Why 2U Stock Plunged Today
Shares of 2U (NASDAQ: TWOU) were down 24.3% as of 11:00 a.m. ET Wednesday, according to data provided by S&P Global Market Intelligence, after the online education platform company announced disappointing second-quarter 2023 results.
Quarterly revenue fell 8% year over year to $222.1 million, translating to an adjusted net loss of $14.4 million, or $0.18 per share. Analysts, on average, were expecting a much narrower net loss of $0.07 per share on higher revenue of $234 million.
2U co-founder and CEO Chip Paucek noted that their edX subsidiary -- which the company acquired in late 2021 -- generated 44% of its organic leads during the quarter. Still, 2U has struggled to bolster its top line as it focuses on marketing and operational efficiency.
Source Fool.com
