In this piece, we will take a look at 15 companies that hire former teachers. For more companies, head on over to 5 Companies That Hire Former Teachers.
The coronavirus crisis revolutionized several industries and gave rise to many new sectors. One such sector is the digital education sector which has put world class education at the fingertips of anyone with a computer and an internet connection.
One striking example of the massive phenomenon that is distance learning is the eDX platform. eDX was bought by 2U, Inc. (NASDAQ:TWOU) in 2021 for a whopping $800 million, in one of the largest deals for a virtual education platform. It features courses from some of the most prestigious universities in the world, such as the Massachusetts Institute of Technology and Harvard University - providing thousands of learners all over the world with an opportunity to access education that they would only have dreamed of previously.
These rapidly growing trends in digital education lend the sector a growth rate that is among the fastest that we have seen. For instance, a market research report from Grand View Market Research estimates that the sector was worth a mere $11 billion in 2021 but through a stunning compounded annual growth rate (CAGR) of 30.5%, the sector is estimated to sit at a cool $77 billion by the end of 2028. For a refresher, digital education is a blend of virtual learning - available through platforms such as eDX - and classroom activities substituted by technology. Within this market, Grand View Market Research believes that augmented reality technology will play a crucial role, as it will enable students to gain access to an adequate substitute for a classroom. Within the sector itself, the research firm estimates that science, technology, engineering, and mathematics (STEM) subjects led the pack as they accounted for 70% of the market share. In terms of end users, academic institutions were the largest users, and self-paced courses were the most widely taught.
Widening our focus to exclusively take a look at electronic learning, a research report from Polaris Market Research shows that this particular segment was worth $214 billion in 2021. This market is made up of not only firms that deliver a digital education, but also those that make it possible by providing products and services such as software. Polaris believes that the growing focus on electronic learning in schools and the public private partnerships that are enabling the shift is acting as a strong stimulant for the market. It adds that primary and secondary learning will gain a greater market share, simply due to its size, and that in terms of geography, Asia Pacific is the largest segment in the market. Finally, looking at the growth rate and future market values, the research firm believes that by the end of 2030, the segment will be worth a whopping $1.3 trillion as it will have grown through a CAGR of 20.5%. Contrasting the two reports, it's clear that the digital education sector, while smaller in value, has a much faster growth rate when compared to the electronic learning market.
Finally, a concluding take from the consultancy McKinsey provides an added color to the distance learning sector, particularly Massive Online Open Courses (MOOCs) that have taken the world by storm. McKinsey notes that while there was a 3% decline in university enrollment in 2020, enrollment in the largest universities grew by a whopping 11%. It also outlines that the education technology industry is witnessing significant investor and venture capitalist interest, with the combined valuation of education technology firms jumping from $8 billion in 2019 to a whopping $23 billion in 2021 for a nearly 3x growth.
In terms of what's happening on the ground, distance learning is enabling firms to hire more people and individuals to tailor their skill sets specific to a market. On this front, 2U, Inc. (NASDAQ:TWOU)'s management shared during the firm's latest earnings call that:
This [CASH FLOW GROWTH] is driven primarily by boot camp growth of 18% versus the prior year, with contributions from both consumer and enterprise. We anticipate this growth will continue as more learners opt for shorter, less expensive and more career specific training to reach that next job, promotion or bump in salary. And we expect that continued growth will offset the near-term declines in the Degree business. Most notably, in 2023, we expect the Alt Cred segment to cross over into profitability for the first time after 6 years of building that business. This is a big deal. Looking at the top line of our degree business for 2022, revenue slowed by 3% year-over-year to $572 million. We saw the near-term impact of our new marketing framework, which reduced unprofitable spend combined with a strong labor market that increased the opportunity cost of higher education.
With these details in mind, let's take a look at some firms that hire former teachers. Out of these, some notable ones are KinderCare Learning Centers, LLC, McGraw Hill, and Pearson plc (LON:PSON.L).
Our Methodology
In order to compile our list, we consulted several sources (1, 2, 3, 4) to pick the companies hire former teachers. Out of these, special focus was paid to those that are in the education industry, since they are likely to have more openings for former teachers. Finally, the publicly traded names were given preference, with some private, yet notable names, also included. The companies are listed according to their market value, total assets value or latest valuation estimate.
Companies That Hire Former Teachers
15. Discovery Education
Latest Valuation Estimate: N/A
Discovery Education is an American firm headquartered in Charlotte, North Carolina. It provides digital textbooks, content, and professional development courses. The firm has operations in the U.S. and the U.K., along with other countries, and it serves the needs of 50 million students through a team of 4.5 million teachers.
14. The Princeton Review
Latest Valuation Estimate: N/A
Princeton Review is perhaps one of the most well known textbook providers in America. Its books cover college and graduate level entry tests such as the Scholastic Aptitude Test (SAT), the Graduate Record Exam (GRE), and the Graduate Management Admission Test (GMAT). Naturally, these books require teacher input and they make Princeton Review a firm that hires former teachers.
13. Khan Academy
Latest Valuation Estimate: $99 million
Khan Academy is one of the best known names in online learning. It is one of the first firms that offered short yet informative online videos for topics covering a variety of subjects such as mathematics, science, and language. These courses require teacher input as well, opening up jobs for former teachers.
12. Young Men's Christian Association
Total Assets Value: $230 million
Young Men's Christian Association, commonly known as YMCA, is one of the oldest youth organizations in the world since it was set up in 1844. It has a diverse learning program through which it uses teachers to provide lessons and conduct other activities. YMCA is headquartered in Switzerland and it also has a U.S. subsidiary. Its latest financial statements show $230 million in assets.
11. Girl Scouts of the USA
Total Assets Value: $240 million
Girl Scouts of the USA is an American youth organization that was set up in 1912. It hires former teachers to conduct different activities such as lesson planning and program implementation. Girl Scouts' latest financial statements list its assets at $240 million.
2U, Inc. (NASDAQ:TWOU) is an American firm headquartered in Lanham, Maryland. It provides alternative credentials and degree learning programs from some of the best universities in the world.
By the end of last year's fourth quarter, 20 of the 943 hedge funds polled by Insider Monkey had bought a stake in 2U, Inc. (NASDAQ:TWOU). Out of these, Catherine D. Wood's ARK Investment Management is the firm's largest investor through a $57 million stake that comes via 9.1 million shares.
9. Cengage Learning Holdings II, Inc. (OTCMKTS:CNGO)
Latest Valuation Estimate: $738 million
Cengage Learning Holdings II, Inc. (OTCMKTS:CNGO) is an education technology company that provides higher and secondary education products and services. It is based in Boston, Massachusetts.
Udemy, Inc. (NASDAQ:UDMY) is another well known online education provider. It is headquartered in San Francisco, California.
As of Q4 2022, 15 of the 943 hedge funds part of Insider Monkey's database had held a stake in the company. Udemy, Inc. (NASDAQ:UDMY)'s largest investor is Bruce Emery's Greenvale Capital which owns 5.9 million shares that are worth $62 million.
Stride, Inc. (NYSE:LRN) focuses its efforts on providing curriculum, software, and other products to K-12 schools. The firm is based in Reston, Virginia.
Insider Monkey took a look at 943 hedge funds for their December quarter of 2022 investments and found out that 21 had invested in Stride, Inc. (NYSE:LRN).
Coursera, Inc. (NYSE:COUR) is another well recognized name in online learning. The company is based in Mountain View, California
24 of the 943 hedge funds polled by Insider Monkey had held a stake in Coursera, Inc. (NYSE:COUR) during Q4 2022. Out of these, Gilchrist Berg's Water Street Capital is the firm's largest investor through a $13 million stake that comes via 1.1 million shares.
