Stride Inc. (LRN) stock price was up by 3.08% as of the market closing on October 19th, 2021. This brought the price per share up to USD$34.19. Subsequent premarket fluctuations saw the stock rise by 2.66%, bringing it up to USD$35.10.
Solid Liquidity Position
LRN stock reported a solid liquidity position as of September 30th 2021, with cash and cash equivalents in the amount of USD$218.5 million. This is comparable to the USD$386.1 million reported as of June 30th 2021. The difference was primarily attributable to the result of normal season expenditures incurred at the onset of the school year. Capital expenditures for the quarter were reported at USD$15.4 million, as compared to the USD$12.8 million reported for the first fiscal quarter of 2021. Capital expenditures for the first quarter of fiscal 2022 consisted of USD$1.3 million of property and equipment, USD$9.7 million of capitalized software development, and USD$4.4 million of capitalized curriculum development.
Balance Sheet Improvements
Over the course of the quarter, LRN stock early adopted ASU 2020-06 which resulted in a change in accounting for the convertible notes. The impact to long-term debt was a non-cash increase from USD$299.3 million to USD$410.3 million as of September 30th 2021. Other impacts to the balance sheet were a decrease of USD$89.5 million to additional paid-in capital. The balance sheet also reflected a decrease of USD$29.3 million to deferred tax liability, as well as an increase of USD$8.2 million to retained earnings. The early adoption also results in the elimination of the non-cash interest expense associated with the amortization of the debt discount of the company’s consolidated statement of operations.
About LRN Stock
LRN stock aims to revolutionize the education industry, pushing for the transformation of the teaching and learning experience for millions of people. This is facilitated by the provision of innovative, high quality, technology enabled education solutions, curriculum, and programs. These are provided directly to students, schools, the military, and enterprises in the primary, secondary, and post-secondary educational contexts.
Future Outlook for LRN Stock
The company is keen to consolidate and expand its market footprint in the education sector, as a result of the strength of its financials. LRN stock is poised to continue maintaining the momentum generated over the course of the fiscal year so far, through the upcoming several quarters. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.