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2U Reports Results for Second Quarter 2021 Delivers revenue growth of 30 % LANHAM , Md . — July 29 , 2021-2U , Inc. ( Nasdaq : TWOU ) , a global leader in education technology , today reported financial and operating results for the quarter ended June 30 , 2021 . Results for Second Quarter 2021 Compared to Second Quarter 2020 Revenue increased 30 % to $ 237.2 million Degree Program Segment revenue increased 26 % to $ 146.2 million Alternative Credential Segment revenue increased 36 % to $ 91.0 million Net loss improved $ 44.3 million to $ 21.8 million , or $ 0.29 per share Non - GAAP Results for Second Quarter 2021 Compared to Second Quarter 2020 Adjusted EBITDA improved $ 19.2 million to $ 17.1 million Adjusted net loss improved $ 15.0 million to $ 6.8 million , or $ 0.09 per share Exhibit 99.1 " 2U delivered strong results in the second quarter and we continue to see growing demand from universities for our shared success model as they look for a trusted and proven digital transformation partner to meet the evolving needs of adult learners , ” said Christopher " Chip " Paucek , Co - Founder and Chief Executive Officer of 2U . " As we work to close our recently announced edX acquisition , we are excited and energized by the opportunities it creates to expand access to affordable , high - quality online education globally and to deliver greater value for all of our stakeholders . " Paul Lalljie , 2U's Chief Financial Officer , added , “ Our results in the second quarter were strong , with 30 % revenue growth and positive trailing twelve month free cash flow . We are seeing good momentum , particularly in the degree business , that we expect to continue into 2022 , though given the near - term macroeconomic environment we are making the prudent decision to maintain our full - year guidance . " Discussion of Second Quarter 2021 Results Revenue totaled $ 237.2 million , a 30 % increase from $ 182.7 million in the second quarter of 2020. This increase was driven by a 26 % increase in Degree Program Segment revenue to $ 146.2 million , primarily due to growth in full course equivalent ( “ FCE ” ) enrollments of 14,287 , or 31 % , and a 36 % increase in Alternative Credential Segment revenue to $ 91.0 million , primarily due to growth in FCE enrollments of 3,244 , or 16 % . FCE enrollments increased 26 % over the prior year period to 84,108 . Costs and expenses for the second quarter totaled $ 274.3 million , an 18 % increase from $ 231.8 million in the second quarter of 2020. This increase was primarily driven by higher personnel and personnel - related expense , curriculum and teaching expense , and depreciation and amortization expense . Business Outlook for Fiscal Year 2021 As of June 30 , 2021 , the company's cash , cash equivalents , and restricted cash totaled $ 971.3 million , an increase of $ 452.5 million from $ 518.9 million as of December 31 , 2020. Cash used in operations of $ 2.2 million for the six months ended June 30 , 2021 was offset by cash provided by investing activities of $ 4.8 million and cash provided by financing activities of $ 450.6 million . The company reaffirmed guidance for the full - year 2021 provided on April 28 , 2021 for the following metrics : Revenue to range from $ 925.0 million to $ 955.0 million , or growth of 19 % to 23 % Net loss to range from $ 175.0 million to $ 165.0 million Adjusted EBITDA to range from $ 55.0 million to $ 65.0 million