Grand Canyon Education, Inc. (NASDAQ:LOPE) Q3 2022 Earnings Conference Call October 27, 2022 4:30 PM ET

Company Participants

Brian Mueller - Chairman and Chief Executive Officer

Daniel Bachus - Chief Financial Officer

Conference Call Participants

Jeffrey Silber - BMO Capital Markets

Jeffrey Mueler - Baird

Operator

Good afternoon, and thank you for standing by. Welcome to the Grand Canyon Education's Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advise that today's conference is being recorded.

And I would now like to hand the conference over to your first speaker today, Dan Bachus, Chief Financial Officer at Grand Canyon Education. Go ahead, Dan.

Daniel Bachus

Good afternoon. Joining me on today's call is our Chairman and CEO, Brian Mueller. Please note that many of our comments today will contain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements.

These factors are discussed in our SEC filings, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

We undertake no obligation to provide updates with regard to the forward-looking statements made during this call, and we recommend that all investors review these reports thoroughly before taking any position in GCE.

And with that I'll turn the call over to Brian.

Brian Mueller

Good afternoon. And thank you for joining Grand Canyon Education's third quarter fiscal year 2022 conference call. GCE had a very good quarter, exceeding enrollment expectations, exceeding revenue guidance at midpoint by $420,000 and producing a $0.15 beat on its adjusted diluted earnings per share guidance at midpoint.

Given how most of higher education is coming out of the COVID years, these are excellent results. Most importantly, GCU online produced new enrollment growth in the mid-teens over third quarter prior year, and that momentum is expected to continue in the fourth quarter.

I want to begin by taking a step back to explain why this is happening in briefly, review what has happened since the GCU transaction took place four years ago. I have often said that in the past, small and elite has won the day in higher education and especially in areas like U.S. News and World Report rankings.

But in the future, it will be large, scalable, flexible, offering education across the adult lifespan and using technology to build as many delivery models as is necessary given the nature of the content and skills that need to be learned.