In This Article:
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Total Revenue (Q4 2024): $674 million, a 10% increase.
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Adjusted EBITDA (Q4 2024): $111 million, up 12%.
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Adjusted EPS (Q4 2024): $0.98 per share, a growth of 18%.
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Full-Service Childcare Revenue (Q4 2024): $485 million, an 8% increase.
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Backup Care Revenue (Q4 2024): $157 million, a 15% increase.
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Education Advisory Revenue (Q4 2024): $32 million with a 29% operating margin.
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Operating Income (Backup Care, 2024): $170 million.
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Centers Added (Q4 2024): 7 new centers.
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Centers Closed (Q4 2024): 16 locations.
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Cash from Operations (2024): $337 million.
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Stock Repurchase (Q4 2024): $85 million.
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2025 Revenue Outlook: $2.85 billion to $2.9 billion.
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2025 Adjusted EPS Outlook: $3.95 to $4.15 per share.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bright Horizons Family Solutions Inc (NYSE:BFAM) reported a strong performance in Q4 2024, with total revenue increasing by 10% to $674 million.
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The Backup Care segment delivered impressive results, with revenue growth of 15% to $157 million and operating income of $170 million for the year.
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The company achieved the highest operating income in its history, driven by the outstanding performance of the Backup Care segment.
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Enrollment in centers opened for more than one year increased at a low single-digit rate, with the top cohort of centers averaging more than 80% occupancy.
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The UK operations showed significant improvement, narrowing losses and demonstrating a clear path to earnings breakeven performance in 2025.
Negative Points
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The pace of growth in underperforming centers remains below expectations, particularly in urban business districts like D.C., New York City, and Seattle.
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Overall occupancy levels remain in the low 60s, consistent with previous quarters, indicating room for improvement.
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The UK segment, while improving, continues to be a headwind to overall full-service margins.
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The company closed 16 locations in Q4, indicating challenges in maintaining certain centers.
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Enrollment growth opportunity is concentrated in middle and bottom cohorts, which are still underperforming compared to top-performing centers.
Q & A Highlights
Q: Can you break down the 6% to 8% growth guidance for 2025 in terms of pricing, enrollment, and closures? A: Elizabeth Boland, CFO: We expect a price increase in the 4% to 5% range, enrollment growth in the 2.5% to 3.5% range, and a net closure effect of about 0.5%. Additionally, foreign exchange is expected to be a 1.5 percentage point headwind.