Content written by Brian Withers and published by The Motley Fool.
MBA News Digest Comment: Gain insight into the future of online education by reading the The Motley Fool’s analysis of 2U.
Extracted Content: 2U (NASDAQ:TWOU) has built a fast-growing business on the back of the digital graduate programs it creates for colleges and universities. Because the company bears the upfront development costs for these programs and enters into a long-term revenue-sharing contract, 2U’s customers stand to benefit significantly from this relationship.
With a solid first quarter of growth in the books, 2U confirmed its guidance for 30% revenue growth for its domestic graduate programs (DGP) this year, and CEO Chip Paucek sees that “growth rate accelerating into 2019 and 2020.” With 87% of the company’s top line driven by DGPs in the most recent quarter, this segment is incredibly important to the company.
And some of 2U’s largest partners can offer investors insight into why this is happening.
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