2U, INC. Strengths, Domain Expertise, and Key Differentiators
For more than a decade, 2U, a global leader in education technology, has been a trusted partner and brand steward of great universities. 2U build, deliver, and support more than 435 digital and in-person educational offerings, including graduate degrees, professional certificates, Trilogy-powered boot camps, and GetSmarter short courses. Together with its partners, 2U has positively transformed the lives of more than 245,000 students and lifelong learners.
2U, INC. Recent Developments
In early November, the company received the approvals from the Massachusetts Attorney General and the Massachusetts Supreme Court required in connection with the edX acquisition. The acquisition is expected to close in mid-November.
In November 2021, the company borrowed an additional $100 million under its existing senior secured Term Loan B. The incremental borrowings have an original issue discount of 2%. Except to provide for the incurrence of the incremental loan, the terms of the credit agreement were not materially changed.
2U, INC. Mergers and Acquisitions (M&A) Activities
In June 2018, 2U acquired CritiqueIt, Inc., creator of a market-leading digital annotation tool. The CritiqueIt technology facilitates more dynamic engagement among students and faculty by allowing any piece of content, including documents, images, videos, presentations, and audio files, to be annotated in real-time.
2U, INC. Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying 2U, INC. applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of 2U, INC. and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Online Campus, customers.
2U, INC. Overview
Ownership: - TWOU: Nasdaq
Number of Employees: 3772
Functional Markets: ERP Services and Operations, HCM,
Key Verticals: Education,
2U, INC. Key Enterprise and Cloud Applications
Online Campus,
2U, INC. Revenues, $M:
| Type/Year | 2019 | 2020 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
2U, INC. Revenue Breakdown By Type, $M:
| Type | License | Prof. Services | Hardware | Support & Maintenance | SaaS | PaaS | IaaS | Other (Non Enterprise Application Revenues) | Total |
|---|---|---|---|---|---|---|---|---|---|
| % of Total Revenues | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | 100% |
| Revenues, $M | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
2U, INC. Enterprise Applications Revenues By Functional Markets, $M:
2U, INC. Enterprise Applications Revenues By Verticals, $M:
2U, INC. Revenues By Region, $M
| Region | % of Total Revenues | 2020 Total Revenues, $M | 2020 Enterprise Applications Revenues, $M | 2020 Cloud Applications Revenues, $M |
|---|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
2U, INC. Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
2U, INC. Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified 2U, INC. Customers
No. of 2U, INC. Customers: 230
No. of 2U, INC. Enterprise Applications Customers: 230
No. of 2U, INC. Cloud Customers: 230
No. of 2U, INC. Cloud Subscribers: 275000
As the parent company of edX, a leading global online learning platform, 2U provides over 40 million learners with access to world-class education in partnership with more than 230 colleges, universities, and corporations. 2U build, deliver, and support more than 3,500 digital and in-person educational offerings, including graduate degrees, undergraduate degrees, professional certificates, boot camps, and short courses, across the career curriculum continuum. Together with its university clients, 2U have positively transformed the lives of more than 200,000 students.
2U, INC. Market Opportunities, M&A and Geo Expansions
In June 2021, 2U made a strategic agreement with education assistance benefits manager Guild Education. The same year, 2U purchased massive open online course (MOOC) provider edX for $800 million cash. Also in June, Netflix and 2U announced an expansion of their boot camps for Talladega College, St. Edward’s University, Marymount University, and Edward Waters College. In October 2021, Valerie Jarrett resigned from the 2U Board. In November, a Wall Street Journal expose found that 2U often used aggressive means to recruit students for the University of Southern California masters in social work and that "USC social-work graduates who took out federal loans borrowed a median $112,000. Half of them were earning $52,000 or less annually two years later."
Before the start of the 2020-2021 academic year, Boston, Massachusetts-based Simmons University delivered hundreds of courses online in order to cope with the COVID-19 crisis. The expanded agreement with Simmons also provided for the creation of additional degree programs aimed at non-traditional students, with lower tuition than in-person programs. Simmons received services from 2U on a revenue-share basis.
2U is revolutionizing higher education by collaborating with leading universities to take their degrees online. To support collaboration and learning, the company’s technology platform has to be able to cache data that grows exponentially as students communicate with instructors and with each other. 2U designed its technology and technology-enabled services to use data processing, storage capabilities and other services provided by AWS. Currently, 2U online learning platform and certain of its front-end and back-end technology and services are run on AWS. Given this, along with the fact that 2U cannot easily switch its AWS operations to another cloud provider, any disruption of, or interference with its use of, AWS would impact 2U operations.
In July 2017, 2U acquired GetSmarter (incorporated as Get Educated International Proprietary Limited), a leader in collaborating with universities to offer premium online short courses to working professionals. GetSmarter powers engaging online short courses in partnership with some of the world’s most renowned higher education institutions, including the University of Cambridge; the London School of Economics; Harvard University’s strategic online learning initiative, HarvardX; the University of Chicago; Massachusetts Institute of Technology (MIT); and Africa’s top three universities: University of Cape Town, University of the Witwatersrand and University of Stellenbosch Business School.
2U, INC. Risks and Challenges
Because 2U shares revenues with its client universities, the model can only work by ensuring a maximum number of enrolled students as well as their course completion rates. Given the limited history of 2U, neither factor has been fully tested in a volatile online education marketplace that has seen its share of casualty. Some for-profit online universities have been hurt by threats of government withdrawal of funding by cutting back on student loans made available for such classes. Corinthian Colleges ended up filing for bankruptcy in May 2015. 2U does not fall into that category, but its heavy dependence on a handful of marquee universities carries certain risks as well.
2U, INC. Ecosystem, Partners, Resellers and SI
2U now has 8 offices across 3 continents and a global portfolio of 33 university partners offering over 50 graduate programs and over 80 short courses.
In the summer of 2019, 2U partnered with the London School of Economics and Political Science (LSE), to deliver 2U's first online undergraduate degree program: a Bachelor of Science in Data Science and Business Analytics. This partnership marks 2U's entry into the global undergraduate degree market.
Among its partners are American University, Baylor University, Emerson College, The George Washington University, Georgetown University, Harvard University, London School of Economics and Political Science, Northwestern Univerity, University of Oxford and many others.
2U, INC. Cloud Infrastructure Insights
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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