The rise and rise of edtech higher education providers
COVID-19 saw universities across the globe shift to fully online delivery as campuses locked down. Australia was no exception.
For Australian institutions which had previously relied on a traditional face-to-face teaching model, the move to the ‘Zoom classroom’ saw many attempting to replicate their on-campus delivery in an online environment (that is, rigid timetabling and synchronous video instruction, supplemented by PowerPoints or pdf).
For universities which had made an earlier investment in online education, the question was how to scale up their interactive content, synchronous and asynchronous delivery and where they could find more learning designers to build out their course content.
2U (NASDAQ:TWOU) stock has more than doubled over the past 12 months as the education technology company, which helps colleges and universities provide online degree programs, generated robust growth throughout the pandemic. But is it a worthy long-term investment?
How does 2U make money?
Founded in 2008, 2U enjoyed an early-mover s advantage in its market. After signing its first contract with the University of Southern California in 2009, other major universities such as Georgetown, Syracuse, Northwestern, UC Berkeley, and Yale followed suit.
Image source: Getty Images.
The company splits its business into two main segments. Its Degree Program business, which generated 63% of its revenue in 2020, provides both undergraduate and graduate degrees online. The business only started offering undergraduate degrees in 2019.
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