Sign up for a free 30 day trial, find out more

US: 2U reports increased losses

Ed tech company 2U has reported a second-quarter 2022 net loss of $62.9 million, compared to a net loss of $21.8 million reported for Q2 2021.

Revenue for the quarter was $241.5 million, compared to revenue of $237.2 million reported for the second quarter of 2021.

The Lanham, Maryland-based company also reported results for the first six months of 2022. Its net loss for the period was $188.6 million, compared to a net loss of $67.4 million reported for the first half of 2021. Revenue for the period was $494.8 million, compared to $469.7 million reported for the first half of last year.

2U co-founder and chief executive Christopher Paucek said: “We are taking significant action to accelerate 2U’s transition to a platform company under the edX brand and unify our product and marketing strategy to create the world’s leading free-to-degree online learning marketplace. Operating as one powerful brand and platform enables the company to pursue sustainable profitability, while building a stronger, more agile business that we believe will deliver greater value for learners, partners and shareholders and drive the future of education for the long term.”

Paul Lalljie, 2U’s chief financial officer, added, “In the second quarter we took important steps to align our organisational and cost structure to deliver sustained profitable growth and free cash flow. Our results for the quarter and our updated guidance reflect the shift in focus to more profitable growth resulting from the acceleration of our platform strategy. We expect that this plan will drive significant improvement to adjusted EBITDA for full-year 2022 and will generate positive free cash flow for full-year 2023.”

Subscriber content

To get unlimited access subscribe today

Subscribe

Already a subscriber? Login

Partners