Total cost per student was $13,000, of which $2,500 went to student acquisition (online ads?). Average revenue per students was $5,750.
Since 2021, they've lost a ton of their executive team, including a cofounder. I find that a pretty clear sign of where things are going.
In percentages yes, as you note. But in raw numbers, that’s insane!
Ad placements (simplified) can be geared towards CPA or ROAS - the former would be towards getting conversions, the latter towards ensuring a return on said conversions. Neither directly implies that you should be spending a massive % of your revenue for it.
I’d bet that if these lawsuits (or regulators) forced them to cut the dishonest marketing, their acquisition costs will increase.