US: Aspen Group reports annual loss
New York City-headquartered education technology holding company Aspen Group has reported a net loss of $9.6 million for its 2022 fiscal year, ending 30 April 2022, compared to a net loss of $10.4 for its 2021 fiscal year.
Revenue for the year was $76.7 million, up from $67.8 million reported for fiscal year 2021.
Aspen owns Aspen University and United States University.
Aspen Group chairman and chief executive Michael Mathews said: “Judicious control of marketing expenses in the fourth quarter led to a narrower net loss, positive adjusted EBITDA and reduced our cash burn without compromising our ability to achieve our revenue target for the fourth quarter. This performance demonstrates the leverage in our business model and our ability to improve our operating results with controlled spending. In the fourth quarter, we reduced our marketing spend sequentially by $1 million to ensure sufficient collateral for a surety bond requested by the State of Arizona. While this reduced enrolments in the fourth quarter, our USU MSN-FNP programme was our fastest-growing programme in the quarter, demonstrating the demand for this high LTV programme.
“Our business plans reflect future growth primarily from our new pre-licensure campuses and USU MSN-FNP programme, which we believe will offset the near-term absence of core semester starts at the Arizona pre-licensure campuses. More than ever, our country recognises the critical necessity to replace nurses who have left the field, and the need to grow the nursing population to meet the expected demand of future demographic trends. In addition, more FNPs are needed to meet our country’s impending doctor shortage. Aspen Group is well-positioned to benefit from these long-term macro trends.”