Stride, Inc. (NYSE:LRN) Q1 2024 Earnings Call Transcript

Donna Blackman: Now, we feel comfortable with the range that we actually provided. It’s a little soft as I said in my comments, a little bit softer because Q1 — the comparison year-over-year was an easier comparison because the enrollment grew and we got stronger last year. And so Q1 is an easier comparison. So again, we feel good about sort of where we stand from a — the 4% to 6% range.

Matt Filek: Got it. Thank you and great quarter.

Donna Blackman: And the one thing I would — you guys talk about this a lot. Mix obviously plays a part in that, right? And so throughout the course of the year what happens with in-year enrollment, et cetera, the mix is one factor that could impact that growth number.

Matt Filek: Understood. And thank you again and great quarter.

James Rhyu: Thank you.

Operator: Your next question comes from the line of Alex Paris with Barrington. Your line is now open.

Alex Paris: Hi, guys. Thanks for taking my question. And I want to add my congratulations on the — very strong first quarter results and the equally strong guidance. A question about execution. You mentioned it several times, James, in your prepared comments. And part of that is uncertain marketing, what are you doing differently now versus last year or the last several years in terms of marketing that has made a difference? And as I recall, I think you brought on a new Chief Marketing Officer. You have a new k12.com website. Just maybe a little review on what you’re doing on the marketing front.

James Rhyu: Yeah. Sure. Alex, great question. And yeah. I think I’m a huge believer in two fundamental pillars for our business. One is the macro environment. And I think that the tailwinds, work in our favor for the macro environment and our internal ability to execute. And like I said, last year we did not execute well. We did bring in a new Chief Marketing Officer, Deb Hannah. She’s come in, feet running, hit the ground running. We also have an existing set of team members, the head of our enrollment center, the head of our operations team, our IT group, like they all contribute to a better kickoff for our season this year. Specifically to your question on the marketing side, we saw some tactical things over the past several years by the way that I think — we’re always trying to figure out how to improve.

One is obviously there is a structural shift, a macro shift away from what — linear TV or regular TV. And so we actually moved away from that channel a fair bit. We didn’t spend as much in that channel because it’s — our analytics tell us it’s less productive. Conversely, our analytics suggested that we had a lot of opportunity in just regular search engine marketing, sort of the Google paid search clicks ad stuff, that you do. And refining our search terms. We’ve got a real rockstar that runs that team for us that — he just continues to mine opportunities in that channel for us that are really compelling. What we’re still not yet hitting all cylinders on is some of our social media efforts, some of our incremental career demand efforts for our Career segment.

Those things, I think, we can still improve upon. Our enrollment center, which is what we consider marketing in the enrollment center part of sort of the overall marketing funnel. And our enrollment center really did incredible job looking at ways that we can improve conversion. The families that come to us and apply, they want to come to us and sometimes we make it harder for them unnecessarily. And so when we find ways to smooth the path for them, they come to us. And so we we’re doing a bunch of stuff in our enrollment center, which includes, by the way, self-serve, everybody loves to hear the words AI, so we’ve got some AI initiatives in the enrollment center as well that automate some things, create more bespoke responses for our families.