ATGE - Earnings call transcript Q1 2025 | Adtalem Global Education Inc.

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Operator

Greetings, and welcome to Adtalem's Global Education First Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to your host, Jay Spitzer, Vice President of Investor Relations. Thank you.

You may begin.

Jonathan Spitzer

to XXXX call results. welcome quarter the and year fiscal afternoon, our for earnings first Good

Global Phelan, On Steve Chief Adtalem Beard, call President and the with and Executive me Officer Financial Officer. Chief today are Education Bob of

market, as no I based future you actual through and take forward-looking could this after results results competitive safe for a and to Form made statements. Steve, and obligation result events, vary on statements to Certain to risk whether otherwise. constitute of as cautionary usual presentation in Before discussion assumptions I publicly materially. of declarations. entertainment to forward-looking and expectations statement will are interest latest as We Please forward-looking hand harbor in Form over cause information, they our relate current statements future you that legal projections regulatory undertake changes XX-K, presentation any of XX-Q a factors new update this or see that

In our and you on to GAAP most measures today's of comparable measures. We information. for available appendix material certain refer use directly the presentation Relations reconciliation presentation, to the website financial a the financial related Investor non-GAAP we

website After the to on will a XX archived for find days. will You link on this presentation be our at Investor webcast webcast the Relations investors.adtalem.com. call, the website

to over hand now Steve. will you I

Stephen Beard

value fiscal of year operational expectations. which has through and Growth call. financial all momentum Good and X-year This is focus joining earnings everyone, first thank generate XXXX us afternoon, programmatic results to on strong Jay. stakeholders quarter commenced for our driving Thanks, strategy, exceed substantial enabled of focus year for you We've Purpose deliver our with that our excellence. X our

leading $X.XX. total our to Our revenue XX,XXX up points, improved $XXX total enrollment EBITDA enrollment share by to for jump over the earnings margin increase reached year-over-year, expanded quarter quarter, reflecting year, Notably, tenth XXX compared to million, basis bringing an in for adjusted to impressive per consecutive our XX% while last students. adjusted XX% a the has XX.X%

platform education. and enhances Our resonates care positioning the forefront health learning revitalized with innovative our us our at student of curriculum well the experience, students

model to the agile attractive model as and the enables returns. the demands of increase care we Our to for meet health and with differentiating further us care resources where goal allocate allows investments providers the evolving partner efficiently most us nationwide. operating more health quickly U.S. anticipate of growing This preferred ourselves

medical partnership school medical Ezike, our and diverse Recently, Through Ross day aligns Chicago. leadership Sinai those X,XXX I X, deliver strengthening across Sinai our battling AUC X.X had Ngozi partnerships from over President reach students' alumni, the with health in residing in Sinai commitment inequities. safety aspiring for resulting the health or our over in practice-ready XX,XXX have care. to esteemed mission meaningful in to CEO with well systems and often net impact, Sinai individuals, other Numerous Dr. serves programs, and participated of as million compassionate residency students critical clinical country aptitude and privilege communities. alongside a equipped under-resourced Chicago, for of speaking diverse many physicians train system with contributions to making highlight rotations roles.

with second a enrollment national the for surpassed quality the nursing of and working by footprint programs. University, is year. Of Total the Walden, its school our graduates and elevate side-by-side increased diverse physicians, through enhancing of total highest Chamberlain who its a consecutive behavioral nursing enrollment vulnerable premier Chamberlain country. care, XX.X% the across for array impact nursing national as are ever outsized of Chamberlain course, this further magnified is health contributions populations the of

just in launch. X XX BSN our option online students available enrolled now years with post X,XXX is Notably, states over

way new new campus specialty-focused Chamberlain's announce Society commitment Atlanta chronic shortages. September. last leading expectations, the Oncology for oncology. XXX students This the opening achieving partnership to over addressing with practice-ready expand Stockbridge Nursing increasing in to to to growth also our program, meet since demonstrates a specialized excited is Our the training in in exceeding BSN nursing We're demand

operational strategy to year-over-year, robust commitment working to focus Turning grown XX.X% and which Walden, learning market adult our drive surpassing on levels. with flexible our enrollment, distance a for has the continue to prepandemic excellence

national practitioner enhancing enrolled, retention. program. Our currently in cutting-edge nursing attracts critical technology over master's in investments in nurse a with nursing leader Walden while students students remains predominantly XX,XXX the

exceeds sciences and in and behavioral interest psychology, strong Furthermore, social in work enrollment pre-pandemic levels, reflecting social counseling.

strides and We the AI Last develop the in Ally, experience AI will Walden's AI has first additional recent first-ever received care student year, continue positive Learnings of the to the its launched Chamberlain, of programs. including of innovating in Moreover, capability. leveraging curricular for leading students. its use in Nurse the our student with our AI groundbreaking technologies feedback implementation through health make Hippocratic rollout care collaboration delivery tutor, certification to AI AI training which introduction professionals for

medical to Vet X matching are expected. value operating of and proposition we near medical with States, for and internship XX our program United offerings. clinical at optimistic plans and AUC improvement strong education Ross in schools differentiating both strong medical trends and veterinary institutions. at veterinary about continue durable Remediation progress with home in demonstrate And Ross capacity competitive at program. In our among demand we a segment, remain initiatives to residency the return enrollment like see continue signs future the and the institutions as our ranked and positive third Med

and momentum, guidance and is start $X.XX and between to to and revenue strategy fiscal with to further share to in a growth positive $X.XX year of revenue our year both expect adjusted Purpose strong deliver earnings XXXX billion $X.XX XXXX project With we billion raising our profitability. this Fiscal off per Growth we're $X.XX.

a for financial to more Bob over our expansive call the discussion hand operational and of I'll Now results.

Robert Phelan

hello, Thank everyone. Steve, you, and

performance reflect long-term results sustainable accelerated our deliver while Our to create to investing first value. ability quarter

As enhanced disciplined delivering leverage enrollment earlier, year Purpose of performance. our our Steve Growth we've strategy, with the trends through shared and entered second X-year improving operational

begin of review by and in profit from top Chamberlain driven for growth led our Later financial Purpose prior our by the to particular, enhanced increased in Walden remarks, accelerated assumptions remainder Revenue segments, quarter quarter. drivers at $XXX.X fiscal in year X in line. will performance expectations I'll my all first and X of the results margin Starting enrollment XX.X% up in the Walden adjusted the at XXX million adjusted discuss from segments, Chamberlain, trajectory. our a through I key to in basis and by an year. all XX.X% XX.X%, first $XX.X Consolidated for Growth initiatives the point with as in last our EBITDA million XXXX. compared came with resulting increase of and EBITDA growth year with a

was to Adjusted compared actions quarter XXX,XXX reduce to the per and result prior operational up a for XX.X% compared of to adjusted diluted quarter XX.X expense in $X.XX attributed was leverage last debt was employee operating and which income net as quarter, up a a strategic efficiencies XX.X% X.X We year. other our our repurchased costs. the shares income lower operating by Adjusted with income shares lower increase initiatives, million resulting and $XX.X and $XX.X first outstanding or to outstanding or borrowing year. growth lower partially year to share last the the higher investments generated was within costs. million million, prior offset benefit year, as compared XX.X% interest our in performance of Adjusted than tied revenue growth earnings costs million

Next, first prior growth prior of during offset to focus XX.X% when program as in both Adjusted quarter than Adjusted million support driven $XX investments nursing prior compared enrollments margin quarter costs. by million, with growth the enrollments. revenue to was compared by the student increased a as well year, enhanced on post-licensure operational and pre-licensure academic XX year, quarter leverage Total was consecutive of in enrollment EBITDA primarily our financial XX% by growth. points I'll increase other EBITDA student as $XXX.X basis seventh the outcomes the marketing, of increased and an for first discuss highlights segment. by reported the the quarter Chamberlain year XX.X% in an lower underlying the XX.X% for quarter. of

position marketing Chamberlain's market-leading reach nursing Our breadth modalities. for and full our and have investments programs of accelerated

are We capitalizing more student experience. on seamless our differentiated

are intended to positive demand, to Our increased investments positive continued outcomes. through persistence returns strong future academic continue and deliver

Walden. to Turning

the compared XX.X% from of Total revenue increase programs, enrollment behavioral million, nursing was year up nonhealth also strong was master's robust health $XXX.X high care the quarter accelerated persistence by continued quarter, in our prior our and of in social particularly growth, by health Within care rates. to in and growing in enrollments. strong led the undergrad and the quarter. versus with the growth driven programs an the First student and growth year enrollment XX.X% prior

leverage increased a as long-term EBITDA and XX.X% additional with EBITDA our year generate new $XX.X transformation the basis high growth Adjusted by being focused to the and Adjusted is enrollment. student support expanded by with investments prior to of margin commensurate million. balanced which XX.X% points versus of efficiencies sustainable XXX levels operational level

at as X.X% with the schools structure million. We the prior shortages. improved, X.X% with investments the generally and margin compared our X.X% versus in total remain enrollment trend capacity. continues medical lower $XX.X For by decreasing XX.X%. year current enrollment to EBITDA physician $XX total to existing the to was increased medical the at veterinary in points XX leverage our schools the medical remain making the cost institutions growth while level operating Adjusted and The on Vet operate address a line increased quarter and plans EBITDA to focused U.S. Adjusted current revenue at capacity year to on track basis near growing segment, first our sequentially million. our prior Ross with

flow cash balance to the and sheet. Shifting

generation enhance We disciplined continue cash and deployment. financial our through capital robust to strength

For up million of performance was million. period, impact. flow increase to inclusive months year expand the prior was free our partially first operational $XX in Strong a capital expenditures. $XX by versus million, million flow reach capital XX-month cash an basis, cash free XXXX, and investments the trailing fiscal On planned $XX of was X offset $XXX

net XX, and which low term million XX sheet previously XX loan leverage EBITDA quarter the Our reducing by with and $XXX repriced basis equivalents of addition cash interest On in balance points a adjusted prior $XXX achieved X.Xx. we January. reduction the our healthy, was million in point B, August the we rate ending to remains in first basis

repurchased share also execute existing to XXX,XXX quarter, shares repurchase We on our authorization. during continuing the

our outcomes. to deliver as continue optimal and remains institutions to student Our top we reinvest positive capacity priority into achieve to aim

We our balanced while continue to will thoughtfully we allocation. strengthen our capital balance sheet approach

Growth with results ahead strategy X-year our We started of Purpose with the original expectations. second year of our strong

enrollment execute we base. to accelerate total off continue we higher fiscal our create continue We momentum are guidance and sustainable our year performance. to a raising enrollment as In XXXX turn,

in now X% is approximately $X.XX, guidance share billion, the range XX.X% of revenue growth earnings XX.X% year-over-year. billion of to to Our adjusted year-over-year with to X.X% growth to $X.XX $X.XX per approximately $X.XX

capture education expanding reach the inclusive demands, education. we market care to our current As access health through

more marketing we invested year. planned, As the last during versus into first quarter

momentum marketing into dynamic higher enterprise quarter the level revenue still our persisting the while with remained planned growth marketing and some inquiries quarter. half of first shifted year delivered we the the And We second However, a during strong. of second with out half revenue a efficiencies as approach compared of first our anticipate into year. remainder result, the the quarter of spend the first of

approximately adjusted the continuing than and expansion. resulting in investments, Included allocation operational of underlying are the date. finally, And within the level guidance basis margin leverage a approximately faster of for grow EBITDA normalized rate effective are fiscal of tax for XXX points we year-over-year year. anticipate revenue to We adjusted capital to plan our to XX%

for and It start Purpose a generate and create Growth returns we're more to our long-term the ever strong has strategy, stakeholders. all high been to optimistic with value about our than year, to ability

with the I'll that, over for the turn now operator to call And Q&A.

Operator

BMO question from first Jeff our And Instructions] Capital Silber Markets. [Operator with comes

Jeffrey Silber

you acceleration impressive. really get is? was I think Chamberlain. start little that bit wanted The we exactly color growth what's sustainable a on more going there how there to with Can and

Stephen Beard

Yes. Thanks the question, Jeff. for

enrollment, in post-licensure we're increasingly And particularly on we that's So that's and what proven persistence. category. new RN positive what are has to enjoying of in top trends true really the BSN be strong think and

is category BSN share we and RN the growing, to while isn't So that take itself there. X continue

that And so basis, think that that the is on foreseeable for we trend is one future. sustainable

demand strong to the doctoral addition, degrees marketplace. In the have post-licensure degrees in and the continue

in particularly run set, think grow at of So the to across we to lots nursing room Chamberlain, program there's enrollments. still there

Jeffrey Silber

is And the Is year? expense some that through of then of evenly that about rest comments the X throughout going Or of most also, we across Great. major in marketing to your the the from the shifting spread quarter of kind rest verticals? that right. first the All year. And quarter? second be the see

Stephen Beard

and start Bob in. let I'll Yes, jump

So on program institution across we the marketing on board. opportunities and it's allocate occasionally basis. have attractive resource on based the not an We think where a we dynamically most

it's So with board, any and But the to free jump Bob, ratably. not not spread it's in additional across color. feel

Robert Phelan

balance thing year, say really to bit a little mostly cost moved shift. the was half would I the but the to that of Sure. QX. is The added the QX primarily There's of back

Jeffrey Silber

were again, more fact some marketing going was reason shifted Margins am into leverage really Any Chamberlain revenue there? in. second on been more quarter. the may All flattish other X, investments have despite maybe going right. to I'll just growth X to sneak why strong. see back operating I there somewhat really the didn't Is there? you that sorry, add try

Robert Phelan

for marketing planned, we we The well the year-over-year did second move some had increased what say as had fact thing for company. I quarter into overall still is from that would as we the despite the that marketing Chamberlain

marketing. that also well again, in is shift Year-over-year, what marketing we originally we're there performance as on but as an a So what doing Chamberlain. planned. But did did really based shift branding was in we of some, mix doing have increase we

in well. So investment as of it's the an fiscal the well into year as balance year 'XX as really

Stephen Beard

additional the important persistency Yes. addition just to enjoy. which also some that And marketing Chamberlain, think for support rates there's student in in those at shifts, incremental we is investment maintaining we

Operator

next Research. Paris Alex Our question comes with. Barrington from

Alexander Paris

had for question the on Congrats beaten marketing race. a on I follow-up starters.

you it. from was rest invested your I first shifted performance some budget, in quarter year, But enrollment investment very leverage time? the with very, in know still I'm revenues expect board, it more to incremental XXX of basis QX the the marketing this given across why the points why the You take year-over-year, versus strong the I of at the marketing, increase full to increase and in wondering, year in for the though QX improvement. mostly

Stephen Beard

Yes.

to a Alex, about ways of So couple think the spend. marketing

bottom a period. we performance both top marketing, X as typically balanced which returns marketing know, But know, the approach brand as marketing the tail investments. a funnel. performance of the the on on and that you brand there's drives investing in in return the So associated hand, there's take And at longer funnel to at of the you with

we individualized heavy-duty X at so programmatic we're campaigns all to last out year those across programs. approaches with the very while institutions, beginning across started And brand brand now into of

return as expect a in that we to there's the driven pay of are So mix drive as investments to well future off in that those period.

investing the to today, same time, the that's we're So tomorrow. at win really investing I win to mix. mean but

every near-term So marketing being in as some you objective. investment shouldn't incremental tied think to about

Alexander Paris

makes that. your revenue the -- With year roughly said, appreciate year-over-year. guidance that a sense. leveraged to advertising this marketing dollars Do basis? X% at be guidance I full increased year? will costs expect your for you. you That growth the exceed calls midpoint that on Got those year-over-year Or for

Robert Phelan

well, as of about point last we increased be that will the costs marketing X%. The Despite And would marketing year spend just of had back increase to you our reference, the point a fact leveraged. I revenue No. as X%.

So expect that this efficiency year. into to we continue

Alexander Paris

X% for for to same. point. we're fiscal fiscal said revenue the revenue point, a Kind fiscal at particularly just at at you to then sit X% you to follow-on we stale going by that now. growth X% XXXX, those that XXXX, X% long-term And of revising X%. now, on at this XXXX. XXXX the plan you targets as right are you those least know back Do Investor for then targets, numbers gave guidance XXXX said And growth Day the with But I of Okay. question,

Stephen Beard

multiyear give next ordinary at we'll our in targets. get Investor we'll course. guidance Day, Well, for the 'XX And

Operator

from with Pawlak comes question next Our Baird. Steven

Steven Pawlak

to of quarter an through wanted is just year range beat? Or improved solely to flowing the full year as the there is I first clarify, well? balance a the outlook guidance

Robert Phelan

with outlook on when had the about balance of what comes talked expenses, the the is So improved But balance an when into particular, in year some in it to comes there of is the it marketing. from for particular. EPS, based the the there year shift revenue first quarter to of we the some the

Steven Pawlak

Yes.

put guidance what low from would Okay. And the your I sort to the of risk guess, are end that you revenue perspective, then factors a range? of

Stephen Beard

I as great factors. risk and across Chamberlain new Obviously, them that Walden. described we're know I momentum in don't enjoying enrollment

progressing Med our We well in segment. Vet the efforts are relative to remediation

as don't it a risk. view I So

as year about take I best push additional for some a programs as the wouldn't particular got we marketing. upside, think think and there's go with we risk. advantage But upside the opportunities we through I potential with mean describe and we we've I of it how real that. opportunity in momentum hope think in realize market to strong to

Operator

further this are And gentlemen, there and at ladies time. no questions

you will all you. So may call. with all participation, Thank we now for disconnect. that, and parties your today's conclude Thank

Adtalem Global Education (ATGE) 29 Oct 242025 Q1 Earnings call transcript