Perdoceo Education's Q4 2024: Unraveling Contradictions in Enrollment, Financial Outlook, and Strategic Acquisitions

These are the key contradictions discussed in Perdoceo Education's latest 2024 Q4 earnings call, specifically including: Enrollment Growth and Student Retention, Financial Performance and Outlook, Acquisition of St. Augustine and its impact on 2025 performance, and Enrollment Trends:



Student Enrollment and Retention Growth:
- CTU's total student enrollments increased by 8.1%, while AIU System saw a 11.8% increase compared to the prior year-end.
- This growth was supported by further improvement in student retention and engagement, as well as increased prospective student interest and federal student aid initiatives.

Financial Performance and Operating Efficiency:
- Perdoceo reported net income of $147.6 million or $2.19 per diluted share, with adjusted earnings per diluted share at $2.29.
- The company achieved operating efficiency through improved student retention and engagement, cost savings from rightsizing processes, and lower expenses.

Acquisition and Strategic Expansion:
- The acquisition of the University of St. Augustine for Health Sciences added a prestigious academic institution in the graduate health sciences field.
- This strategic acquisition is expected to be accretive to Perdoceo's operating income and adjusted operating income in 2025, supporting further growth in 2026.

Cash Flow and Capital Allocation:
- Cash flow from operations improved to $161.6 million in 2024, a significant increase over the prior year.
- The company returned $38.5 million to shareholders through dividends and stock buybacks, with a quarterly dividend of $0.13 per share for 2025.