Financial Highlights and Margin Progression
Acceleration of
platform transition
results in significant
near-term progress
toward target margins.
Selective marketing spend, deployed on a
portfolio basis, rather than an individual
product basis
Elimination of silos, removing redundancies
and allowing for more flexibility
Further efficiency opportunities including
process re-engineering, workflow
(1)
automation, and real-estate footprint
rationalization
(2)
2U edx
Margin Progression and Targets
IPO
2019
Long-term
Targets @
ID 2020
2023
2020
2021
2022E
Target²
Marketing¹ 65%
56%
37-42%
47%
46%
40%
37%
Support¹
27%
15%
15-16%
14%
13%
14%
14%
Tech +
Content¹
19%
10%
7-10%
9%
9%
9%
9%
G&A¹
16%
15%
9-11%
14%
9%
12%
10%
Adjusted
EBITDA
Margin¹
(26)%
(4)%
18-20%
2%
7%
12%
15%
Adjusted EBITDA margin and adjusted expense amounts are non-GAAP financial measures. Refer to
the Appendix for a reconciliation of non-GAAP financial measures to their most comparable GAAP
measure.
We are not reasonably able to provide a reconciliation of our 2023 target for adjusted expense
amounts and Adjusted EBITDA margin due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliation, which cannot be done without
unreasonable efforts, including uncertainties regarding stock based compensation and other
non-cash items.
5View entire presentation