Zovio Inc.

Good morning and welcome to Zovio's second quarter 2022 earnings conference call. Today's call is being recorded. At this time, I would like to turn the call over to Vicki Shray, Executive Vice President, Chief External Affairs Officer. Please go ahead.

Thank you and good morning. Zovio's second quarter 2022 earnings release was issued earlier today. and is posted on the company's website at www.zovio.com. Joining me on the call today are Randy Hendricks, Chief Executive Officer, and Kevin Royal, Chief Financial Officer. We would like to remind you that some of the statements we make today may be considered forward-looking, including statements regarding enrollment, student retention, university partners and other programs and services, future revenue growth, EBITDA, financial and related guidance, and commentary regarding fiscal year 2022 and later. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Please note, that these forward-looking statements speak only as of the day of this presentation, and we undertake no obligation to update these forward-looking statements in light of new information or future events, except to the extent required by applicable securities laws. On the call today, we will also discuss certain non-GAAP financial measures. In our earnings release, you will find additional disclosures regarding these measures including reconciliation of these measures with U.S. GAAP. Please note that these are intended to supplement GAAP financial information. It should not be considered as a substitute for our GAAP results. Please refer to our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2021, previously filed with the SEC, as well as our quarterly report on Form 10-Q for the quarter ended June 30, 2022, which will be filed with the SEC in the upcoming days for a more detailed description of the risk factors that may affect our results. You may obtain copies from the SEC or by visiting the investor relations section of our website. At this time, it is my pleasure to introduce our CEO, Randy Hendricks.

Thank you, Vicki, and welcome everyone to our second quarter 2022 earnings call. We appreciate you getting up early to join us, and I'll give you a few brief comments here as we get started. This morning, we announced that we have entered into an agreement with the University of Arizona Global Campus to purchase our OPM business, which we had used to provide the university services. As a reminder, in April, we announced our intent to pursue strategic alternatives aimed at unlocking shareholder value, which included evaluating potential divestitures. At the same time, the team and I undertook a comprehensive business review and have taken several actions to address underperforming areas of our business. We are pleased to have reached this agreement with UAGC and are excited about the university's future. In May, we completed the sale of TutorMe for $55 million and used a portion of those proceeds to repay bridge financing. This allowed us to satisfy obligations stemming from a decision by the Superior Court of California while we appealed the decision. Going forward, Zovio will support the continued growth and expansion of Full Stack Academy while simultaneously exploring strategic alternatives. Now, I'll provide a brief overview of our results for the quarter. In 2Q, we had revenue of $51.4 million and a net loss of $4.7 million or $0.14 per diluted share. Excluding certain items, our non-GAAP net loss for the second quarter of 2022 was $12.3 million or $0.36 per diluted share. Over the past quarter, we've experienced significant challenges in recruiting and retaining military affiliated students, which accounts for approximately 29% of UAGC's total student population. This is due to issues that UAGC has either worked through or is in the process of working through related to military financial assistance. These matters have had a significant impact on our second quarter revenues. Turning to Full Stack Academy, The business continued to perform well in the second quarter. We grew revenues by 35% year over year. Our growth strategy with Fullstack includes adding new university partners to our existing 19, as well as increasing the number of programs offered. In the second quarter, we continued our UpGrad partnership in India. In addition, we launched our second cohort for web development with the New York City Workforce Development Corporation. Further, we had a number of exciting developments during the quarter, which I'll briefly describe. First, Fullstack Academy launched a new part-time Grace Hopper program, which allows female and non-binary students the opportunity to work full-time and take an immersive 28-week part-time software development program. For context, the Grace Hopper program is a coding bootcamp offered exclusively for women and non-binary students. From continuously updating curriculum to personalized mentorship experiences, the program encourages women to advance their technology careers. Additionally, we launched a new full-time software engineering program, creating a pathway for students that do not have previous coding experience. This 19-week program provides a foundation and prepares students to be successful in our immersive boot camps. We continue to partner with companies to help our students secure meaningful jobs after graduation by actively participating in recruiting events and sharing job openings with our students. This is a key growth area for Fullstack and we are pleased with the addition of 67 new employers as partners in Q2. We continue to have high expectations for Fullstack Academy and our outlook remains strong. I will turn the call over to Kevin Royal to review our financial and operating results. Thank you, Randy.