2U (TWOUQ) 10-Q 2 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 30, 2018
Document and Entity Information
Entity Registrant Name	2U, Inc.
Entity Central Index Key	1,459,417
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		57,424,850
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 488,834	$ 223,370
Accounts receivable, net	50,031	14,174
Prepaid expenses and other assets	15,087	10,509
Total current assets	553,952	248,053
Property and equipment, net	50,264	49,055
Goodwill	64,873	71,988
Amortizable intangible assets, net	126,062	90,761
Prepaid expenses and other assets, non-current	30,313	22,205
Total assets	825,464	482,062
Current liabilities
Accounts payable and accrued expenses	32,055	22,629
Accrued compensation and related benefits	16,956	19,017
Deferred revenue	30,862	7,024
Other current liabilities	17,096	9,330
Total current liabilities	96,969	58,000
Deferred government grant obligations	3,500	3,500
Deferred tax liabilities, net	6,935	10,087
Lease-related and other liabilities, non-current	24,613	22,643
Total liabilities	132,017	94,230
Commitments and contingencies (Note 5)
Stockholders' equity
Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued
Common stock, $0.001 par value, 200,000,000 shares authorized, 57,315,585 shares issued and outstanding as of June 30, 2018; 52,505,856 shares issued and outstanding as of December 31, 2017	57	53
Additional paid-in capital	936,664	588,289
Accumulated deficit	(239,054)	(205,836)
Accumulated other comprehensive income (loss)	(4,220)	5,326
Total stockholders' equity	693,447	387,832
Total liabilities and stockholders' equity	$ 825,464	$ 482,062

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	57,315,585	52,505,856
Common stock, shares outstanding	57,315,585	52,505,856

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Operations and Comprehensive Loss
Revenue	$ 97,423	$ 64,995	$ 189,711	$ 129,824
Costs and expenses
Curriculum and teaching	6,007		10,314
Servicing and support	17,297	13,458	32,530	24,383
Technology and content development	15,235	11,140	29,075	20,345
Marketing and sales	58,376	37,242	111,434	71,912
General and administrative	22,480	13,930	44,349	27,594
Total costs and expenses	119,395	75,770	227,702	144,234
Loss from operations	(21,972)	(10,775)	(37,991)	(14,410)
Interest income	912	53	1,254	249
Interest expense	(27)	(1)	(54)	(1)
Other income (expense), net	(825)	(1,031)	(1,220)	(1,031)
Loss before income taxes	(21,912)	(11,754)	(38,011)	(15,193)
Income tax benefit	3,565		4,793
Net loss	$ (18,347)	$ (11,754)	$ (33,218)	$ (15,193)
Net loss per share, basic and diluted (in dollars per share)	$ (0.33)	$ (0.25)	$ (0.62)	$ (0.32)
Weighted-average shares of common stock outstanding, basic and diluted (in shares)	54,981,192	47,668,397	53,840,582	47,454,059
Other comprehensive loss
Foreign currency translation adjustments, net of tax of $0 for all periods presented	$ (14,178)		$ (9,546)
Comprehensive loss	$ (32,525)	$ (11,754)	$ (42,764)	$ (15,193)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other comprehensive loss
Foreign currency translation adjustments, tax	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2017	$ 53	$ 588,289	$ (205,836)	$ 5,326	$ 387,832
Balance (in shares) at Dec. 31, 2017	52,505,856				52,505,856
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		4,793			$ 4,793
Exercise of stock options (in shares)	501,531
Issuance of common stock in connection with settlement of restricted stock units, net of withholdings		(3,407)			(3,407)
Issuance of common stock in connection with settlement of restricted stock units, net of withholdings (in shares)	474,864
Issuance of common stock in connection with a public offering of common stock, net of offering costs	$ 4	330,858			330,862
Issuance of common stock in connection with a public offering of common stock, net of offering costs (in shares)	3,833,334
Stock-based compensation expense		16,131			16,131
Net loss			(33,218)		(33,218)
Foreign currency translation adjustment				(9,546)	(9,546)
Balance at Jun. 30, 2018	$ 57	$ 936,664	$ (239,054)	$ (4,220)	$ 693,447
Balance (in shares) at Jun. 30, 2018	57,315,585				57,315,585

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (33,218)	$ (15,193)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	14,783	7,431
Stock-based compensation expense	16,131	9,390
Changes in operating assets and liabilities:
Increase in accounts receivable, net	(35,932)	(15,566)
(Increase) decrease in prepaid expenses and other assets	(3,705)	179
Increase in accounts payable and accrued expenses	10,207	5,135
(Decrease) increase in accrued compensation and related benefits	(1,998)	1,417
Increase in deferred revenue	24,086	4,228
Increase in payments to university clients	(8,923)	(7,471)
(Decrease) increase in other liabilities, net	(2,854)	1,282
Other	1,221	1,031
Net cash used in operating activities	(20,202)	(8,137)
Cash flows from investing activities
Additions of amortizable intangible assets	(40,039)	(10,808)
Purchases of property and equipment	(5,124)	(15,449)
Advances made to university clients	(100)
Net cash used in investing activities	(45,263)	(26,257)
Cash flows from financing activities
Proceeds from issuance of common stock, net of offering costs	330,862
Proceeds from exercise of stock options	4,793	2,908
Tax withholding payments associated with settlement of restricted stock units	(3,407)	(1,291)
Proceeds from debt		3,500
Net cash provided by financing activities	332,248	5,117
Effect of exchange rate changes on cash	(1,319)	(1,031)
Net increase (decrease) in cash, cash equivalents and restricted cash	265,464	(30,308)
Cash, cash equivalents and restricted cash, beginning of period	223,370	168,730
Cash, cash equivalents and restricted cash, end of period	$ 488,834	$ 138,422

Organization

Organization	6 Months Ended
	Jun. 30, 2018
Organization
Organization	1. Organization 2U, Inc. (together with its subsidiaries, the “Company”) is a leading education technology company that well-recognized nonprofit colleges and universities trust to bring them into the digital age. The Company’s comprehensive platform of tightly integrated technology and services provides the digital infrastructure universities need to attract, enroll, educate and support students at scale. With the Company’s platform, students can pursue their education anytime, anywhere, without quitting their jobs or moving; and university clients can improve educational outcomes, skills attainment and career prospects for a greater number of students. The Company’s operations consist of two operating segments, which are also its two reportable segments: the Graduate Program Segment and the Short Course Segment. The Company’s Graduate Program Segment provides services to well-recognized nonprofit colleges and universities, primarily in the United States, to enable the online delivery of graduate programs. The Company’s Short Course Segment provides premium online short courses to working professionals around the world through relationships with leading universities in the United States, the United Kingdom and South Africa.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (“SEC”). They include the assets, liabilities, results of operations and cash flows of the Company, including its wholly owned subsidiaries. As permitted under such rules, certain notes and other financial information normally required by U.S. GAAP have been condensed or omitted. The Company believes the condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and six months ended June 30, 2018 and 2017 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. All significant intercompany accounts and transactions have been eliminated in consolidation. The year-end condensed consolidated balance sheet data was derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. Reclassifications The Company has reclassified capitalized technology and content development, as well as other amortizable intangible assets, into amortizable intangible assets on the condensed consolidated statements of cash flows for the six months ended June 30, 2017. In addition, certain other prior period amounts on the condensed consolidated statements of cash flows have been reclassified to conform to the current period’s presentation. These reclassifications had no impact on cash flows from operating, investing or financing activities previously reported for any periods presented. Use of Estimates The preparation of the condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported herein. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. The Company evaluates its estimates and assumptions on an ongoing basis. Restricted Cash As of June 30, 2018 and December 31, 2017, the Company held restricted cash balances of $0.1 million and zero dollars, respectively. As of June 30, 2017, the Company held a restricted cash balance of $101.0 million in connection with the Company’s acquisition of GetSmarter on July 1, 2017. Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the related amendments using the modified retrospective transition method and has concluded that doing so did not have a material impact on the amount and timing of either its revenue or costs. As part of its assessment, the Company completed reviews of its contracts and evaluated its costs, including costs of obtaining contracts with its university clients and costs associated with content development. Certain of these contract and content costs will be capitalized under the new standard. The adoption of ASU 2014-09 did not have a material impact as of January 1, 2018, and no cumulative adjustment was recorded. Further, the amounts reported as of June 30, 2018 on the condensed consolidated balance sheets and the results of operations for the three and six months ended June 30, 2018 reported on the condensed consolidated statements of operations and comprehensive loss would not have been materially different than under legacy U.S. GAAP (i.e., Topic 605). The Company generates substantially all of its revenue from contractual arrangements with either its university clients or students to provide a comprehensive platform of tightly integrated technology and technology-enabled services that support its graduate programs and short courses. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Graduate Program Segment derives revenue primarily from contractually specified percentages of the amounts the Company’s university clients receive from their students in 2U-enabled graduate programs for tuition and fees, less credit card fees and other specified charges the Company has agreed to exclude in certain university client contracts. The Company’s contracts with university clients in this segment have 10 to 15 year initial terms and have a single performance obligation, as the promises to provide a platform of tightly integrated technology and services university clients need to attract, enroll, educate and support students are not distinct within the context of the contracts. The single performance obligation is delivered as the university clients receive and consume benefits, which occurs ratably over a series of academic terms. The amounts received from university clients over the term of the arrangement are variable in nature in that they are dependent upon the number of students that are enrolled in the program within each academic term. These amounts are allocated to and are recognized ratably over the related academic term, defined as the period beginning on the first day of classes through the last. A refund allowance is established for the Company’s share of tuition and fees ultimately uncollected by university clients. The Short Course Segment derives revenue directly from contracts with students for the tuition and fees paid to enroll in and progress through the Company’s short courses which run between six and 16 weeks. The Company’s contracts with students in this segment have multiple performance obligations as the delivery of the short course and student support services are each considered distinct performance obligations. These performance obligations are each satisfied ratably over the same short course presentation period, which is defined as the period beginning on the first day of the course through the last. The Company recognizes the gross proceeds received from the students and shares contractually specified percentages with its university clients, for providing short course content and certification, in the form of a royalty recognized as curriculum and teaching costs on the Company’s condensed consolidated statements of operations and comprehensive loss. The Company’s contracts with university clients in this segment are typically shorter and less restrictive than the Company’s contracts with university clients in the Graduate Program Segment. The Company does not disclose the value of unsatisfied performance obligations for the Graduate Program Segment because the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The Company does not disclose the value of unsatisfied performance obligations for the Short Course Segment because the performance obligation is part of a contract that has an original duration of less than one year. Contract Acquisition Costs The Company pays commissions to certain of its employees to obtain contracts with university clients in the Graduate Program Segment. These costs are capitalized and recorded on a contract-by-contract basis and amortized using the straight-line method over the expected life, which is generally the length of the contract. With respect to contract acquisition costs in the Short Course Segment, the Company has elected to apply the practical expedient in ASC Topic 606 to expense these costs as incurred, as the terms of contracts with students in this segment are less than one year. Payments to University Clients Pursuant to certain of the Company’s contracts in the Graduate Program Segment, the Company has made, or is obligated to make, payments to university clients in exchange for contract extensions and various marketing and other rights. Generally, these amounts are capitalized and amortized as contra revenue over the life of the contract, commencing on the later of when payment is due or when contract revenue recognition begins. Accounts Receivable, Contract Assets and Liabilities Balance sheet items related to contracts consist of accounts receivable, net and deferred revenue on the Company’s condensed consolidated balance sheets. The Company’s accounts receivable, net also includes unbilled revenue. Accounts receivable, net is stated at net realizable value, and the Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of the amounts due. The Company’s estimates are reviewed and revised periodically based on historical collection experience and a review of the current status of accounts receivable, net. Historically, actual write-offs for uncollectible accounts have not significantly differed from prior estimates. The Company recognizes unbilled revenue when revenue recognition occurs in advance of billings. Unbilled revenue is recognized in the Graduate Program Segment because billings to university clients do not occur until after the academic term has commenced and final enrollment information is available. Deferred revenue as of each balance sheet date represents the excess of amounts billed or received as compared to amounts recognized in revenue on the condensed consolidated statements of operations and comprehensive loss as of the end of the reporting period, and such amounts are reflected as a current liability on the Company’s condensed consolidated balance sheets. The Company generally receives payments for its share of tuition and fees from graduate program university clients early in each academic term and from short course students, either in full upon registration for the course or in full before the end of the course based on a payment plan, prior to completion of the service period. These payments are recorded as deferred revenue until the services are delivered or until the Company’s obligations are otherwise met, at which time revenue is recognized. Capitalized Content Development The Company develops content for each offering on a course-by-course basis in conjunction with the faculty for each graduate program and short course. University clients and their faculty generally provide materials used for the course in an on-campus setting, including curricula, case studies and other reading materials, and presentations. The Company is responsible for the conversion of the materials into a format suitable for delivery through its online learning platform, including all expenses associated with this effort. With regard to the Graduate Program Segment, the development of content is part of the Company’s single performance obligation and is considered a contract fulfillment cost. The content development costs that qualify for capitalization are third-party direct costs, such as videography, editing and other services associated with creating digital content. Additionally, the Company capitalizes internal payroll and payroll-related costs incurred to create and produce videos and other digital content utilized in the university clients’ offerings for delivery via the Company’s online learning platform. Capitalization ends when content has been fully developed by both the Company and the university client, at which time amortization of the capitalized content development costs begins. The capitalized costs for each offering are recorded on a course-by-course basis and included in capitalized content costs in amortizable intangible assets, net on the Company’s condensed consolidated balance sheets. These costs are amortized using the straight-line method over the estimated useful life of the respective course, which is generally four to five years. The estimated useful life corresponds with the planned curriculum refresh rate. This refresh rate is consistent with expected curriculum refresh rates as cited by faculty members for similar on-campus offerings. It is reasonably possible that developed content could be refreshed before the estimated useful lives are complete or be expensed immediately in the event that the development of a course is discontinued prior to launch. Marketing and Sales Costs The majority of the marketing and sales costs incurred by the Company are directly related to acquiring students for its university clients’ graduate programs, with lesser amounts related to acquiring students for its short courses and marketing and advertising efforts related to the Company’s own brand. For the six months ended June 30, 2018, costs related to the Company’s marketing and advertising of its own brand were not material. All such costs are expensed as incurred and reported in marketing and sales expense on the Company’s condensed consolidated statements of operations and comprehensive loss. As of June 30, 2018 and December 31, 2017, the Company had $12.3 million and $11.7 million, respectively, of accrued marketing costs included in accounts payable and accrued expenses on the Company’s condensed consolidated balance sheets. Non-Cash Long-Lived Asset Additions During the six months ended June 30, 2018, the Company had capital asset additions of $55.2 million in property and equipment and capitalized technology and content development, of which $10.0 million consisted of non-cash capital expenditures, primarily related to the acquisition of certain long-lived assets for which a liability was accrued. During the six months ended June 30, 2017, the Company had capital asset additions of $31.6 million in property and equipment and capitalized technology and content development, of which $5.3 million consisted of non-cash capital expenditures. Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments to nonemployees. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact that this standard will have on its consolidated financial position or related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates step two from the goodwill impairment test and requires an entity to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value, up to the amount of goodwill allocated to that reporting unit. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact that this standard will have on its consolidated financial position or related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice surrounding how certain transactions are classified in the statement of cash flows. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017. The Company adopted this ASU on January 1, 2018. Adoption of this standard did not have a material impact on the Company’s condensed consolidated statements of cash flows or related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU introduces a model for lessees requiring most leases to be reported on the balance sheet. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and the Company will adopt this ASU in the first quarter of 2019. The Company is currently evaluating the effect that this ASU will have on its consolidated financial position and related disclosures and is in the process of considering changes to its systems and processes in conjunction with the review of its lease agreements. The Company believes that this standard may materially increase its other non-current assets and non-current liabilities on the consolidated balance sheets in order to record right-of-use assets and related liabilities for its existing operating leases, however, the standard is not expected to have a material impact on the Company’s results of operations or cash flows.

Business Combination

Business Combination	6 Months Ended
	Jun. 30, 2018
Business Combination
Business Combination	3. Business Combination On July 1, 2017, the Company, through a wholly owned subsidiary (“2U South Africa”), completed its acquisition of all of the outstanding equity interests of GetSmarter pursuant to a Share Sale Agreement, dated as of May 1, 2017 (the “Share Sale Agreement”), as amended by an addendum, dated as of June 29, 2017, for a net purchase price of $98.7 million in cash. In addition, 2U South Africa agreed to pay a potential earn out payment of up to $20.0 million, subject to the achievement of certain financial milestones in calendar years 2017 and 2018. The valuation of the assets acquired and liabilities assumed (i.e., purchase price allocation) was completed as of December 31, 2017. As of June 30, 2018, there has been no material change in the expected earnout payment from the final valuation of the purchase price allocation since December 31, 2017. The unaudited pro forma combined financial information below is presented for illustrative purposes and does not purport to represent what the results of operations would actually have been if the business combination occurred as of the dates indicated or what the results would be for any future periods. The following table presents the Company’s unaudited pro forma combined revenue, pro forma combined net loss and pro forma combined net loss per share for the three and six months ended June 30, 2017 as if the acquisition of GetSmarter had occurred on January 1, 2017: Three Months Ended Six Months Ended (in thousands, except per share Pro forma revenue $ $ Pro forma net loss ) ) Pro forma net loss per share, basic and diluted $ ) $ )

Goodwill and Amortizable Intang

Goodwill and Amortizable Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Amortizable Intangible Assets
Goodwill and Amortizable Intangible Assets	4. Goodwill and Amortizable Intangible Assets The table below summarizes the changes in the carrying amount of goodwill by reportable segment: Graduate Short Course Total (in thousands) Balance as of December 31, 2017 $ — $ $ Foreign currency translation adjustments — ) ) Balance as of June 30, 2018 $ — $ $ Amortizable intangible assets consisted of the following as of: June 30, 2018 December 31, 2017 Estimated Gross Accumulated Net Gross Accumulated Net (in thousands) Capitalized technology 3 $ $ ) $ $ $ ) $ Capitalized content development 4-5 ) ) University client relationships 9 ) ) Trade names and domain names 10 ) ) Total amortizable intangible assets, net $ $ ) $ $ $ ) $ Included in the amounts presented above are $30.6 million and $15.6 million of in process capitalized technology and content development as of June 30, 2018 and December 31, 2017, respectively. In the first half of 2018, the Company acquired certain third party technologies to enhance the Company’s proprietary operating system, 2UOS, for aggregate consideration of $9.5 million. These amounts are classified as capitalized technology within amortizable intangible assets, net, on the Company’s condensed consolidated balance sheet. Additionally, during the same period the Company purchased several active websites and additional domains for consideration of $5.7 million to support the marketing efforts of certain graduate programs. As of June 30, 2018, these acquired assets are classified in trade names and domain names within amortizable intangible assets, net, on the Company’s condensed consolidated balance sheets. In the first quarter of 2018, the Company entered into an agreement with WeWork Companies, Inc. (“WeWork”) and Flatiron School, Inc., a wholly owned subsidiary of WeWork, to purchase a perpetual source code license for the Learn.co platform and certain integration software development services for $14.5 million. As of June 30, 2018, the Company has recorded capitalized technology of $13.2 million related to this agreement in amortizable intangible assets, net on the Company’s condensed consolidated balance sheets, of which $4.2 million has been accrued as a current liability. The remaining $1.3 million is payable under the agreement upon the achievement of certain milestones related to the software development services. In addition, the Company entered into a multi-year agreement to purchase Global Access Memberships to WeWork spaces around the world that will be provided to students in 2U-powered online graduate programs, an agreement to offer $5 million in scholarships to certain WeWork community members and employees. In addition, WeWork and the Company plan to collaborate on jointly developing a Future of Learning and Work center. The Company recorded amortization expense related to amortizable intangible assets of $5.5 million and $2.7 million for the three months ended June 30, 2018 and 2017, respectively. The Company recorded amortization expense related to amortizable intangible assets of $10.7 million and $5.1 million for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, the estimated future amortization expense for amortizable intangible assets placed in service is as follows (in thousands): Remainder of 2018 $ 2019 2020 2021 2022 Thereafter Total $

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	5. Commitments and Contingencies Legal Contingencies From time to time, the Company may become involved in legal proceedings or other contingencies in the ordinary course of its business. The Company is not presently involved in any legal proceeding or other contingency that, if determined adversely to it, would individually or in the aggregate have a material adverse effect on its business, operating results, financial condition or cash flows. Accordingly, the Company does not believe that there is a reasonable possibility that a material loss exceeding amounts already recognized may have been incurred as of the date of the balance sheets presented herein. Marketing and Sales Commitments Certain of the agreements entered into between the Company and its university clients in the Graduate Program Segment require the Company to commit to meet certain staffing and spending investment thresholds related to marketing and sales activities. In addition, certain of the agreements in the Graduate Program Segment require the Company to invest up to agreed upon levels in marketing the programs to achieve specified program performance. The Company believes it is currently in compliance with all such commitments. Future Minimum Payments to University Clients Pursuant to certain of the Company’s contracts in the Graduate Program Segment, the Company has made, or is obligated to make, payments to university clients in exchange for contract extensions and various marketing and other rights. As of June 30, 2018, the future minimum payments due to university clients has not materially changed relative to the amounts provided in the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Contingent Payments to University Clients Pursuant to certain of the Company’s contracts in the Graduate Program Segment, the Company would be obligated to make future minimum program payments to a university client in the event that certain program metrics, partially associated with programs not yet launched, are not achieved. Due to the dependency of these calculations on future program launches, the amounts of any associated contingent payments cannot be reasonably estimated at this time.

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt
Debt	6. Debt Lines of Credit Effective in the second quarter of 2018, the Company amended its $25.0 million revolving line of credit agreement to extend the maturity date through September 30, 2018. No amounts were outstanding under this credit agreement as of June 30, 2018 or December 31, 2017. The Company intends to extend this agreement under comparable terms, prior to expiration. Certain of the Company’s operating lease agreements entered into prior to June 30, 2018 require security deposits in the form of cash or an unconditional, irrevocable letter of credit. As of June 30, 2018, the Company has entered into standby letters of credit totaling $15.0 million as security deposits for the applicable leased facilities and in connection with government grants. These letters of credit reduced the aggregate amount the Company may borrow under its revolving line of credit to $10.0 million. The Company’s $1.9 million revolving debt facilities related to the Short Course Segment expired on March 31, 2018 and were not renewed. Government Grants The Company has two outstanding conditional loan agreements with Prince George’s County, Maryland and the State of Maryland, respectively, for an aggregate amount of $3.5 million, each bearing an interest rate of 3% per annum. These agreements are conditional loan obligations that may be forgiven provided that we attain certain conditions related to employment levels at our Lanham, Maryland headquarters. The loan with the State of Maryland has a maturity date of December 31, 2026, and the loan with Prince George’s County, Maryland has a maturity date of June 22, 2027. The interest expense related to these loans for the three and six months ended June 30, 2018 and 2017 is immaterial.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Taxes
Income Taxes	7. Income Taxes The Company’s income tax provisions for all periods consist of federal, state and foreign income taxes. The tax provisions for the three and six months ended June 30, 2018 and 2017 were based on estimated full-year effective tax rates, including the mix of income for the period between higher-taxed and lower-taxed jurisdictions, after giving effect to significant items related specifically to the interim periods, and loss-making entities for which it is not more likely than not that a tax benefit will be realized. The Company’s effective tax rate was approximately 16% and 0% for the three months ended June 30, 2018 and 2017, respectively. The Company’s effective tax rate was approximately 13% and 0% for the six months ended June 30, 2018 and 2017, respectively. A one-time tax benefit of approximately $3.0 million related to an asset acquisition of certain third-party technologies is included in the Company’s income tax benefit for the three and six months ended June 30, 2018. This benefit relates to the reversal of the Company’s tax valuation allowance that was no longer needed as a result of establishing a net deferred tax liability. Excluding the one-time tax benefit, the Company’s tax benefit of $0.6 million and $1.8 million for the three and six months ended June 30, 2018, respectively, related to losses generated by operations and the amortization of acquired intangibles in the Short Course Segment that are expected to be realized through future reversing taxable temporary differences. The Company expects to continue to recognize a tax benefit in the future for the Short Course Segment to the extent that this segment continues to generate pre-tax losses while carrying deferred tax liabilities that are in excess of deferred tax assets. To date, the Company has not been required to pay U.S. federal income taxes because of current and accumulated net operating losses. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). As of June 30, 2018, the Company is still evaluating certain components of the Tax Act; however, it has finalized its determination that no transitional tax is required. As the Company collects and compares necessary data and interprets the Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies, the Company may make adjustments to the provisional amounts recorded.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity
Stockholders' Equity	8. Stockholders’ Equity On May 22, 2018 the Company sold 3,833,334 shares of our common stock to the public, including 500,000 shares sold pursuant to the underwriters’ over-allotment option. The Company received net proceeds of $330.8 million, which the Company intends to use for working capital and other general corporate purposes, including expenditures for graduate program and short course marketing, technology and content development, in connection with new graduate program and short course launches and growing existing graduate programs and short courses as well as the strategic acquisitions of, or investment in, complementary products, technologies, solutions or businesses. As of June 30, 2018, the Company was authorized to issue 205,000,000 total shares of capital stock, consisting of 200,000,000 shares of common stock and 5,000,000 shares of preferred stock. As of June 30, 2018, the Company had reserved a total of 13,037,089 of its authorized shares of common stock for future issuance as follows: Outstanding stock options Possible future issuance under 2014 Equity Incentive Plan Outstanding restricted stock units Available for future issuance under employee stock purchase plan Total shares of common stock reserved for future issuance The shares available for future issuance increased by 2,625,292 and 2,357,579 on January 1, 2018 and 2017, respectively, pursuant to the automatic share reserve increase provision under the 2014 Equity Incentive Plan (the “2014 Plan”).

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Stock-Based Compensation	9. Stock-Based Compensation The Company provides equity-based compensation awards to employees, independent contractors and directors as an effective means for attracting, retaining and motivating such individuals. The Company maintains two share-based compensation plans: the 2014 Plan and the 2008 Stock Incentive Plan (the “2008 Plan”). Upon the effective date of the 2014 Plan in January 2014, the Company ceased using the 2008 Plan to grant new equity awards and began using the 2014 Plan for grants of new equity awards. Employee Stock Purchase Plan The Company’s 2017 Employee Stock Purchase Plan (the “ESPP”) provides (i) for two offering periods each year and (ii) that the purchase price for shares of the Company’s common stock purchased under the ESPP will be 90% of the lesser of the fair market value of 2U’s common stock on the purchase date or the fair market value of 2U’s common stock on the first day of the offering period. Participating eligible employees select a rate of payroll deduction between 1% and 15% of their salary or wage compensation received from the Company as in effect at the start of the offering period, subject to a maximum payroll deduction per calendar year of $25,000. Participation in the ESPP began on January 1, 2018. Stock-Based Compensation Expense Stock-based compensation expense related to stock-based awards is included in the following line items in the condensed consolidated statements of operations and comprehensive loss: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Curriculum and teaching $ $ — $ $ — Servicing and support Technology and content development Marketing and sales General and administrative Total stock-based compensation expense $ $ $ $ Stock Options The following is a summary of the stock option activity for the six months ended June 30, 2018: Number of Weighted-Average Outstanding balance at December 31, 2017 $ Granted Exercised ) Forfeited ) Expired — — Outstanding balance at June 30, 2018 Exercisable at June 30, 2018* * As of June 30, 2018, the aggregate intrinsic value of options exercisable was $231.5 million and such shares had a weighted-average remaining contractual term of 4.73 years. Restricted Stock Units The following is a summary of restricted stock unit activity for the six months ended June 30, 2018: Number of Weighted- Outstanding balance at December 31, 2017 $ Granted Vested ) Forfeited ) Outstanding balance at June 30, 2018

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2018
Net Loss per Share
Net Loss per Share	10. Net Loss per Share Diluted net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive, given the Company’s net loss. The following securities have been excluded from the calculation of weighted-average shares of common stock outstanding because the effect is anti-dilutive for the three and six months ended June 30, 2018 and 2017: Three and Six Months Ended 2018 2017 Stock options Restricted stock units Basic and diluted net loss per share is calculated as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator (in thousands): Net loss $ ) $ ) $ ) $ ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted Net loss per share, basic and diluted $ ) $ ) $ ) $ )

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2018
Segment and Geographic Information
Segment and Geographic Information	11. Segment and Geographic Information The Company’s operations consist of two operating segments and two reportable segments: the Graduate Program Segment and the Short Course Segment. The Company’s Graduate Program Segment provides services to well-recognized nonprofit colleges and universities, primarily in the United States, to enable the online delivery of graduate programs. The Company’s Short Course Segment provides premium online short courses to working professionals around the world through relationships with leading universities in the United States, the United Kingdom and South Africa. During the three months ended June 30, 2018, three university clients in the Graduate Program Segment each accounted for 10% or more of the Company’s consolidated revenue, as follows: $20.4 million, $13.1 million and $10.2 million, which equals 21%, 13% and 10% of the Company’s consolidated revenue, respectively. During the three months ended June 30, 2017, four university clients in the Graduate Program Segment each accounted for 10% or more of the Company’s consolidated revenue, as follows: $19.1 million, $12.1 million, $6.9 million and $6.8 million, which equals 29%, 19%, 11% and 10% of the Company’s consolidated revenue, respectively. During the six months ended June 30, 2018, three university clients in the Graduate Program Segment each accounted for 10% or more of the Company’s consolidated revenue, as follows: $41.1 million, $26.5 million and $19.8 million, which equals 22%, 14% and 10% of the Company’s consolidated revenue, respectively. During the six months ended June 30, 2017, four university clients in the Graduate Program Segment each accounted for 10% or more of the Company’s consolidated revenue, as follows: $38.8 million, $23.8 million, $13.8 million and $13.2 million, which equals 30%, 18%, 11% and 10% of the Company’s consolidated revenue, respectively. As of June 30, 2018, two university clients in the Graduate Program Segment accounted for 10% or more of the Company’s consolidated accounts receivable, net balance, as follows: $26.5 million and $7.5 million, which equals 53% and 15% of the Company’s consolidated accounts receivable, net balance, respectively. As of December 31, 2017, two university clients in the Graduate Program Segment each accounted for 10% or more of the Company’s consolidated accounts receivable, net balance, as follows: $9.4 million and $2.0 million, which equals 67% and 14% of the Company’s consolidated accounts receivable, net balance, respectively. For the Company’s Short Course Segment, there were no customers that accounted for 10% or more of the Company’s consolidated revenue for the three and six month periods ending June 30, 2018 and 2017, or accounts receivable, net balance, as of June 30, 2018 and December 31, 2017, as such amounts are derived from individual students or third parties paying on their behalf, rather than directly from university clients. For the three months ended June 30, 2018, revenue associated with the short courses offered with the Company’s three largest university clients in this segment accounted for approximately 83% of the segment’s revenue and approximately 14% of the Company’s consolidated revenue. For the six months ended June 30, 2018, revenue associated with the short courses offered with the Company’s three largest university clients in this segment accounted for approximately 83% of the segment’s revenue and approximately 12% of the Company’s consolidated revenue. In this segment, no individual university client had revenue associated with it that accounted for 10% or more of the Company’s consolidated revenue for the three and six months ended June 30, 2018. Segment Performance The following table summarizes financial information regarding each reportable segment’s results of operations for the periods presented: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Revenue by segment* Graduate Program Segment $ $ $ $ Short Course Segment — — Total revenue $ $ $ $ Segment profitability** Graduate Program Segment $ ) $ ) $ ) $ Short Course Segment — ) — Total segment profitability $ ) $ ) $ ) $ Segment profitability margin*** Graduate Program Segment )% )% )% % Short Course Segment — ) — Total segment profitability margin )% )% )% % * The Company did not have any material intersegment revenues for any periods presented. ** The Company evaluates segment profitability as net income or net loss, as applicable, before net interest income (expense), taxes, depreciation and amortization, foreign currency gains or losses, acquisition-related gains or losses and stock-based compensation expense. Some or all of these items may not be applicable in any given reporting period. *** The Company defines segment profitability margin as segment profitability as a percentage of consolidated revenue. The following table reconciles net loss to total segment profitability: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Net loss $ ) $ ) $ ) $ ) Adjustments: Interest income ) ) ) ) Interest expense Foreign currency loss Depreciation and amortization expense Income tax benefit ) — ) — Stock-based compensation expense Total adjustments Total segment profitability $ ) $ ) $ ) $ The Company’s total assets by segment are as follows: June 30, December 31, (in thousands) Total assets Graduate Program Segment $ $ Short Course Segment Total assets $ $ Contract Assets and Liabilities The Company’s contract assets and liabilities in each segment are as follows: June 30, December 31, (in thousands) Contract assets Graduate Program Segment accounts receivable, net $ $ Graduate Program Segment unbilled revenue Short Course Segment accounts receivable, net Total contract assets $ $ Contract liabilities Graduate Program Segment deferred revenue $ $ Short Course Segment deferred revenue Total contract liabilities $ $ For the Graduate Program Segment, revenue recognized during the three and six months ended June 30, 2018 that was included in the deferred revenue balance at the beginning of the year was $0.0 million and $2.5 million, respectively. For the Short Course Segment, revenue recognized during the three and six months ended June 30, 2018 that was included in the deferred revenue balance at the beginning of the year was $0.0 million and $4.5 million, respectively. Contract Acquisition Costs The Graduate Program Segment had $0.3 million of net capitalized contract acquisition costs as of June 30, 2018. For the three months ended June 30, 2018, the Company capitalized $0.2 million and recorded no amortization expense in the Graduate Program Segment. For the six months ended June 30, 2018, the Company capitalized $0.3 million and recorded no amortization expense in the Graduate Program Segment. Geographical Information The Company’s non-U.S. revenue for the three and six months ended June 30, 2018, determined based upon the university client’s functional currency, was $9.8 million and $17.2 million, respectively, entirely from the Short Course Segment’s operations outside of the U.S. The Company did not have non-U.S. revenue for the three and six months ended June 30, 2017. The Company’s long-lived assets in non-U.S. countries as of June 30, 2018 and December 31, 2017 totaled approximately $1.1 million and $0.7 million, respectively.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Significant Accounting Policies
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (“SEC”). They include the assets, liabilities, results of operations and cash flows of the Company, including its wholly owned subsidiaries. As permitted under such rules, certain notes and other financial information normally required by U.S. GAAP have been condensed or omitted. The Company believes the condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and six months ended June 30, 2018 and 2017 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. All significant intercompany accounts and transactions have been eliminated in consolidation. The year-end condensed consolidated balance sheet data was derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP.
Reclassifications	Reclassifications The Company has reclassified capitalized technology and content development, as well as other amortizable intangible assets, into amortizable intangible assets on the condensed consolidated statements of cash flows for the six months ended June 30, 2017. In addition, certain other prior period amounts on the condensed consolidated statements of cash flows have been reclassified to conform to the current period’s presentation. These reclassifications had no impact on cash flows from operating, investing or financing activities previously reported for any periods presented.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported herein. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. The Company evaluates its estimates and assumptions on an ongoing basis.
Restricted Cash	Restricted Cash As of June 30, 2018 and December 31, 2017, the Company held restricted cash balances of $0.1 million and zero dollars, respectively. As of June 30, 2017, the Company held a restricted cash balance of $101.0 million in connection with the Company’s acquisition of GetSmarter on July 1, 2017.
Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts	Revenue Recognition, Accounts Receivable and Allowance for Doubtful Accounts On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the related amendments using the modified retrospective transition method and has concluded that doing so did not have a material impact on the amount and timing of either its revenue or costs. As part of its assessment, the Company completed reviews of its contracts and evaluated its costs, including costs of obtaining contracts with its university clients and costs associated with content development. Certain of these contract and content costs will be capitalized under the new standard. The adoption of ASU 2014-09 did not have a material impact as of January 1, 2018, and no cumulative adjustment was recorded. Further, the amounts reported as of June 30, 2018 on the condensed consolidated balance sheets and the results of operations for the three and six months ended June 30, 2018 reported on the condensed consolidated statements of operations and comprehensive loss would not have been materially different than under legacy U.S. GAAP (i.e., Topic 605). The Company generates substantially all of its revenue from contractual arrangements with either its university clients or students to provide a comprehensive platform of tightly integrated technology and technology-enabled services that support its graduate programs and short courses. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Graduate Program Segment derives revenue primarily from contractually specified percentages of the amounts the Company’s university clients receive from their students in 2U-enabled graduate programs for tuition and fees, less credit card fees and other specified charges the Company has agreed to exclude in certain university client contracts. The Company’s contracts with university clients in this segment have 10 to 15 year initial terms and have a single performance obligation, as the promises to provide a platform of tightly integrated technology and services university clients need to attract, enroll, educate and support students are not distinct within the context of the contracts. The single performance obligation is delivered as the university clients receive and consume benefits, which occurs ratably over a series of academic terms. The amounts received from university clients over the term of the arrangement are variable in nature in that they are dependent upon the number of students that are enrolled in the program within each academic term. These amounts are allocated to and are recognized ratably over the related academic term, defined as the period beginning on the first day of classes through the last. A refund allowance is established for the Company’s share of tuition and fees ultimately uncollected by university clients. The Short Course Segment derives revenue directly from contracts with students for the tuition and fees paid to enroll in and progress through the Company’s short courses which run between six and 16 weeks. The Company’s contracts with students in this segment have multiple performance obligations as the delivery of the short course and student support services are each considered distinct performance obligations. These performance obligations are each satisfied ratably over the same short course presentation period, which is defined as the period beginning on the first day of the course through the last. The Company recognizes the gross proceeds received from the students and shares contractually specified percentages with its university clients, for providing short course content and certification, in the form of a royalty recognized as curriculum and teaching costs on the Company’s condensed consolidated statements of operations and comprehensive loss. The Company’s contracts with university clients in this segment are typically shorter and less restrictive than the Company’s contracts with university clients in the Graduate Program Segment. The Company does not disclose the value of unsatisfied performance obligations for the Graduate Program Segment because the variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The Company does not disclose the value of unsatisfied performance obligations for the Short Course Segment because the performance obligation is part of a contract that has an original duration of less than one year. Contract Acquisition Costs The Company pays commissions to certain of its employees to obtain contracts with university clients in the Graduate Program Segment. These costs are capitalized and recorded on a contract-by-contract basis and amortized using the straight-line method over the expected life, which is generally the length of the contract. With respect to contract acquisition costs in the Short Course Segment, the Company has elected to apply the practical expedient in ASC Topic 606 to expense these costs as incurred, as the terms of contracts with students in this segment are less than one year. Payments to University Clients Pursuant to certain of the Company’s contracts in the Graduate Program Segment, the Company has made, or is obligated to make, payments to university clients in exchange for contract extensions and various marketing and other rights. Generally, these amounts are capitalized and amortized as contra revenue over the life of the contract, commencing on the later of when payment is due or when contract revenue recognition begins. Accounts Receivable, Contract Assets and Liabilities Balance sheet items related to contracts consist of accounts receivable, net and deferred revenue on the Company’s condensed consolidated balance sheets. The Company’s accounts receivable, net also includes unbilled revenue. Accounts receivable, net is stated at net realizable value, and the Company utilizes the allowance method to provide for doubtful accounts based on management’s evaluation of the collectability of the amounts due. The Company’s estimates are reviewed and revised periodically based on historical collection experience and a review of the current status of accounts receivable, net. Historically, actual write-offs for uncollectible accounts have not significantly differed from prior estimates. The Company recognizes unbilled revenue when revenue recognition occurs in advance of billings. Unbilled revenue is recognized in the Graduate Program Segment because billings to university clients do not occur until after the academic term has commenced and final enrollment information is available. Deferred revenue as of each balance sheet date represents the excess of amounts billed or received as compared to amounts recognized in revenue on the condensed consolidated statements of operations and comprehensive loss as of the end of the reporting period, and such amounts are reflected as a current liability on the Company’s condensed consolidated balance sheets. The Company generally receives payments for its share of tuition and fees from graduate program university clients early in each academic term and from short course students, either in full upon registration for the course or in full before the end of the course based on a payment plan, prior to completion of the service period. These payments are recorded as deferred revenue until the services are delivered or until the Company’s obligations are otherwise met, at which time revenue is recognized.
Capitalized Content Development	Capitalized Content Development The Company develops content for each offering on a course-by-course basis in conjunction with the faculty for each graduate program and short course. University clients and their faculty generally provide materials used for the course in an on-campus setting, including curricula, case studies and other reading materials, and presentations. The Company is responsible for the conversion of the materials into a format suitable for delivery through its online learning platform, including all expenses associated with this effort. With regard to the Graduate Program Segment, the development of content is part of the Company’s single performance obligation and is considered a contract fulfillment cost. The content development costs that qualify for capitalization are third-party direct costs, such as videography, editing and other services associated with creating digital content. Additionally, the Company capitalizes internal payroll and payroll-related costs incurred to create and produce videos and other digital content utilized in the university clients’ offerings for delivery via the Company’s online learning platform. Capitalization ends when content has been fully developed by both the Company and the university client, at which time amortization of the capitalized content development costs begins. The capitalized costs for each offering are recorded on a course-by-course basis and included in capitalized content costs in amortizable intangible assets, net on the Company’s condensed consolidated balance sheets. These costs are amortized using the straight-line method over the estimated useful life of the respective course, which is generally four to five years. The estimated useful life corresponds with the planned curriculum refresh rate. This refresh rate is consistent with expected curriculum refresh rates as cited by faculty members for similar on-campus offerings. It is reasonably possible that developed content could be refreshed before the estimated useful lives are complete or be expensed immediately in the event that the development of a course is discontinued prior to launch.
Marketing and Sales Costs	Marketing and Sales Costs The majority of the marketing and sales costs incurred by the Company are directly related to acquiring students for its university clients’ graduate programs, with lesser amounts related to acquiring students for its short courses and marketing and advertising efforts related to the Company’s own brand. For the six months ended June 30, 2018, costs related to the Company’s marketing and advertising of its own brand were not material. All such costs are expensed as incurred and reported in marketing and sales expense on the Company’s condensed consolidated statements of operations and comprehensive loss. As of June 30, 2018 and December 31, 2017, the Company had $12.3 million and $11.7 million, respectively, of accrued marketing costs included in accounts payable and accrued expenses on the Company’s condensed consolidated balance sheets.
Non-Cash Long-Lived Asset Additions	Non-Cash Long-Lived Asset Additions During the six months ended June 30, 2018, the Company had capital asset additions of $55.2 million in property and equipment and capitalized technology and content development, of which $10.0 million consisted of non-cash capital expenditures, primarily related to the acquisition of certain long-lived assets for which a liability was accrued. During the six months ended June 30, 2017, the Company had capital asset additions of $31.6 million in property and equipment and capitalized technology and content development, of which $5.3 million consisted of non-cash capital expenditures.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments to nonemployees. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact that this standard will have on its consolidated financial position or related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates step two from the goodwill impairment test and requires an entity to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value, up to the amount of goodwill allocated to that reporting unit. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is evaluating the impact that this standard will have on its consolidated financial position or related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice surrounding how certain transactions are classified in the statement of cash flows. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017. The Company adopted this ASU on January 1, 2018. Adoption of this standard did not have a material impact on the Company’s condensed consolidated statements of cash flows or related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU introduces a model for lessees requiring most leases to be reported on the balance sheet. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and the Company will adopt this ASU in the first quarter of 2019. The Company is currently evaluating the effect that this ASU will have on its consolidated financial position and related disclosures and is in the process of considering changes to its systems and processes in conjunction with the review of its lease agreements. The Company believes that this standard may materially increase its other non-current assets and non-current liabilities on the consolidated balance sheets in order to record right-of-use assets and related liabilities for its existing operating leases, however, the standard is not expected to have a material impact on the Company’s results of operations or cash flows.

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combination
Schedule of unaudited pro forma combined revenue and net loss	Three Months Ended Six Months Ended (in thousands, except per share Pro forma revenue $ $ Pro forma net loss ) ) Pro forma net loss per share, basic and diluted $ ) $ )

Goodwill and Amortizable Inta21

Goodwill and Amortizable Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Amortizable Intangible Assets
Schedule of Changes in goodwill	Graduate Short Course Total (in thousands) Balance as of December 31, 2017 $ — $ $ Foreign currency translation adjustments — ) ) Balance as of June 30, 2018 $ — $ $
Schedule of amortizable intangible assets	June 30, 2018 December 31, 2017 Estimated Gross Accumulated Net Gross Accumulated Net (in thousands) Capitalized technology 3 $ $ ) $ $ $ ) $ Capitalized content development 4-5 ) ) University client relationships 9 ) ) Trade names and domain names 10 ) ) Total amortizable intangible assets, net $ $ ) $ $ $ ) $
Schedule of estimated future amortization expense for amortizable intangible assets	As of June 30, 2018, the estimated future amortization expense for amortizable intangible assets placed in service is as follows (in thousands): Remainder of 2018 $ 2019 2020 2021 2022 Thereafter Total $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity
Schedule of shares of common stock reserved for future issuance	As of June 30, 2018, the Company had reserved a total of 13,037,089 of its authorized shares of common stock for future issuance as follows: Outstanding stock options Possible future issuance under 2014 Equity Incentive Plan Outstanding restricted stock units Available for future issuance under employee stock purchase plan Total shares of common stock reserved for future issuance

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Stock-Based Compensation
Schedule of stock-based compensation expense included in the consolidated statements of operations and comprehensive loss	Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Curriculum and teaching $ $ — $ $ — Servicing and support Technology and content development Marketing and sales General and administrative Total stock-based compensation expense $ $ $ $
Summary of stock option activity	Number of Weighted-Average Outstanding balance at December 31, 2017 $ Granted Exercised ) Forfeited ) Expired — — Outstanding balance at June 30, 2018 Exercisable at June 30, 2018* * As of June 30, 2018, the aggregate intrinsic value of options exercisable was $231.5 million and such shares had a weighted-average remaining contractual term of 4.73 years.
Summary of restricted stock unit activity	Number of Weighted- Outstanding balance at December 31, 2017 $ Granted Vested ) Forfeited ) Outstanding balance at June 30, 2018

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Net Loss per Share
Schedule of potential dilutive securities that would have been anti-dilutive due to net loss	Three and Six Months Ended 2018 2017 Stock options Restricted stock units
Schedule of calculation of basic and diluted net loss per share	Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator (in thousands): Net loss $ ) $ ) $ ) $ ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted Net loss per share, basic and diluted $ ) $ ) $ ) $ )

Segment and Geographic Inform25

Segment and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment and Geographic Information
Schedule of revenue, segment profitability and segment profitability margin by segment	Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Revenue by segment* Graduate Program Segment $ $ $ $ Short Course Segment — — Total revenue $ $ $ $ Segment profitability** Graduate Program Segment $ ) $ ) $ ) $ Short Course Segment — ) — Total segment profitability $ ) $ ) $ ) $ Segment profitability margin*** Graduate Program Segment )% )% )% % Short Course Segment — ) — Total segment profitability margin )% )% )% % * The Company did not have any material intersegment revenues for any periods presented. ** The Company evaluates segment profitability as net income or net loss, as applicable, before net interest income (expense), taxes, depreciation and amortization, foreign currency gains or losses, acquisition-related gains or losses and stock-based compensation expense. Some or all of these items may not be applicable in any given reporting period. *** The Company defines segment profitability margin as segment profitability as a percentage of consolidated revenue.
Schedule of reconciliation of net loss to total segment profitability	Three Months Ended Six Months Ended 2018 2017 2018 2017 (in thousands) Net loss $ ) $ ) $ ) $ ) Adjustments: Interest income ) ) ) ) Interest expense Foreign currency loss Depreciation and amortization expense Income tax benefit ) — ) — Stock-based compensation expense Total adjustments Total segment profitability $ ) $ ) $ ) $
Schedule of total assets by segment	June 30, December 31, (in thousands) Total assets Graduate Program Segment $ $ Short Course Segment Total assets $ $
Schedule of contract assets and liabilities	June 30, December 31, (in thousands) Contract assets Graduate Program Segment accounts receivable, net $ $ Graduate Program Segment unbilled revenue Short Course Segment accounts receivable, net Total contract assets $ $ Contract liabilities Graduate Program Segment deferred revenue $ $ Short Course Segment deferred revenue Total contract liabilities $ $

Organization, Basis of Presenta

Organization, Basis of Presentation and Recent Accounting Pronouncements (Details)	6 Months Ended
	Jun. 30, 2018segment
Organization
Number of operating segments	2
Number of reportable segments	2

Significant Accounting Polici27

Significant Accounting Policies (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Restricted Cash and Investments [Abstract]
Restricted cash	$ 0.1	$ 101	$ 0
Non-Cash Long-Lived Asset Additions
Capital asset additions during the period	$ 55.2	31.6
Minimum
Amortizable Intangible Assets
Useful life of capitalized content development costs	4 years
Maximum
Amortizable Intangible Assets
Useful life of capitalized content development costs	5 years
Accounts payable and accrued expenses
Marketing and Sales Costs
Accrued marketing costs	$ 12.3		$ 11.7
Leasehold improvements
Non-Cash Long-Lived Asset Additions
Capital asset additions during the period		$ 5.3
Landlord funded leasehold improvements
Non-Cash Long-Lived Asset Additions
Non-cash capital expenditure	$ 10
Graduate Program Segment | Minimum
Performance Obligations
Period of contract with university clients	10 years
Graduate Program Segment | Maximum
Performance Obligations
Period of contract with university clients	15 years
Short Course Segment | Minimum
Performance Obligations
Period of contract with university clients	42 days
Short Course Segment | Maximum
Performance Obligations
Period of contract with university clients	112 days

Business Combination - Estimate

Business Combination - Estimated fair values of the assets acquired and liabilities assumed (Details) - GetSmarter $ in Millions	Jul. 01, 2017USD ($)
Acquisition
Cash consideration	$ 98.7
Potential earn-out payment	$ 20

Business Combination - Pro form

Business Combination - Pro forma combined revenue and net loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Business Combination
Pro forma revenue	$ 68,481	$ 137,518
Pro forma net loss	$ (14,610)	$ (19,367)
Pro forma net loss per share, basic and diluted	$ (0.31)	$ (0.41)

Goodwill and Amortizable Inta30

Goodwill and Amortizable Intangible Assets - Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Amortizable Intangible Assets
Balance as of December 31, 2017	$ 71,988
Foreign currency translation adjustments	(7,115)
Balance as of June 30, 2018	64,873
Gross Carrying Amount	169,327	$ 124,542
Accumulated Amortization	(43,265)	(33,781)
Net Carrying Amount	$ 126,062	90,761
Capitalized technology
Goodwill and Amortizable Intangible Assets
Estimated Average Useful Life (in years)	3 years
Gross Carrying Amount	$ 59,549	27,108
Accumulated Amortization	(12,269)	(9,486)
Net Carrying Amount	47,280	17,622
Capitalized content development
Goodwill and Amortizable Intangible Assets
Gross Carrying Amount	65,981	55,872
Accumulated Amortization	(25,988)	(21,417)
Net Carrying Amount	$ 39,993	34,455
Capitalized content development | Minimum
Goodwill and Amortizable Intangible Assets
Estimated Average Useful Life (in years)	4 years
Capitalized content development | Maximum
Goodwill and Amortizable Intangible Assets
Estimated Average Useful Life (in years)	5 years
University client relationships
Goodwill and Amortizable Intangible Assets
Estimated Average Useful Life (in years)	9 years
Gross Carrying Amount	$ 26,757	29,443
Accumulated Amortization	(2,973)	(1,636)
Net Carrying Amount	$ 23,784	27,807
Trade names and domain names
Goodwill and Amortizable Intangible Assets
Estimated Average Useful Life (in years)	10 years
Gross Carrying Amount	$ 17,040	12,119
Accumulated Amortization	(2,035)	(1,242)
Net Carrying Amount	15,005	10,877
In process capitalized technology and content development
Goodwill and Amortizable Intangible Assets
Net Carrying Amount	30,600	$ 15,600
Short Course Segment
Goodwill and Amortizable Intangible Assets
Balance as of December 31, 2017	71,988
Foreign currency translation adjustments	(7,115)
Balance as of June 30, 2018	$ 64,873

Goodwill and Amortizable Inta31

Goodwill and Amortizable Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Payments made for acquisition of software				$ 9,500
Purchase of website and domains				5,700
Amortization expense	$ 5,500		$ 2,700	10,700	$ 5,100
Future amortization expense
Net Carrying Amount	126,062			126,062		$ 90,761
Excluding in process capitalized technology and content development
Future amortization expense
Remainder of 2018	12,531			12,531
2,019	20,973			20,973
2,020	17,978			17,978
2,021	13,665			13,665
2,022	9,924			9,924
Thereafter	20,362			20,362
Net Carrying Amount	95,433			95,433
WeWork Companies, Inc.
Finite-Lived Intangible Assets [Line Items]
Agreement to offer scholarships				5,000
Flatiron School, Inc | Software development license and services agreement
Finite-Lived Intangible Assets [Line Items]
License and service cost		$ 14,500
Payments made for acquisition of software				13,200
Accrued liability current	4,200			4,200
Outstanding license and software services Consideration	$ 1,300			$ 1,300

Debt (Details)

Debt (Details) $ in Thousands	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Lines of Credit
Aggregate borrowing base	$ 25,000
Amount outstanding	0	$ 0
Security deposit	$ 15,000
Government Grants
Number of government grants | item	2
Amount of loan	$ 3,500	3,500
Prince George's County, Maryland
Government Grants
Loan interest rate (in percentage)	3.00%
Department of Commerce
Government Grants
Loan interest rate (in percentage)	3.00%
Standby letters of credit
Lines of Credit
Aggregate borrowing base	$ 10,000
Short Course Segment | Revolving working capital facility
Lines of Credit
Aggregate borrowing base		$ 1,900

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Taxes
Income tax benefit	$ (3,565)		$ (4,793)
Tax benefit related to intangible assets and others	$ (600)		$ (1,800)
U.S. statutory federal income tax rate (as a percent)	16.00%	0.00%	13.00%	0.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	May 22, 2018	Jan. 01, 2018	Jan. 01, 2017	Jun. 30, 2018	Dec. 31, 2017
Stockholders' Equity
Proceeds from issuance of common stock, net of offering costs				$ 330,862
Authorized shares of capital stock				205,000,000
Authorized shares of common stock				200,000,000	200,000,000
Authorized shares of preferred stock				5,000,000	5,000,000
Shares of common stock reserved for future issuance
Outstanding stock options				4,659,638
Possible future issuance under 2014 Equity Incentive Plan				6,096,824
Outstanding restricted stock units				1,280,627
Available for future issuance under employee stock purchase plan				1,000,000
Total shares of common stock reserved for future issuance				13,037,089
Stock options
Stockholders equity compensation
Granted (in shares)				655,524
Weighted-average exercise price (in dollars per share)				$ 84.12
Equity Incentive Plan 2014 | Stock options
Stockholders equity compensation
Granted (in shares)		2,625,292
Weighted-average exercise price (in dollars per share)			$ 2,357,579
Common Stock
Stockholders' Equity
Shares issued	3,833,334			3,833,334
Proceeds from issuance of common stock, net of offering costs	$ 330,800
Common Stock | Underwriters' over-allotment option
Stockholders' Equity
Shares issued	500,000

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details)	Jun. 05, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Number of share-based employee compensation plans | item		2		2
Percentage of purchase price to fair market value	90.00%
Maximum payroll deduction amount per calendar year	$ 25,000
Stock-based compensation expense		$ 9,009,000	$ 5,495,000	$ 16,131,000	$ 9,390,000
Curriculum and teaching
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Stock-based compensation expense		5,000		7,000
Servicing and support
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Stock-based compensation expense		1,320,000	1,161,000	2,192,000	1,856,000
Technology and content development
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Stock-based compensation expense		1,075,000	897,000	1,786,000	1,543,000
Marketing and sales
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Stock-based compensation expense		718,000	430,000	1,207,000	772,000
General and administrative
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Stock-based compensation expense		$ 5,891,000	$ 3,007,000	$ 10,939,000	$ 5,219,000
Minimum
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Percentage of payroll deduction	1.00%
Maximum
Stock-based compensation expense included in the unaudited condensed consolidated statements of operations
Percentage of payroll deduction	15.00%

Stock-Based Compensation - Othe

Stock-Based Compensation - Other (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Stock options
Number of Options
Outstanding balance at the beginning of the period (in shares) | shares	4,559,176
Granted (in shares) | shares	655,524
Exercised (in shares) | shares	(501,531)
Forfeited (in shares) | shares	(53,531)
Outstanding balance at the end of the period (in shares) | shares	4,659,638
Exercisable at the end of the period (in shares) | shares	3,201,819
Weighted Average Exercise Price per Share
Outstanding balance at the beginning of the period (in dollars per share) | $ / shares	$ 15.10
Granted (in dollars per share) | $ / shares	84.12
Exercised (in dollars per share) | $ / shares	9.56
Forfeited (in dollars per share) | $ / shares	35.69
Outstanding balance at the end of the period (in dollars per share) | $ / shares	25.17
Exercisable at the end of the period (in dollars per share) | $ / shares	$ 11.26
Weighted Average Remaining Contractual Term (in years)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 8 months 23 days
Aggregate Intrinsic Value
Exercisable at the end of the period | $	$ 231.5
Restricted Stock Units
Summary of restricted stock unit activity
Outstanding balance at the beginning of the period (in shares) | shares	1,413,423
Granted (in shares) | shares	440,818
Vested (in shares) | shares	(517,050)
Forfeited (in shares) | shares	(56,564)
Outstanding balance at the end of the period (in shares) | shares	1,280,627
Weighted-Average Grant-Date Fair value
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 29.95
Granted (in dollars per share) | $ / shares	81.39
Vested (in dollars per share) | $ / shares	23.34
Forfeited (in dollars per share) | $ / shares	36.38
Outstanding at the end of the period (in dollars per share) | $ / shares	$ 50.04

Net Loss per Share - Antidiluti

Net Loss per Share - Antidilutive (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restricted Stock Units
Potential dilutive securities that would have been anti-dilutive
Potential dilutive securities that would have been anti-dilutive due to net loss (in shares)	1,280,627	1,355,393	1,280,627	1,355,393
Stock options
Potential dilutive securities that would have been anti-dilutive
Potential dilutive securities that would have been anti-dilutive due to net loss (in shares)	4,659,638	5,095,909	4,659,638	5,095,909

Net Loss per Share - Other (Det

Net Loss per Share - Other (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator (in thousands):
Net loss	$ (18,347)	$ (11,754)	$ (33,218)	$ (15,193)
Denominator:
Weighted-average shares of common stock outstanding, basic and diluted	54,981,192	47,668,397	53,840,582	47,454,059
Net loss per share, basic and diluted (in dollars per share)	$ (0.33)	$ (0.25)	$ (0.62)	$ (0.32)

Segment and Geographic Inform39

Segment and Geographic Information - Concentration Risk (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)client	Jun. 30, 2017USD ($)client	Jun. 30, 2018USD ($)segmentclient	Jun. 30, 2017USD ($)client	Dec. 31, 2017USD ($)client
Segment Information
Number of operating segments | segment			2
Number of reportable segments | segment			2
Revenue	$ 97,423	$ 64,995	$ 189,711	$ 129,824
Accounts receivable, net	50,031		50,031		$ 14,174
Graduate Program Segment
Segment Information
Revenue	81,209	$ 64,995	161,768	$ 129,824
Accounts receivable, net	34,758		34,758		12,520
Short Course Segment
Segment Information
Revenue	16,214		27,943
Accounts receivable, net	$ 1,277		$ 1,277		$ 988
Customer concentration risk | Revenue | Graduate Program Segment
Segment Information
Number of clients who account for more then 10% | client	3	4	3	4
Percentage of concentration of credit risk	10.00%	10.00%	10.00%	10.00%
Customer concentration risk | Revenue | Short Course Segment
Segment Information
Number of clients who account for more then 10% | client	0		0
Percentage of concentration of credit risk	10.00%		10.00%
Customer concentration risk | Accounts receivable, net | Short Course Segment
Segment Information
Accounts receivable, net	$ 0		$ 0
Customer concentration risk | Revenue Segment | Short Course Segment
Segment Information
Number of clients who account for more then 10% | client	3		3
Credit concentration risk | Accounts receivable, net | Graduate Program Segment
Segment Information
Number of clients who account for more then 10% | client			2		2
Percentage of concentration of credit risk			10.00%		10.00%
Credit concentration risk | Accounts receivable, net | Short Course Segment
Segment Information
Percentage of concentration of credit risk	10.00%		10.00%
University client A | Customer concentration risk | Revenue | Graduate Program Segment
Segment Information
Revenue	$ 20,400	$ 19,100	$ 41,100	$ 38,800
Percentage of concentration of credit risk	21.00%	29.00%	22.00%	30.00%
University client A | Customer concentration risk | Revenue | Short Course Segment
Segment Information
Percentage of concentration of credit risk	14.00%		12.00%
University client A | Customer concentration risk | Revenue Segment | Short Course Segment
Segment Information
Percentage of concentration of credit risk	83.00%		83.00%
University client A | Credit concentration risk | Accounts receivable, net | Graduate Program Segment
Segment Information
Accounts receivable, net	$ 26,500		$ 26,500		$ 9,400
Percentage of concentration of credit risk			53.00%		67.00%
University client B | Customer concentration risk | Revenue | Graduate Program Segment
Segment Information
Revenue	$ 13,100	$ 12,100	$ 26,500	$ 23,800
Percentage of concentration of credit risk	13.00%	19.00%	14.00%	18.00%
University client B | Credit concentration risk | Accounts receivable, net | Graduate Program Segment
Segment Information
Accounts receivable, net	$ 7,500		$ 7,500		$ 2,000
Percentage of concentration of credit risk			15.00%		14.00%
University client C | Customer concentration risk | Revenue | Graduate Program Segment
Segment Information
Revenue	$ 10,200	$ 6,900	$ 19,800	$ 13,800
Percentage of concentration of credit risk	10.00%	11.00%	10.00%	11.00%
University client D | Customer concentration risk | Revenue | Graduate Program Segment
Segment Information
Revenue		$ 6,800		$ 13,200
Percentage of concentration of credit risk		10.00%		10.00%

Segment and Geographic Inform40

Segment and Geographic Information - Revenue and Total assets by segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenue by segment
Total segment revenue	$ 97,423	$ 64,995	$ 189,711	$ 129,824
Adjusted EBITDA (loss) by segment
Total adjusted EBITDA (loss)	(5,555)	(1,497)	(7,077)	2,411
Net loss
Net loss	(18,347)	(11,754)	(33,218)	(15,193)
Adjustments
Interest income	912	53	1,254	249
Interest expense	27	1	54	1
Foreign currency loss	825	1,031	1,220	1,031
Depreciation and amortization expense	7,408	3,783	14,783	7,431
Income tax benefit	(3,565)		(4,793)
Stock-based compensation expense	9,009	5,495	16,131	9,390
Total adjustments	$ 12,792	$ 10,257	$ 26,141	$ 17,604
Segment profitability margin
Total segment profitability margin	(5.70%)	(2.30%)	(3.70%)	1.90%
Total assets
Total assets	$ 825,464		$ 825,464		$ 482,062
Contract assets
Accounts receivable, net	50,031		50,031		14,174
Contract assets	49,811		49,811		14,174
Contract liabilities
Contract liabilities	30,862		30,862		7,024
Graduate Program Segment
Revenue by segment
Total segment revenue	81,209	$ 64,995	161,768	$ 129,824
Adjusted EBITDA (loss) by segment
Total adjusted EBITDA (loss)	$ (5,905)	$ (1,497)	$ (6,179)	$ 2,411
Segment profitability margin
Total segment profitability margin	(6.10%)	(2.30%)	(3.20%)	1.90%
Total assets
Total assets	$ 711,291		$ 711,291		359,597
Contract assets
Accounts receivable, net	34,758		34,758		12,520
unbilled revenue	13,776		13,776		666
Contract liabilities
Contract liabilities	22,829		22,829		2,523
Movement from deferred revenue
Deferred revenue reclassified to revenue	0		2,500
Contract Acquisition Costs
Capitalized contract acquisition costs	200		300
Amortization expense of capitalized contract cost	0		0
Short Course Segment
Revenue by segment
Total segment revenue	16,214		27,943
Adjusted EBITDA (loss) by segment
Total adjusted EBITDA (loss)	$ 350		$ (898)
Segment profitability margin
Total segment profitability margin	0.40%		(0.50%)
Total assets
Total assets	$ 114,173		$ 114,173		122,465
Contract assets
Accounts receivable, net	1,277		1,277		988
Contract liabilities
Contract liabilities	8,033		8,033		$ 4,501
Movement from deferred revenue
Deferred revenue reclassified to revenue	$ 0		$ 4,500

Segment and Geographic Inform41

Segment and Geographic Information - Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Geographical Information
Revenue	$ 97,423	$ 64,995	$ 189,711	$ 129,824
Short Course Segment
Geographical Information
Revenue	16,214		27,943
Short Course Segment | Non-US
Geographical Information
Revenue	9,800		17,200
Long-lived assets	$ 1,100		$ 1,100		$ 700