2U Inc (TWOU) 2024 Q1 法說會逐字稿

Thank you for standing by. My name is Jeannie and I will be your conference operator today. At this time, I would like to welcome everyone to the 2U Inc first quarter 2024 earnings call. (Operator Instructions)

感謝您的支持。我叫珍妮，今天我將擔任您的會議主持人。現在，我歡迎大家參加 2U Inc 2024 年第一季財報電話會議。（操作員指令）

Thank you. I would now like to turn the conference over to Steve Virostek. You may begin.

謝謝。現在我想將會議交給史蒂夫·維羅斯特克 (Steve Virostek)。你可以開始了。

Thank you, Jeannie, and good afternoon, everyone. Welcome to 2U's first quarter 2024 earnings call. Joining me on the call this afternoon are Paul Lalljie, our Chief Executive Officer; and Matt Norden, our Chief Financial Officer.

謝謝你，珍妮，大家下午好。歡迎參加 2U 2024 年第一季財報電話會議。今天下午與我一起參加電話會議的還有我們的執行長 Paul Lalljie；以及我們的財務長馬特諾登（Matt Norden）。

We will be sharing our remarks before opening the call up for your questions. But first, I'd like to cover a few two housekeeping items. Our earnings release and slide presentation are available on the Investor Relations website. Our remarks today are being recorded and a webcast replay will be made available later today.

在開始回答您的問題之前，我們將分享我們的評論。但首先，我想介紹一些常規事項。我們的收益報告和幻燈片簡報可在投資者關係網站上找到。我們今天的演講正在錄音，今天晚些時候將提供網路直播重播。

Statements made during our call will include forward-looking statements regarding our financial and operating results, plans and objectives of management for future operations, including our performance improvement initiatives, plans and ability to improve our balance sheet, anticipated trends for learners and university partners, changes in laws, regulations and agency guidance for our industry, and other matters. These statements are subject to risks, uncertainties, and assumptions.

我們在電話會議中所作的聲明將包括有關我們的財務和經營業績、未來經營管理計劃和目標的前瞻性聲明，包括我們的績效改進舉措、改善資產負債表的計劃和能力、學習者和大學合作夥伴的預期趨勢、我們行業的法律、法規和機構指導的變化以及其他事項。這些聲明受風險、不確定性和假設的影響。

Any forward looking statements made on this call reflect our analysis as of today, and we have no plans or duty to update them. Please refer to the earnings press release and to the risk factors described in the documents filed with the Securities and Exchange Commission, including our quarterly report on Form 10-Q for the quarter ended March 31, 2024, and other SEC filings.

本次電話會議中所做的任何前瞻性陳述均反映了我們截至今天的分析，我們沒有計劃或義務更新它們。請參閱收益新聞稿和提交給美國證券交易委員會的文件中所述的風險因素，包括我們截至 2024 年 3 月 31 日季度的 10-Q 表季度報告以及其他美國證券交易委員會文件。

For information on risks, uncertainties, and assumptions that may cause our actual results to differ materially from those set forth in such statements. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of 2U's performance.

有關可能導致我們的實際結果與此類聲明中所述的結果存在重大差異的風險、不確定性和假設的資訊。此外，在今天的電話會議中，我們將討論非公認會計準則財務指標，我們認為這些指標可作為 2U 績效的補充指標。

These non-GAAP measures should be considered in addition to and not a substitute for or in isolation from our GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release, and on the Investor Relations page of our website.

這些非 GAAP 指標應被視為對我們的 GAAP 結果的補充，而不是替代或孤立於我們的 GAAP 結果。您可以在我們的收益新聞稿中以及我們網站的投資者關係頁面上找到有關這些非 GAAP 指標的更多揭露，包括與可比較 GAAP 結果的對帳。

So with that, I'll hand the call to Paul.

因此，我將把電話交給保羅。

Thank you, Steve, and good afternoon, everyone.

謝謝你，史蒂夫，大家下午好。

We are off to a solid start in 2024. Our first quarter financial results exceeded our expectations as we continue to execute our shrink to grow strategy where we are laser focused on revenue that delivers the greatest impact on profitability.

2024 年，我們將有一個好的開始。我們第一季的財務表現超出了我們的預期，因為我們繼續執行「縮減成長」策略，專注於對獲利能力影響最大的收入。

Revenue for the quarter was $198.4 million. While our adjusted EBITDA was $17.3 million. We have seen an increase in total new enrollments, which went up to 116,000 from 88,000 in the last quarter across all of our 4,600 partner programs.

本季營收為 1.984 億美元。我們的調整後 EBITDA 為 1730 萬美元。我們看到，在我們所有的 4,600 個合作夥伴計畫中，新註冊總人數從上一季的 88,000 人增加到 116,000 人。

In addition, our learner network has grown to 86 million compared to 83 million last quarter. We are continuing to lean into our product lines that are performing strongly and have some exciting progress to share on our executive education and degree businesses. Matt will provide further details on our financial results shortly.

此外，我們的學習者網路已從上一季的 8,300 萬增長至 8,600 萬。我們將繼續依靠表現強勁的產品線，並在高階主管教育和學位業務上取得了一些令人興奮的進展。馬特將很快提供有關我們財務業績的更多詳細資訊。

On the business side, we've made significant strides to hone our strategies, to optimize the business for profitability, and a return to revenue growth. This began with a rigorous evaluation of operations and making smart decisions, enhance programs, and focus resources. We have made significant progress in establishing the right operational framework and are now establishing a baseline for revenue, margin, and cash flow.

在業務方面，我們在完善策略、優化業務、提高獲利能力和恢復收入成長方面取得了重大進展。首先要對營運進行嚴格評估，然後做出明智的決策、改進計劃並集中資源。我們在建立正確的營運框架方面取得了重大進展，目前正在為收入、利潤和現金流建立基準。

We are also tackling our balance sheet challenges head on. We have the management team to navigate these hurdles and the fundamentals to fix our balance sheet in the near term and return to top line growth in 2025.

我們也正在積極應對資產負債表方面的挑戰。我們擁有管理團隊來克服這些障礙，並掌握基本面，以便在短期內修復我們的資產負債表，並在 2025 年恢復營收成長。

We are bullish on the future of 2U because of the market opportunity and our leading position in the education industry. Advances and generative AI for inciting with paradigm shifts in the labor force are creating a technology moment and driving strong demand for workforce development.

由於市場機會和我們在教育產業的領先地位，我們對 2U 的未來充滿信心。推動勞動力範式轉變的進步和生成性人工智慧正在創造技術時刻並推動勞動力發展的強勁需求。

According to the World Economic Forum's Future of Jobs Report for 2023, 60% of workers will require additional training by 2027. Although only half of them currently have access to the proper training resources. Positioned at the forefront of this wave, we are ready to seize the immense opportunity that this presents. However, to make the most of this opportunity, we must ensure that we have the right foundation in place.

根據世界經濟論壇的《2023年未來就業報告》，到2027年，60%的工人將需要接受額外培訓。儘管目前只有一半的人能夠獲得適當的訓練資源。我們站在這股浪潮的最前線，已準備好抓住它帶來的巨大機會。然而，為了充分利用這個機會，我們必須確保我們已經打下了良好的基礎。

To fully capitalize on this moment, we continue to focus on three areas: product innovation, operational efficiency, and fixing our balance sheet. Our goal is clear, to be the go-to company for workforce development, meeting learners where the learners wants to be met.

為了充分利用這個時機，我們將繼續關註三個領域：產品創新、營運效率和修復資產負債表。我們的目標很明確，成為勞動力開發的首選公司，滿足學習者的需求。

Starting with product. In the first quarter, we launched 42 new degree programs. Many in high demand fields with a strong organic appeal. As I mentioned last quarter, our objective is to launch programs that deliver the best value proposition and outcomes for students as well as provides strong economics for 2U. These launches fit the objective and they bode well for our future financial performance.

從產品開始。第一季度，我們推出了42個新學位課程。許多高需求領域都具有強大的有機吸引力。正如我在上個季度提到的，我們的目標是推出能夠為學生提供最佳價值主張和成果的項目，並為 2U 提供強勁的經濟效益。這些產品的發布符合我們的目標，並且對我們未來的財務表現來說是一個好兆頭。

Most of these programs are under our flex model and require about one-fifth of the capital outlay of a degree under our traditional model. And we anticipate that they will begin generating positive cash flow about one to two years sooner.

大多數此類課程均採用我們的彈性模式，所需的資本支出僅為傳統模式下學位的五分之一。我們預計他們將提前一到兩年開始產生正現金流。

We continue -- we remain encouraged by the robust demand from our partners for our educational offerings. Recently, we expanded our partnership with Pepperdine University to launch six new degree programs, bringing the total number of degrees with Pepperdine to 12. One of these new degrees in Masters and speech-language pathology, is a first of its kind for Pepperdine University and its newly established knowledge of health science.

我們繼續——我們的合作夥伴對我們的教育產品的強勁需求讓我們感到鼓舞。最近，我們擴大了與佩柏戴恩大學的合作，推出了六個新的學位課程，使佩柏戴恩大學的學位總數達到 12 個。佩珀代因大學新設立的碩士和言語語言病理學學位是該大學新建立的健康科學知識領域的第一個此類學位。

This program aligns perfectly with our strategic focus in our core competencies, leveraging our strengths in fields where we have a proven track record. We possess the most extensive network of placements centers and have consistently demonstrated our ability to scale programs effectively in this vertical.

該計劃與我們的核心競爭力策略重點完美契合，能夠充分發揮我們在已有良好業績的領域的優勢。我們擁有最廣泛的就業中心網絡，並已不斷證明我們有能力有效地擴展這一垂直領域的計畫。

Building on this success, we expect year-over-year growth in degree enrollments from continuing programs. When combined with enrollments from newly launched programs, we have confidence in our ability to deliver profitable growth in our degree segment next year. Our long-term prospects are also looking good based on a robust pipeline scale on our strong track record of delivering positive learner outcomes.

基於這項成功，我們預計持續課程的學位入學人數將逐年增加。結合新推出的課程的招生人數，我們有信心明年我們的學位課程能夠實現盈利增長。我們在為學生提供積極的學習成果方面有著良好的記錄，憑藉著強大的人才儲備規模，我們的長期前景也十分看好。

In the Alternative Credential Segment, we are seeing that online education is emerging as the most important tool for upskilling workforces facing unprecedented technological changes. We intend to capture this opportunity.

在替代證書領域，我們看到線上教育正在成為面臨前所未有的技術變革的勞動力技能提升的最重要工具。我們打算抓住這個機會。

This quarter, we signed five new contracts to offer AI boot camps, which we believe will help mitigate the softer demand we're seeing in coding. Just as important, we are working to deliver these programs as efficiently as possible through innovations in our delivery model. As with all of our business improvements, continuity of student experience and delivering strong student outcomes remain at the forefront of our decision making.

本季度，我們簽署了五份新合約來提供人工智慧訓練營，我們相信這將有助於緩解我們在編碼方面看到的疲軟需求。同樣重要的是，我們正在努力透過交付模式的創新盡可能有效地提供這些項目。與我們所有的業務改進一樣，學生體驗的連續性和提供良好的學生成果仍然是我們決策的重中之重。

In the first quarter, our students achieved completion rates of 89% for [Exec Ed] and 76% for our boot camps. In Exec Ed, and we continue to see accelerated growth led by our AI courses offered by MIT Sloan and Oxford. And we expect this trend to continue.

第一季度，我們的學生的[Exec Ed]完成率為 89%，新兵訓練營的完成率為 76%。在 Exec Ed 中，我們繼續看到由麻省理工學院史隆管理學院和牛津大學提供的人工智慧課程引領的加速成長。我們預計這一趨勢將會持續下去。

We recently signed a subscription-based contract with the Council of Higher Education in Andhra Pradesh India. The program is off to an impressive start with over 100 course completions in the first month alone. Our high-quality online courses are now available to over 1 million students across the states 22 universities providing a valuable learning resource.

我們最近與印度安得拉邦高等教育委員會簽署了一份訂閱合約。該計劃開局良好，僅在第一個月就有 100 多門課程完成。我們的高品質線上課程現已向全美 22 所大學的 100 多萬名學生提供寶貴的學習資源。

Our boot camp business is experiencing weaker demand, particularly in coding. Although our Executive Education business is performing well and making up for some of the shortfall in boot camp, the overall predictability in demand for the boot camp business remains difficult.

我們的訓練營業務需求正在減弱，特別是在程式設計方面。雖然我們的高階主管教育業務表現良好，彌補了新兵訓練營的部分不足，但新兵訓練營業務的整體需求可預測性仍然很困難。

Now turning to operating efficiency. We are building on our prior actions, which have already reduced our operating expenses by approximately $90 million on an annual basis. Our focus remains on optimizing our cost structure on all fronts, from personnel and delivery costs to our technology stack and marketing efforts.

現在來談談營運效率。我們正在鞏固先前的行動，這些行動已使我們每年的營運費用減少了約 9,000 萬美元。我們仍然專注於優化各方面的成本結構，從人員和交付成本到技術堆疊和行銷工作。

Two specific ways we're looking to reduce our costs while increasing efficiency and quality are: first, through the introduction of technology into various points of our processes. And second, by strategically teaming up with partners that excel in specific areas. If a partner demonstrate superior efficiency and effectiveness, we prioritized collaboration, overperforming those functions ourselves, allowing us to focus on areas that are our core competency.

我們正在尋找兩種具體方法來降低成本，同時提高效率和品質：首先，透過將技術引入我們流程的各個環節。其次，與在特定領域表現出色的合作夥伴進行策略合作。如果合作夥伴表現出卓越的效率和效力，我們就會優先考慮合作，自己超額完成這些職能，從而讓我們專注於我們的核心競爭力領域。

These types of changes can increase our speed to market, improve our efficiency while reducing our fixed costs. EdX marketplace gives us powerful reach and scale. The key to unlocking the value of this reach and scale is organically generation. Through improved market segmentation, cross-sell activities, and search engine optimization, we expect to increase organic lead generation.

這些類型的變化可以加快我們的產品上市速度，提高我們的效率，同時降低我們的固定成本。EdX 市場為我們提供了強大的影響力和規模。釋放這種影響力和規模的價值的關鍵是有機生成。透過改善市場區隔、交叉銷售活動和搜尋引擎優化，我們希望增加有機潛在客戶的產生。

Financial benefits include incremental revenue from a greater yield on marketing dollars and reducing our technology and marketing support costs. These are examples of how we are operating differently.

財務收益包括行銷資金收益增加帶來的增量收入以及技術和行銷支援成本的降低。這些都是我們以不同方式運作的例子。

Starting now to the balance sheet. We are tackling our balance sheet challenges head on. The business improvements are meant to put us on a trajectory to deliver higher profitability and cash flow, which in return becomes the impetus for fixing the balance sheet.

現在開始看資產負債表。我們正在迎接資產負債表挑戰。業務改進旨在使我們走上實現更高盈利能力和現金流的道路，這反過來又成為修復資產負債表的動力。

We have begun the process of fixing the balance sheet by working collaboratively with our lenders and expect those conversations will continue over the coming months as we work for the best possible terms.

我們已開始與貸款方合作修復資產負債表，並預計這些對話將在未來幾個月繼續進行，以爭取最佳的條款。

As we implement our plans, we are closely monitoring the needs of our students, partners, and employees. For students, we strive to continue delivering a compelling value proposition that includes the content they need, delivery that fits the way they want to learn on a price that represents good value, and outcomes that support their life goals.

在實施計劃時，我們密切注意學生、合作夥伴和員工的需求。對於學生，我們努力繼續提供引人注目的價值主張，包括他們需要的內容、適合他們學習方式的教學方式、物有所值的價格以及支持他們人生目標的成果。

For university partners, we need to deliver programs that support and advance their missions while providing flexibility in future -- in program structure. Just as important, we need to demonstrate that we have the right plan in place, continued to be a valued partner for many years to come.

對於大學合作夥伴，我們需要提供支持和推進其使命的項目，同時在未來的計劃結構上提供靈活性。同樣重要的是，我們需要證明我們已經制定了正確的計劃，並在未來許多年裡繼續成為我們值得信賴的合作夥伴。

We are talking to partners regularly, especially as we work on fixing the balance sheet. And none of this is possible without the day-to-day contributions of our valuable employees. In a period of significant change for the company, we thank our employees, my colleague for their focus and unwavering commitment to our mission, our students and our partners.

我們定期與合作夥伴溝通，特別是在修復資產負債表時。如果沒有我們寶貴的員工日復一日的貢獻，這一切都不可能實現。在公司發生重大變革的時期，我們感謝我們的員工、我的同事對我們的使命的專注和堅定不移的承諾，感謝我們的學生和我們的合作夥伴。

In conclusion, I want to emphasize that we possess the necessary technology, partnerships and resources to return to top-line growth. Our primary goal is to expand our product range by offering relevant programs that are competitively priced and delivered in the most efficient manner. With new launches in the first quarter and the upcoming new launches, we are confident we will achieve top-line growth in 2025.

最後，我想強調的是，我們擁有恢復營收成長所需的技術、合作夥伴關係和資源。我們的主要目標是透過提供具有競爭力的價格並以最有效的方式交付的相關計劃來擴大我們的產品範圍。隨著第一季的新品發布和即將推出的新品發布，我們有信心在 2025 年實現營收成長。

Additionally, we expect our profitability and cash flow to improve due to the cost saving measures we are implementing. We are poised to fix our balance sheet while maintaining our reputation as a good company. So we can ensure that we have a solid capital structure that matches our reputation as a top-tier company.

此外，我們預計，由於我們正在實施的成本節約措施，我們的獲利能力和現金流將會改善。我們準備好修復我們的資產負債表，同時維護我們作為一家優秀公司的聲譽。因此，我們可以確保擁有與我們作為頂級公司的聲譽相匹配的穩固的資本結構。

And with that, I'll turn the call call over to Matt.

說完這些，我會把電話轉給馬特。

Thanks, Paul, and good afternoon, everyone. Before walking through the results, I wanted to start with a few key themes for you to keep in mind. First, as you heard on prior calls, we've taken steps to bolster our financial position. While we have more work to do to see the positive impact of these actions reflected in the first quarter result.

謝謝，保羅，大家下午好。在介紹結果之前，我想先介紹幾個需要您記住的關鍵主題。首先，正如您在之前的電話中聽到的那樣，我們已經採取措施來增強我們的財務狀況。但我們還有很多工作要做，才能看到這些行動的正面影響反映在第一季的業績中。

Notably, we exceeded our revenue and profitability expectations for the first quarter, driven by the strong performance of our Exec Ed business with enrollment growth of 32% over the first quarter of 2023 and the past positive impact of our prior cost optimization actions.

值得注意的是，我們超越了第一季的營收和獲利預期，這得益於我們的 Exec Ed 業務的強勁表現（2023 年第一季入學人數成長了 32%）以及我們先前的成本優化行動帶來的正面影響。

Second, the first quarter, we began implementing our performance improvement initiatives with the goal of putting us in a strong position to address our balance sheet issues as soon as possible. We expect that these initiatives will enable us to achieve our full year adjusted EBITDA expectations, notwithstanding trends we're seeing in the boot camp business, which I'll talk more about later in the call.

第二，第一季度，我們開始實施績效改善舉措，目標是使我們處於有利地位，盡快解決資產負債表問題。我們預計，這些舉措將使我們能夠實現全年調整後的 EBITDA 預期，儘管我們看到了新兵訓練營業務的趨勢，我將在稍後的電話會議上詳細討論。

Third, due to the extensive transformation work we have underway where we are in the year, we're maintaining our prior full year 2024 revenue and adjusted EBITDA guidance.

第三，由於我們今年正在進行廣泛的轉型工作，我們維持先前 2024 年的全年收入和調整後的 EBITDA 指引。

With those themes in mind, let's move on to the results. I'll start by walking through the P&L, and then I'll provide an update on our balance sheet and cash flow statement. I'll then share some additional detail on our performance improvement initiatives and will present our thoughts on what is driving our outlook for the second quarter and the remainder of 2024. I'll conclude with an update on the status of discussions with our debt holders.

記住這些主題，讓我們來看看結果。我將首先介紹損益表，然後提供我們的資產負債表和現金流量表的最新資訊。然後，我將分享一些有關我們的績效改進舉措的更多細節，並介紹我們對第二季和 2024 年剩餘時間前景的看法。最後，我將介紹我們與債權人的討論情況。

Starting with revenue. In the first quarter, we generated total revenue of $198.4 million, a 17% decline from $238.5 million in the first quarter of 2023. This decrease was driven by 21% decline in the degree segment and an 11% decline in the Alt Cred segment. The declined in the degree segment was primarily driven by fewer steady state programs operating in the quarter as compared to the first quarter of 2023 due to our portfolio management activities in 2023.

從收入開始。第一季度，我們的總營收為 1.984 億美元，較 2023 年第一季的 2.385 億美元下降 17%。這一下降是由於學位部分下降 21% 以及 Alt Cred 部分下降 11% 所致。學位部分的下降主要是由於 2023 年我們的投資組合管理活動導致本季營運的穩定狀態項目與 2023 年第一季相比減少。

In light of this, and as we did on the fourth quarter call, to gain a better perspective on the degree segment's performance, we evaluated the segment excluding the impact of portfolio management. This analysis reveals that degree revenue declined only 4% year-over-year, a significant improvement from the 9% decline of the current portfolio, which we reported in the fourth quarter.

有鑑於此，正如我們在第四季度電話會議上所做的那樣，為了更好地了解學位部門的表現，我們對該部門進行了評估，排除了投資組合管理的影響。該分析顯示，學位收入同比僅下降了 4％，與我們在第四季度報告的當前投資組合 9％ 的降幅相比有顯著改善。

Also, as was the case in the fourth quarter, this decline was primarily due to a higher number of graduates who enrolled during the pandemic and the number of new student enrollments in the quarter. But new student enrollment from the current portfolio grew 6% over the first quarter of 2023, which again shows the strong momentum of the degree business.

此外，與第四季度的情況一樣，這一下降主要是由於疫情期間入學的畢業生人數和本季入學的新生人數增加。但現有投資組合中的新生入學人數在 2023 年第一季成長了 6%，這再次顯示了學位業務的強勁勢頭。

Also, note that this 6% new enrollment increase excludes new enrollments from the 42 new programs we launched in the first quarter. Including these programs, new enrollment increased 17% year-over-year. So overall, we were quite pleased with the degree segment's performance in the quarter and the trajectory it's on.

另請注意，6% 的新入學人數增幅不包括我們第一季推出的 42 個新課程的新入學人數。包括這些項目在內，新入學人數較去年同期增加了 17%。總體而言，我們對本季學位部門的表現及其發展軌跡感到非常滿意。

Decline in Alt Cred revenue in the first quarter was impacted by similar factors to those we experienced in the fourth quarter. Continued softness in boot camps, particularly coding, partially offset by continued strength in our executive education offerings, particularly AI. Boot camp revenue declined 33% compared to the first quarter of 2023, while executive education revenue increased 44% over the same period.

第一季 Alt Cred 收入的下降受到與我們第四季經歷的類似因素的影響。訓練營持續疲軟，特別是編碼，但高階主管教育課程持續走強，特別是人工智慧，部分抵消了這一疲軟表現。與 2023 年第一季相比，訓練營收入下降了 33%，而高階主管教育收入同期成長了 44%。

Moving on to operating expenses. Operating expense improved across the board, reflecting the impact of our recent cost optimization activities. For the first quarter, operating expense was $225.7 million, a 13% decrease from the first quarter of 2023.

繼續討論營運費用。營運費用全面改善，反映了我們近期成本優化活動的影響。第一季度，營業費用為 2.257 億美元，較 2023 年第一季下降 13%。

This decrease was primarily driven by $29.5 million decrease in personnel and personnel-related expense and a $5.6 million decrease in paid marketing costs. This decrease was partially offset by $7 million in costs to implement our performance improvement initiatives, which resulted in G&A expense being relatively flat year over year.

這一下降主要由於人員和人員相關費用減少 2,950 萬美元以及付費行銷費用減少 560 萬美元。這項減少被我們實施績效改善措施的 700 萬美元成本部分抵消，導致 G&A 費用較去年同期相對持平。

Turning now to our profitability measures. Net loss for the quarter totaled $54.6 million compared to $54.1 million in the first quarter of 2023, reflecting the revenue and operating expense drivers I mentioned previously.

現在來談談我們的獲利能力指標。本季淨虧損總計 5,460 萬美元，而 2023 年第一季為 5,410 萬美元，反映了我之前提到的收入和營運費用驅動因素。

Adjusted EBITDA for the quarter decreased 43% to $17.3 million, a margin of 9%. This was largely driven by the same factors that I mentioned earlier. Primarily fewer steady state programs operating in the quarter as compared to the first quarter of 2023.

本季調整後 EBITDA 下降 43% 至 1,730 萬美元，利潤率為 9%。這主要是由我之前提到的相同因素造成的。與 2023 年第一季相比，本季營運的穩定狀態計畫數量明顯減少。

Looking at profitability by segment. Degree segment adjusted EBITDA was $32 million for the quarter, a margin of 29%. For the Alt Cred segment, adjusted EBITDA loss was $14.7 million, a $2.3 million improvement over the first quarter of 2023.

查看各部分的獲利能力。本季學位部門調整後的 EBITDA 為 3,200 萬美元，利潤率為 29%。對於 Alt Cred 部門，調整後的 EBITDA 虧損為 1,470 萬美元，比 2023 年第一季減少了 230 萬美元。

Now let's turn to the balance sheet and cash flow statement. We ended the quarter with cash, cash equivalents, and restricted cash $137.4 million, an increase of $64 million from December 31, 2023. This increase includes $74 million received in the quarter in connection with the sale of certain receivables that we referenced on our prior call.

現在讓我們來看看資產負債表和現金流量表。本季結束時，我們的現金、現金等價物和限定現金為 1.374 億美元，比 2023 年 12 月 31 日增加 6,400 萬美元。這一增長包括本季因出售我們在上次電話會議上提到的某些應收帳款而收到的 7,400 萬美元。

Looking at the cash flow statement. Cash provided by operating activities was $72.2 million for the quarter. We delivered adjusted unlevered free cash flow of $102.7 million for the 12 months ending March 31, 2024, compared to $45.4 million for the 12 months ending December 31, 2023. These results show the positive impact that our cost optimization and working capital initiatives had on liquidity in the quarter.

查看現金流量表。本季經營活動提供的現金為 7,220 萬美元。截至 2024 年 3 月 31 日的 12 個月，我們實現的調整後無槓桿自由現金流為 1.027 億美元，而截至 2023 年 12 月 31 日的 12 個月，調整後無槓桿自由現金流為 4540 萬美元。這些結果顯示我們的成本優化和營運資本計畫對本季流動性產生了積極影響。

I'll now provide some more detail regarding our performance improvement initiatives and their financial implications. As Paul mentioned, a key goal of this plan is to significantly improve operating efficiency to put us in a stronger position to fix our balance sheet.

現在，我將提供有關我們的績效改進舉措及其財務影響的更多細節。正如保羅所提到的，該計劃的一個關鍵目標是大幅提高營運效率，使我們有更好的能力來修復我們的資產負債表。

In addition to the cost optimization actions we took in 2023, we've now identified $90 million to $100 million of additional run rate cost savings from initiatives across the company, which we expect to fully realize by the end of 2025.

除了我們在 2023 年採取的成本優化措施之外，我們現在還確定了整個公司範圍內的舉措可帶來 9,000 萬至 1 億美元的額外運行成本節約，我們預計到 2025 年底將全面實現這一目標。

To highlight a few of the specific initiatives underpinning the plan, we expect to continue to improve the efficiency of our sales and marketing operation by leveraging the edX platform and further streamlining marketing technology and processes. We've identified approximately $15 million of run rate savings from this initiative.

為了強調該計劃的一些具體舉措，我們希望透過利用 edX 平台並進一步簡化行銷技術和流程來繼續提高我們的銷售和行銷營運效率。我們發現這項措施可以節省約 1500 萬美元的營運費用。

Also, through the use of lower-cost locations and outsourcing arrangements for various back office functions and standardizing and simplifying our technology infrastructure. We believe we can reduce our technology and product spend by approximately $20 million on a run-rate basis.

此外，我們還透過使用成本較低的地點和外包安排來實現各種後台職能的標準化和簡化我們的技術基礎設施。我們相信，我們可以按運行率減少約 2000 萬美元的技術和產品支出。

We are also continuing to take a hard look at G&A where we have identified approximately $8 million of run-rate savings. The remaining savings come from various initiatives that we've identified across the entire organization, including opportunities related to real estate, process improvements, and various other corporate hygiene initiatives.

我們也將繼續仔細研究一般及行政開支，我們發現大約有 800 萬美元的運行率節省。剩餘的節省來自於我們在整個組織中確定的各種舉措，包括與房地產、流程改進和其他各種企業衛生舉措相關的機會。

Turning now to a discussion of our outlook for the second quarter and full year 2024. Starting with revenue. Our guidance for the second quarter calls for revenue to range from $191 million to $194 million. For the year, as I mentioned previously, we are reaffirming our prior revenue guidance with revenue expected to range from $805 million to $815 million.

現在來討論我們對 2024 年第二季和全年的展望。從收入開始。我們對第二季的預期是營收在 1.91 億美元到 1.94 億美元之間。正如我之前提到的，對於今年，我們重申先前的收入預期，預計收入在 8.05 億美元至 8.15 億美元之間。

For adjusted EBITDA, our guidance for the second quarter calls for adjusted EBITDA to range from $16 million to $18 million. For the full year, we're again affirming our prior adjusted EBITDA guidance, with adjusted EBITDA expected to range from $120 million to $125 million for the year.

對於調整後的 EBITDA，我們對第二季的預期是調整後的 EBITDA 在 1,600 萬美元至 1,800 萬美元之間。對於全年，我們再次確認先前調整後的 EBITDA 指引，預計全年調整後的 EBITDA 在 1.2 億美元至 1.25 億美元之間。

This outlook reflects continued headwinds in coding boot camps, partially offset by continued strong Exec Ed performance throughout the rest of 2024. We are currently evaluating all options to mitigate boot camp performance as much as possible.

這一前景反映了編碼訓練營持續面臨的阻力，但 2024 年剩餘時間內 Exec Ed 的持續強勁表現部分抵消了這一阻力。我們目前正在評估所有選項，以盡可能減輕新兵訓練營的表現。

Well, we have taken some steps already by capitalizing on the strength of our AI Exec Ed offerings to launch five new AI boot camps this quarter. We're evaluating other options like reallocating resources across the boot camp portfolio and optimizing the delivery model, which could reduce boot camp revenue for the full year while improving adjusted EBITDA.

嗯，我們已經採取了一些措施，利用我們的 AI Exec Ed 產品的優勢，本季推出了五個新的 AI 訓練營。我們正在評估其他選擇，例如重新分配訓練營組合中的資源並優化交付模式，這可以減少全年訓練營收入，同時提高調整後的 EBITDA。

Also, we're still working on refining and implementing many of the initiatives in our performance improvement plan. So the exact impact on 2024 adjusted EBITDA is still in flux at this time. But we do believe that the cost optimization actions we took in 2023, along with some in-year impact from our performance improvement plan, will enable us to meet our adjusted EBITDA expectations for the full year regardless of boot camp performance.

此外，我們仍在努力完善和實施績效改進計劃中的許多措施。因此，目前對 2024 年調整後 EBITDA 的具體影響仍不確定。但我們確實相信，我們在 2023 年採取的成本優化行動，加上我們的績效改進計劃產生的一些年內影響，將使我們能夠滿足全年調整後的 EBITDA 預期，無論訓練營的表現如何。

Before I conclude, I wanted to briefly comment on the status of discussions with our debt holders. Based on our current guidance for the second quarter, we do not expect revenue for the 12 months ended June 30, 2024, to satisfy the recurring revenue covenant contained in our credit facilities.

在結束之前，我想先簡單評論一下我們與債權人的討論情況。根據我們對第二季度的當前指導，我們預計截至 2024 年 6 月 30 日的 12 個月的收入將無法滿足我們的信貸安排中包含的經常性收入契約。

But we have continued to have a constructive dialogue with our creditors to timely address the revenue covenant and find the overall best solution -- the best position the company for the long term.

但我們一直與債權人進行建設性的對話，以便及時解決收入契約問題並找到整體最佳的解決方案，也就是對公司長期而言最有利的解決方案。

We expect those discussions to continue with the goal of executing a transaction in the near term. We expect that any transaction would fully support the company's ability to continue operating and providing services for our partners and students.

我們預計這些討論將繼續進行，目標是在短期內完成交易。我們預計任何交易都將全力支持公司繼續運作並為我們的合作夥伴和學生提供服務的能力。

To conclude, we exceeded our expectations for the first quarter, marking a solid start to the year. Our team remains highly committed to strengthening our financial position, which is crucial for enhancing our capital structure and securing the company's long-term success.

總而言之，我們超越了第一季的預期，為今年帶來了一個好的開始。我們的團隊始終致力於加強我們的財務狀況，這對於增強我們的資本結構和確保公司的長期成功至關重要。

We are actively implementing our performance improvement initiatives and are optimistic about our prospects for reinforcing our market position. This will enable us to thrive well into the future and deliver value for our stakeholders.

我們正積極實施業績改善舉措，並對鞏固市場地位的前景感到樂觀。這將使我們在未來能夠蓬勃發展並為我們的利害關係人創造價值。

And with that, let me hand the call back to the operator to begin the Q&A session.

說完這些，讓我把電話交還給接線生，開始問答環節。

(Operator Instructions) Josh Baer, Morgan Stanley.

（操作員指示）摩根士丹利的 Josh Baer。

Great. Thanks for the question. Wanted to dig into the newly launched programs. You talked about the steeper -- sorry, the shallower payback, free cash flow one to two years sooner under the flex model. If you look at all the newly launched programs, the 42, can you help to quantify what the impact is for this year and next year from a revenue and free cash flow perspective?

偉大的。謝謝你的提問。想要深入了解新推出的項目。您談到了更高的——對不起，是更淺的回報，在彈性模式下，自由現金流會提前一到兩年。如果您看一下所有新啟動的 42 個項目，您能否幫助從收入和自由現金流的角度量化今年和明年的影響？

Josh, let me start off and Matt will jump in here shortly. On last quarter's call, we said that in total the 60 -- approximately 60 program that we launch in 2024 will cost us about $23 million, $25 million of expenses, and we'll have revenue of somewhere between $10 million to $15 million in this calendar year.

喬希，讓我先開始，馬特稍後也會加入。在上個季度的電話會議上，我們表示，我們將在 2024 年啟動約 60 個項目，總共將花費約 2,300 萬美元，其中費用為 2,500 萬美元，而今年我們的收入將在 1,000 萬至 1,500 萬美元之間。

The other data point that we provided was that, we expect to have steady state revenue of about a $100 million -- $100 million, $120 million, I don't remember exactly which of those numbers we said. $100 million is a steady state revenue going forward.

我們提供的另一個數據點是，我們預計穩定狀態收入約為 1 億美元——1 億美元，1.2 億美元，我不記得我們具體說的是哪一個數字。 1 億美元是未來的穩定收入。

And we expect that these programs will get the steady state, probably years -- between two and three years, sometimes a little bit later. That's because you have cohort one and cohort two that comes in on top of the other, which I think you know very well. But the bottom line is, this really projects very well for the odd years as we launch them in calendar year 2024.

我們預計這些項目將達到穩定狀態，可能需要兩到三年的時間，有時會稍晚。這是因為您有第一群組和第二群組，並且第二群組位列第二群組之上，我想您對此非常了解。但最重要的是，由於我們在 2024 日曆年推出奇數年，因此這對奇數年的預測確實非常好。

Matt, I don't know if you'd add anything else.

馬特，我不知道您是否還有什麼要補充。

No. I think you hit all key points.

不。我認為您觸及了所有要點。

Okay. That's great. And then one on the operational efficiency. You mentioned the introduction of tech to drive cost-saving technology, and clearly this makes sense. I think it also takes some time and investment. So do you have any specific examples of some of those initiatives where you're looking to use technology to drive cost-savings and how to think about seeing that? Thanks.

好的。那太棒了。然後是關於營運效率。您提到引入技術來推動節約成本的技術，顯然這是有道理的。我認為這也需要一些時間和投資。那麼，您能否舉一些具體例子來說明您希望利用科技來節省成本的一些舉措，以及如何看待這一點？謝謝。

Yeah. So I think it falls into a couple buckets. Certainly, what I mentioned around outsourcing and moving some back-office functions to lower cost locations, some of that is in the tech department, and that takes less of an upfront investment than some of what you might be thinking about.

是的。因此我認為這可以分為幾類。當然，我提到的外包和將一些後台職能轉移到成本較低的地方，其中一些是在技術部門，這比你可能想到的一些事情需要的前期投資要少。

And I think there are opportunities to automate a lot of our processes throughout the business on the marketing side as I mentioned, where we expect $15 million in run rate savings related to those activities. And I also think there's opportunities to deploy AI in multiple areas of the business.

而且我認為，正如我之前提到的，我們有機會在行銷方面實現許多業務流程的自動化，我們預計與這些活動相關的運行成本節省為 1500 萬美元。我還認為有機會在業務的多個領域部署人工智慧。

Also, really on the marketing side, which is -- the marketing and operations side, I would say, to make the way we engage with students at the top of the funnel more efficient. Ultimately leading to not only a more efficient business, but probably a better experience for students.

另外，從行銷方面來說，也就是行銷和營運方面，我想說，要讓我們與漏斗頂端的學生互動的方式更有效率。最終不僅會帶來更有效率的業務，還可能為學生帶來更好的體驗。

Paul, I don't know if you would have anything to add there.

保羅，我不知道您是否還有什麼要補充。

The only thing I would add is that we do have a presence in Cape Town. We do have a tremendous employee base there, talented employee base there that I think we can build off of as we think of broadening our operations into lower cost environment.

我唯一想補充的是，我們確實在開普敦設有辦事處。我們確實在那裡擁有龐大的員工基礎、才華橫溢的員工基礎，我認為我們可以藉此將業務拓展到成本更低的環境中。

Okay, all helpful. Thank you.

好的，一切都有幫助。謝謝。

Ryan MacDonald, Needham & Company.

瑞安·麥克唐納（Ryan MacDonald），尼德漢姆公司。

Thanks for taking my questions. Great to see the strong results and some nice growth on executive education in particular. Can you just talk about what seems to be resonating well with that offering with customers and what seemingly is a tougher environment for corporate learning and development spend? Thanks.

感謝您回答我的問題。很高興看到強勁的成績，尤其是高階主管教育方面取得了良好的成長。您能否談談該產品在顧客心目中的反應如何，以及企業學習和發展支出面臨的更嚴峻環境是什麼？謝謝。

Ryan, let me start off and again, Matt may join in. Our AI executive education courses are definitely doing very well for us. It goes back to the objective and the fundamentals in Alternative Credential. It's all about hit driven topics, and it's all about making sure you have the appropriate content. And I can't underestimate having the appropriate partners. We do have great partners, MIT and Oxford are really, really great partners for us as we continued to grow executive education.

瑞安，讓我先開始，馬特也可以加入。我們的人工智慧高階主管教育課程確實為我們帶來了豐厚的回報。它回歸到了替代證書的目標和基本原理。這一切都與熱門話題有關，而且這一切都是為了確保您擁有適當的內容。我不能低估擁有合適的合作夥伴的重要性。我們確實有很好的合作夥伴，麻省理工學院和牛津大學是我們繼續發展高階主管教育的非常好的合作夥伴。

Look our objective here is to continue to have -- to launch new content and new programs so that we can always have that new S-curve, that is on top of what we have currently and that allows us to have the sustainable growth and a sustainable trajectory in that business.

我們的目標是繼續推出新內容和新項目，以便我們始終能夠擁有新的 S 曲線，這高於我們目前所擁有的，並且使我們能夠在該業務中實現可持續增長和可持續軌跡。

The other thing I'd point to and highlight as we think of Alternative Credentials in general, the [entrepreneurs] deal is a significant deal for us. It is in a different market and it's like I said, it's off to an impressive start, a 100,000 course completions in the first month alone.

當我們總體考慮替代證書時，我要指出並強調的另一件事是，[企業家]交易對我們來說意義重大。它處於一個不同的市場，就像我說的，它有一個令人印象深刻的開始，僅第一個月就有 100,000 門課程完成。

And this is something that is unique and different from what we had traditionally offered. Most importantly, it is done on a subscription based model, and that allows us to have recurring revenue as we go forward.

這是我們傳統上提供的產品的獨特之處，與眾不同。最重要的是，它是採用基於訂閱的模式，這使得我們能夠在未來獲得經常性收入。

Very helpful. Thanks. And then maybe just to follow up on the topic of shoring up the balance sheet. Just as you think about the next steps and progression here, it seems like you've bolstered cash on the balance sheet. You've identified additional operational efficiencies to drive more savings, generating more adjusted EBITDA.

非常有幫助。謝謝。然後可能只是繼續討論鞏固資產負債表的話題。正當您考慮接下來的步驟和進展時，似乎您已經增加了資產負債表上的現金。您已經確定了額外的營運效率來推動更多節約，從而產生更多的調整後 EBITDA。

What, I guess, do you need -- do the lenders need to see to maybe progress further on those talks? Or where do you think you need to kind of continue to execute to get closer to a resolution there? Thanks.

我想，您需要什麼—貸方需要看到什麼才能使談判進一步進展？或者您認為需要在哪些方面繼續執行才能更接近解決方案？謝謝。

Yeah. As we said on the last call and this call, we have a constructive dialogue with our lenders, and that's obviously increasing in frequency, I would say. So I don't think they need to see anything else necessarily. I think it's a question of coming up with the right solution for the company given where we are.

是的。正如我們在上次和這次電話會議上所說的那樣，我們與貸方進行了建設性的對話，而且我想說，這種對話的頻率顯然在增加。因此我認為他們沒有必要看其他東西。我認為這是一個根據我們目前的狀況為公司找到正確解決方案的問題。

And we are, as you can imagine, hyper-focused on getting to that solution as quickly as possible to turn the page from where we are. So I think, as we said, in the near-term, we're going to have a resolution that will really set up 2U for future success.

正如你所想像的，我們高度專注於盡快找到解決方案，以翻開當前的一頁。因此我認為，正如我們所說的，在短期內，我們將製定一項真正為 2U 未來的成功奠定基礎的解決方案。

And Ryan, we're fortunate. We have a group of lenders, it's concentrated, number one. And number two, it consists of players that we are very familiar with, and we've spoken to a number of times. So this makes it all come more convenient for us to get through this in a shorter timeframe.

瑞安，我們很幸運。我們有一群貸款人，他們是集中的，第一。第二，我們都非常熟悉這些球員，而且我們已經與他們交談過很多次了。因此，這讓我們能夠在更短的時間內更方便地完成所有工作。

The one point that I would want to make to all of this, as we go through this now, the first quarter was all about developing that plan, making sure we have the right framework to have these discussions with our lenders.

我想說的是，當我們經歷這一切時，第一季的全部工作就是製定這個計劃，確保我們有正確的框架來與我們的貸方進行這些討論。

But none of this, absolutely none of this, has anything to do with operations, our focus on our partners and our students, and delivering the quality of education. Those are operational things. That's what we do every day, that's what we do well. It has nothing to do with the balance sheet. We're trying to separate the two things.

但這些，絕對這些，都與營運、我們對合作夥伴和學生的關注以及提供優質教育無關。這些都是操作上的事情。這就是我們每天所做的事情，也是我們擅長的事情。這與資產負債表無關。我們正試圖將這兩件事分開。

And Matt and the team are going to lead -- be the tip of the spear as we fix the balance sheet. But operationally, we're very proud of where we are and the commitment of our employee base to serve students and make them the highest priority for us.

馬特和他的團隊將在我們修復資產負債表的過程中發揮領導作用。但在營運方面，我們為我們的現狀和員工隊伍為學生服務的承諾感到非常自豪，並將學生放在我們的最高優先位置。

Excellent. I appreciate the color. Thanks.

出色的。我很欣賞這個顏色。謝謝。

(Operator Instructions) That concludes our Q&A session. Thank you for your participation. This concludes today's conference call. You may now disconnect.

（操作員指示）我們的問答環節到此結束。感謝您的參與。今天的電話會議到此結束。您現在可以斷開連線。