In this article, we will take a look at 15 of the largest education companies in the world. If you want to see more of the largest education companies in the world, go directly to 5 Largest Education Companies in the World.
Education has historically been a public sector service since it's so important. In the United States, the federal, state, and local governments spend around $764.7 billion a year to fund K-12 public education. Given the spending, the United States spends around 11.6% of public funding towards education, which is actually below the international standard of 15%.
Governments spend a lot of money on education because it can improve the lives of the people with education. On average, those with higher education tend to earn more than those with less education.
Scott Wolla and Jessica Sullivan of the Federal Reserve Bank of St. Louis writes, 'The relationship between education and income is strong. Education is often referred to as an investment in human capital. People invest in human capital for similar reasons people invest in financial assets, including to make money. In general, those with more education earn higher incomes. The higher income that results from a college degree is sometimes referred to as the "college wage premium." Research shows that this premium has grown over time. In addition, in general, the more skills people have, the more employable they are.'
Private Sector Education Companies
Given how the private sector can be more efficient and more innovative than the public sector, private education companies can also help make a difference.
Some private sector companies are contributing to the sector by helping make learning potentially more productive with software. Yet other private sector companies offer supplemental online courses that don't give any credentials but still help with the learning process.
Other companies are indirectly helping by making the internet or computers more affordable.
With the internet, potential students can access a wealth of free knowledge online such as MIT OpenCourseWare which offers lecture notes, exams, and videos from MIT with no registration or tuition required. Although it doesn't give any credentials, the education could add value to many people who can learn in their free time. Given the quality education material, MIT OpenCourseWare has had one billion page views and 200 million lifetime visits.
In the future, there is hope that AI and more free courses like MIT OpenCourseWare can help improve education efficiency even further. With AI, it may be possible to customize learning programs better and to more effectively create learning material for students.
For our list, we selected the top 12 companies from companiesmarketcap.com's Largest education companies by market cap list and we also included 3 companies that either produce produce software that help make education more productive as well as companies that make computers and internet more affordable. We then ranked them based on their market capitalization.
Udemy, Inc. (NASDAQ:UDMY) is an online learning marketplace with over 213,000 courses and 57 million students. In addition to providing paid courses on a variety of topics like programming and marketing, Udemy, Inc. (NASDAQ:UDMY) has free courses. Although Udemy, Inc. (NASDAQ:UDMY) is not an accredited institution, the company is growing. In Q3 2022, the company's sales rose 22% year over year to $158.4 million and Udemy, Inc. (NASDAQ:UDMY) expects total sales to be $628 million to $631 million for 2022. Revenue for fiscal year 2021 was $517.2 million.
John Wiley & Sons, Inc. (NYSE:WLY) is a multinational publishing company that publishes instructional materials. In FY22, John Wiley & Sons, Inc. (NYSE:WLY) had $2.08 billion in revenue, $433 million in adjusted EBITDA, and $223 million in free cash flow. For the year, 83% of the company's revenue came from digital products and services. Given its market capitalization of $2.64 billion, John Wiley & Sons, Inc. (NYSE:WLY) ranks #14 on our list of 15 Largest Education Companies in the World.
Duolingo, Inc. (NASDAQ:DUOL) is a company with a leading language learning website and app. After having launched in 2012, the company's flagship app "has organically become the world’s most popular way to learn languages and the top-grossing app in the Education category on both Google Play and the Apple App Store." Given that everyone learns in different ways, Duolingo, Inc. (NASDAQ:DUOL)'s software tailors how people learn to make a more effective educational system. As of November 22, Duolingo, Inc. (NASDAQ:DUOL) has a market capitalization of $2.74 billion.
TAL Education Group (NYSE:TAL) is a Chinese education company with a market capitalization of $3.3 billion. In 2021, TAL Education Group (NYSE:TAL) fell substantially after Chinese regulators increased restrictions on the private education industry in the nation. Since the government decisions, TAL Education Group (NYSE:TAL)'s stock has not rallied much.
Instructure Holdings, Inc. (NYSE:INST) is the developer and publisher of the web based learning system Canvas LMS which is used by many schools and universities worldwide. Instructure Holdings, Inc. (NYSE:INST)'s education technology collectively helps support over 30 million educators and learners at over 6,000 organizations globally. For Q3 2022, Instructure Holdings, Inc. (NYSE:INST) reported GAAP revenue of $122.4 million, up 14.2% year over year. Loss from operations was $2.4 million. Instructure Holdings, Inc. (NYSE:INST) CEO Steve Daly said,
"Instructure delivered a solid performance in the third quarter, with continued strong top line growth and industry-leading profitability. We remain the platform of choice for teaching and learning and will continue to make disciplined investments that position us to win a disproportionate share of the opportunities across international, higher education, K12 and non-traditional learning while maintaining best-in-class profitability."
Chegg, Inc. (NYSE:CHGG) sells and rents out textbooks and also has a direct to student connected learning platform that helps students potentially study better. In Q3 2022, Chegg, Inc. (NYSE:CHGG)'s net revenues decreased 4% year over year to $164.7 million and its adjusted EBITDA was $50 million Adjusted net income was $30.4 million. For the full year, Chegg, Inc. (NYSE:CHGG) sees total net revenues of $762 million to $765 million. In terms of future initiatives, CEO Dan Rosensweig said, "We continue to make investments to increase the value of Chegg’s offerings, both to our existing students, as well as expand the opportunity to reach new learners. In addition to providing academic support, we are also adding non-academic services and job skills preparation, which we believe will expand our TAM, increase retention, increase ARPU, and better serve students."
PowerSchool Holdings, Inc. (NYSE:PWSC) provides innovative cloud-based K-12 software to improve educational outcomes and simplify school operations. The company's software connects students, teachers, administrators, and parents with the shared goal of improving student learning outcomes. According to the company, PowerSchool Holdings, Inc. (NYSE:PWSC) supports 45 million students globally. For Q3 2022, PowerSchool Holdings, Inc. (NYSE:PWSC) total revenue was $162.4 million while subscriptions and support sales were $137.1 million. Adjusted net income was $41.9 million.
8. Bright Horizons Family Solutions Inc. (NYSE:BFAM)
Market Capitalization: $4.16 billion
Bright Horizons Family Solutions Inc. (NYSE:BFAM) provides early education such as preschool as well as on-site child care, elder care, and enhanced family supports. In Q3 2022, Bright Horizons Family Solutions Inc. (NYSE:BFAM)'s sales rose 17% year over year to $540 million while its adjusted EBITDA rose 2% to $81 million. Adjusted net income decreased 1% to $38 million. In terms of outlook, the company sees fiscal year 2022 revenue of $2 billion and diluted adjusted earnings per common share to be in the range of $2.6 to $2.65. With a market capitalization of $4.16 billion, Bright Horizons Family Solutions Inc. (NYSE:BFAM) ranks #8 on our list of 15 Largest Education Companies in the World.
7. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Market Capitalization: $4.43 billion
New Oriental Education & Technology Group Inc. (NYSE:EDU) is a Chinese education company whose stock fell substantially in 2021 due to Chinese regulators increasing restrictions on private education in the country. The company continues to have an overseas test preparation and overseas study consulting business, however. As of November 22, New Oriental Education & Technology Group Inc. (NYSE:EDU) has a market capitalization of $4.43 billion.
6. Offcn Education
Market Capitalization: $4.65 billion
Offcn Education is a Chinese educational company listed in Shanghai. Like its peers, New Oriental Education & Technology Group Inc. (NYSE:EDU) and TAL Education Group (NYSE:TAL), Offcn Education was negatively affected by the 2021 Chinese government regulations that increased restrictions on private education in the country. As of November 22, Offcn Education ranks #6 on our list of 15 Largest Education Companies in the World with a market capitalization of $4.65 billion.
