$TWOU Q4 '20 Results
- FY '20 Revenue: +35% to $774.5M.
- FY '20 Credential Revenue: +83% to $287.8M.
- Q4 '20 Unlevered Free Cash Flow: -$3.7M.
- Total cash balance increased to $518.9M.
My thesis on $TWOU:
Their investments in programs with:
- Lower certification intensity
- Shorter time to completion
...will drive incremental improvements in revenue growth and profitability for years to come.
What will change in education over the coming years?
Distribution and digital transformation.
What's not going to change in education?
Demand for certification and credentialization.
I've been long $TWOU since March 2020 and added to my position after this last earnings release.
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Really sound analysis @kermitcapital . I happen to be extremely bullish on Edtech and Covid has just accelerated this. At barely 5 times EV/Sales, $TWOU happens to be extremely cheap compared to SaaS peers. I have yet to find a recent published net dollar retention rate on their ARR. Last one was in 2013 which was a whopping 144%. Do you happen to know what their NDRR is? I ask since I use this metric as a primer to buy high compounding SaaS companies. Thanks in advance for any feedback.