Bright Horizons Family Solutions Inc. reported significant financial growth in its third quarter and the first nine months of 2024, driven by increased revenue across its service segments. For the three months ended September 30, 2024, total revenue reached $719.1 million, an increase of $73.3 million, or 11%, compared to $645.8 million in the same period of 2023. The nine-month revenue also rose to $2.0 billion, up $209.3 million, or 12%, from $1.8 billion in the prior year.

The full-service center-based child care segment contributed $486.6 million in Q3 2024, reflecting a 9% increase from $444.7 million in Q3 2023. Tuition revenue within this segment rose by 10% to $440.7 million, supported by a 3% net enrollment increase and a 5% average tuition rate hike. The back-up care segment saw an 18% revenue increase to $201.8 million, attributed to higher utilization rates.

Gross profit for Q3 2024 was $181.5 million, a 15% increase from $157.6 million in Q3 2023, with a gross profit margin of 25.2%. Income from operations surged by 34% to $89.4 million, compared to $66.8 million in the prior year. Net income for the quarter was $54.9 million, up from $40.0 million in Q3 2023, resulting in basic earnings per share of $0.95, compared to $0.69 in the previous year.

For the nine months ended September 30, 2024, net income totaled $111.1 million, a substantial increase from $68.7 million in the same period of 2023. The company’s adjusted EBITDA also improved, rising by 18% to $298.6 million.

The company’s total assets increased to $3.9 billion as of September 30, 2024, from $3.9 billion at the end of 2023. Total liabilities decreased to $2.5 billion, down from $2.7 billion, while total stockholders’ equity rose to $1.4 billion, compared to $1.2 billion at the end of 2023.

Strategically, Bright Horizons made several acquisitions, including a provider of early education and tutoring in the Netherlands for $1.3 million, and two centers in Australia for $7.2 million. The company also paid $106.5 million in deferred consideration related to a previous acquisition. Additionally, the company is undergoing a portfolio optimization process, which includes closing underperforming centers.

The company continues to navigate a challenging operating environment marked by increased costs and a tight labor market, while also benefiting from a robust demand for its services.