Stride, Inc.

call for fiscal year 2024. With me on today's call are James Rue, Chief Executive Officer, and Don Blackman, Chief Financial Officer. As a reminder, today's conference call and webcast are accompanied by a presentation that can be found on the Strive Investor Relations website. Please be advised that today's discussion of our financial results may include certain non-GAAP financial measures. Reconciliation of these measures is provided in the earnings release issued this afternoon and can also be found on our Investor Relations website. In addition to historical information, this call may also involve forward-looking statements. The company's actual results could differ materially from any forward-looking statements due to several important factors as described in the company's latest SEC filing. These statements are made on the basis of our views and assumptions regarding future events and business performance at the time we make them, and the company assumes no obligation to update any forward-looking statements made during this call. Following our prepared remarks, we will answer any questions you may have.

I will now turn the call over to James. James?

Thanks, Tim, and good afternoon. The state of education in the United States continues to evolve, but more importantly, the way parents and students view that education is evolving. Every survey and research I have seen this year confirms that customers want choice. A recent survey by the National School Choice Awareness Foundation strongly supports this. Of those surveys, almost three-quarters indicated that they'd at least considered a new school for their child over the past year, and that is up from just over half last year. Almost two-thirds looked for a new school for their child, and over half said they were likely to consider a different school over the coming year. And the paradigm on college as a default option for students is beginning to show real cracks. In a recent survey of high school students, more students felt that on-the-job training Courses leading to licensure and courses leading to professional certifications were a better value than two or four year college degrees. That value equation between college and skills training is swinging in favor of skills training. The Wall Street Journal also recently published a number of articles on this trend. They reported that 52% of college graduates are in jobs that don't make use of their skills or credentials. They also reported on the growing trend of Gen Z students entering skilled trades, leaving the traditional college path behind to pursue high-paying skilled jobs. The article cited a survey that showed the growing rise of generative AI has changed the equation when it comes to college, with the majority of the respondents saying they thought blue-collar jobs offered better security than white-collar jobs, given the growth of AI. One of the most compelling findings was that the most critical factors for college graduates in finding success are the things that Stride can offer at the high school level, a choice of major, internships, and getting the right first job. We at Stride are delivering tomorrow's education today. Artificial intelligence also continues to dominate the news cycle in education as well as other industries. We are building a foundation our AI efforts and are developing and testing ways to improve the customer experience for the teachers and students we serve. Initial feedback is very encouraging. We remain committed to incorporating AI and other technologies into our programs, but we will do so by putting the right tools into the hands of teachers and students to supplement their work and empower all parties. Now, we just finished another incredible quarter. we reported record quarterly revenue, and our enrollments hit a new all-time high of 198.4 thousand students, sequentially higher than last quarter and higher than the pandemic levels of fiscal year 21. Our in-year enrollment growth, now for two years running, indicates that the landscape of educational choice is expanding and more fluid, and that the fall is just one indicator of customer sentiment. Many of you are already wondering about the upcoming fall season. Well, we are focused on delivering for our customers this year and ending the year strong. If the trends we are seeing in enrollment during this year continue, we've set ourselves up for a strong fall season. Application volumes as a proxy for demand continue to trend strongly, and conversion rate indicators are positive. As of today, we have the largest cohort of re-registering students in STRIDE's history. There's still a lot of work to be done before next school year, but we feel we are well positioned to continue to grow enrollments. Given the landscape of education today, I believe STRIDE represents one of the many emerging trends on the future of education by delivering on tomorrow's education today that is accessible, technology-driven, flexible, career-focused, and proven.