Aspen Group Inc (NASDAQ:ASPU) stock surges 29.47% (As on December 14, 12:00:27 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. AU revenue decreased by $2.4 million or 19% in Fiscal Q2 2023 compared to Fiscal Q2 2022, with the pre-licensure program accounting for $0.5 million of the decrease. The remainder of the decrease is primarily due to lower post-licensure enrollments attributed to lower marketing spend related to the restructuring initiated in Fiscal Q1 2023. The active student body at AU decreased from 11,184 at October 31, 2021 to 7,973 at October 31, 2022. USU revenue increased 9% compared to Fiscal Q2 2022 due primarily to USU’s MSN-FNP program, the USU post-licensure degree program with the highest concentration of students and the highest LTV. The active student body at USU decreased from 3,134 at October 31, 2021 to 2,984 at October 31, 2022.

Moreover, New student enrollments decreased 46% year-over-year from 2,380 to 1,290. Over the past five quarters, new student enrollments were impacted by the enrollment stoppage at our pre-licensure campuses and the reduction in marketing spend. AGI’s active degree-seeking student body, including AU and USU, declined 23% year-over-year to 10,957 from 14,318. AU’s total active student body decreased by 29% year-over-year to 7,973 from 11,184. On a year-over-year basis, USU’s total active student body decreased by 5% to 2,984 from 3,134.

ASPU in the second quarter of FY 23 has reported the adjusted loss per share of 7 cents, beating the analysts’ estimates for the adjusted loss per share of 8 cents, according to the Zacks Consensus Estimate. The company had reported 10 percent decline in the adjusted revenue to $17.08 million in the second quarter of FY 23, beating the analysts’ estimates for revenue by 12.56%. GAAP gross profit increased 6% to $10.2 million in Fiscal Q2 2023 compared to $9.7 million Fiscal Q2 2022, and sequentially 25% from $8.2 million in Fiscal Q1 2023. The increases were primarily due to lower cost of revenue associated with the marketing spend decrease to $0.8 million in Fiscal Q2 2023, down from $4.0 million in Fiscal Q2 2022 and $4.5 million in Fiscal Q1 2023. The reduction in marketing spend is part of the Company’s Fiscal Q2 2023 restructuring initiatives. Gross margin was 60% compared to 51% in Fiscal Q2 2022 and 43% in Fiscal Q1 2023. AU gross margin was 60% versus 50%, and USU gross margin was 67% versus 58%.