Laureate Education Stock

Laureate Education, Inc. and subsidiaries (Laureate) provide higher education programs and services to students through licensed universities and higher education institutions (institutions). Laureate's programs are provided through institutions that are campus-based and through electronically distributed educational programs (online).

The company operates a portfolio of degree-granting higher education institutions in Mexico and Peru. These institutions, which the company collectively refers to as the Laureate International Universities network, are leading brands in their respective markets and offer a broad range of undergraduate and graduate degrees through campus-based, online and hybrid programs. Collectively, the company has approximately 448,900 students enrolled at five institutions with over 50 campuses as of December 31, 2023.

The company’s institutions in Mexico and Peru operate within scaled country networks, which provide advantages in terms of shared infrastructure, technology, curricula and operational best practices. The company’s students are enrolled at traditional, campus-based institutions offering multi-year degrees, with an average program length of four years, similar to leading private and public higher education institutions in developed markets, such as the United States and Europe.

The company’s programs are designed with a distinct emphasis on applied, professional-oriented content for growing career fields and are focused on academic disciplines that offer strong employment opportunities and high earnings potential for the company’s students. The company continually and proactively adapt its curriculum to the needs of the market. In particular, the company emphasizes science, technology, engineering and math (STEM) and business disciplines, areas in which there is large and growing demand, especially in developing countries. Students pursuing degrees in Medicine & Health Sciences, Engineering & Information Technology and Business & Management, the company’s three largest disciplines, constitute approximately 70% of the company’s total post-secondary enrollments.

The company’s institutions in Mexico and Peru offer traditional higher education students a private education alternative, with multiple brands and price points in each market and innovative programs and strong career-driven outcomes. Additionally, through targeted programs and multiple teaching modalities, the company is able to serve the differentiated needs of non-traditional students in these markets.

Strategy

The company’s strategies include the integration of campus-based operations in Mexico and Peru; leveraging and expanding existing portfolio (adding new programs and course offerings, expanding target student demographics, and increasing capacity at existing and new campus locations); and expanding online and hybrid education programs.

The company’s strategy for the online opportunity includes the following components:

Hybrid Online Programs. Traditional 18-24 year old students attending campus-based institutions are increasingly seeking digital learning experiences that are blended with in-person learning. The company provides those students with a hybrid learning experience, mixing face-to-face classroom experience with technology through the company’s online platform, which improves the student experience by providing them with a wide range of online courses, interactive discussions, virtual experiences, digital resources, and simulations that enhance their learning experiences both within and outside the classroom.

Fully Online Programs. Many students require flexible learning modules to accommodate work and personal responsibilities. Often, these students are working adults who are looking to either complete an undergraduate or post-graduate degree, or who want to gain a credential to accelerate or change careers. The company’s fully online programs provide students with a high-quality curriculum experience to achieve their goals.

Segments and Institutions

Laureate offers its educational services through two reportable segments: Mexico and Peru.

The company’s segments generate revenues by providing an education that emphasizes profession-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. The company’s educational offerings utilize campus-based, online and hybrid (a combination of online and in-classroom) courses and programs to deliver their curriculum.

Essentially all of the company’s revenues were generated from private pay sources as there are no material government-sponsored loan programs in Mexico or Peru. Specifics related to both of the company’s reportable segments are discussed below:

Private education providers in Mexico constitute approximately 37% of the total higher-education market. The private sector plays a meaningful role in higher education, bridging supply and demand imbalances created by a lack of capacity at public universities. Laureate owns two nationally licensed institutions and is present throughout the country with a footprint of over 30 campuses. Students in the company’s Mexican institutions typically finance their own education.

In Peru, private universities are increasingly providing the capacity to meet growing demand and constitute approximately 74% of the total higher-education market. Laureate owns three institutions in Peru, with a footprint of 19 campuses.

Corporate is a non-operating business unit whose purpose is to support operations. Its departments are responsible for establishing operational policies and internal control standards, implementing strategic initiatives, and monitoring compliance with policies and controls throughout the company’s operations. The company’s Corporate segment provides financial, human resource, information technology, insurance, legal and tax compliance services. The Corporate segment also contains the eliminations of inter-segment revenues and expenses.

Intellectual Property

The company owns, or has filed applications for, trademark registrations for the word ‘Laureate,’ for ‘Laureate International Universities’ and for the Laureate leaf logo in the trademark offices of all jurisdictions in which the company operates institutions of higher learning. The company has also registered or filed applications in the applicable jurisdictions in which the company operates for the trademarks ‘Laureate Online International’ and ‘Laureate Online Education’.

Trademarks and Tradenames

LAUREATE, LAUREATE INTERNATIONAL UNIVERSITIES and the leaf symbol are trademarks of Laureate in the United States and other countries.

History

The company was founded in 1989. It was incorporated in 2015. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in 2004.