Financial Highlights and Margin Progression
Non-GAAP Adjusted Expense Amounts Reconciliation.
(in $ millions)
2U
20
Marketing & Sales
IPO
2019
2020
2021
2022E
$
%
%
%
%
%
Technology and Content
Development
IPO
2019
2020
2021
2022E
%
%
$
%
$
%
$
%
GAAP expense
54.1
65% 342.4
60% 390.2
50%
456.1 49% 419.6
43%
GAAP expense
19.5
23%
115.5 20% 155.9
20%
179.0
19% 180.4
18%
Depreciation & amortization
0.3
0%
15.5
3%
18.9
2%
18.6
2%
27.6
3%
Depreciation & amortization
3.7
4%
49.8
71.4
9%
9%
81.1
9% 82.5
8%
Stock-based compensation
0.2
0%
7.0
1%
8.2
1%
6.7
1%
3.9
0%
Stock-based compensation
0.2
0%
8.2
1%
12.0
2%
11.8
1%
6.5
1%
Other*
0%
0%
0%
0%
0%
Other*
0%
0%
-
0%
0.4
0%
0.5
0%
Non-GAAP adj expense
53.6
65%
319.9
56%
363.1
47% 430.8
46%
388.1
40%
Non-GAAP adj expense
15.6
19%
57.5
10%
72.5
9% 85.7
9%
90.9
9%
Servicing & Support
IPO
2019
2020
2021
2022E
General and Administrative
IPO
2019
2020
2021
2022E
%
%
%
%
%
%
%
$
%
%
$
%
GAAP expense
22.7
27%
98.9
17%
125.9
16%
138.5
15% 146.0
15%
GAAP expense
14.8
18%
131.0
23%
173.5
22%
208.6
19%
205.7
21%
Depreciation & amortization
0.2
0%
2.7
0%
3.2
0%
3.0
0%
2.9
0%
Stock-based compensation
Other*
0.4
0%
8.9
2%
14.4
2%
15.4
2%
8.6
1%
Depreciation & amortization
Stock-based compensation
0.1
0%
1.9
0%
3.0
0%
5.7
9%
6.6
1%
1.7
2%
27.3
5% 47.5
6%
63.7
1%
59.6
6%
0%
0%
0%
0%
Other*
0%
18.2
3% 16.5
0%
Non-GAAP adj expense
22.1
27%
87.3
15%
108.3
14%
120.1
13%
134.5
14%
Non-GAAP adj expense
13.0
16%
83.6
15% 106.5
2% 25.0
14% 114.2
0% 21.8
9%
2%
117.7
12%
*Includes transaction and integration expense, restructuring-related expense and stockholder activism and litigation-related expense.
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