ZVO - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Zovio Q4 2020 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Alanna Vitucci, VP of Corporate Communications.

Alanna Vitucci

afternoon. good and you Thank Zovio’s fourth issued company’s earnings was year at and today and full earlier the XXXX is www.zovio.com. release quarter posted website on

and grow are Joining considered Financial Chief forward-looking, may the would you Clark, services; call through student retention; our University and our statements statements on ability integrate new remind and We to EBITDA, financial successfully Officer; today companies, enrollment including the to later. some presentation growth; me number forward-looking or to applicable Founder, to by Kevin or the and and Officer. President be regarding that acquired related Chief future acquisitions; growth, future only like to these other ability Royal, light Partners could leverage guidance, laws. we These subject the differ Executive information speak new results statements obligation that programs undertake extent required and uncertainties in of today the forward-looking Andrew statements. and and of of make regarding commentary that and actual statements of update from and Please date are as events, a forward-looking performance cause or to no securities we suggested forward-looking materially to statements in these year fiscal of expressed risks by this those revenue XXXX except note

not financial which annual our earnings measures XX-K Please factors our including we that affect for Note a filed supplement measures. our On GAAP. considered these the results. SEC you on may intended today our description the non-GAAP XXXX, with ended of for non-GAAP measures, GAAP the more find we and for Form financial substitute these information financial report In to earlier of regarding measures certain today, that these additional December reconciliations should filings, GAAP to refer including XX, detailed risk year a with as be call results. SEC discuss will the our will release, are disclosures U.S.

obtain section At the introduce time, Clark. pleasure or may President visiting copies our website. my it Investor to is by Andrew CEO, Relations and You this SEC Zovio’s from the Founder, of

Andrew Clark

welcome Thank earnings full to and year And fourth XXXX Alanna. call. Zovio’s quarter you,

On Kevin as as our XXXX. I discuss a our will the the we call call other our to well to strong We today, questions. will developments. and results, your remarks, open After end business had fiscal

the our and UAGC. fourth expectations. technology or quarter diluted revenue exceeded we the million $X.XX, of Arizona class income $XX.X which Zovio Today of For first a marks as the company. services the for of reported call non-GAAP earnings a key since Campus share world inflection of point XXXX, Global University per education completing to was University of This sale

year cohort in report and tracking one history the from of reporting our metric we outline recent saw sale XXXX bit the will the retention fourth than Given shortly. of both enrollment grew the quarter, third changed, pleased structure fourth the more segment University, in quarter a and in more that has standpoint, a new That key metrics metric. during our the in we quarter I said, the fourth to are best this quarter detail which of

total close of and In addition, December, transaction. the inquiries, the the for new our first following enrollment, month enrollment exceeded expectations

others aligned happier for will the our of highlight cannot progress our as begin unrealized offering, enrollment we to That the in opportunity be value industry. will of value segments As University growth quarters. understanding that an be in company, the Zovio’s line To untapped our reporting Therefore, not experienced capture we as to creation more and provide education we technology investors with to Zovio and Growth services with a the said, be with Partners. have several total reporting new the we last report have over and platform progress future. better in company, the drivers well the we

In the show progress an Zovio vision call significant than Strategically new to strategic organization, our be will come near-term growth XXXX, and and better in of Partnership will we are which deliver accelerating we we robust Growth, from which our topline, we anticipated Fullstack key saw what the includes Zovio. University for Zovio including believe In metrics against acquisitions will addition, aligned as we providing from TutorMe. enrollment. majority Growth, growth,

we’ve partner up Partners For building to University and the be robust strong build long-term in foundation created a Group, drive year, the network coming focused on our we will growth.

in each on in detail, me the segment marketplace we Before I seeing today. let what touch discuss more are

have Today number XX spans proposition the differentiated value we the thought rapid non-traditional discussed XXX been structural perfect landscape. meet the learners learners that day. where strong changing serve and more adding delivering is student have they potential student a supporting full who driving was are delivering flexible lifecycle, classes learning Zovio by or only population, a students, every states rapidly shift, institutional Universities student With innovative in has is Zovio is new partners strong record online. to student ecosystem parent educators seek are in the education who a Zovio their partner. an for growing that and that growing before, formats. expand online Further, we for and To furiously students all and and enhancing to As way are and demonstrated pandemic. students that than and COVID-XX access covering this online and is outcomes. and the track today changes that opportunities embracing accelerated work time programs ever lifecycle educational meet educators is expanding for the leader. education With customers are looking underrepresented

relatively believe opportunity. We current the at but where partners untapped is at are level, needs our graduate there level, importantly, meeting even future both undergraduate a and growing more the we

our ecosystem perform XXXX, Zovio our existing capabilities In Turning support ed and enterprises continued seeing professionals And enhanced Growth Growth to our which help to the on and of experience learners revenues to opportunity and well. institutions, year-over-year. for education to opportunities increased their The to delivered XXX% bridge students the subsidiaries segment, million career higher upskill gap and growing and aspirations look employment Zovio’s building includes upskill, for Zovio TutorMe are continue $XX.X people. to serve educate exceptionally meaningfully offerings. by our we that provide subsidiaries services to Fullstack education

the Fullstack for eight new During new total, universities In adding among new our to partnerships the in Tech many Emory nearly doubled the came partnerships, during expectations and others. online leverage University, quarter, that Virginia XXXX, including year. continued fourth Fullstack

the start For of typically years generated Partner million the the is average revenue result, months the The revenue XX with the starts, contribution contract. agreement University contracts, it takes average from $XX to partner class and a profitable. is become over of of per once five as marketing term an

pipeline partners. we’ve the Given seen momentum strong thus for far, a new with institutional combined

We’re Fullstack. excited lies what for ahead for

and to students, of educational importance TutorMe parents teachers support has become the remote continue learning, necessary with As online learners. like resources

universities to tutoring TutorMe support partnership partners and this the they growth districts. learning XXXX, total during during the bringing agreements usage XXX, of remote explosive in educational to customer as has demand, districts nearly employee has are to leveraging education have the to TutorMe the nearly services. ensure year-over-year. hour In from XX total increase where XXX% corporations Given year-over-year, school TutorMe the partner their for the added from we need benefit, quarter, and the increased pandemic execute institutions providing saw companies fourth quarter an continued when to COVID learning, K-XX XXX% students helped strong earlier continuing year. higher it. remote the momentum vein, new an quarter, to while are dynamic another continued as of increased Further, tutoring In online of driven support fourth to

Our Zovio strong. outlook Growth for remains

anticipate seven Partners Fullstack XX and TutorMe partners. between For new XX XXXX, we XX new adding adding between and University and

We momentum initiatives partners partner of our including strategic the marketing this to new at same and while growth acquisition. time in sales segment, invest will continue our maintaining bring to new online, for

and these investment margins and and $X decrease the investments plus will segment term, planned through between in expect we $X revenues of the XXXX. Longer in approximately for loss grow XXXX Given Zovio generating be EBITDA EBITDA XX% near-term. XXXX, This segment grow the beginning million. million we anticipate expect Growth XX% consolidated year-over-year profitable in to an to

learners. to which We offering our we clients. clients remains Turning from provide advanced personalized student to that technology the platform and student likelihood bring and innovative university of strong engagement University and to pursue and Partner Group, technology and we we the Zovio improves provide education services plan our have enterprise enhances as to growth, corporations well-positioned services online institutions, clearly providing education, our unique with a analytics differentiated success. diversified a leverage foundation that data to our

that and student spans entire First, lifecycle, and retention we provide the end-to-end an marketing recruitment, development course tools. to solution

our bundled tailored flexible, and can solutions. be offerings or Second, enterprise unbundled and are

Third, we objectives. support clients’ growth are operate aligned scale to rapid to our at

This solutions by provide metrics our our enabled improve develop to graduation. data outcomes. from to predictive, and Signals powered solutions enhance overall driven of performance all through Zovio and platform. are Additionally, proprietary, optimize workflows our signals, that results engineer insight clients’ analytics and marketing offerings

growth. to We roadmap bringing significant execute leadership will together leadership enhanced segment, also the team clear that this a of have leverage for a

university will partners. we an already such, cultivate potential robust pipeline of As further

are deals, engagements typically or online years enrollment services deals, and $X student seven will between For to At of include engagement a learner fields years, To on bit And small- length million scope of give bring offering. expect medium-sized and scales a enterprise you deals million in or size the million generally will including course a partnerships million and include end range greater or the could services. and unbundled our and to contract marketing, solutions than one or of partnerships strategically or continuity. program $X year we small- vary XXXX, and the launching work $X service could year. an lastly, end-to-end These perspective, new are less. These for three will such between before outreach as to development, value one targeted Zovio of utilize high vary. full medium-sized under project-based but annually. support from level, our Large $X recruitment have mature with five length of our multiyear

positioned optimism be momentum and continued basis, year $XXX Given range we million class forward. for On revenues continue Zovio EBITDA of digits. in have has to to move $XXX continued our consolidated million revenue forward, XXXX are our the to well are we strong we as technology total margins and the services a as now we look we poised and company the raising education expect non-GAAP world a we in mid-single full outlook. as experienced growth

learners. of needs the meet to offering robust a have We

a network of our built has growing rapidly. a opportunity to The ecosystem have clients virtual strong partners We shift the for and us. more is world of accelerated

offer squarely online students workforce same Now, and ever, employment, critical data to deliver establish success. of to results. them long-term with provider, offerings. robust With on We jobs, the to focused Partners and will diverse our large is technology and more position through financial are and At a the than executing unemployed that to they services education our a that, call to to opportunities provide remain with Accelerate it expectations meets demand upskill. review driven and where needs growth differentiate that empower ongoing BXB to platform our Zovio strong Kevin meet enabled the learners University our further higher order Expand education operating as them in is in offerings, of to and leadership BXC achieve businesses, to suite our skills signals investments over employed seeking scale support turn services a data that to the strategy utilizing time, institutions. leveraging I’ll institutions connect Royal and growth and better diversification. solutions driven

Kevin Royal

you, Thank Andrew.

first As Andrew the mentioned, University. is post of this call earnings our sale

month As technology included University standalone one results a the include education result, our fourth as XXXX two company. results, that a and services months quarter

to XXXX expenses we presentation purposes, discussion. comparative with and XXXX have and classification the reclassified consistent be for the revenues For

due XXXX, quarter compared average million, primarily the was is of revenue lower the prior year-over-year. to fourth The same period $XX.X enrollment in For to million $XX.X weekly the for year. decrease

operations quarter on academic support employee year the of revenue Marketing and education decrease fourth period. comparable of $XX.X year facilities due for increased and and XX.X% in XXXX fourth increased period. to $XX.X costs and of higher to XXXX, or decreased non-recurring compared expenses as The a and for percentage inquiry recorded employee for sale comparable revenue of partially XX.X% fourth costs. XX% mix prior revenue months as three and revenue million prior the were an due offset result facilities increased million certain or XXXX XXXX, We quarter quarter to compared $XX.X service represent in partially or a a prior revenue, decrease technology the costs. million in the costs, of communication These a two compared by of of prior year of outside XXXX to a compared following X, or XX.X% transition sale were the administrative was by contract. costs, a Counseling of General for were to company’s were or categories. partially lead offset University revenue $XX.X services offset these or of the million the percentage to the or period. charges percentage an revenue, into were quarter in our a quarter fourth XXXX million $XX.X compared were impairment prior costs to UAGC prior revenue As and of fourth have of related $X.X as reclassified year by employee to $XX.X to expenses The advertising services cost or of revenue compared quarter XXXX services or charges $XX.X for months the of University the These These as prior we in in for the prior primarily in in costs of costs for fees. million for comparable revenue million XX.X% there the provider, XX.X% $XX.X impairment and of percentage the comparable of period. fourth million the expenses completion to XXXX. of the XXXX, restructuring employee expenses expenses revenue, and as of These million the fourth primarily of revenue, quarter of comparable increase related XX.X% for of of structure million quarter due professional and for XX.X% or for due the the a $XX.X the acquisition to million $XX.X to period. the the to December costs revenue restructuring Technology in to only expenses in $XX costs year. December of XX.X% fourth fourth of volume. XX.X% the costs million to the revenue compared as termination costs quarter and to increase the related to XXXX, XXXX due University of and

completed to million as XXXX We loss December the in also on $XX.X Campus of fourth transaction XXXX. the recorded for transaction a quarter Global with

diluted loss of share, of $XX loss the per per the $X.XX the or a or loss of year. of net period for prior $XX.X with $X.XX the share compared a diluted quarter in same result, million a As for million XXXX loss was fourth net

share related impacts, per million year. quarter non-GAAP Excluding for loss a loss share, $X.XX costs, on net separation costs, the the $X.X of XXXX acquisition and transaction, of for was same of diluted $X.X loss or restructuring fourth tax to or million in the period the $X.XX income net non-GAAP prior compared diluted a per costs the

XXXX. compared year share average the XX, December of ended is full primarily $XXX.X enrollment year-over-year. The was revenue diluted compared or December ended million loss year due the ended million $XX.X year of $XXX.X to ended XX, the full million Regarding share for lower the $XX year of weekly Net loss results, net with for loss decrease $X.XX $X.XX, December was XX, million, diluted XXXX, XXXX. per or for revenue of the for per with XXXX loss December year XX,

expenditures $XX.X for for the compared related by Excluding net income non-GAAP restructuring non-GAAP $XX.X costs, operating $X.XX, $X.X from of used the full share activities tax or net loss the for XXXX non-GAAP benefit capital company had or impacts, were diluted compared the cash with of headquarters months activities non-GAAP acquisition of XXXX the to December period million sale the transaction, XX, $X.X during million XX diluted on December in $XX XXXX of year-over-year, million, operating million to December in the the loss Capital the to ended the per net loss primarily XX, The in XXXX. separation months XX, year year. XXXX Income the related year loss of with ended due last By income decrease the costs and comparison, was was XX, CARES UAGC. Zovio is ended the the million, The comparable December Chandler, associated December which share period Act. same tax benefits to ended in to The XX, expenditures the XX excluding was loss cash the per as during tax the lower the in primarily into with million associated for year improvement XXXX. due facility $XX.X $X.XX XXXX. University Arizona. company provided costs, $XX.X

cash the XXXX. XX, XXXX. cash as December XXXX, compared company As of transaction million, of million primarily and to of This December $XX.X completed XX, had is Global decrease $XX.X as equivalents with related to Campus December combined the in

a now margin million consolidated range Andrew for mid-single we of expect on EBITDA million digits. non-GAAP As the and $XXX to to in revenues $XXX total noted, basis, XXXX, be the in

for call turn will I his over to closing comments. back Andrew, the Now,

Andrew Clark

XX education leading student technology success. services Thank new is years as services as embark position business, we an in Kevin. enviable technology fuels Zovio our leveraging providing a chapter plus you, that this on

large, evolving be the industry. a We opportunity a growing in and have premier to player

and possible to by data innovation, advanced Our to student the support University our and track will of allow record offer analytics best driven journey that services Partners outcomes. us the span

culture and our to than XXX our institutional shared customers the in continue organization across vision will ecosystem. Additionally, strong Zovio more the support

XXXX, your long-term in rapid changes value our phone I’ll ask operator lines learners. enter for the poised to education open time, for this as the growth creation, we we empower and As capture we remain all to question. At

Operator

from Instructions] line Alex [Operator question Paris Research. first of the comes Your Certainly. from Barrington

line Your open. is

Alex Paris

completed Congratulations UAGC Thanks guys. during call. year. Most quarter. my for and taking the beat transaction the Hi, earnings good on significantly,

Andrew Clark

Alex. Thanks,

Alex Paris

question. A quick

University a me light beat pre EPS. But and published of Kevin, published you you was wide what guided have You status would Revenues sold were been and non-GAAP -- quo, fourth university? quarter Arizona my was know, estimates. it versus my Global Campus adjusted by then sale. little you Do on EBITDA a had had margin estimate not the for had you revenues the the not

Kevin Royal

know. me, Alex. don’t don’t that have with I I

Alex Paris

Okay. right. then That’s follow also. We -- on I’m sorry. all that can up And one

Kevin Royal

That’s fine.

your number little why I a was revenue think explains that lighter.

Alex Paris

Because and costs. of of then under hit Yeah. more reimbursement you the months Exactly. master services I of and which owning subject would and had of month the direct for month that XX.X% agreement, University, account the that fall to of one you owning revenue would not two one the University, was think it?

Kevin Royal

Yeah.

Alex Paris

growth that on the enrollments, leave third said you question you going how digits to were new quarter. I the in quarter. low-single third accelerated it? think Quick you’re Is from the

you digits hit that? quarter. You the sort fourth to Did of in guided mid-single

Andrew Clark

Yeah.

what the we’re we’ve relevant beginning And a I say leave used from was of it quarter we rebranding performing UAGC job certainly, a us good this some most got I pleased experienced. at result, And the of in Purdue And at better really of the our than that out is they with exceeded witnessing -- some challenges I opinion, has have there really of is Kaplan. people going jointly probably when the the done first lot had. they for just a how UAGC gone earlier, avoiding we the the out and Alex, of think I think gates. think that with I our transition UAGC. institutions as much been Purdue, results. example, of Purdue benefited, example I’ll partners, to mean, pitfalls as we’re said think third

Alex Paris

model, to, then details the to Great. a into And talk I just the about various business forward more moving there, than wanted under the growth segments. rather getting going and different of rearview

XXXX, a la opposed University segment. to small- in Partnerships enterprise add to are in what carte. expect you enterprise variety These that a to projecting three carte said I’m or you could You is assuming, they’d medium-sized small or more Partnerships as given to size the medium and large? be one be XXXX, la whereas the University within of

Andrew Clark

are clients. Alex, medium-sized will Exactly. small- projecting we these Yeah. and be

highlight and fantastic Zovio ‘XX new think going the So mean ‘XX. in UAGC them we for to Partnership is said, Zovio story. Growth group the We’ve is confident have I to generally in just an and year on and really throughout a what lot ‘XX of a -- start. under performance is what a I’m on, that terms of And $X one take probably, the and tremendous be of less their group length. off Zovio that’ll year to really move out that XXXX was confidence partners. as for in basis, looked they’ll million overall seen to be to going where University But revenue at will of forward a Group to foundational annualized three we just in continue

Alex Paris

a Growth will without segment. have then near-term for And growth the as of year be in Zovio bigger you University Partner the the Great. driver foundational doubt, a

small- more University should the Partners, And expect three in presume mid-sized two, beyond? we and ‘XX one, and add then year. in coming and I You’ll bigger

Andrew Clark

lot beyond. mean, we ‘XX more expect a I Absolutely. in and University Partners,

diversification. partner the is Our focus, to be Group, University for term key strategic really, the Partner going over longer client

leader of speak. University got hired we’ve a active we’re group. we that Have business I as a variety Partners leader in and development So with of an running think, excellent conversations

Alex Paris

by University transaction COVID, of the I Are reaching Great. refreshing you’d inbound University out, the Arizona. Can asking? reasons, the would Hilman, one, you a you would of have Is the activity? am with guess, reaching then characterize characterize pipeline, lot led and that activity Partners How old you relationships? team what actually profile for I high assume is do of couple you I two, a Matt out?

Andrew Clark

Yeah. institutions that a are we’ve reached that got -- and are would busy. have bored. No. I combination strong out very us. Jim not characterize Matt They They of to

UAGC the Zovio education. a institutions, variety on different not as out lot as through to going but of clients a and really the back Zovio right, of there radar put our absolutely, network even gentleman just have of the University and well and the in leaders at just higher of reaching Partners, did You’re network out that many of directors

combination are So those and right gentlemen it’s a of both busy quite now.

Alex Paris

like to Glad Zovio a can’t and lot. them Why get grant the they do institutions hear ed like of answer. to this help is your Purdue, Good. why a the why the in question Kaplan, partners do that? generally themselves? can’t What is they hear. big case of like to do University or tech seek This I land Arizona public I’d challenge

Andrew Clark

It’s Yeah. a question. great

of a underestimate a science, I really the initiative. large think, rocket while not it’s especially lot of, online people complexity

institution if So to There’s are and required accomplish XX,XXX, has of to lot students. the XX,XXX, XX,XXX undergraduate their lot goals both that’s complexity, grow of want graduate objectives establishing a online expertise presence, you to and a -- that. to and

necessarily full the services. they doing looking Zovio, suite institutions like some of used enterprise services, today we what not think than to, partner for of do really a I more to the is see provide

Now institution. it’s depends on the very It situational.

years data incredible no developing don’t these to would to lot -- this till we an almost universities takes institutions have from that’s investment take It technology then, client. an that ‘XX, go there presence for a maybe And you XX that, and difficult enterprise I be on what needs that up -- behind to institution probably And strategy institution. as and set that very big And of make we It there’s it’s solution. from of grant to some we’ve presence There’s already to think investment today. in lot have do. any a online the it spent skill a try strong a That are might the a Zovio little I overall a exception standstill universities look just online building But a land we an perspective. need competitive, remain with a of ‘XX supports of bit and they around are here and built. that at analytics public successful it’s for enterprise even you have absolutely, realizing and some, element where be an think as expertise. start. to they is, large out of their very vision there’s state part large the as cards

than And so they’re and company quickly can much better a otherwise off reaching Zovio, on they their them own. get can like who accelerated more and strategy out to do plans their their

Alex Paris

to with for a $XXX the Growth Great. is midpoint than of this? from coming the a million revenue. better $XXX Zovio million Thanks. XXXX side midpoint UAGC… that Is And then, is to million it Kevin, outperformance of million launch you increased guidance from $XXX $XXX a it range Where or total or of expected

Kevin Royal

that… I Yeah. would say

Alex Paris

Or both?

Kevin Royal

contributing dollar standpoint, But a from those segments little Zovio. would it’s I an both, from that really are absolute from more bit to probably, Yeah. Alex, say coming outperformance.

Alex Paris

EBITDA in XXXX, then for margins mid-single Okay. Great. you’re And target saying digits. adjusted

mid-to-high What’s I think delta you’ve previously said, single-digits. the there?

Andrew Clark

Yeah.

So take one, let me that Alex.

So we’ve business Zovio. ambassadors UN out the here do is two at for groups one things the tried separate to of

today, look in you on if high-single a Partners the digits at that University So standalone basis. is margin

Fullstack at that are and and growth, If Zovio Growth we’re generating. revenue TutorMe the what towards you look investing our

million it’s earlier, loss. about I said As $XX

shave business, tremendous of you really acceleration. we’re in points reinvestment few the off seeing in a the Zovio in that So margin Growth And business.

partners well in K-XX corporations districts. are our today XXX, earlier, not universities, commented over I but As just

by be to XXX, to end perhaps. going we’re of the at think close I at least ‘XX, XXX

our So you a reinvested. being little see margin bit of

forecasting of guidance that thinking up, -- of kind of is unchanged. because out at ‘XX I for out effective However, were is revenue our of kind the or think you is profitability relatively least

Alex Paris

No. I ordinary. agree with that. I just was wondering

dramatically growth changed. that’s margin adjusted lower the although reason primary slightly adjusted the EBITDA expectation, Zovio the not understandable, So Growth on as EBITDA dollars side, investments for are

Andrew Clark

Yes. correct. That’s

Alex Paris

the Given of higher level expectation?

Andrew Clark

said. good of a what just summary I That’s precise

Alex Paris

That’s all had I I sure make right. All doing, straight. it just to was

Andrew Clark

Yeah.

Alex Paris

up you some Thanks. I call the Thank guys. very much. Great, for follow will after modeling And related with questions. you

Operator

of Your from from line comes next Terry Large the View question Research [ph].

Your line is open.

Unidentified Analyst

Thank Greetings, ground. of covered and lot a you. Andrew Alex Kevin.

just three two or I questions. So maybe additional had

the any functions any owner or of University able new changes notable group or new that? front, the tap has been or On a way have made any maybe that the commentary UAGC to potential to they students around major

Andrew Clark

for any thanks your first, Terry, questions. would to early, and today kind yeah, describe in of for new Yeah. calling too it’s changes. I say

you the owners December they on know, of became As UAGC Xst.

So of almost days better ‘XX UAGC institution. the sure as make we’re part beyond, owning strategy of institution. the their changes will and that the throughout their XX them I’m vision codify confident they and into for kind and

the and we think with just was off a is extent, nice you effort and to with an had today be and great was anticipated variety anticipated. impact, the of but initially. new impact surprisingly really a an than into there effort gotten we’ve UAGC. had start investors I December is with that, emphasize thing prospective in we not that as consideration even to much better students, really we’d taken an it rebranding least some was would reasons. take institution that would there that There time as in to at And for

helping lot partnership now and the right supporting having is the to good long-term. objectives good And a beginning. a them really goals the start and we’re fun think and for achieve just I of their institution off to

Unidentified Analyst

campuses? year. on was to business see terms hear. us evolves. good Fullstack, of A closed the of That physical campuses how give two I No. to an other think of update Can there question quick last you part the one in Excited

Andrew Clark

Yeah. Certainly.

were physical students in was would and pandemic of the and learning New just do there So before locations retail where that in-class York Chicago. two kind

Of to Chicago is has close UIC. decided our location, closed York Chicago, then that a with University for made so for of consolidate also Chicago us around then it but clients, Illinois, their one offerings because sense new -- course, approach Fullstack have to the since to of the New Those similar we line took been taking been online. curriculum the And one took in their pandemic. -- online, students they

Unidentified Analyst

Okay.

for location, in you new opening So York? and had in way not a kids, new like the New forward foster Chicago continue partners

Andrew Clark

entire Absolutely. acquired Fullstack. reason, business we and the I mean, Terry, the model

and but probably be one them our expectations. partners some continuing quarter, see to have university that Going had and plans more at add, they They they probably, just hoped back We end two. that university and they XX, ‘XX by there. institutions. brand be were at Poly, would had expect with a with fantastic six institutions the they I relationship two We least, Cal to in of successful partner support. to one would new they’d names many exceeded partner at time,

growth generated supporting I going plan to guidance think, overall, is our plan that’s today to is the of additional clients. around majority was more and Fullstack. Partner entire the And be for there, business XX a seven where partners really University from

Unidentified Analyst

something am Okay. And you The I maybe obviously, think a guidance, or quarterly from UAGC, that happens fourth question type will in -- something revenue sorry. is it finally, the would some implies quarter? Is then, an basis UACG I it on Kevin. estimate of share accounting for

Kevin Royal

quarterly We for to and Yeah. record share communication of on in revenues forecasting be a then planning actual take No. place would and basis. the our understand the what would quarter. we That would they’re

Unidentified Analyst

you Great. Well, for it that does me. much. very Okay. Thank

Andrew Clark

Terry. Thanks,

Operator

are call further There closing turn to I’ll for no remarks. over the back questions. you

Andrew Clark

of to today. for callers your interest for in participation your like Zovio thank all We’d you. today’s and call the on Thank

Operator

That concludes today’s call. conference

You may now disconnect.

Zovio (ZVOI) 25 Feb 212020 Q4 Earnings call transcript