Segment and Geographic Information (Tables)
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3 Months Ended |
Mar. 31, 2020 |
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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 presents financial information regarding each of the Company’s reportable segment’s results of operations for each of the periods indicated. | | | | | | | | | | Three Months Ended
March 31, | | 2020 | | 2019 | | (dollars in thousands) | Revenue by segment* | |
| | |
| Graduate Program Segment | $ | 118,457 |
| | $ | 104,174 |
| Alternative Credential Segment | 57,022 |
| | 18,060 |
| Total revenue | $ | 175,479 |
|
| $ | 122,234 |
| | | | | Segment profitability** | |
| | |
| Graduate Program Segment | $ | 6,460 |
| | $ | 710 |
| Alternative Credential Segment | (10,764 | ) | | (3,916 | ) | Total segment profitability | $ | (4,304 | ) |
| $ | (3,206 | ) | | | | | Segment profitability margin*** | |
| | |
| Graduate Program Segment | 5.5 | % | | 0.7 | % | Alternative Credential Segment | (18.9 | ) | | (21.7 | ) | Total segment profitability margin | (2.5 | )% |
| (2.6 | )% |
| | * | The Company has excluded immaterial amounts of intersegment revenues from the three-month periods ended March 31, 2020 and 2019. |
| | ** | 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, stockholder 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 presents a reconciliation of the Company’s net loss to total segment profitability for each of the periods indicated. | | | | | | | | | | Three Months Ended
March 31, | | 2020 | | 2019 | | (in thousands) | Net loss | $ | (60,106 | ) | | $ | (21,554 | ) | Adjustments: | | | | Interest expense (income), net | 4,980 |
| | (2,294 | ) | Foreign currency loss | 2,271 |
| | 370 |
| Income tax benefit | (1,055 | ) | | (941 | ) | Depreciation and amortization expense | 23,485 |
| | 9,698 |
| Transaction and integration costs | 724 |
| | 1,931 |
| Restructuring-related costs | 288 |
| | — |
| Stockholder activism costs | 4,239 |
| | — |
| Stock-based compensation expense | 20,870 |
| | 9,584 |
| Total adjustments | 55,802 |
| | 18,348 |
| Total segment profitability | $ | (4,304 | ) | | $ | (3,206 | ) |
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| Schedule of total assets by segment |
The following table presents the Company’s total assets by segment for each of the periods indicated. | | | | | | | | | | March 31,
2020 | | December 31,
2019 | | (in thousands) | Total assets | |
| | |
| Graduate Program Segment | $ | 516,021 |
| | $ | 507,187 |
| Alternative Credential Segment | 665,940 |
| | 679,643 |
| Total assets | $ | 1,181,961 |
|
| $ | 1,186,830 |
|
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| Schedule of contract assets and liabilities |
The following table presents the Company’s trade accounts receivable and contract liabilities in each segment for each of the periods indicated. | | | | | | | | | | March 31,
2020 | | December 31,
2019 | | (in thousands) | Trade accounts receivable | |
| | |
| Graduate Program Segment accounts receivable | $ | 28,161 |
| | $ | 3,454 |
| Graduate Program Segment unbilled revenue* | 25,035 |
| | 12,123 |
| Alternative Credential Segment accounts receivable | 24,146 |
| | 19,408 |
| Provision for credit losses | (1,931 | ) | | (1,330 | ) | Total trade accounts receivable | $ | 75,411 |
| | $ | 33,655 |
| | | | | Contract liabilities | |
| | |
| Graduate Program Segment deferred revenue | $ | 16,839 |
| | $ | 2,210 |
| Alternative Credential Segment deferred revenue | 52,983 |
| | 46,623 |
| Total contract liabilities | $ | 69,822 |
|
| $ | 48,833 |
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* Unbilled revenue represents contract assets.
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