Laureate Education's Q4 Reports Strong Revenue Growth

By Bobby Samwell • Thursday, February 22 11:08 • Permanent Link

Laureate Education, Inc. (NASDAQ: LAUR) has released its financial results for the fourth quarter and full-year 2023, along with the outlook for 2024. The company, which operates higher education institutions in Mexico and Peru, reported a strong performance for the fourth quarter and the full year, with notable increases in revenue and enrollments.

In the fourth quarter of 2023, Laureate Education saw a reported revenue increase of 18% to $409.4 million, with operating income reaching $110.0 million, compared to $78.0 million for the same period in 2022. The company also reported a net income of $41.7 million for the fourth quarter of 2023, compared to $39.1 million for the fourth quarter of 2022. Additionally, adjusted EBITDA for the fourth quarter of 2023 was $131.3 million, up from $94.8 million for the same period in 2022.

For the full year ended December 31, 2023, new enrollments increased by 10% and total enrollments increased by 6%. The reported revenue for the year reached $1,484.3 million, marking a 19% increase compared to 2022. Operating income for the year was $338.8 million, compared to $270.0 million for 2022, and the net income for the year was $107.3 million, compared to $69.0 million for 2022. The adjusted EBITDA for the year was $418.6 million, compared to $338.9 million for 2022.

Eilif Serck-Hanssen, President and Chief Executive Officer of Laureate Education, commented on the company's performance, stating, "We delivered robust operating performance in 2023, with double-digit revenue growth and historic high operating margins. We remain focused on the strategic priorities we outlined a year ago, and see continued growth opportunities for 2024, even with a softer market backdrop in Peru during the first half of the year." He also expressed the company's commitment to academic excellence and its mission to transform the lives of students and communities in Mexico and Peru.

Looking ahead to 2024, Laureate Education expects continued growth opportunities, with stronger growth rates anticipated in Mexico due to a positive macroeconomic backdrop. However, the company anticipates more muted growth in Peru in 2024 due to the current economic downturn but expects an economic recovery in the second half of the year. The company's outlook for fiscal 2024 includes expectations for total enrollments, revenues, and adjusted EBITDA.

As of the latest market update, Laureate Education's shares have moved -3.0% and are trading at a price of $12.72.

The company's full 8-K submission is available here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.