Aspen Group, Inc. (NASDAQ:ASPU) Q4 2019 Earnings Conference Call - Final Transcript
Jul 09, 2019 • 04:30 pm ET
enter the first year prerequisite phase of the program. These students typically enter the program with some college credits and are required to complete the total of 41 first year credit before entering the final two year core program. We are comfortable at this point predicting a two-third matriculation rate of first year students that successfully complete their first -- their 41 first year credit, and thereby enter the final two year core program.
Based on a 70:30 ratio of prerequisite students to final two year core program students, we are now able to confirm a weighted average LTV of approximately $30,000 per enrollment in this pre-licensure BSN program. This $30,000 LTV per enrollment or if you will the ARPU or average revenue per user for this business is just over four times higher than the ARPU for our traditional Aspen online nursing students of $7,350.
In addition to a 4X ARPU, the average cost of enrollment for this pre-licensure BSN program to date is approximately $400, meaning that for every dollar spent in marketing, we're projecting to earn nearly $75 of revenue. These operating metrics suggest that we should focus most of our expansion capital in this business. This is indeed our plan that we're targeting to open two campuses per calendar year starting in 2020 for the next five years. So as we'll reach the end of calendar year 2024, we expect to have 12 campuses in operation. Once these 12 campuses all reach full maturity, we're projecting that this business alone will be over a $100 million business.
Next, I'd like to discuss our recent enrollment results, comparing fiscal year 2018 to fiscal year 2019, and what that equates to an incremental booking. Please feel free to follow along as this analysis is available for review on turning to Slide 7 and 8, which is available for download on our IR site aspu.com.
So let's go back to fiscal year 2018 on Slide number 8. The total enrollments for the year was 4,254. We can see that the vast majority enrollments were in Aspen's traditional online nursing program which delivers an LTV of $7,350 per enrollment. So in fiscal 2018, we delivered bookings in that unit of $28.4 million, while adding bookings of $1.5 million in our Aspen doctoral unit, another $5 million of bookings in our USU, primarily FNP unit during the five months following the acquisition. That means the Company in total delivered bookings for fiscal year 2018 of $34.8 million.
Okay. Let's compare that with fiscal year 2019. As we discussed previously, we made a conscious decision to hold spending relatively flat on a year-over-year basis in our Aspen online nursing core unit for two key reasons. One, the LTVs for the other three units are significantly higher than the Aspen nursing online LTV; and then two, we decided that focusing our growth spending on entire ARPU business unit would over the long term results in higher revenues and net income than the Aspen