Why 2U, Inc. Stock Surged 53.6% in May
Shares of 2U, Inc. (NASDAQ: TWOU) rose 53.6% during the month of May, according to data from S&P Global Market Intelligence. The online education technology provider posted better-than-expected results for the first quarter on April 30, which set up strong gains for the month of May as the market also continued to recover.
In its first quarter earnings report, 2U posted an eye-opening 43.6% revenue growth and adjusted (non-GAAP) loss per share of ($0.33), with both figures ahead of expectations. Aside from the effect of last year's acquisition of Trilogy, organic revenue growth was only 15%, but that marked an acceleration over the fourth quarter's 13% organic growth, showing that even the effect of two weeks of quarantines boosted 2U's online education business. While 2U is still not profitable, free cash flow margins have improved mightily over the past two quarters, going from (19%) in Q3 2019 to (14%) in Q4 2019 and then jumping to (9%) in Q1 2020.
Source Fool.com
