Covid-19 Accelerates Secular Trends in Post-Secondary Education – Zovio is Positioned to Benefit



KEY POINTS
  • Zovio is now a key service provider for the new University of Arizona Global Campus (UAGC) and will participate in the growth of the new school.
  • The company will build on this highly visible relationship to acquire and develop new university partnerships.
  • Zovio Growth, consisting primarily of FullStack Academy and TutorMe, has experienced significant growth in 2020 and ended the year with about 200 university partners.
  • While there has been an expansion of educational offerings for working adults, the Covid-19 crisis is also forcing traditional colleges and universities to expand delivery methods. Zovio’s experience in distance learning and extensive data history and analytics is addressing a pressing need in the education space.
  • There is a secular move towards more work-focused and discrete offerings in secondary education beyond the traditional four-year university degree. Universities need new delivery methods and new analytical capabilities to offer these types of programs and to manage students’ participation and success. Zovio has the experience and the tools to enable university partners to leverage their current teaching resources to address this new demand.
OUR INSIGHTS

The Opportunities

The UAGC contract should provide solid growth for Zovio and could facilitate the development of additional university partnerships. Zovio’s data-history and data-analytics capabilities will be a significant differentiating factor in that space. Zovio Growth is aligned with the burgeoning demand for targeted, often work-related, discrete demand for custom learning content. The Covid-19 crisis is accelerating the secular trend toward more distance learning and is forcing universities to build up their capabilities and offerings in that space.

The Obstacles

Zovio needs to UAGC to be successful and to grow. We believe the right ingredients are in place for success, but execution will be key. While the Covid-19 crisis has accelerated many secular trends favorable to Zovio, continued negative economic impact could affect the company’s results.

Zovio is now a key service provider for the new University of Arizona Global Campus (UAGC) and will participate in the growth of the new school.

EXECUTIVE DISCUSSION

Thierry Wuilloud: Good morning, I’m Thierry Wuilloud. I’m a research analyst at Water Tower Research covering Emerging Growth and Special Situations. Welcome to our live viewers and also to our archive viewers. Live viewers, you can see on the bottom of your screen, there’s a box where you can type in questions if you want. We’ll try to address them toward the end of the session.

We have with us today Andrew Clark, CEO of Zovio. Zovio has gone through a major transformation over the last couple of years. And it has now a range of services and solutions both for higher education institutions and for students.

To kick off, I’m going to ask Andrew to briefly introduce himself and give us a quick overview of the various Zovio business units and offerings.

Andrew Clark: Thank you, Thierry. My name is Andrew Clark. I’m the Founder, President, and CEO of Zovio. Zovio is a world-class EdTech services company.We provide an enterprise solution around technology and ...

ABOUT THE EXECUTIVE
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Andrew Clark

Zovio, Inc.

Andrew Clark has served as Zovio’s Chief Executive Officer and as a Director since November 2003. He has served as President since February 2009. Mr. Clark also served from March 2005 to December 2008 on the Board of Trustees for Ashford University. Prior to joining Zovio in November 2003, Mr. Clark consulted with several private equity firms examining the postsecondary education sector. Prior to 2003, Mr. Clark worked for Career Education Corporation as Divisional Vice President of Operations and as Chief Operating Officer for American InterContinental University in 2002. From 1992 to 2001, Mr. Clark worked for Apollo Group, Inc. (University of Phoenix), where he served in various management roles, culminating in his position as Regional Vice President for the Mid-West region from 1999 to 2001. Mr. Clark earned an MBA from the University of Phoenix and a BA from Pacific Lutheran University.

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