Market Overview

Aspen Group, Inc. Reports a Quarterly Record 2,217 Enrollments, a 42% Increase Year-Over-Year; Quarterly Bookings Increase 92% Year-Over-Year to $31.3 Million


NEW YORK, Nov. 11, 2019 (GLOBE NEWSWIRE) -- Aspen Group, Inc. ("AGI") (NASDAQ:ASPU), an education technology holding company, today announced record new student enrollments of 2,217 for the fiscal 2020 second quarter ending October 31, 2019, an increase of 42% year-over-year. Quarterly bookings increased 92% year-over-year from $16.3 million to $31.3 million. Consequently, total bookings for first half fiscal 2020 was $58.2 million, which on a run rate basis is tracking 31% ahead of the company's full year bookings forecast of $89 million. As a result of these strong bookings, the Company expects fiscal 2020 second quarter revenues to meet or exceed the previous quarter's 43% growth rate.

Aspen University accounted for 1,823 new student enrollments (includes 190 Doctoral enrollments and 437 Pre-licensure BSN AZ campus enrollments), delivering overall enrollment growth at Aspen University of 41% year-over-year.  Enrollment growth at Aspen University was highlighted by the Doctoral unit, which increased by 43% and the Pre-Licensure BSN unit, which increased 58% on a sequential basis. The sequential acceleration of growth in the Pre-Licensure BSN unit is a result of a full quarter of enrollments across both campuses now open in Phoenix, AZ. In addition, and similar to first quarter results, our Aspen Nursing + Other Unit experienced an increase in the number of enrollments per Enrollment Advisor (EA) and cost per enrollment declined.  As a result of this increased efficiency, Aspen's Nursing + Other unit grew enrollments by 8% year-over-year.

United States University ("USU") accounted for 394 new student enrollments (primarily MSN-Family Nurse Practitioner ("FNP") enrollments), a 45% increase in enrollments year-over-year. USU plans to continue to implement an academic calendar of bimonthly start dates for FNP students or six starts per annum. In the past two bimonthly starts (August/October), a total of 488 new students entered the FNP program which is equivalent to an annual enrollment run rate of over 1,450, should that pace continue. The previous bimonthly run rate was forecasted at 150 new FNP students per start or 900 per annum. Given the acceleration in new student FNP enrollments, the FNP program is currently growing 61% faster than the previous forecast.

Below is a table reflecting new student enrollments for the past five quarters:

    New Student Enrollments               EAs1   Enrolls/Month/EA1
    Q2'19   Q3'19   Q4'19   Q1'20   Q2'20        
Aspen (Nursing + Other)   1,104   895   944   941   1,196   47   8.5
Aspen (Doctoral)   133   120   113   198   190   8   7.9
Aspen (Pre-Licensure BSN, AZ Campuses)   57   97   186   276   437   8   18.2
USU (FNP + Other)   271   251   317   514   394   18   7.3
Total   1,565   1,363   1,560   1,929   2,217   81    
1 The EAs reflect the number at quarter end Q2'20.                        

The current Marketing Efficiency Ratio (MER = revenue-per-enrollment or LTV/cost-per-enrollment or CAC) for our four degree units is reflected in the below table:

    Enrollments     Cost-of-
    LTV      MER
Aspen (Nursing + Other)     1,196     $ 1,061     $ 7,350       6.9X
Aspen (Doctoral)     190     $ 943     $ 12,600       13.4X
USU (FNP + Other)     394     $ 862     $ 17,8202       20.7X
Aspen (Pre-Licensure BSN, AZ)     437     $ 336     $ 30,0003       89.3X

1Based on 6-month rolling average
2LTV for USU's MSN-FNP Program
3Estimate based on persistence rate of first year cohorts

The improved MER results were driven by declining cost of enrollment.  Compared to the previous quarter the weighted average cost of enrollment declined 25%, as the cost of enrollment declined for each program.

    Q2 ‘20
  Q2 '20 Cost of
  Q1 ‘20
  Q1 '20 Cost of
Aspen (Nursing + Other)     1,196   $ 1,061   941   $ 1,231   -14 %  
Aspen (Doctoral)     190   $ 943   198   $ 1,987   -53 %  
USU (FNP + Other)     394   $ 862   514   $ 1,078   -20 %  
Aspen (Pre-Licensure BSN, AZ)     437   $ 336   276   $ 478   -30 %  
Total / Weighted Average     2,217   $ 873   1,929   $ 1,160   -25 %  

1Based on 6-month rolling average

On a year-over-year basis, fiscal Q2'20 bookings increased 92%, from $16.3 million to $31.3 million, delivering an average revenue per enrollment (APRU) increase of 35%, from $10,434 to $14,125.

  Lifetime Value (LTV)   Q2'2019 Q2'2019   Q2'2020
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