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2U (TWOU) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

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For the quarter ended September 2023, 2U (TWOU - Free Report) reported revenue of $229.7 million, down 1.1% over the same period last year. EPS came in at -$0.15, compared to -$0.05 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $226.34 million, representing a surprise of +1.48%. The company delivered an EPS surprise of -36.36%, with the consensus EPS estimate being -$0.11.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how 2U performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Degree program full course equivalent enrollments: 45,284 versus 51,193 estimated by three analysts on average.
  • Alternative Credential Segment average revenue per full course equivalent enrollment: $3,428 versus $3,781.39 estimated by three analysts on average.
  • Alternative Credential Segment full course equivalent enrollments: 25,318 versus the three-analyst average estimate of 26,740.
  • Degree program average revenue per full course equivalent enrollment: $3,039 versus the three-analyst average estimate of $2,441.66.
  • Revenue- Alternative Credential Segment: $92.10 million compared to the $101.10 million average estimate based on three analysts. The reported number represents a change of -3.1% year over year.
  • Revenue- Degree Program Segment: $137.60 million compared to the $124.94 million average estimate based on three analysts. The reported number represents a change of +0.3% year over year.
View all Key Company Metrics for 2U here>>>

Shares of 2U have returned +9% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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