PERDOCEO EDUCATION Corp Q2 FY2024 earnings call

• Strong student retention and engagement at CTU and AIU with retention at multi-year highs. • Lower marketing and admission spends in Q2 2024 vs 2023, with adjustments to marketing strategies using data analytics. • Board approved an 18.2% increase in quarterly per share dividend to $0.13 per share. • Announced acquisition of University of St. Augustine for Health Sciences, expected to be accretive to adjusted operating income starting 2025. • Second quarter results ahead of expectations, with net income of $38.4 million or $0.57 per diluted share. • CTU total enrollments grew 14.7% year-over-year, AIU System enrollments decline moderated.

For the second quarter, CTU had revenue of $112.8 million, a decrease of 5.4%, with operating income of $42.9 million compared to $40.5 million in the prior year. AIU System had revenue of $53.7 million, a 19.9% decrease from the prior year, and operating income of $12.9 million versus $17.1 million in the prior year. CTU's revenue decline was due to changes in professional development offerings, while AIU System's decline was from operational changes in the prior year. CTU's operating income increase was from lower admissions and marketing expenses and cost structure right-sizing. AIU System's operating income decrease was due to revenue decline only partially offset by lower operating expenses.

• Full-year 2024 adjusted operating income expected to range between $179 million and $190 million, up from prior range of $175 million to $190 million. • Adjusted earnings per diluted share expected to range between $2.13 and $2.25. • Third quarter 2024 adjusted operating income expected to be in the range of $45 million to $47 million. • Adjusted earnings per diluted share for third quarter expected to range between $0.52 and $0.50. • CTU full-year revenue expected lower due to simplification of professional development offerings, but growth in corporate engagement programs and retention to offset impact. • AIU System revenue expected below 2023 levels but expected to experience double-digit enrollment growth by year-end and revenue growth in fourth quarter.

• Department of Education rulemaking processes and updated guidance could require operational changes that impact the outlook. • Further operational changes necessary to comply with Department's rules and interpretations could affect performance as outlined.