Online education platform, 2U (NASDAQ:TWOU) will be reporting earnings tomorrow afternoon. Here's what investors should know.

2U missed analysts' revenue expectations by 9.2% last quarter, reporting revenues of $255.7 million, up 8.3% year on year. It was a weak quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.

Is 2U a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting 2U's revenue to decline 17.9% year on year to $195.9 million, a further deceleration from the 5.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.34 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 2U has missed Wall Street's revenue estimates four times over the last two years.

Looking at 2U's peers in the vertical software segment, only Cadence has reported results so far. It met analysts' revenue estimates, posting year-on-year sales declines of 1.2%. The stock was down 1.2% on the results.

Inflation fears have put pressure on growth stocks, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 4% on average over the last month. 2U is down 34.7% during the same time and is heading into earnings with an average analyst price target of $1.1 (compared to the current share price of $0.25).

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