2U made its stock market debut on Nasdaq on Friday and closed the first trading day slightly up at $13.98 per share which is 7.5% above the starting price of $13.
2U sold 9.175 million shares at $13 apiece, bringing in a total of $119.3 million on Friday.
1.175 million shares were offered by shareholders while the company offered 8 million shares, bringing in about $104 million for 2U.
The single biggest shareholder in 2U is its co-founder and former CEO John Katzman. Before the IPO he owned 4.4 million shares and planned to sell 884,925. With a starting price of $13 he should have made around $11 million. Katzmann is also founder of Princeton Review and Noodle Education.
Chip Paucek, co-founder and CEO of 2U stated that since the launch of the company nearly 10.000 students have enrolled in its online programs and 2.500 graduated to date.
2U offers selected partner colleges and universities a cloud based SaaS platform. The programs offer blended learning experiences with live online classes, dynamic course content and real world experiences.
All courses offered on the platform are master degree & undergraduate for-credit programs and 2U has partnered with renown universities and colleges like USC Rossier, American University or Trinity College Dublin.
Phil Hill took a closer look at the S-1 filing and came up with four key figures:
- 2U makes $10,000 – $15,000 in revenue per student per year
- 2U makes an average of $10 million in revenue per customer per year
- 2U’s customers make an average of $10 million in net revenue per year
- 2U’s customers are charging $17,000 – $45,000 per student per year in tuition
2U booked revenue of $29.7 million, $55.9 million and $83.1 million in 2011, 2012 and 2013, respectively with roughly two-thirds of its $83 million revenue last year coming from two programs at the University of Southern California.
- Landover-based education company 2U debuts on the public markets at $13 per share | The Washington Post
- Four numbers to consider from 2U’s IPO filing | e-Literate
- 2U sets IPO price range at $11 to $13 per share | Washington Business Journal
- More than two-thirds of 2U’s revenue comes from one university | Washington Business Journal
- Embanet and 2U: More financial insight into Online Service Providers | e-Literate