2U, Inc. (NASDAQ:TWOU) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 04:30 pm ET


2U, Inc. (NASDAQ:TWOU) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the 2U Inc. Second Quarter 2020 Earnings Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today Ed Goodwin, SVP, Investor Relations. Thank you. Please go ahead.

Ed Goodwin

Thank you, operator. Good afternoon everyone and welcome to 2U's second quarter 2020 earnings conference call. On the call, we have Chip Paucek, our CEO; and Paul Lalljie, our CFO. Following Chip and Paul's prepared remarks, we will take questions.

This call is being simultaneously webcast on our website, where you can find our press release, which was issued after the close of the market, as well as our earnings presentation. The webcast replay of this call will be available for the next 90 days on our company website under the Investor Relations link. Statements made on this call include forward-looking statements regarding our financial and operating results, the continued impact of the COVID-19 pandemic, new educational offerings, student and university demand and other matters. These statements are subject to risks, uncertainties and assumptions. Any forward-looking statements made on this call reflect our analysis as of today, and we have no plans or duty to update. Please refer to the earnings press release and the risk factors described in the documents we filed with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2019 and our most recent quarterly report on Form 10-Q for information on risks, uncertainties and assumptions that may cause actual results to differ materially from those set forth in such statements.

In addition, during today's call, we will discuss non-GAAP financial measures which we believe are useful for supplemental measures of 2U's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release and on the Investor Relations page of our website.

With that, let me hand it over to Chip.

Christopher Paucek

Thanks, Ed. As we pass the halfway mark of the year, it's now clear that 2020 will be in both our personal and professional lives, unlike any other we've ever experienced. Whether it's the effects of COVID or the impact of the Black Lives Matter movement, we're confronting profound changes, challenges and opportunities as a society. For 2U, these new norms have only served to reinforce the importance of our mission, the value of our business model and our company's capacity to help universities meet society's most critical needs. I'll come back to these important issues and speak directly to the impact of the Black Lives Matter movement on 2U. But since this is an earnings call, I'll start by highlighting our results.

We're very pleased about our progression over the past year. We entered 2020 with a goal of maintaining strong revenue growth and delivering margin improvement throughout the year while