2U (company)

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2U, Inc.
Formerly
2tor, Inc.
Public
Traded asNASDAQTWOU
Founded2008; 11 years ago (2008)
HeadquartersLanham, Maryland, U.S.
Area served
Global
Key people
  • Paul A. Maeder
  • (Chairman of the Board)
  • Christopher J. Paucek
  • (CEO)
ServicesEducational technology
RevenueIncrease US$ 286.75 million (2017)
Decrease US$ -30.14 million (2017)
Decrease US$ -29.42 million (2017)
Total assetsIncrease US$ 482.06 million (2017)
Total equityIncrease US$ 387.83 million (2017)
Number of employees
1,922 (2017)
SubsidiariesTrilogy Education Services
Website2u.com
Footnotes / references
[1]

2U, Inc. (formerly 2tor Inc.) is an educational technology company that partners with nonprofit colleges and universities to offer online masters degree programs.[2][3][4][5] The company supplies its partner universities with a cloud-based software-as-a-service platform coupled with technology-enabled services, including coursework design, infrastructural support and capital to deliver instruction.

The company was founded in 2008 by John Katzman (founder of The Princeton Review). Co-founders include Chip Paucek (former CEO of Hooked on Phonics) and Jeremy Johnson; In 2013, John Katzman left to found Noodle Partners, a similar company. As of 2019, Paucek continues to be CEO. [6]

Prior to its IPO, the company was venture-backed and raised $96 million. [7]

In August 2019, the company announced that increasing competition was leading to a strategy based on non-degree programs having shorter courses, and development of boot camps with a technology focus . [6]

Business model[edit]

2U does not confer or offer degrees.[8] It provides its university partners with cloud-based software-as-a-service solutions to create online degree programs with live video classes, as well as an e-learning platform for interaction between students and professors. The system features small class sizes, and includes career services and field placements. Course content is enhanced for mobile devices.[9] .Students meet in a live video chat room with the professor and the other students.[10]

2U signs long-term contracts, averaging between 10–15 years in length, with its partner universities. Students pay standard tuition,with a revenue sharing agreement between the company and the school.[11] This approach has led to a student retention rate of 84 percent.[12]

A previous program. 2U's "Semester Online" for undergraduate universities was marketed as a platform for top-tier universities to offer online courses to paying students at participating universities. [a] The company announced in April 2014 that Semester Online would end in the summer of 2014.[14]

Results[edit]

The company went public on March 28, 2014, and raised $119 million by offering 9.2 million shares at $13 per share.[15] 2U is traded on NASDAQ under the ticker symbol TWOU. The company is a Russell 1000 Index component.

As per September 2018, the net worth of the company was $4.7 Billion.[16]

In April 2019, the company acquired Trilogy Education Services for $750 million in cash and stock.[17]

The stock reached at over $90 a share in Summer, 2018. As of Aug.1, 2019 it was about $13 a share [6]

In May 2012, Forbes named 2U as one of the "10 Start-Ups Changing the World.[18]" In 2014, Inc. Magazine named 2U one of "10 Tech Companies Helping Humanity.[19]"

References[edit]

  1. ^ "US SEC: Form 10-K 2U, Inc". U.S. Securities and Exchange Commission. Retrieved March 10, 2018.
  2. ^ "2tor gets $10M credit line - Washington Business Journal". Bizjournals.com. 2012-04-18. Retrieved 2012-05-03.
  3. ^ Alyson Shontell, provided by (2012-04-18). "There Are A Million Education Startups And No One To Acquire Them". Sfgate.com. Retrieved 2012-05-03.
  4. ^ Heather R. Huhman (2012-04-11). "The Future Of Education: How 2tor Is Helping America's Great Universities Go Online - Business Insider". Articles.businessinsider.com. Archived from the original on 2013-03-17. Retrieved 2012-05-03.
  5. ^ Bolshaw, Liz (2012-04-16). "Out of sight but not out of mind in the virtual world". FT.com. Retrieved 2012-05-03.
  6. ^ a b c Johnson, Stevan (August 1, 2019). "As Competition Mounts, 2U Signals Big Changes for Online Education". Chronicle of Higher Education. Retrieved August 2, 2019. It’s becoming obvious that all schools are going online. We believe this represents a new reality in the marketplace, and requires us and others to adjust to it.”– Chip Paucek,CEO
  7. ^ "Online Higher Education Gets a Raise as 2tor Secures $26 M. in Series D Funding Round". Betabeat. 2012.
  8. ^ "What's Ahead for 2U?". fool.com. Motley Fool. April 2014. Retrieved 2014-11-19.
  9. ^ Greenberg, Molly. "2U Releases Mobile Apps, Making it Easier For Students to Access Online Course Content". Inthecapital.com. Retrieved 19 November 2014.
  10. ^ Burke, Adrienne. "$97,500 for an Online Degree? 2U Is Worth It, Say Students". Forbes.com. Retrieved 19 November 2014.
  11. ^ "IPO Preview: 2U". Seeking Alpha. Retrieved 19 November 2014.
  12. ^ Lapowsky, Issie. "The Future of Online Education Is on Campus". Inc.com. Retrieved 19 November 2014.
  13. ^ "Universities". 2U, Inc. Retrieved 24 September 2013.
  14. ^ Straumsheim, Carl (3 April 2014). "2U Ends Semester Online". Inside Higher Ed.
  15. ^ Flook, Bill. "2U goes public, rings opening bell on NASDAQ". Baltimore Business Journal.
  16. ^ Gara, Antoine. "Ivory Tower In The Cloud: Inside 2U, The $4.7 Billion Startup That Brings Top Schools To Your Laptop". Forbes. Retrieved 2018-10-02.
  17. ^ "2U to buy boot-camp provider Trilogy for $750 million". www.insidehighered.com. 8 April 2019.
  18. ^ Pozin, Ilya. "10 Startups Changing the World And What We Can Learn From Them". Forbes.com.
  19. ^ Kerpen, Dave (2014-07-24). "10 Tech Companies Helping Humanity". Inc.com.

Notes[edit]

External links[edit]