The following is a summary of the Aspen Group, Inc. (ASPU) Q2 2024 Earnings Call Transcript:
Financial Performance:
Aspen Group's net loss narrowed year-over-year by 30% in Q2 2024 due to financial discipline amid a program wind-down.
The company reported its fourth consecutive quarter of positive EBITDA and cash from operations.
Total revenue reached $13.8 million, a decrease of 19% from the prior fiscal year due to reduced marketing spend and pre-licensure program effects.
A gross profit of $8.7 million was achieved with a 63% gross margin.
G&A costs decreased year-over-year to $8.4 million or 61% of total revenue.
Net loss was reported at $1.6 million or $0.06 per basic and diluted share, a decrease from a net loss of $2.3 million the previous year.
Consolidated EBITDA for the quarter was positive $419,000, a considerable improvement from the prior year.
Business Progress:
Enrollment at Aspen University and United States University increased, attributed to demand within the healthcare industry and the value of their programs.
Developments have been made with the DEAC show cause and reaccreditation process and the Department of Education HCM2 reimbursement.
The company expects to finish the teach-out of the pre-licensure program in Arizona in January 2024.
Marketing expenses were reduced, leading to a 5% rise in total enrollments.
The company aims to resume marketing spend in late fiscal 2024 to grow its student body size in fiscal 2025.
Aspen Group's end of January 2024 unrestricted cash balance is expected to exceed $2 million due to a reduced surety bond and anticipated financial aid payment of approximately $3.9 million.
More detailed: Aspen Group IR
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