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  "documentTitle": "2U, Inc. (TWOU)",
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  "presentationDate": "2018-07-19 00:00:00",
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      "kind": "callout",
      "text": "This contradicts what 2U tells investors and administrators – that a program partnership will net more cash flow to the university then 2U.",
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      "text": "2U And Analyst Comparisons To SaaS Companies Are Unjustified: There is nothing sticky or recurring about 2U's business model at all. As SaaS companies become larger, margins expand and ARR (annual recurring revenues) increase.",
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      "text": "2U's Most Successful Programs Will Be Very Difficult To Replicate: We provide an illustrative case study for Simmons College, 2U's 2nd largest customer (17% of FY17 Revenues, ~$49m).",
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      "kind": "paragraph",
      "text": "2U Is Becoming Less Transparent With Its Disclosures As Management Turnover In The C-Suite Accelerates: In our view, 2U is deliberately becoming less transparent because a continuation of some of its historical disclosure practices.",
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      "kind": "paragraph",
      "text": "Margin Pressure Will Also Reveal Itself In Higher Marketing And Student Acquisition Costs: As part of 2U's value proposition to universities, it offers marketing programs to attract students. In 2017, 52% of revenues were spent on marketing and sales.",
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      "kind": "title",
      "text": "Wall Street's Hockey Stick Projections For 2U Will Severely Disappoint Investors",
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