Online education company faces challenges as shares hit new lows

  • 2U shares down 35% after reporting wider-than-expected loss in Q3
  • Stock hits 52-week low and is down 83% in the past year
  • Quarterly loss of $47.4 million, compared to $121.7 million last year
  • Adjusted loss of 15 cents a share, missing analysts’ forecast of 13 cents
  • Revenue for the quarter at $229.7 million, slightly below expectations
  • 2U expects 2023 revenue of $965 million to $990 million
  • Analysts forecast a loss of $237 million for 2023
  • Needham and Morgan Stanley cut price targets for 2U shares

2U shares took a significant hit, dropping 35% after the company reported a larger-than-expected loss in the third quarter. The stock reached its lowest point in a year, down 83% overall. The quarterly loss amounted to $47.4 million, compared to $121.7 million in the same period last year. Adjusted earnings per share were 15 cents, missing analysts’ forecast of 13 cents. Revenue for the quarter was $229.7 million, slightly below expectations. Looking ahead, 2U expects revenue of $965 million to $990 million in 2023, while analysts predict a loss of $237 million. In response to the disappointing results, Needham and Morgan Stanley both lowered their price targets for 2U shares.

Public Companies: 2U (N/A)
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Factuality Level: 7
Justification: The article provides specific financial information about 2U’s third-quarter performance, including the company’s stock price, quarterly loss, revenue, and cash position. These details are verifiable and based on reported financial data. However, the article does not provide any analysis or context to explain the reasons behind the company’s performance or the impact of the reported numbers. It also includes opinions from Needham and Morgan Stanley regarding the company’s stock price, which may introduce some bias. Overall, the article provides factual information but lacks in-depth analysis and context.

Noise Level: 3
Justification: The article provides relevant information about 2U’s financial performance, including its stock price, quarterly loss, revenue, and analyst expectations. However, it lacks in-depth analysis or insights into the reasons behind the company’s poor performance and the implications for its future. The article also includes some repetitive information and quotes from analysts, which adds to the noise level.

Financial Relevance: Yes
Financial Markets Impacted: 2U shares

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses the financial performance of 2U, an online education company. The company reported a wider-than-expected loss in the third quarter, leading to a significant drop in its stock price. However, there is no mention of any extreme event or its impact in the article.

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