion and adjusted operating income of $250.0 million-$275.0 million.

Price Action: LRN shares are up 15.84% at $51.55 premarket on the last check Wednesday.