Company:2U

From HandWiki
2U, Inc.
Formerly2tor, Inc.
TypePublic
NASDAQ: TWOU
Founded2008; 16 years ago (2008)
HeadquartersLanham, Maryland, United States
Area served
Global
Key people
  • Paul A. Maeder
  • (Chairman of the Board)
  • Christopher J. Paucek
  • (CEO)
ServicesEducational technology
RevenueIncrease US$ 286.75 million (2017)
Decrease US$ -30.14 million (2017)
Decrease US$ -29.42 million (2017)
Total assetsIncrease US$ 482.06 million (2017)
Total equityIncrease US$ 387.83 million (2017)
Number of employees
1,922 (2017)
SubsidiariesTrilogy Education Services
Website2u.com
Footnotes / references
[1]

2U, Inc. (formerly 2tor Inc.) is an educational technology company that contracts with nonprofit colleges and universities to offer online degree programs.[2][3][4][5] The company supplies its client institutions with a cloud-based software-as-a-service platform, coursework design, infrastructural support, and capital to deliver instruction.

History

The company was founded in 2008 by John Katzman (co-founder of The Princeton Review), Chip Paucek (former CEO of Hooked on Phonics), and Jeremy Johnson; In 2013, John Katzman left to start Noodle Partners, a similar company. As of 2019, Paucek continued to serve as CEO.[6] Paucek holds an MBA from the University of North Carolina at Chapel Hill that he earned online through that school's partnership with 2U.[7]

Before its initial public offering, the company was backed by venture capitalists and raised $96 million.[8] The company went public on March 28, 2014, and raised $119 million by offering 9.2 million shares at $13 per share.[9] 2U is traded on NASDAQ under the ticker symbol TWOU. The company is a Russell 1000 Index component.

A previous program. 2U's "Semester Online" for undergraduate universities was marketed as a platform for top-tier universities to offer online courses to paying students at participating universities. [lower-alpha 1] The company announced in April of 2014 that Semester Online would end in the summer of 2014.[11]

Schools such as the University of Southern California, Syracuse University, Georgetown University's nursing school, Northwestern University, the University of North Carolina at Chapel Hill, and the University of California, Berkeley have signed on with 2U to create online graduate degree programs.[12] In March of 2015, Yale University and 2U announced that they were partnering in order to offer a full-time, online master of medical science degree. Such degrees are required in order to become a physician's associate. Yale's program has the same admissions requirements, curriculum, and tuition as the on-campus program. Degree programs managed by 2U offer exactly the same degree as their offline counterparts. As of 2015, about 12,300 students were enrolled in 2U partner programs.[13]

In February of 2019, 2U announced that it had acquired a minority interest in Keypath Education. Keypath's services are similar to those of 2U. It was founded in 2014 and has 23 partner institutions in the United States, Canada, Australia, and the United Kingdom. 2U said its relationship with Keypath would allow it to offer its services to smaller and cheaper programs than it has in the past.[14]

In early 2019, 2U announced that it had entered a partnership with EGADE Business School at Tecnológico de Monterrey in Mexico to offer an online MBA program. The program started classes in the fall of 2019 and is taught in English. 2U also partners with Tecnológico de Monterrey and the Washington University School of Law to offer an online master of laws program.[14][15]

During a conference call with investors on July 30, 2019, Chip Paucek said the business wasn’t growing as he had hoped, and attracting large numbers of students was more challenging and more expensive than before. As a result the company’s stock fell from $36.50 to $12.80 in 24 hours. Paucek said 2U would work to increase the efficiency of its marketing spending by reducing the number of programs it launches. He also said 2U would be more flexible with its pricing and offer hybrid pricing structures and fee for service in addition to its current revenue share model.[16]. The net worth of the company fell from $4.7 billion in September 2018[17] to $1.35 billion in November 2019[18].

In August 2019, the company announced that increasing competition was leading to a strategy based on non-degree programs having shorter courses, and development of technology “boot camps.”[6]

In August 2019, 2U announced that its long-serving chief financial officer (CFO), Catherine Graham would retire from the company in October. Graham was replaced by Paul S. Lalljie as CFO. Lalljie worked at Neustar for nine years as CFO. In November 2019, Jennifer Ogden-Reese became 2U's chief marketing officer (CMO). Ogden-Reese was CMO of SeatGeek and has over 12 years of experience in senior marketing roles.[19]

On August 6th, 2019, 2U announced its first undergraduate program. The program offers a degree in data science and business analytics from the London School of Economics (LSE). LSE and 2U aim to keep the cost of the three-year degree at $20,000, far lower than most of 2U's other programs. 2U usually focuses on high-tuition programs at selective universities. Starting in 2017, 2U diverged from this strategy. It acquired GetSmarter and later Trilogy Education. These firms offer short-term non-credit training programs.[20]

Business model

2U operates as an online program manager. It does not confer degrees.[21] Rather, it provides its clients with technology and other resources to create online classes and degree programs taught by the client institution's instructors with live video and recorded classes with multimedia presentations. The programs set-up by 2U and its clients generally have small class sizes and career services.[22] Students meet in a live video chat room with the professor and the other students.[23][12] This approach has led to a student retention rate of 84 percent.[24]

2U signs long-term contracts, typically 10–15 years in length, with its client institutions. Students pay standard tuition. 2U gets paid through revenue sharing..[25]

Subsidiaries

GetSmarter

In early 2017, 2U acquired GetSmarter. GetSmarter was founded in 2008 in South Africa. It offers short-term online courses in partnership with major universities. 2U paid $103 million in cash up-front for GetSmarter with a $20 million earn-out. In 2016, GetSmarter had $17 million in revenue and roughly 400 employees. GetSmarter was 2U's first acquisition. At the time of its acquisition, GetSmarter continued to operate as an independent business unit.[26]

Trilogy Education Services

Trilogy Education Services is a New York City -based company that offers non-credit certificate training programs, colloquially known as coding bootcamps, through affiliate universities.[27] In-person courses are held on the affiliate university campus.[27] Revenue from the tuition is shared with the affiliate university. Program graduates receive a professional certificate from the partner school and career counseling. The partner schools do not regard program graduates as university alumni, nor program enrollees as university students.[27][28]

The company was founded in 2015.[28] In June 2017, the company received $30 million in a Series A funding, followed by $50 million in Series B funding in May 2018. It was bought by 2U in April 2019 for $750 million in cash and stock.[29]

Recognition in the media

In May 2012, Forbes named 2U as one of the 10 Start-Ups Changing the World.[30]

In 2014, Inc. Magazine named 2U one of 10 Tech Companies Helping Humanity.[12]

In 2016, 2U was listed as a Most Innovative Company by Fast Company.[31]

References

  1. ↑ "US SEC: Form 10-K 2U, Inc.". U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1459417/000104746918001109/a2234625z10-k.htm. Retrieved March 10, 2018. 
  2. ↑ "2tor gets $10M credit line - Washington Business Journal". Bizjournals.com. 2012-04-18. http://www.bizjournals.com/washington/news/2012/04/18/2tor-gets-10m-credit-line.html. Retrieved 2012-05-03. 
  3. ↑ Alyson Shontell, provided by (2012-04-18). "There Are A Million Education Startups And No One To Acquire Them". Sfgate.com. http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/18/businessinsidereducation-startups-a.DTL. Retrieved 2012-05-03. 
  4. ↑ Heather R. Huhman (2012-04-11). "The Future Of Education: How 2tor Is Helping America's Great Universities Go Online - Business Insider". Articles.businessinsider.com. http://articles.businessinsider.com/2012-04-11/tech/31323390_1_higher-education-internet-online-masters. Retrieved 2012-05-03. 
  5. ↑ Bolshaw, Liz (2012-04-16). "Out of sight but not out of mind in the virtual world". FT.com. http://www.ft.com/cms/s/2/1e684bc2-71d0-11e1-8497-00144feab49a.html. Retrieved 2012-05-03. 
  6. ↑ 6.0 6.1 Johnson, Stevan (August 1, 2019). "As Competition Mounts, 2U Signals Big Changes for Online Education". Chronicle of Higher Education. https://www.chronicle.com/article/As-Competition-Mounts-2U/246862?cid=at. "It’s becoming obvious that all schools are going online. We believe this represents a new reality in the marketplace, and requires us and others to adjust to it.”– Chip Paucek, CEO" 
  7. ↑ "Christopher "Chip" Paucek". 2U.com. https://2u.com/about/2u-leadership/profile/chip-paucek/. Retrieved 5 December 2019. 
  8. ↑ "Online Higher Education Gets a Raise as 2tor Secures $26 M. in Series D Funding Round". Betabeat. 2012. http://betabeat.com/2012/04/02/2tor-closes-series-d/. 
  9. ↑ Flook, Bill. "2U goes public, rings opening bell on NASDAQ". Baltimore Business Journal. http://www.bizjournals.com/baltimore/news/2014/03/28/2u-goes-public.html. 
  10. ↑ "Universities". 2U, Inc.. http://2u.com/partners/. Retrieved 24 September 2013. 
  11. ↑ Straumsheim, Carl (3 April 2014). "2U Ends Semester Online". Inside Higher Ed. https://www.insidehighered.com/news/2014/04/03/online-education-provider-2u-disband-semester-online-consortium. 
  12. ↑ 12.0 12.1 12.2 Kerpen, Dave (2014-07-24). "10 Tech Companies Helping Humanity". Inc.com. http://www.inc.com/dave-kerpen/10-tech-companies-impacting-humanity.html. 
  13. ↑ Monir, Malak (12 March 2015). "Yale to offer full-time master's program online". USA Today (Gannett Co.). https://www.usatoday.com/story/news/nation/2015/03/12/yale-full-time-online-masters-program/70163994/. Retrieved 5 December 2019. 
  14. ↑ 14.0 14.1 Staff (11 February 2019). "2U’s Busy 2019 So Far Includes Partnerships, Global Expansion and a Minority Acquisition". EdSurge (EdSurge, Inc.). https://www.edsurge.com/news/2019-02-11-2u-s-busy-2019-so-far-includes-partnerships-global-expansion-and-a-minority-acquisition. Retrieved 5 December 2019. 
  15. ↑ "2U, Inc. and the EGADE Business School at Tecnológico de Monterrey Partner to Deliver a New Online MBA". CISION PR NEWSWIRE. https://www.prnewswire.com/news-releases/2u-inc-and-the-egade-business-school-at-tecnologico-de-monterrey-partner-to-deliver-a-new-online-mba-300793049.html. Retrieved 5 December 2019. 
  16. ↑ "A Reckoning for 2U, and OPMs?". 1 August 2019. https://www.insidehighered.com/digital-learning/article/2019/08/01/bad-day-2u-highlights-vulnerability-online-program-management. 
  17. ↑ Gara, Antoine. "Ivory Tower In The Cloud: Inside 2U, The $4.7 Billion Startup That Brings Top Schools To Your Laptop" (in en). Forbes. https://www.forbes.com/sites/antoinegara/2018/09/25/mbas-in-pjs-inside-2u-the-47-billion-startup-that-brings-top-schools-to-your-laptop/. 
  18. ↑ "2U Net Worth 2012-2019 | TWOU". 17 November 2019. https://www.macrotrends.net/stocks/charts/TWOU/2u/net-worth. 
  19. ↑ Graham, Michael (5 November 2019). "Power Moves: New C-suite hires for CUCollaborate, 2U, Inky Technology". Technical.ly DC (TECHNICALLYMEDIA). https://technical.ly/dc/2019/11/05/power-moves-new-c-suite-hires-for-cucollaborate-2u-inky-technology/. Retrieved 7 November 2019. 
  20. ↑ Lederman, Doug (6 August 2019). "2U Goes Undergrad". Inside Higher Ed. https://www.insidehighered.com/digital-learning/article/2019/08/06/london-school-economics-start-2us-first-undergraduate-degree. Retrieved 5 December 2019. 
  21. ↑ "What's Ahead for 2U?". Motley Fool. April 2014. http://www.fool.com/investing/general/2014/03/31/what-is-ahead-of-2us-ipo.aspx. Retrieved 2014-11-19. 
  22. ↑ Greenberg, Molly. "2U Releases Mobile Apps, Making it Easier For Students to Access Online Course Content". http://inthecapital.streetwise.co/2014/03/18/dc-tech-2u-releases-6-new-mobile-apps/. Retrieved 19 November 2014. 
  23. ↑ Burke, Adrienne. "$97,500 for an Online Degree? 2U Is Worth It, Say Students". https://www.forbes.com/sites/techonomy/2012/11/05/97500-for-an-online-degree-2u-is-worth-it-say-students/. Retrieved 19 November 2014. 
  24. ↑ Lapowsky, Issie. "The Future of Online Education Is on Campus". http://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/future-online-education-on-campus.html. Retrieved 19 November 2014. 
  25. ↑ "IPO Preview: 2U". http://seekingalpha.com/article/2114083-ipo-preview-2u. Retrieved 19 November 2014. 
  26. ↑ Howard, Caroline (2 May 2017). "EdTech Giant 2U Acquires GetSmarter For $103 Million". Forbes. https://www.forbes.com/sites/carolinehoward/2017/05/02/edtech-giant-2u-acquires-getsmarter-for-103-million/#7f87bd632bf7. Retrieved 5 December 2019. 
  27. ↑ 27.0 27.1 27.2 "Trilogy Education's Unique Approach To Coding Boot Camps Helps It Raise $50 Million". 2018-05-31. https://www.forbes.com/sites/susanadams/2018/05/31/trilogy-educations-unique-approach-to-coding-boot-camps-helps-it-raise-50-million/. Retrieved 2018-09-12. 
  28. ↑ 28.0 28.1 "Trilogy Education Services Raises $30 million to provide skill-based training". 2017-06-06. https://venturebeat.com/2017/06/06/trilogy-education-services-raises-30-million-to-provide-skill-based-training/. Retrieved 2018-09-12. 
  29. ↑ "Online Enabler Aims for Lifelong Learning" (in en). www.insidehighered.com. 2019-04-09. https://www.insidehighered.com/news/2019/04/08/2u-buy-boot-camp-provider-trilogy-750-million. Retrieved 2019-05-31. 
  30. ↑ Pozin, Ilya. "10 Startups Changing the World And What We Can Learn From Them". Forbes.com. https://www.forbes.com/sites/ilyapozin/2012/05/09/10-startups-changing-the-world-and-what-we-can-learn-from-them/. 
  31. ↑ "2U: Most Innovative Company". https://www.fastcompany.com/company/2u. Retrieved 2 October 2019. 

Notes

  1. ↑ The universities included: Boston College, Brandeis University, Emory University, Northwestern, The University of Melbourne, Trinity College of Dublin, University of North Carolina at Chapel Hill, University of Notre Dame, Wake Forest University, and Washington University in St. Louis.[10]

External links




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