Stride, Inc. reported a diluted net income of USD 0.66 per share (up 164% YoY) for Q4 FY2022 ending June 2022, beating analyst estimates by more than 4.8%. Revenue rose 14.5% YoY to USD 455.2 million in Q4 FY2022, surpassing analyst expectations of USD 421.9 million. For the full year 2022, the company reported revenue growth of 9.8% YoY to USD 1.69 billion, above the guidance range of USD 1.645 billion–1.660 billion provided in Q3 FY2022. 

During the quarter, the general education segment, which accounts for three-quarters of total revenue, reported a growth of 2.5% YoY. The career learning sub-segment middle–high school (78.3% of the career learning segment) reported revenue growth of 89.6% YoY, while the adult sub-segment (21.7% share) reported growth of 32.2% YoY. In addition, enrollment for the career learning segment increased by 48.6% YoY, while enrollment for general education declined by 7.3% YoY.  

Stride’s gross margin improved 2.5 percentage points YoY to 36.8% in Q4 FY2022. Income from operations was USD 46.1 million (up ~116% YoY) reflecting improved operational performance in Q4 FY2022 and adjusted EBITDA stood at USD 74.7 million (up 36.1% YoY). For FY2022, it reported an income from operations of USD 156.6 million (up 41.8% YoY) and an adjusted EBITDA of USD 273.1 million (up 13.8% YoY). 

For the full year 2023, consensus estimates of revenue and diluted net income are USD 1.73 billion (growth of 2.4% YoY) and USD 2.62 per share (growth of 4% YoY), respectively. However, the company stated that it will disclose FY2023 targets with the release of Q1 FY2023 earnings, scheduled for October 2022.