Segment and Geographic Information (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Segment Reporting [Abstract] |
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| Schedule of revenue, segment profitability and segment profitability margin by segment |
The following table summarizes financial information regarding each reportable segment’s results of operations for the periods presented: | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | | (in thousands) | Revenue by segment* | |
| | |
| | | Graduate Program Segment | $ | 417,206 |
| | $ | 348,361 |
| | $ | 270,432 |
| Alternative Credential Segment | 157,465 |
| | 63,408 |
| | 16,320 |
| Total revenue | $ | 574,671 |
| | $ | 411,769 |
| | $ | 286,752 |
| | | | | | | Segment profitability** | |
| | |
| | | Graduate Program Segment | $ | 5,770 |
| | $ | 16,839 |
| | $ | 13,022 |
| Alternative Credential Segment | (29,716 | ) | | 816 |
| | (1,606 | ) | Total segment profitability | $ | (23,946 | ) | | $ | 17,655 |
| | $ | 11,416 |
| | | | | | | Segment profitability margin*** | |
| | |
| | | Graduate Program Segment | 1.4 | % | | 4.8 | % | | 4.8 | % | Alternative Credential Segment | (18.9 | ) | | 1.3 |
| | (9.8 | ) | Total segment profitability margin | (4.2 | )% | | 4.3 | % | | 3.9 | % |
| | * | The Company has excluded immaterial amounts of intersegment revenue from the years ended December 31, 2019, 2018 and 2017. |
| | ** | The Company defines segment profitability as net income or net loss, as applicable, before net interest income (expense), taxes, depreciation and amortization expense, foreign currency gains or losses, deferred revenue fair value adjustments, transaction costs, integration costs, restructuring-related costs, shareholder activism costs, impairment charges, 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 the respective segment’s revenue.
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| Schedule of reconciliation of net loss to total segment profitability |
The following table reconciles net loss to total segment profitability: | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | | (in thousands) | Net loss | $ | (235,222 | ) | | $ | (38,330 | ) | | $ | (29,423 | ) | Adjustments: | | | | | | Interest income | (5,800 | ) | | (5,173 | ) | | (371 | ) | Interest expense | 13,419 |
| | 108 |
| | 87 |
| Foreign currency loss | 707 |
| | 1,722 |
| | 866 |
| Income tax benefit | (19,860 | ) | | (4,867 | ) | | (1,297 | ) | Depreciation and amortization expense | 69,843 |
| | 32,785 |
| | 19,624 |
| Deferred revenue fair value adjustment | 11,175 |
| | — |
| | — |
| Transaction costs | 4,786 |
| | — |
| | — |
| Integration costs | 3,255 |
| | — |
| | — |
| Restructuring-related costs | 10,826 |
| | — |
| | — |
| Shareholder activism costs | 1,042 |
| | — |
| | — |
| Impairment charge | 70,379 |
| | — |
| | — |
| Stock-based compensation expense | 51,504 |
| | 31,410 |
| | 21,930 |
| Total adjustments | 211,276 |
| | 55,985 |
| | 40,839 |
| Total segment profitability | $ | (23,946 | ) | | $ | 17,655 |
| | $ | 11,416 |
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| Schedule of total assets by segment |
The Company’s total assets by segment are as follows: | | | | | | | | | | December 31,
2019 | | December 31,
2018 | | (in thousands) | Total assets | |
| | |
| Graduate Program Segment | $ | 507,187 |
| | $ | 702,827 |
| Alternative Credential Segment | 679,643 |
| | 104,527 |
| Total assets | $ | 1,186,830 |
| | $ | 807,354 |
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| Segment trade accounts receivable and contract liabilities |
The Company’s trade accounts receivable and contract liabilities in each segment are as follows: | | | | | | | | | | December 31,
2019 | | December 31,
2018 | | (in thousands) | Trade accounts receivable | |
| | |
| Graduate Program Segment accounts receivable, net of allowance for doubtful accounts of $0 for all periods presented | $ | 3,454 |
| | $ | 31,110 |
| Graduate Program Segment unbilled revenue | 12,123 |
| | 265 |
| Alternative Credential Segment accounts receivable, net of allowance for doubtful accounts of $1.3 million and $257 thousand as of December 31, 2019 and 2018, respectively | 12,436 |
| | 982 |
| Alternative Credential Segment unbilled accounts receivable | 5,642 |
| | — |
| Total trade accounts receivable | $ | 33,655 |
| | $ | 32,357 |
| | | | | Contract liabilities | |
| | |
| Graduate Program Segment deferred revenue | $ | 2,210 |
| | $ | 2,864 |
| Alternative Credential Segment deferred revenue | 46,623 |
| | 5,481 |
| Total contract liabilities | $ | 48,833 |
| | $ | 8,345 |
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