2011

J.P. Morgan Ultimate Services Investor Conference

FORWARD-LOOKING STATEMENTS
This presentation may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to risks and uncertainties and actual results may differ materially from those reflected in the forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to, those risk factors discussed in Bridgepoints filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2010 (filed on March 2, 2011) and the Quarterly Report on Form 10Q for the quarter ended September 30, 2011 (filed on November 1, 2011). Forward-looking statements speak only as of the date the statements are made. Bridgepoint assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forwardlooking information, except to the extent required by applicable securities laws.

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

LARGE MARKET OPPORTUNITY

Private Sector Market Share1
Private-for-profit Market share
10.0%
Enrollment (000s) 1,000 10%

US Workforce > 25 Years Old Employed Population: 154 MM2

11.9%
12% % of Total Enrollment

1,250

Private Sector Enrollment: 1.4 MM

8.2%
750

6.9% 5.8%

7.3%

8%

BA or Higher 43 MM No College Degree 98 MM

6% 500 4% 250

AA 13 MM

2%

0%

2004

2005

2006

2007

2008

2009

1 Source: BMO Capital Markets, Education and Training, Equity Research, September 2011 2 Source: Labor Force Statistics, Current Population Survey, Employment status by educational attainment, 2010 annual averages
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

GROWTH
25,000,000 20,000,000

IN HIGHER EDUCATION

Fall Enrollment: Up 10 MM in 30 years

17.8m 15.4m 15,000,000 11.5m 10,000,000 13.7m

21.6m

5,000,000

0
1980 1984 1986 1988 1990 1992 1994 1996 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TUITION VASTLY OUTPACED ENROLLMENT GROWTH:

+258% between 1980

& 2010 at 4Y Publics

+177% at Private
4Y Nonprofits

THREATENS STUDENT ACCESS AND ACHIEVEMENT

Source: The College Boards Annual Survey of Colleges, IPEDS, and Eduventures analysis
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

ONLINE PROGRAMS
ONLINE IS MAINSTREAM:
Online is ~12% of total headcount in U.S. Higher Ed ~30% of adult and graduate headcount (Fall 2010)

EMBRACED BY ADULTS SEEKING ACCESS

3,000,000

Est. Online Headcount

2,482,068 2,139,714

2,500,000

2,000,000
1,783,095 1,537,151

PRIVATE SECTOR:
~40% of the wholly online market; ~10% of U.S. Higher Ed
1,260,605

1,500,000

1,000,000

500,000
229,363 6,916 78,332

Source: IPEDS/NCES, SEC filings, school data, Sloan-C and Eduventures analysis
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

COLLEGE BENEFITS:
3.0 Times H.S. Earnings 2.0 1.0 1.0 0.0
High Some School College Grads AA BA MA Dr.

HIGHER PAY + LOWER UNEMPLOYMENT

2009 Median Earnings Relative to H.S. Grads 1

2.4 2.0 1.6 1.1 1.2

2009 Unemployment Rate2

12.0% 9.7% 9.0% 6.0% 3.0% 0.0%
High Some School College Grads AA BA MA Dr.

8.6% 6.8% 5.2% 3.9% 2.5%

$3,000,000 $2,600,000 $2,500,000 $2,000,000 $1,500,000 $1,100,000 $1,000,000 $500,000 $0

AA BA MA Dr. 1Source: Bureau of Labor Statistics, Current Population Survey (posted 5/27/2010) 2Source: 2009 annual averages for persons age 25 and over, earnings are for full-time wage and salary works 3Source: U.S. Census Bureau, Current Populations Survey, 2009 Annual Social and Economic Supplement
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

Lifetime Earnings Advantage Over High School Grads 3

$1,500,000

$300,000

TRADITIONAL COLLEGES:
$15,500

FEWER SEATS, HIGHER COSTS

* 43 States Cut Assistance1

Dollars

Net Taxpayer Cost Per Student2

* Reductions in Faculty * Tuition Increases * More to Come?

$7,100

$2,400

Public Sector

Independent

Private Sector

1 Source: Center on Budget and Policy Priorities, February 9, 2011 2 Source: Robert J. Shapiro and Nam D. Phan, Sonecon September 2010
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

ASHFORD TUITION ADVANTAGE

$600

53%

46%

Cost Per Credit

% Difference 50%

43%

38%

36%

33% 15% 12%

25%

$500

$400

0%

$300

-25%

$200

-50%

$100

-75%

$0
Devry DV UoP APOL Kaplan - WPO Argosy Strayer - EDMC - STRA Capella Grand AIU - Ashford - Ashford - CPLA Canyon - CECO BPI Military LOPE BPI AMU APEI

-100%

1) Barclays Capital Equity Research 2011

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

STEADY GROWTH
6.0%

IN MARKET SHARE

5.3%

4.0% 2.9% 2.0%

4.0%

Bridgepoint Educations Market Share Based on Enrollment Percentage1

1.4%

0.0% 2007
1) BMO Equity Research 2011

2008

2009

2010

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

INNOVATION

DIFFERENTIATES US

}
Better Student Benchmarking Data Rich Data on Outcomes Used By 40 Institutions Assessment of Learning Data

More Affordable Proprietary Learning Platform 80% of Students by 2012 Patent Pending

MOBILE ACCESS
Apple/ Android
Constellation Students Grade Book Admin Classroom Faculty

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

CONSTELLATION

PLATFORM

Recognized
-

2011 Horizon Report

technology to watch Finalist for the SIIAs 2011 CODIE Award 89% of AU students say Constellation is reliable and hassle-free 78% say it improves their learning Quizzing for self assessment, interactive timelines, simulations and animations Create & review highlights, annotations, and more

Impactful
-

Feature-rich
-

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

CONSTELLATION

PLATFORM

Versatile:
- Downloadable to many devices:
iPads MP3 players iPods

Professionally Vetted:
- Professional Authors - Expert Peer-Review - Professional Editors

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

MOBILITY: ANYTIME, ANYWHERE

First mobile app in the private sector
-- Tablets & Phones

Free for students Users can: -- Participate in online discussions, -- Contact key University support staff -- Check grades and more In its first month: -- Over 40,000 visits -- > 500,000 page views iPhone app:
-- Downloaded in 37 countries and every

state in the U.S.

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

2011

OUR APPROACH TO QUALITY EDUCATION

RECOGNIZED BRANDS
Ashford University
AA, BA, MA, MBA 17 NAIA Teams Clinton, IA Campus HLC Accredited; WASC Applied
Dr 1%

University of The Rockies

MA, PsyD, PhD Social & Behavioral Sciences Colorado Springs Campus HLC Accredited

MA 11%

Edu 17%

AA 14% Bus 39% BA 74% Lib Arts 24% Hcare 21%

99% Online 71% Female 50% Minority 35 Years Old

Degrees
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

Programs

QUALITY AT EVERY STEP

Admissions Lead Analytics Pre-App. Quality Control / I.D. Management Walk to Class / Orientation Collaboration: Admission / Academics Courses QA Checkpoints: Course, Program, Institutional levels Quality Matters Leader: > 380 certified Technology: Performance & Feedback Assessment Team Gauges Student Achievement

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

EXEMPLARY
-

LEARNING MODELS

Ashford Universitys learning model

A rigorous course/program development process Encapsulates instructional design advances of the past 40 years Student-centered Course and program learning outcomes with aligned assessments

University of the Rockies: a similar learning model

- Plus a specific disciplinary perspective and Practitioner-Scholar Model

Faculty
- Extensive training in technology and teaching methodology - Rubrics - Faculty mentoring

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

TRANSPARENCY & ACCOUNTABILITY

Ashford and Rockies: Robust data disclosure
On student characteristics, satisfaction and performance, and alumni data Committed to transparency: Informed prospective student decision-making Institutional continuous improvement Accountability for public and private funds Exceeds federal requirements

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

ASSESSMENT SITE

ASHFORD

- Student and faculty characteristics - Student retention and course completion - Intended learning outcomes:
Institution overall General education By program

- Student performance on 3rd party General Ed assessments - Benchmarked against national student engagement and satisfaction data - Alumni satisfaction and career progression - Outlines of curricula and instructional reform in response to student feedback

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

VALIDATION
Ashford outperforming national benchmarks:
- SAILS test of information literacy (Kent State University)
Exceeded 7of 8 benchmarks set by other baccalaureate institutions

- NSSE 2010 survey of student engagement

AU student responses surpassed national average in numerous categories

- Ashford alumni
97% reported overall satisfaction with their experience 95% would recommend Ashford

- UniLOA survey of critical skills development (Indiana St. University)

Outperformed national average on 6 of 7 benchmarks

ENHANCED ASHFORD PERFORMANCE

BA students attempting more than 12 courses exhibited annual retention of 83.9% BA students who transfer in 60+ credits have a 78% retention rate
Source: Ashford University 2010 Assessment Data for 2009 cohort Source: Ashford University Internal Data
INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

2011

FINANCIAL REVIEW

FINANCIAL MODEL HIGHLIGHTS

Highly visible revenue stream Operating leverage drives margin expansion and earnings growth Capital efficient business Consistent financial, operating record Strong growing and cash position, no debt

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

HISTORY OF CONSISTENT
Enrollments
CAGR *83.4%
90,597 85,000 77,892 $650.0 53,688 $850.0

PERFORMANCE

Revenue ($MM)
CAGR *102.6%

$713.2 $712.1

65,000

$454.3 45,000 31,558 25,000 12,623 5,000 2007 2008 2009 *2010 Q3 '11 $50.0 2007 2008 2009 *2010 Q3'11 YTD $250.0 $85.7 $218.3 $450.0

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

CONSISTENT IMPROVEMENT
39.0%

IN OPERATING LEVERAGE

Operating Margin
33.5% 30.3%

40.0%

Instructional Costs and Services

34.8% 28.8%

27.0%

26.4% 18.0% 15.3%

25.0%

26.3%

26.3%

15.0%

4.6%
3.0% 2007 2008 2009 2010 Q3 YTD 10.0% 2007 2008 2009 2010 Q3 YTD

-- % of Revenue -Marketing and Promotional

55.0% 25.0%

General and Administrative

23.5% 18.5% 18.8% 13.7% 13.5%

42.0%
40.0%

37.1% 32.1% 29.7% 26.7%

15.0%

25.0%

10.0% 2007 2008 2009 2010 Q3 YTD

5.0% 2007 2008 2009 2010 Q3 YTD

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING

STRONG CASHFLOW AND EPS

Net Cash Provided By Operating Activities
($ MM)

Fully-Diluted Earning Per Common Share

$3.00

$200
$131.7

$189.9 $148.7

$2.60 $2.14

$2.00 $1.00
$0.74 $0.01 $0.16

$100

$70.7

$10.4

$0 2007 2008 2009 2010 Q3 YTD

$0.00

2007 2008 2009 2010 Q3 YTD

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING