2U, INC. Acknowledged as a Key HR Software Provider by APPS RUN THE WORLD in the HCM Top 500 Market Report

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

The announcement of the edX MicroBachelors® Program Pathway Initiative in 2023 heralded a new era of accessibility and opportunity in the education sector. By providing adults with access to MicroBachelors programs at no cost, this initiative breaks down financial barriers that often hinder individuals from pursuing higher education. Moreover, the integration of pathways to job interviews for roles not requiring traditional degrees bridges the gap between learning and employment, fostering a more seamless transition for learners into the workforce.

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. 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, edX, customers.

2U, INC. Key Cloud and HCM Applications

Online Campus, edX,

2U, INC. HCM and Cloud HCM Applications Revenues, $M:

2U, INC. Revenue Breakdown by Type:

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2U, INC. Direct vs Indirect sales

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. HCM Applications Customers: x

No. of 2U, INC. Cloud HCM Customers: 230

No. of 2U, INC. Cloud HCM Subscribers: 42 Milion

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

The appointment of Andrew Hermalyn and Aaron McCullough as Presidents of 2U's Degree Program and Alternative Credential Segments, respectively, marks a strategic leap into the future of educational technology. With their leadership, 2U is well-positioned to capitalize on emerging market opportunities, embrace new technologies, and drive innovation in the rapidly evolving edtech landscape. As the company continues to expand its reach and enhance the learning experience for students worldwide, the possibilities for growth and success are limitless.

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.

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

Moreover, competition from established and emerging companies poses a significant challenge. Competitors may offer similar integrated solutions, diverting clients and exerting pricing pressure, thereby impacting revenue streams. To mitigate these risks, organizations must focus on differentiation through innovation, agility, and customer-centricity. A robust go-to-market strategy encompassing targeted marketing, strategic alliances, and value-added services is essential to penetrate new markets and sustain competitive advantage.

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, Inc. has recently made waves by welcoming a diverse array of more than a dozen esteemed organizations into its ever-expanding ecosystem. This move not only underscores 2U's commitment to democratizing education but also highlights the pivotal role of ecosystem partnerships in driving technological integrations and fostering network effects within the edtech industry. The addition of these prominent partners amplifies the reach and impact of 2U's global online learning platform, edX, which already boasts a formidable consortium of over 250 university and corporate partners. These new collaborators bring with them a wealth of expertise across various domains, from artificial intelligence to healthcare, cybersecurity to sustainability, thus enriching the breadth and depth of educational offerings available to millions of learners worldwide.

The launch of the Machine Learning and Artificial Intelligence MicroBootCamp heralds a new era of collaboration, innovation, and opportunity in the tech landscape. Through the power of ecosystem partnerships, edX and its university partners are poised to empower a new generation of tech professionals, equipping them with the skills and knowledge needed to thrive in an ever-evolving digital world. As we embark on this transformative journey, let us embrace the boundless possibilities that lie ahead, united in our pursuit of excellence and advancement.

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 Platform (PaaS) and Infrastructure (IaaS) Details

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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).

For additional information on our methodologies, here's the link: