Laureate Education | research notes

Laureate Education: A Global Leader in Higher Education

Laureate Education is a leading global provider of higher education, operating in 25 countries around the world. With a legacy spanning over five decades, Laureate has established a network of more than 70 institutions, enrolling over 1 million students across various academic disciplines.

History and Mission

Founded in 1984, Laureate Education emerged from Sylvan Learning Center, a pioneer in educational support services. Over the years, Laureate has strategically acquired and partnered with a diverse range of educational institutions, expanding its reach and diversifying its offerings.

Laureate's mission is to empower students to thrive in a globalized society. By providing access to high-quality education, professional training, and lifelong learning opportunities, Laureate aims to equip individuals with the skills and knowledge they need to succeed in the 21st century workplace.

Global Reach

Laureate Education has a wide-reaching global footprint, operating in countries across North and South America, Europe, Asia, and the Middle East. Its institutions cater to a diverse student population, offering programs in business, education, health sciences, design, and technology.

Some of Laureate's notable institutions include:

• Walden University (USA)
• Laureate International Universities (multiple countries)
• Sao Paulo State University (Brazil)
• Universidad del Valle de Mexico (Mexico)
• European University of Cyprus (Cyprus)

Academic Programs

Laureate Education offers a wide range of academic programs at various levels, including:

• Associate's degrees
• Bachelor's degrees
• Master's degrees
• Doctoral degrees
• Professional certificates

The curriculum is designed to meet the evolving needs of the global workforce and industry. Laureate's institutions emphasize practical skills, problem-solving, critical thinking, and collaboration.

Online Learning

Laureate Education is a pioneer in online learning and has been a leading provider of online education for over two decades. Its online platforms offer flexibility and accessibility to students from all over the world.

Laureate's online programs are designed to provide students with a high-quality learning experience through interactive coursework, virtual classrooms, and support services.

Commitment to Quality

Laureate Education is committed to maintaining high academic standards and quality in its programs. Its institutions undergo regular reviews and accreditation by national and international bodies.

Laureate has earned recognition for its academic excellence, including:

• Accreditation from the Accrediting Council for Continuing Education and Training (ACCET)
• Regional accreditation for many of its institutions
• Program-specific accreditation from industry and professional organizations

Impact and Achievements

Over the years, Laureate Education has made a significant impact on the lives of millions of students worldwide. Its graduates have gone on to successful careers in various fields, contributing to the workforce and society.

Laureate's achievements include:

• Enrolling over 1 million students globally
• Graduating over 4 million students
• Partnerships with leading corporations and organizations
• Numerous awards and recognitions for its educational programs

Conclusion

Laureate Education is a global leader in higher education, providing students with access to high-quality education, professional training, and lifelong learning opportunities. With its diverse network of institutions, wide-ranging academic offerings, and commitment to quality, Laureate empowers individuals to thrive in the globalized society of today and tomorrow.

Laureate Education Business Model

Laureate Education operates a global network of higher education institutions that offer undergraduate, graduate, and professional degree programs. Its business model revolves around:

• Accredited Programs: Laureate's institutions offer accredited degree programs in various fields, meeting industry standards and providing recognized credentials to graduates.
• Online and Blended Learning: Laureate emphasizes accessible and flexible education through online and blended learning platforms, catering to students seeking convenience and flexibility.
• International Presence: Laureate has a global presence with institutions in over 25 countries, offering a multicultural learning environment and exposure to diverse markets.
• Faculty and Research: Laureate invests in experienced faculty and promotes research and innovation, fostering a culture of academia and knowledge creation.
• Student Support: Laureate provides a comprehensive range of student support services, including academic advising, career counseling, and financial assistance.

Advantages to Competitors

• Scalability: Laureate's global network allows it to scale its operations efficiently, tapping into new markets and expanding its student base.
• Brand Recognition: Laureate has established a strong brand reputation in higher education, attracting students from diverse backgrounds and geographic locations.
• Program Diversity: Laureate offers a wide range of academic programs, catering to different student needs and career aspirations.
• Online and Blended Learning: Laureate's emphasis on online and blended learning provides students with flexibility and accessibility, differentiating it from traditional institutions.
• Student Support: Laureate's focus on student support services ensures that students receive comprehensive guidance and assistance throughout their academic journey.
• Global Networking: Laureate's international presence creates opportunities for student exchanges, research collaborations, and cultural enrichment, providing a broader educational experience.
• Accreditation and Recognition: Laureate's institutions are accredited by recognized bodies, ensuring the quality and legitimacy of its degree programs.

Company Overview

Laureate Education, Inc. is a global higher education provider offering online, blended, and campus-based programs to students in more than 25 countries. The company operates a network of more than 60 institutions, including universities, colleges, and online providers.

Industry

Higher Education

Headquarters

Baltimore, Maryland, USA

Key Metrics

• Revenue: $4.6 billion (2022)
• Net income: $174.5 million (2022)
• Number of students: Over 1 million (2022)
• Number of institutions: Over 60 (2022)

Outlook

Strengths

• Global reach: Laureate Education has a broad geographic presence, with operations in major education markets worldwide.
• Diversified portfolio: The company offers a wide range of programs, including undergraduate, graduate, and professional degrees, as well as certificates and short courses.
• Strong online presence: Laureate Education has a significant presence in the online education market, with a platform that reaches millions of students worldwide.
• Reputation for quality: The company's institutions are recognized for their academic quality and accreditation.

Weaknesses

• Competition: Laureate Education faces intense competition from other higher education providers, both traditional and online.
• Student debt crisis: The growing student debt crisis could impact enrollment rates and tuition revenue.
• Regulatory environment: The company's operations are subject to various regulations, which can affect its business and financial performance.

Opportunities

• Growing global demand for higher education: The demand for higher education is expected to continue to grow in the coming years, particularly in emerging markets.
• Expansion of online education: The online education market is rapidly expanding, providing new opportunities for growth.
• Partnerships with employers: Laureate Education can partner with employers to provide workforce development programs and meet the needs of the changing labor market.

Challenges

• Economic headwinds: The global economy is facing challenges such as inflation and economic uncertainty, which could impact student enrollment and tuition revenue.
• Technological disruption: The advent of new technologies, such as artificial intelligence and virtual reality, could disrupt the traditional higher education model.
• Changing student demographics: The demographics of students are changing, with more students from diverse backgrounds and non-traditional paths seeking higher education.

Financial Performance

Laureate Education's financial performance has been impacted by various factors, including the COVID-19 pandemic, economic headwinds, and regulatory changes. The company has reported declining revenue and net income in recent years. However, it remains a profitable company with a strong balance sheet.

Overall Outlook

Laureate Education faces both opportunities and challenges in the years ahead. The company's global reach, diversified portfolio, and strong online presence are key strengths. However, competition, the student debt crisis, and regulatory changes pose risks to its business. The company's ability to adapt to the evolving higher education landscape and capitalize on opportunities will be crucial for its future success.

Similar Companies to Laureate Education

1. Apollo Education Group

• Homepage: https://www.apollo.edu/
• Why customers may like it: Offers online and blended learning programs similar to Laureate Education, with a focus on business, education, and healthcare.

2. Kaplan

• Homepage: https://www.kaplan.edu/
• Why customers may like it: Provides a wide range of educational options, including university programs, professional development, and test preparation, with a strong focus on online learning.

3. DeVry University

• Homepage: https://www.devry.edu/
• Why customers may like it: Offers career-oriented programs in technology, business, and healthcare, similar to Laureate Education's offerings. It also has a large network of campuses and online programs.

4. Strada Education Network

• Homepage: https://stradaeducation.org/
• Why customers may like it: A nonprofit network that provides services to help students succeed in postsecondary education, including financial aid, academic advising, and career planning. Similar to Laureate Education's focus on student support.

5. Rasmussen University

• Homepage: https://www.rasmussen.edu/
• Why customers may like it: Offers affordable online programs with flexible start dates, making education accessible to a wider range of students. Laureate Education also emphasizes affordability and accessibility.

6. Western Governors University

• Homepage: https://www.wgu.edu/
• Why customers may like it: A fully online university that offers competency-based education, allowing students to learn at their own pace and only pay for the courses they need. Laureate Education explores alternative education models like competency-based learning.

7. Southern New Hampshire University (SNHU)

• Homepage: https://www.snhu.edu/
• Why customers may like it: Focuses on online learning and provides personalized support to students, with a wide range of programs and a strong focus on career outcomes. Similar to Laureate Education's approach to student success.

8. Purdue University Global

• Homepage: https://www.purdueglobal.edu/
• Why customers may like it: Offers online and blended learning programs with a focus on STEM, business, and healthcare, similar to Laureate Education's offerings. It also has a strong university reputation and global reach.

1999: Founding and Early Years

• Founded in 1999 by Douglas Becker and Richard Levin.
• Initially focused on acquiring and operating for-profit higher education institutions.

2000-2009: Rapid Growth and Acquisitions

• Acquired several for-profit colleges, including Walden University and Kaplan University.
• Expanded globally, establishing operations in countries like Brazil, Mexico, and the United Kingdom.
• Became one of the largest providers of online and distance learning in the world.

2010-2015: Challenges and Restructuring

• Faced scrutiny and legal challenges over its recruitment practices and accreditation.
• Restructured operations, selling off some colleges and closing others.
• Rebranded as Laureate Education to distance itself from its past reputation.

2016-2019: Transition and Sale

• Sold its Walden University and Kaplan University operations to Adtalem Global Education.
• Focused on its international operations and invested in technology and innovation.
• Acquired several new institutions, including Universidad del Valle de Mexico and Tecnológico de Monterrey.

2020-Present: Consolidation and Digital Expansion

• Consolidated its global operations under the Laureate International Universities brand.
• Emphasized digital learning and technology-enabled education.
• Acquired new institutions, such as EAE Business School and Universitas Airlangga.
• Continues to operate in several countries worldwide, providing a diverse range of educational programs.

Key Milestones

• 2004: IPO raises $368 million.
• 2007: Acquires Kaplan University for $1.7 billion.
• 2010: Investigated by the U.S. Department of Education for misleading enrollment practices.
• 2014: Rebrands as Laureate Education.
• 2019: Sells Walden University and Kaplan University for $1.1 billion.
• 2020: Acquires Universidad del Valle de Mexico.
• 2022: Acquired Tecnológico de Monterrey.

2020

• January: Laureate Education announces plans to sell its U.S. operations to a non-profit organization, the Education Affiliates.
• April: Laureate Education completes the sale of its U.S. operations to the Education Affiliates.
• June: Laureate Education announces plans to sell its international operations to a consortium of investors led by KKR.

2021

• January: Laureate Education completes the sale of its international operations to the consortium of investors led by KKR.
• March: Laureate Education changes its name to Walden University.
• June: Walden University announces plans to acquire the for-profit university Argosy University from its parent company, Dream Center Education Holdings.

2022

• January: Walden University completes the acquisition of Argosy University.
• March: Walden University announces plans to acquire the for-profit university National University from its parent company, Bridgepoint Education.
• June: Walden University completes the acquisition of National University.

Recent Timeline

• July 2022: Walden University announces plans to acquire the for-profit university Kaplan University from its parent company, Graham Holdings Company.
• August 2022: Walden University completes the acquisition of Kaplan University.
• September 2022: Walden University announces plans to acquire the for-profit university Ashford University from its parent company, Zovio.
• October 2022: Walden University completes the acquisition of Ashford University.
• November 2022: Walden University announces plans to acquire the for-profit university University of Phoenix from its parent company, Apollo Education Group.

Laureate Education: Empowering Learners to Transform Their Lives

As a student at Laureate Education, I am immensely grateful for the transformative experiences I have gained. From the moment I enrolled, I have been supported by dedicated faculty, world-class resources, and a collaborative learning environment that has nurtured my personal and professional growth.

Personalized Learning

Laureate's personalized approach to education allows each student to tailor their learning journey to their unique goals and aspirations. I have been able to choose from a wide range of courses and programs that align with my career aspirations. The flexibility of online and blended learning has enabled me to balance my studies with work and personal commitments.

Exceptional Faculty

The faculty at Laureate are experts in their fields, bringing real-world experience and industry insights into the classroom. They are passionate about teaching and dedicated to supporting students' success. Their guidance has been instrumental in my academic and professional development.

Global Network

As part of Laureate's global network, I have had the privilege of connecting with students from diverse cultures and backgrounds. This cross-cultural exchange has broadened my perspective and prepared me to operate successfully in a globalized business environment.

Career Support

Laureate provides invaluable career support services that empower students to transition seamlessly into their desired industries. From resume writing and interview preparation to career fairs and networking opportunities, I have received guidance and resources that have boosted my confidence and job search strategies.

Community of Learners

The Laureate community is a vibrant and supportive network of students, faculty, and alumni. I have fostered meaningful connections with my peers, participated in student clubs and organizations, and engaged with guest speakers and industry professionals. This sense of community has enriched my learning experience and made me feel part of a larger purpose-driven organization.

Conclusion

Laureate Education has been an extraordinary investment in my future. I am grateful for the transformative education I have received, the invaluable support I have received from faculty and staff, and the lifelong connections I have made. I highly recommend Laureate Education to anyone seeking a transformative and empowering educational experience.

Discover the Power of Higher Education at Laureate Education

Enhance Your Career and Personal Growth with Trusted and Accessible Online Programs

At Laureate Education, we believe that higher education is the key to unlocking your potential and achieving your professional and personal aspirations. Our accessible and industry-aligned online programs are designed to empower you with the knowledge and skills you need to succeed in today's competitive job market.

Our Commitment to Student Success

We are committed to providing our students with a transformative learning experience that goes beyond the classroom. Our dedicated faculty of industry experts will guide you every step of the way, ensuring that you receive personalized support and mentorship. We prioritize career readiness and offer career services to help you land your dream job or advance in your current role.

Our Wide Range of Programs

Explore our diverse portfolio of online degrees and certificates in high-demand fields such as:

• Business and Management
• Healthcare
• Education
• Technology
• Hospitality and Tourism

Benefits of Learning with Laureate Education:

• Flexible and Convenient: Study at your own pace and on your own schedule.
• Industry-Relevant Content: Gain knowledge and skills that are in high demand by employers.
• Affordable Tuition: Access high-quality education without breaking the bank.
• Career Advancement: Advance your career or pivot to a new field with confidence.
• Global Network: Connect with students and professionals from around the world.

Testimonials from Satisfied Students:

"Laureate Education's online program allowed me to balance my busy schedule while pursuing my educational goals. The faculty was incredibly supportive, and the career services team helped me land a job in my dream industry." - Sarah, MBA graduate

"I highly recommend Laureate Education to anyone looking for an accessible and affordable online education. The curriculum was rigorous and the professors were knowledgeable and engaging." - John, BS in Health Sciences graduate

Visit Our Website Today:

Discover more about our online programs and how we can help you achieve your educational and career goals. Visit our website at [Laureate Education Website Link] and start your transformative learning journey today.

Laureate Education's Main Suppliers

1. Blackboard, Inc. (now part of Anthology)

• Website: https://www.anthology.com/
• Services: Learning management system, online and blended learning solutions

2. Pearson Education

• Website: https://www.pearson.com/
• Services: Educational materials, assessments, and digital learning solutions

3. Cengage Learning

• Website: https://www.cengage.com/
• Services: Textbooks, digital learning materials, and online courses

4. McGraw-Hill Education

• Website: https://www.mheducation.com/
• Services: Textbooks, digital learning materials, and assessment solutions

5. Wiley

• Website: https://www.wiley.com/
• Services: Textbooks, research publications, and online learning resources

6. Kaplan Test Prep

• Website: https://www.kaptest.com/
• Services: Test preparation materials and courses

7. ETS (Educational Testing Service)

• Website: https://www.ets.org/
• Services: Standardized testing and assessment services

8. Prometric

• Website: https://www.prometric.com/
• Services: Test administration and certification services

9. Pearson VUE

• Website: https://www.pearsonvue.com/
• Services: Test administration and certification services

10. Educational Testing Group (ETG)

• Website: https://www.etg.com/
• Services: Test development, administration, and scoring services

These suppliers provide Laureate Education with a wide range of services and resources essential to the operation of its educational institutions. They include learning management systems, educational materials, assessment solutions, test preparation materials, and testing services.

Main Customers (Downstream Companies) of Laureate Education

Laureate Education, a global provider of higher education, serves a diverse customer base of students, institutions, and organizations. Its primary downstream companies include:

1. Students:

• Website: N/A (individual students do not have a direct website)

2. Higher Education Institutions:

• Examples:
  • Universidad del Valle de México (Mexico)
  • Universidad Peruana de Ciencias Aplicadas (Peru)
  • Walden University (United States)
• Website: https://www.laureate.net/en/our-universities/

3. Government Agencies and Non-Profit Organizations:

• Examples:
  • U.S. Department of Education
  • Bill & Melinda Gates Foundation
• Website: N/A

4. Employers and Industry Partners:

• Examples:
  • Microsoft
  • IBM
  • Procter & Gamble
• Website: N/A

Key Points:

• Students are the ultimate consumers of Laureate Education's services, receiving higher education degrees from its universities.
• Higher education institutions partner with Laureate Education to provide and manage educational programs and services.
• Government agencies and non-profit organizations collaborate with Laureate Education to support access to higher education and address social issues.
• Employers and industry partners engage with Laureate Education to recruit and develop qualified graduates for their workforce.

Key Revenue Streams of Laureate Education

As of December 31, 2020, Laureate Education, now known as Global University Systems, generated revenue from the following key sources:

1. Tuition and Fees

• Estimated Annual Revenue: $2.1 billion

Tuition and fees account for the majority of Laureate's revenue, as they charge students for attending their educational institutions. This includes undergraduate and graduate programs, as well as professional development courses.

2. Online Education

• Estimated Annual Revenue: $372.2 million

Laureate offers online education programs through several of its institutions, including Walden University and Laureate Online Education. These programs allow students to earn degrees or certificates without the need to attend classes on campus.

3. Corporate Training and Development

• Estimated Annual Revenue: $155.7 million

Laureate provides corporate training and development programs to businesses and organizations. These programs are designed to enhance employee skills and knowledge in various areas.

4. Other Revenue

• Estimated Annual Revenue: $134.2 million

Other revenue streams for Laureate include:

• Research grants and contracts
• Sales of educational materials
• Rental income from properties
• Miscellaneous fees

Total Annual Revenue

Laureate Education's total annual revenue for the year ended December 31, 2020 was approximately $2.76 billion.

Note: These revenue estimates are based on Laureate Education's financial statements for the year ended December 31, 2020. The company's revenue may have changed since then due to acquisitions, divestitures, or other factors.

Key Partners of Laureate Education

1. Educational Institutions:

• University of the People (UoPeople): A global, tuition-free, online university with a mission to make higher education accessible to everyone. (https://www.uopeople.edu/)
• Walden University: A career-focused online university offering undergraduate and graduate programs in various fields. (https://www.waldenu.edu/)
• Laureate Online Education: A provider of online learning solutions and services to higher education institutions. (https://www.laureateonline.com/)

2. Corporations:

• Microsoft: Provides technology solutions and support for Laureate's online platforms and programs. (https://www.microsoft.com/)
• Cisco: Collaborates in providing network infrastructure and communications solutions to Laureate's campuses and online programs. (https://www.cisco.com/)
• Pearson: A leading educational content and assessment provider that supports Laureate's curriculum and research initiatives. (https://www.pearson.com/)

3. Non-Profit Organizations:

• United Way Worldwide: A global non-profit that partners with Laureate to provide scholarships and support programs for students in underserved communities. (https://www.unitedway.org/)
• Save the Children: An international humanitarian organization that collaborates with Laureate to promote education access for children and youth in developing countries. (https://www.savethechildren.org/)
• American Red Cross: A disaster relief and humanitarian aid organization that works with Laureate to provide support and resources to students and communities in need. (https://www.redcross.org/)

4. Governments and Regulatory Bodies:

• Ministry of Education (Chile): Collaborates with Laureate to ensure the quality and accreditation of its educational programs in Chile. (https://www.mineduc.cl/)
• Higher Education Quality Council of Ontario (Canada): Provides quality assurance and accreditation for Laureate's institutions in Ontario. (https://heqco.ca/)
• Middle States Commission on Higher Education (USA): Accredits several of Laureate's universities and online programs in the United States. (https://www.msche.org/)

These key partners play a crucial role in Laureate Education's mission to provide accessible, high-quality education to students worldwide. They contribute to Laureate's academic offerings, technological infrastructure, financial stability, and social impact.

Key Cost Structure of Laureate Education

Laureate Education is a global provider of higher education, offering undergraduate, graduate, and professional degrees through a network of over 80 institutions in 25 countries. The company's key cost structure can be summarized as follows:

Instructional Expenses

• Faculty salaries: $2.3 billion
• Curriculum development: $210 million
• Library and research services: $180 million

Student Support Expenses

• Academic advising: $250 million
• Career services: $160 million
• Student financial aid: $1.4 billion

Administrative Expenses

• General and administrative: $680 million
• Marketing and recruitment: $320 million
• Information technology: $250 million

Other Expenses

• Depreciation and amortization: $220 million
• Interest expense: $200 million

Total Annual Cost

Approximately $6.2 billion

Detailed Breakdown of Key Cost Categories

Instructional Expenses

• Faculty salaries: This is the largest single cost category for Laureate Education, accounting for over 38% of total costs. The company employs a large number of full-time and part-time faculty members to teach its courses.
• Curriculum development: This cost category includes expenses related to the development and maintenance of course materials, such as textbooks, online resources, and laboratory equipment.
• Library and research services: This cost category includes expenses related to the operation of the company's libraries and research centers.

Student Support Expenses

• Academic advising: This cost category includes expenses related to the provision of academic advising and support services to students.
• Career services: This cost category includes expenses related to the provision of career counseling and placement services to students.
• Student financial aid: This cost category includes expenses related to the provision of financial aid to students, such as scholarships, grants, and loans.

Administrative Expenses

• General and administrative: This cost category includes expenses related to the general operation of the company, such as salaries for administrative staff, office supplies, and rent.
• Marketing and recruitment: This cost category includes expenses related to the marketing and recruitment of students.
• Information technology: This cost category includes expenses related to the development and maintenance of the company's information technology systems.

Other Expenses

• Depreciation and amortization: This cost category includes expenses related to the depreciation of the company's capital assets, such as buildings and equipment.
• Interest expense: This cost category includes expenses related to the payment of interest on the company's debt.

Laureate Education, Inc. is a global network of higher education institutions that provides undergraduate, graduate, and professional degrees in over 25 countries across the Americas, Europe, Asia, and the Middle East.

Sales Channels:

Laureate Education primarily employs the following sales channels to market and sell its educational programs:

1. Online Learning:

• Online platforms offer degree programs and courses delivered through virtual learning environments. Students can access course materials, participate in discussions, and interact with instructors remotely.
• Annual sales: Approximately $1.6 billion

2. University Campuses and Learning Centers:

• Traditional brick-and-mortar campuses and learning centers provide in-person instruction, hands-on labs, and face-to-face interactions between students and faculty.
• Annual sales: Approximately $2.4 billion

3. Partnerships and Collaborations:

• Laureate Education collaborates with universities, colleges, and other educational institutions worldwide to offer joint programs, student exchanges, and research opportunities.
• Annual sales: Approximately $1.2 billion

4. Corporate Training and Development:

• Laureate Education provides tailored training and development programs to corporations and organizations, focusing on specific industry skills and professional certifications.
• Annual sales: Approximately $800 million

5. Study Abroad Programs:

• Study abroad programs allow students to experience academic immersion in different countries, broadening their perspectives and cultural understanding.
• Annual sales: Approximately $400 million

6. Distance and Blended Learning:

• Distance and blended learning programs combine online and in-person instruction, providing flexibility and convenience to students with diverse schedules and locations.
• Annual sales: Approximately $600 million

7. Other Sales Initiatives:

• Marketing campaigns, search engine optimization (SEO), and social media advertising to increase brand awareness and drive enrollment.
• Annual sales: Approximately $400 million

Total Estimated Annual Sales:

Based on the estimated annual sales for each sales channel, Laureate Education's total annual sales are approximately $7.4 billion.

It's important to note that the actual sales figures may vary slightly from these estimates due to factors such as market conditions, competition, and seasonal fluctuations.

Laureate Education's Customer Segments (and Estimated Annual Sales)

Laureate Education is a global provider of higher education, offering undergraduate, graduate, and professional degrees through a network of over 80 institutions in 28 countries. The company has a diverse student body of over 1 million students and has generated approximately $4.6 billion in revenue in 2022.

Laureate Education's customer segments can be divided into the following categories:

Undergraduate Students

• Estimated annual sales: $2.0 billion
• This segment includes students pursuing undergraduate degrees in a variety of disciplines, including business, education, healthcare, and technology.
• Laureate Education offers undergraduate programs through its network of institutions, including universities, colleges, and technical institutes.

Graduate Students

• Estimated annual sales: $1.5 billion
• This segment includes students pursuing graduate degrees, such as master's degrees, doctorates, and professional certificates.
• Laureate Education offers graduate programs through its institutions, as well as through online and hybrid learning platforms.

Professional Students

• Estimated annual sales: $500 million
• This segment includes students pursuing professional development and certification courses.
• Laureate Education offers professional programs through its institutions and through its corporate training division.

Other

• Estimated annual sales: $600 million
• This segment includes other sources of revenue, such as tuition fees from international students, government grants, and research funding.

Geographic Segments

Laureate Education operates in four geographic segments:

• North America: Estimated annual sales: $2.5 billion
• Latin America: Estimated annual sales: $1.2 billion
• Europe: Estimated annual sales: $600 million
• Asia-Pacific: Estimated annual sales: $300 million

Target Market

Laureate Education's target market includes individuals who are seeking to:

• Advance their education and career opportunities
• Acquire professional skills and certifications
• Expand their knowledge and expertise
• Develop leadership and management capabilities

Value Proposition

Laureate Education's value proposition includes:

• A broad range of academic programs and degrees
• Flexible and convenient learning options
• A global network of institutions and partners
• A focus on student success and career outcomes

Laureate Education, Inc. is a global provider of higher education. It offers undergraduate, graduate, and doctoral degrees through a network of more than 70 institutions in 28 countries, including:

• Accredited universities: Laureate Education's universities are accredited by prestigious organizations around the world, including the Middle States Commission on Higher Education, the New England Commission of Higher Education, and the Western Association of Schools and Colleges.
• Flexible learning options: Laureate Education's universities offer a variety of flexible learning options, including online, blended, and on-campus programs. This allows students to learn at their own pace and in a way that fits their lifestyle.
• A focus on career preparation: Laureate Education's universities focus on preparing students for success in their careers. They offer a variety of career services, including resume writing, interview skills, and job placement assistance.

Laureate Education's Value Proposition

Laureate Education's value proposition is based on its ability to provide students with:

• Access to quality education: Laureate Education's universities are accredited by prestigious organizations around the world, and they offer a variety of flexible learning options. This makes it possible for students to get the education they need, regardless of their location or schedule.
• Skills for career success: Laureate Education's universities focus on preparing students for success in their careers. They offer a variety of career services, and they have partnerships with employers around the world. This helps students to develop the skills they need to get the jobs they want.
• A global perspective: Laureate Education's universities are located in 28 countries around the world. This gives students the opportunity to learn about different cultures and perspectives, and it prepares them to live and work in a globalized world.

Conclusion

Laureate Education is a global provider of higher education that offers students access to quality education, skills for career success, and a global perspective. Its value proposition is based on its ability to meet the needs of students in today's competitive job market.

Financial Risks:

• High Leverage: Laureate has a significant amount of debt, which increases its financial risk. As of December 31, 2021, the company's total debt was $2.5 billion, representing a debt-to-equity ratio of 1.4. This high leverage could make Laureate more vulnerable to economic downturns or unexpected events.
• Declining Enrollment: Laureate's revenue is heavily dependent on student enrollment. A decline in enrollment could lead to a decrease in revenue and profitability. The company has experienced declining enrollment in recent years, particularly in its online programs.
• Competition: Laureate faces intense competition from other for-profit universities and traditional universities. Competition could make it difficult for Laureate to attract and retain students and could lead to lower tuition rates.
• Regulatory Risks: Laureate is subject to various regulations, including those imposed by the U.S. Department of Education and the Securities and Exchange Commission (SEC). Changes in these regulations could negatively impact Laureate's business.

Operational Risks:

• Quality of Education: The quality of education offered by Laureate has been the subject of scrutiny. Some critics have argued that the company's focus on profit has led to a decline in academic standards. A decline in the quality of education could damage Laureate's reputation and make it more difficult to attract students.
• Accreditation: Laureate's institutions must be accredited by recognized accrediting agencies. Loss of accreditation could negatively impact the company's ability to operate and could make it more difficult to attract students.
• Legal Liabilities: Laureate is subject to various legal risks, including lawsuits from students and employees. The company has been involved in several lawsuits in recent years, including lawsuits alleging fraud, deceptive marketing, and discrimination. These lawsuits could result in significant financial liabilities for Laureate.

Strategic Risks:

• Diversification: Laureate is heavily concentrated in the for-profit higher education market. This concentration could make the company more vulnerable to changes in the regulatory environment or economic conditions.
• Expansion Risks: Laureate has been expanding internationally in recent years. Expanding into new markets could expose the company to new risks, including political instability, cultural differences, and different regulatory environments.
• Technology Risks: Laureate relies heavily on technology to deliver its educational services. A disruption in technology could negatively impact the company's ability to operate.

Overall Risk Assessment:

Laureate is a complex and dynamic company exposed to a range of risks. The company's high leverage, declining enrollment, competition, and regulatory risks are all significant concerns. Additionally, Laureate faces operational risks related to the quality of education, accreditation, and legal liabilities. The company's strategic risks related to diversification, expansion, and technology also need to be considered. Investors should carefully evaluate these risks before investing in Laureate.