Segment and Geographic Information (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of revenue, segment profitability and segment profitability margin by segment

The following table presents financial information regarding each of the Company’s reportable segment’s results of operations for each of the periods indicated.


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021

	(dollars in thousands)
Revenue by segment*
Degree Program Segment	$	143,090		$	146,214		$	297,257		$	292,089
Alternative Credential Segment	98,374			90,995			197,536			177,593
Total revenue	$	241,464		$	237,209		$	494,793		$	469,682

Segment profitability**
Degree Program Segment	$	39,539		$	27,973		$	75,357		$	53,861
Alternative Credential Segment	(17,637)			(10,861)			(41,175)			(23,001)
Total segment profitability	$	21,902		$	17,112		$	34,182		$	30,860

Segment profitability margin***
Degree Program Segment	27.6		%	19.1		%	25.4		%	18.4		%
Alternative Credential Segment	(17.9)			(11.9)			(20.8)			(13.0)
Total segment profitability margin	9.1		%	7.2		%	6.9		%	6.6		%



*						The Company has excluded immaterial amounts of intersegment revenues from each of the three and six months ended June 30, 2022 and 2021.
**						The Company defines segment profitability as net income or net loss, as applicable, before net interest income (expense), other income (expense), net, taxes, depreciation and amortization expense, deferred revenue fair value adjustments, transaction costs, integration costs, restructuring-related costs, stockholder activism costs, certain litigation-related costs, consisting of fees for certain non-ordinary course litigation and other proceedings, impairment charges, losses on debt extinguishment, and stock-based compensation expense. Some or all of these items may not be applicable in any given reporting period.
***						The Company defines segment profitability margin as segment profitability as a percentage of the respective segment’s revenue.

Schedule of reconciliation of net loss to total segment profitability

The following table presents a reconciliation of the Company’s total segment profitability to net loss for each of the periods indicated.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

	(in thousands)				(in thousands)
Net loss	$	(62,852)	$	(21,831)	$	(188,632)	$	(67,395)
Adjustments:
Stock-based compensation expense	22,349		24,776		46,773		49,723
Other (income) expense, net	1,367		(24,070)		2,397		(23,155)
Net interest expense	13,665		7,836		27,298		15,355
Income tax benefit	(164)		(127)		(415)		(129)
Depreciation and amortization expense	31,342		26,422		65,757		51,409
Impairment charges	—		—		58,782		—
Loss on debt extinguishment	—		1,101		—		1,101
Restructuring charges	16,753		1,334		17,540		1,819
Other*	(558)		1,671		4,682		2,132
Total adjustments	84,754		38,943		222,814		98,255
Total segment profitability	$	21,902	$	17,112	$	34,182	$	30,860



*						Includes (i) transaction and integration expense of $1.0 million and $1.7 million for the three months ended June 30, 2022 and 2021, respectively, and $3.4 million and $1.7 million for the six months ended June 30, 2022 and 2021, respectively, and (ii) stockholder activism and litigation-related (recoveries) expense of $(1.6) million and zero for the three months ended June 30, 2022 and 2021, respectively, and $1.3 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively.

Schedule of total assets by segment

The following table presents the Company’s total assets by segment as of each of the dates indicated.


	June 30, 2022		December 31, 2021

	(in thousands)
Total assets
Degree Program Segment	$	525,076	$	546,572
Alternative Credential Segment	1,508,158		1,562,434
Total assets	$	2,033,234	$	2,109,006