PORTLAND, Ore. - KinderCare Learning Companies, Inc. (NYSE: KLC) reported better-than-expected third quarter 2024 financial results on Wednesday, with earnings and revenue surpassing analyst estimates as the early childhood education provider saw growth in both its center-based and before- and after-school programs.
The company reported adjusted earnings per share of $0.05, beating the analyst consensus estimate of a $0.02 loss per share. Revenue for the quarter came in at $671.5 million, up 7.5% year-over-year and slightly above the $669.42 million analysts were expecting.
"KinderCare delivered strong results during the third quarter of 2024, which marks our first earnings report as a public company," said Paul Thompson, KinderCare's Chief Executive Officer. "Revenue growth of 7.5% demonstrates our expanding ability to bring high-quality early childhood education and care to more families and communities."
Revenue from early childhood education centers increased 6.9% YoY to $628.5 million, driven by approximately 6% higher tuition rates and 1% enrollment growth. Before- and after-school revenue rose 16.8% to $43 million on new site openings, more summer camps, and increased tuition.
The company reported net income of $14 million, or $0.15 per diluted share, down from $16 million, or $0.18 per share, in the year-ago quarter. Adjusted EBITDA increased 25.1% to $71.4 million.
KinderCare completed its initial public offering on October 10, 2024, raising approximately $616.2 million in net proceeds. As of September 28, the company operated 1,573 early childhood education centers and 1,018 before- and after-school sites.
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