Dive Brief:
- Adtalem Global Education, a for-profit college operator, logged $369.1 million in revenue during fiscal 2023’s third quarter, reversing nearly a year of declines.
- The company’s third quarter revenue is 1.3% higher than for the same period last year. Enrollment improvements at Chamberlain University, one of five colleges Adtalem operates, helped drive the increase.
- But student headcounts plummeted at Walden University. The large online university has seen enrollment decline year over year in every quarter since Adtalem purchased it in 2021.
Dive Insight:
Adtalem’s institutions — which also includes the Ross University School of Medicine — are focused on training professionals to fill worker shortages in the healthcare industry. As part of that strategy, the company acquired Walden nearly two years ago for almost $1.5 billion, though the purchase also spurred executives to reign in costs.
“To invest at scale in new innovative student learning tools, expand existing programs and create new programs for in-demand professions requires disciplined cost management,” Adtalem CEO Steve Beard said during a call Tuesday with analysts.
In fiscal 2022, the company spent $25.6 million in restructuring costs, which were largely driven by workforce reductions and office downsizing, according to a filing with the U.S. Securities and Exchange Commission. Restructuring efforts have continued into fiscal 2023, with Adtalem racking up $17.7 million so far in related expenses.
The company’s efforts appear to be improving its bottom line. Adtalem’s operating costs and expenses declined to $309.7 million in the third quarter, down 6.5% from the year before. It posted a $45.9 million profit in the third quarter.
