2U Inc (NASDAQ: TWOU) stock crashed over 57.7% on 31^st July, 2019 (as of 10:48 am GMT-4; Source: Google finance) after the company posted worst results for the second quarter of FY 19. TWOU in the second quarter of FY 19 has reported the adjusted loss per share of 43 cents, missing the analysts’ estimates for the adjusted loss per share of 35 cents, as per Zacks Investment Research. For the second quarter, FCE showed a year-over-year increase of 28.3% offset by a 2.6% decline in average revenue per FCE. The decline in average revenue per FCE is based mainly on program mix and academic calendar changes. In the Alternative Credential segment, the company is seeing the impact of rolling a partial period of Trilogy boot camp performance into this segment. The result was a year-over-year increase of 64% in FCEs and 49.8% in average revenue per FCE. 2U expects full-year 2019 results to range from a loss of $1.25 per share to a loss of $1.16 per share, with revenue ranging from $565.7 million to $575.7 million.

For the third quarter ending in October, 2U expects to range from a loss of 53 cents per share to a loss of 49 cents per share. The company expects revenue in the range of $147.6 million to $152.6 million for the fiscal third quarter.

The company has ended second quarter with $218.7 million in cash and investments and had $71.6 million in receivables balances. The long-term debt has increased to $245.5 million in the quarter, reflecting the term loan facility TWOU entered into for the Trilogy acquisition. Overall, the company has reported the adjusted net loss of $(25.8) million compared to $(10.3) million in the second quarter of 2018.

The company had reported the adjusted revenue growth of 39 percent to $135.5 million in the second quarter of FY 19.

Business combination accounting rules required the company to exclude $3.3 million in second quarter revenue. Revenue prior to this adjustment was $138.8 million, representing growth of 42.5% year-over-year. In the graduate program segment, revenue was $101.4 million or 24.9% year-over-year growth for the quarter. In the Alternative Credential segment, including a partial quarter of revenue from the Trilogy acquisition, revenue was $34.1 million or 110.1% year-over-year growth.

Further, in the graduate program segment, revenue growth continued to be on the back of an increase in full course equivalents