Perdoceo Education (NASDAQ:PRDO) Surprises With Q4 Sales

Perdoceo Education Corporation (NASDAQ:PRDO) has surprised investors with its strong Q4 sales performance, exceeding analysts' expectations and demonstrating significant operational improvements. The company reported revenue of $176.4 million, a 19.3% increase from the prior year quarter, driven by organic growth at both Colorado Technical University (CTU) and American InterContinental University (AIUS), as well as the acquisition of the University of St. Augustine for Health Sciences (USAHS).



The impressive 133.2% increase in operating income to $37.2 million in Q4 reflects exceptional operational leverage, with the company generating a much higher profit margin from the relatively modest revenue growth. This operational efficiency indicates that Perdoceo has been able to control costs and improve profitability. The enrollment growth metrics at CTU and AIUS, with increases of 8.1% and 11.8% respectively, contributed to the operating income growth. The successful integration of these new students while maintaining profitability metrics suggests robust operational scalability.

The acquisition of USAHS in December 2024 added 3,800 students and expanded academic offerings in the graduate health sciences field, diversifying revenue streams and positioning Perdoceo to capture growing demand for healthcare professionals. This strategic pivot into the high-demand healthcare education sector allows Perdoceo to command higher tuition rates and better margins.



Perdoceo's strong Q4 performance is a testament to the company's commitment to making investments in student technology and student support processes, while maintaining strong liquidity. The company ended the quarter with $591.5 million in cash and equivalents, providing substantial strategic flexibility for future growth initiatives while supporting the quarterly dividend program.

The board of directors declared a quarterly dividend of $0.13 per share, which will be paid on March 13, 2025, for holders of record of common stock as of March 1, 2025. This quarterly dividend payment is an integral and growing part of Perdoceo's balanced capital allocation strategy, which also prioritizes investments in student support and technology projects, while evaluating acquisitions and share repurchases.

Perdoceo Education's Q4 sales performance demonstrates the company's ability to adapt and thrive in a changing market landscape, driven by operational improvements, strategic expansion, and a commitment to investing in its students and technology. As the company continues to execute on its growth strategy, investors can expect to see further progress in the coming quarters.