Covid-19 Accelerates Secular Trends in Post-Secondary Education – Zovio is Positioned to Benefit

Key Points

  • Zovio is now a key service provider for the new University of Arizona Global Campus (UAGC) and will participate in the growth of the new school.
  • The company will build on this highly visible relationship to acquire and develop new university partnerships.
  • Zovio Growth, consisting primarily of FullStack Academy and TutorMe, has experienced significant growth in 2020 and ended the year with about 200 university partners.
  • While there has been an expansion of educational offerings for working adults, the Covid-19 crisis is also forcing traditional colleges and universities to expand delivery methods. Zovio’s experience in distance learning and extensive data history and analytics is addressing a pressing need in the education space.
  • There is a secular move towards more work-focused and discrete offerings in secondary education beyond the traditional four-year university degree. Universities need new delivery methods and new analytical capabilities to offer these types of programs and to manage students’ participation and success. Zovio has the experience and the tools to enable university partners to leverage their current teaching resources to address this new demand.

Our Insights

The Opportunities

The UAGC contract should provide solid growth for Zovio and could facilitate the development of additional university partnerships. Zovio’s data-history and data-analytics capabilities will be a significant differentiating factor in that space. Zovio Growth is aligned with the burgeoning demand for targeted, often work-related, discrete demand for custom learning content. The Covid-19 crisis is accelerating the secular trend toward more distance learning and is forcing universities to build up their capabilities and offerings in that space.

The Obstacles

Zovio needs to UAGC to be successful and to grow. We believe the right ingredients are in place for success, but execution will be key. While the Covid-19 crisis has accelerated many secular trends favorable to Zovio, continued negative economic impact could affect the company’s results.