Online education continues to grow
- November 16, 2011
K12 Inc. reported a 43 percent growth in revenue for its first quarter because of increased enrollment in its online curricula and recent acquisitions.
Revenue grew to $193.3 million in the company’s first quarter, compared with $134.9 million during the same period last year. Organic growth rose 26 percent in its core revenue of providing curriculum, technology and academic services to K-12 schools, providing for $33 million of the increase in revenue. Acquisitions, which included KCDL, American Education, International School of Berne and certain K-12 assets of Kaplan Virtual Education, contributed about $20 million in new revenue during the quarter.
Profit was $4.6 million for the quarter, compared with $2.2 million in the same quarter last year.
“We are pleased that we did not let the acquisitions distract us and our core business continues to perform well and grow rapidly,” Ron Packard, CEO of K12, said in a statement. “Our new initiatives are also performing well as online education becomes more widely accepted.”
Full-time enrollment grew from about 99,600 to 141,500 students over the past year.