Aspen Group, Inc. (NASDAQ:ASPU) Q2 2023 Earnings Call Transcript

Matt LaVay: Well, so that’s an interesting question because we are EBITDA positive now because of the restructuring and all of that, that we put in place. So, once we put the marketing plan in place, this €“ it would be possible with the AR facility. We will be ramping spend at a rate that keeps us at that adjusted EBITDA breakeven-ish type of level. So, there isn’t a magical revenue number in the future that would cause that inflection point. The idea is we maintain the place that we are. We don’t get ahead of ourselves with spend as we ramp up the marketing spend. That makes sense. Hopefully, that makes sense to you.

Mike Grondahl: Yes, it does. I mean I guess I am just trying to figure out steady state, what does the company look like in a couple of years? Is it €“ you are spending these marketing dollars to drive breakeven adjusted EBITDA. When does that flip, if you will, and when do we get more?

Matt LaVay: Yes. So, the way you just described it is the way that we think about it for the next couple of years, okay, so fiscal €˜24 and €˜25. And the reason that those years were kind of staying at that flatter adjusted EBITDA levels because we still have the pre-licensure teach-out as we are ramping up the marketing spend and starting to grow the online business again from where it is today. Once we get into after fiscal €˜25, the pre-licensure drag goes away entirely, and you see the full effects of the growth from the new enrollments in the online post-licensure programs. So, I would start thinking about kind of that larger adjusted EBITDA number laid in €˜25 and into €˜26 and €˜27.

Mike Grondahl: Fair. Okay. Thanks guys.

Michael Mathews: Have a good afternoon Mike. Thank you.

Operator: And we have reached the end of the question-and-answer session. I will now turn the call back over to Michael Mathews for closing remarks.

Michael Mathews: Thanks everyone for participating in today’s call. We look forward to speaking with you again in our third quarter earnings call in March of 2023. Thank you. Have a good afternoon.

Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.