From market darling to beaten-down stock, IDP Education (ASX: IEL) shareholders have been on a wild ride. After soaring to an all-time high of $38.00 in 2021, shares have plummeted to 2018 levels, now trading in single digits. A perfect storm of regulatory changes, visa processing issues, and shifting student preferences has challenged the once-thriving education services provider.

We dive into IDP's business model, examine the factors behind its steep decline, and assess whether this former market favourite can reclaim its position as a growth leader in the international education sector.

IDP Education Company Overview

IDP Education Limited (ASX: IEL) is a global leader in international education services, connecting students with study opportunities. Their core business includes student placement services, English language testing, teaching, and digital marketing for educational institutions.

The company functions as an intermediary in the international education ecosystem, linking prospective students with universities and colleges around the globe. A competitive advantage for IDP is its position as co-owner of the International English Language Testing System (IELTS) alongside the British Council and Cambridge Assessment. IELTS is one of the world's most recognised English proficiency assessments used for study, work, and migration purposes, giving IDP both market presence and a stable revenue stream.

Global Footprint Across Three Continents

IDP has established operations across approximately 50 countries and currencies, with a strategic global presence organised into three key geographic segments:

1. Asia - Their largest and most important market, accounting for approximately 67% of Group revenue as of H1 FY25. This extensive regional presence includes operations in Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Laos, Malaysia, Mauritius, Myanmar, Nepal, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam. India represents a particularly important market for IDP, especially for student placement and IELTS testing services.

2. Australasia - Operations in Australia, Fiji, New Caledonia, and New Zealand represent approximately 5% of the Group's revenue. Although smaller in revenue contribution, this region is strategically important as Australia remains a key destination for international students placed by IDP.

3. Rest of World - Accounting for approximately 22% of Group revenue, this diverse segment encompasses operations across multiple continents, including Europe, the Middle East, Africa, and the Americas. By the end of FY23, IDP had expanded its physical presence to 203 student-facing offices across 35 countries, adding 46 new student placement offices during that fiscal year alone.

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In the rest of the article, we outline IDP Education’s key revenue streams, competitive landscape, recent share price rollercoaster, management's turnaround strategy, future outlook and key risks.

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