Gaotu Techedu Announces Second Quarter 2024 Unaudited Financial Results
Second Quarter 2024 Highlights[1]
-
Net revenues were
RMB1,009.8 million , increased by 43.6% fromRMB703.1 million in the same period of 2023. -
Gross billings[2]were
RMB1,653.7 million , increased by 87.4% fromRMB882.3 million in the same period of 2023. -
Loss from operations was
RMB464.8 million , compared with income from operations ofRMB43.3 million in the same period of 2023. -
Net loss was
RMB429.6 million , compared with net income ofRMB56.2 million in the same period of 2023. -
Non-GAAP net loss was
RMB418.0 million , compared with non-GAAP net income ofRMB63.2 million in the same period of 2023. -
Net operating cash inflow was
RMB386.2 million , increased by 33.8% fromRMB288.5 million in the same period of 2023.
Second Quarter 2024 Key Financial and Operating Data |
|||||||||
(In thousands of RMB, except for percentages) |
|||||||||
|
|||||||||
|
For the three months ended |
||||||||
|
2023 |
|
|
2024 |
|
|
Pct. Change |
||
Net revenues |
|
703,094 |
|
|
|
1,009,797 |
|
|
43.6 % |
Gross billings |
|
882,325 |
|
|
|
1,653,692 |
|
|
87.4 % |
Income/(loss) from operations |
|
43,311 |
|
|
|
(464,750) |
|
|
(1,173.1) % |
Net income/(loss) |
|
56,161 |
|
|
|
(429,550) |
|
|
(864.9) % |
Non-GAAP net income/(loss) |
|
63,159 |
|
|
|
(418,040) |
|
|
(761.9) % |
Net operating cash inflow |
|
288,542 |
|
|
|
386,184 |
|
|
33.8 % |
|
[1] For a reconciliation of non-GAAP numbers, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" at the end of this press release. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses. |
[2] Gross billings is a non-GAAP financial measure, which is defined as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. See "About Non-GAAP Financial Measures" and "Reconciliations of non-GAAP measures to the most comparable GAAP measures" elsewhere in this press release. |
Six Months Ended
-
Net revenues were
RMB1,956.7 million , increased by 38.7% fromRMB1,410.4 million in the same period of 2023. -
Gross billings were
RMB2,383.1 million , increased by 67.7% fromRMB1,421.3 million in the same period of 2023. -
Loss from operations was
RMB542.5 million , compared with income from operations ofRMB138.5 million in the same period of 2023. -
Net loss was
RMB441.8 million , compared with net income ofRMB170.0 million in the same period of 2023. -
Non-GAAP net loss was
RMB415.0 million , compared with non-GAAP net income ofRMB196.8 million in the same period of 2023. -
Net operating cash inflow was
RMB188.7 million , increased by 161.7% fromRMB72.1 million in the same period of 2023.
First Six Months 2024 Key Financial and Operating Data |
|||||||||
(In thousands of RMB, except for percentages) |
|||||||||
|
|||||||||
|
For the six months ended |
||||||||
|
2023 |
|
|
2024 |
|
|
Pct. Change |
||
Net revenues |
|
1,410,386 |
|
|
|
1,956,682 |
|
|
38.7 % |
Gross billings |
|
1,421,276 |
|
|
|
2,383,052 |
|
|
67.7 % |
Income/(loss) from operations |
|
138,450 |
|
|
|
(542,452) |
|
|
(491.8) % |
Net income/(loss) |
|
170,014 |
|
|
|
(441,847) |
|
|
(359.9) % |
Non-GAAP net income/(loss) |
|
196,754 |
|
|
|
(415,001) |
|
|
(310.9) % |
Net operating cash inflow |
|
72,134 |
|
|
|
188,748 |
|
|
161.7 % |
Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented, "We achieved encouraging results in the second quarter, with net revenues increasing 43.6% year-over-year to
Financial Results for the Second Quarter of 2024
Net Revenues
Net revenues increased by 43.6% to
Cost of Revenues
Cost of revenues increased by 70.0% to
Gross Profit and Gross Margin
Gross profit increased by 34.3% to
Non-GAAP gross profit increased by 33.3% to
Operating Expenses
Operating expenses increased by 144.2% to
- Selling expenses increased to
RMB835.4 million fromRMB324.1 million in the second quarter of 2023. - Research and development expenses increased to
RMB162.1 million fromRMB98.4 million in the second quarter of 2023. - General and administrative expenses increased to
RMB163.6 million fromRMB52.9 million in the second quarter of 2023.
(Loss)/Income from Operations
Loss from operations was
Non-GAAP loss from operations was
Interest Income and Realized Gains from Investments
Interest income and realized gains from investments, on aggregate, were
Other Income/(Expenses), net
Other income, net was
Net (Loss)/Income
Net loss was
Non-GAAP net loss was
Cash Flow
Net operating cash inflow in the second quarter of 2024 was
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both
Non-GAAP basic and diluted net loss per ADS were both
Share Outstanding
As of
Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments
As of
Share Repurchase
In
As of
Business Outlook
Based on the Company's current estimates, total net revenues for the third quarter of 2024 are expected to be between
Conference Call
The Company will hold an earnings conference call at
International: 1-412-317-6061
Mainland
Passcode: 5380431
A telephone replay will be available two hours after the conclusion of the conference call through
International: 1-412-317-0088
Passcode: 6770960
Additionally, a live and archived webcast of this conference call will be available at http://ir.gaotu.cn/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About
Gaotu is a technology-driven education company and online large-class tutoring service provider in
About Non-GAAP Financial Measures
The Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss), each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.
The Company defines gross billings for a specific period as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. The Company's management uses gross billings as a performance measurement because the Company generally bills its students for the entire course fee at the time of sale of its course offerings and recognizes revenue proportionally as the classes are delivered. For some courses, the Company continues to provide students with 12 months to 36 months access to the pre-recorded audio-video courses after the online live courses are delivered. The Company believes that gross billings provides valuable insight into the sales of its course packages and the performance of its business. As gross billings have material limitations as an analytical metrics and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.
Non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Exchange Rate
The Company's business is primarily conducted in
For further information, please contact:
Investor Relations
E-mail: ir@gaotu.cn
Christensen
In
Ms.
Phone: +852-2232-3978
E-mail: gotu@christensencomms.com
In the US
Ms.
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Gaotu Techedu Inc. |
|||||||||||
Unaudited condensed consolidated balance sheets |
|||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) |
|||||||||||
|
|||||||||||
|
As of |
|
|
As of |
|
||||||
|
2023 |
|
|
2024 |
|
|
2024 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|||
Current assets |
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
636,052 |
|
|
|
1,414,853 |
|
|
|
194,690 |
|
Restricted cash |
|
33,901 |
|
|
|
2,397 |
|
|
|
330 |
|
Short-term investments |
|
2,253,910 |
|
|
|
1,780,283 |
|
|
|
244,975 |
|
Inventory, net |
|
24,596 |
|
|
|
38,394 |
|
|
|
5,283 |
|
Prepaid expenses and other current assets, net |
|
638,248 |
|
|
|
594,605 |
|
|
|
81,821 |
|
Total current assets |
|
3,586,707 |
|
|
|
3,830,532 |
|
|
|
527,099 |
|
|
|
|
|
|
|
|
|
|
|||
Non-current assets |
|
|
|
|
|
|
|
|
|||
Operating lease right-of-use assets |
|
189,662 |
|
|
|
424,144 |
|
|
|
58,364 |
|
Property, equipment and software, net |
|
533,531 |
|
|
|
599,986 |
|
|
|
82,561 |
|
Land use rights, net |
|
26,568 |
|
|
|
26,165 |
|
|
|
3,600 |
|
Long-term investments |
|
1,029,632 |
|
|
|
905,829 |
|
|
|
124,646 |
|
Deferred tax assets |
|
11,312 |
|
|
|
7,332 |
|
|
|
1,009 |
|
Rental deposit |
|
17,742 |
|
|
|
33,925 |
|
|
|
4,668 |
|
Other non-current assets |
|
18,155 |
|
|
|
17,941 |
|
|
|
2,469 |
|
TOTAL ASSETS |
|
5,413,309 |
|
|
|
5,845,854 |
|
|
|
804,416 |
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
|
|
|
|
|
|
|
|||
Accrued expenses and other current liabilities |
|
805,032 |
|
|
|
1,104,567 |
|
|
|
151,992 |
|
Deferred revenue, current portion of the |
|
1,113,480 |
|
|
|
1,391,924 |
|
|
|
191,535 |
|
Operating lease liabilities, current portion |
|
50,494 |
|
|
|
107,521 |
|
|
|
14,795 |
|
Income tax payable (including income tax |
|
4,278 |
|
|
|
62 |
|
|
|
9 |
|
Total current liabilities |
|
1,973,284 |
|
|
|
2,604,074 |
|
|
|
358,331 |
|
Gaotu Techedu Inc. |
|
||||||||||
Unaudited condensed consolidated balance sheets |
|
||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) |
|
||||||||||
|
|
||||||||||
|
As of |
|
|
As of |
|
||||||
|
2023 |
|
|
2024 |
|
|
2024 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
Non-current liabilities |
|
|
|
|
|
|
|
|
|||
Deferred revenue, non-current portion of |
|
124,141 |
|
|
|
190,211 |
|
|
|
26,174 |
|
Operating lease liabilities, non-current |
|
137,652 |
|
|
|
308,760 |
|
|
|
42,487 |
|
Deferred tax liabilities(including deferred |
|
71,967 |
|
|
|
71,123 |
|
|
|
9,787 |
|
TOTAL LIABILITIES |
|
2,307,044 |
|
|
|
3,174,168 |
|
|
|
436,779 |
|
|
|
|
|
|
|
|
|
|
|||
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|||
Ordinary shares |
|
116 |
|
|
|
116 |
|
|
|
16 |
|
|
|
(85,178) |
|
|
|
(98,307) |
|
|
|
(13,527) |
|
Additional paid-in capital |
|
7,987,957 |
|
|
|
7,986,214 |
|
|
|
1,098,940 |
|
Accumulated other comprehensive loss |
|
(33,209) |
|
|
|
(11,069) |
|
|
|
(1,523) |
|
Statutory reserve |
|
50,225 |
|
|
|
50,225 |
|
|
|
6,911 |
|
Accumulated deficit |
|
(4,813,646) |
|
|
|
(5,255,493) |
|
|
|
(723,180) |
|
TOTAL SHAREHOLDERS' EQUITY |
|
3,106,265 |
|
|
|
2,671,686 |
|
|
|
367,637 |
|
|
|
|
|
|
|
|
|
|
|||
TOTAL LIABILITIES AND TOTAL |
|
5,413,309 |
|
|
|
5,845,854 |
|
|
|
804,416 |
|
Gaotu Techedu Inc. |
|||||||||||||||||||||||
Unaudited condensed consolidated statements of operations |
|||||||||||||||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||||||||||
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||
|
RMB |
|
|
RMB |
|
|
USD |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
||||||
Net revenues |
|
703,094 |
|
|
|
1,009,797 |
|
|
|
138,953 |
|
|
|
1,410,386 |
|
|
|
1,956,682 |
|
|
|
269,248 |
|
Cost of revenues |
|
(184,380) |
|
|
|
(313,433) |
|
|
|
(43,130) |
|
|
|
(344,362) |
|
|
|
(584,847) |
|
|
|
(80,478) |
|
Gross profit |
|
518,714 |
|
|
|
696,364 |
|
|
|
95,823 |
|
|
|
1,066,024 |
|
|
|
1,371,835 |
|
|
|
188,770 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling expenses |
|
(324,065) |
|
|
|
(835,397) |
|
|
|
(114,954) |
|
|
|
(601,086) |
|
|
|
(1,341,778) |
|
|
|
(184,635) |
|
Research and development expenses |
|
(98,402) |
|
|
|
(162,101) |
|
|
|
(22,306) |
|
|
|
(195,379) |
|
|
|
(313,708) |
|
|
|
(43,168) |
|
General and administrative expenses |
|
(52,936) |
|
|
|
(163,616) |
|
|
|
(22,514) |
|
|
|
(131,109) |
|
|
|
(258,801) |
|
|
|
(35,612) |
|
Total operating expenses |
|
(475,403) |
|
|
|
(1,161,114) |
|
|
|
(159,774) |
|
|
|
(927,574) |
|
|
|
(1,914,287) |
|
|
|
(263,415) |
|
Income/(loss) from operations |
|
43,311 |
|
|
|
(464,750) |
|
|
|
(63,951) |
|
|
|
138,450 |
|
|
|
(542,452) |
|
|
|
(74,645) |
|
Interest income |
|
19,780 |
|
|
|
21,274 |
|
|
|
2,927 |
|
|
|
33,073 |
|
|
|
39,947 |
|
|
|
5,497 |
|
Realized gains from investments |
|
7,658 |
|
|
|
7,732 |
|
|
|
1,064 |
|
|
|
18,382 |
|
|
|
14,284 |
|
|
|
1,966 |
|
Other (expenses)/income, net |
|
(6,153) |
|
|
|
4,559 |
|
|
|
627 |
|
|
|
5,913 |
|
|
|
48,256 |
|
|
|
6,640 |
|
Income/(loss) before provision for |
|
64,596 |
|
|
|
(431,185) |
|
|
|
(59,333) |
|
|
|
195,818 |
|
|
|
(439,965) |
|
|
|
(60,542) |
|
Income tax (expenses)/benefits |
|
(4,250) |
|
|
|
1,635 |
|
|
|
225 |
|
|
|
(21,619) |
|
|
|
(1,882) |
|
|
|
(259) |
|
Share of results of equity investees |
|
(4,185) |
|
|
|
- |
|
|
|
- |
|
|
|
(4,185) |
|
|
|
- |
|
|
|
- |
|
Net income/(loss) |
|
56,161 |
|
|
|
(429,550) |
|
|
|
(59,108) |
|
|
|
170,014 |
|
|
|
(441,847) |
|
|
|
(60,801) |
|
Net income/(loss) attributable to |
|
56,161 |
|
|
|
(429,550) |
|
|
|
(59,108) |
|
|
|
170,014 |
|
|
|
(441,847) |
|
|
|
(60,801) |
|
Net income/(loss) per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
0.32 |
|
|
|
(2.48) |
|
|
|
(0.34) |
|
|
|
0.98 |
|
|
|
(2.56) |
|
|
|
(0.35) |
|
Diluted |
|
0.31 |
|
|
|
(2.48) |
|
|
|
(0.34) |
|
|
|
0.95 |
|
|
|
(2.56) |
|
|
|
(0.35) |
|
Net income/(loss) per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
0.21 |
|
|
|
(1.65) |
|
|
|
(0.23) |
|
|
|
0.65 |
|
|
|
(1.71) |
|
|
|
(0.23) |
|
Diluted |
|
0.21 |
|
|
|
(1.65) |
|
|
|
(0.23) |
|
|
|
0.63 |
|
|
|
(1.71) |
|
|
|
(0.23) |
|
Weighted average shares used in net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
174,603,256 |
|
|
|
173,044,221 |
|
|
|
173,044,221 |
|
|
|
173,839,911 |
|
|
|
172,686,709 |
|
|
|
172,686,709 |
|
Diluted |
|
179,933,329 |
|
|
|
173,044,221 |
|
|
|
173,044,221 |
|
|
|
179,520,278 |
|
|
|
172,686,709 |
|
|
|
172,686,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Three ADSs represent two ordinary shares. |
Gaotu Techedu Inc. |
|||||||||||||||||||||||
Reconciliations of non-GAAP measures to the most comparable GAAP measures |
|||||||||||||||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||||||||||
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||
|
RMB |
|
|
RMB |
|
|
USD |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
||||||
Net revenues |
|
703,094 |
|
|
|
1,009,797 |
|
|
|
138,953 |
|
|
|
1,410,386 |
|
|
|
1,956,682 |
|
|
|
269,248 |
|
Less: other revenues(1) |
|
20,634 |
|
|
|
29,233 |
|
|
|
4,023 |
|
|
|
36,356 |
|
|
|
56,500 |
|
|
|
7,775 |
|
Add: VAT and surcharges |
|
42,406 |
|
|
|
62,586 |
|
|
|
8,612 |
|
|
|
86,950 |
|
|
|
119,993 |
|
|
|
16,512 |
|
Add: ending deferred revenue |
|
922,576 |
|
|
|
1,582,135 |
|
|
|
217,709 |
|
|
|
922,576 |
|
|
|
1,582,135 |
|
|
|
217,709 |
|
Add: ending refund liability |
|
57,650 |
|
|
|
85,520 |
|
|
|
11,768 |
|
|
|
57,650 |
|
|
|
85,520 |
|
|
|
11,768 |
|
Less: beginning deferred revenue |
|
770,577 |
|
|
|
1,003,314 |
|
|
|
138,061 |
|
|
|
959,333 |
|
|
|
1,237,621 |
|
|
|
170,302 |
|
Less: beginning refund liability |
|
52,190 |
|
|
|
53,799 |
|
|
|
7,403 |
|
|
|
60,597 |
|
|
|
67,157 |
|
|
|
9,241 |
|
Gross billings |
|
882,325 |
|
|
|
1,653,692 |
|
|
|
227,555 |
|
|
|
1,421,276 |
|
|
|
2,383,052 |
|
|
|
327,919 |
|
|
|||||||||||||||||||||||
Note (1): Include miscellaneous revenues generated from services other than courses. |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||||||||||
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||
|
RMB |
|
|
RMB |
|
|
USD |
|
|
RMB |
|
|
RMB |
|
|
USD |
|
||||||
Gross profit |
|
518,714 |
|
|
|
696,364 |
|
|
|
95,823 |
|
|
|
1,066,024 |
|
|
|
1,371,835 |
|
|
|
188,770 |
|
Share-based compensation expenses(1) in cost of revenues |
|
3,585 |
|
|
|
(43) |
|
|
|
(6) |
|
|
|
7,575 |
|
|
|
2,278 |
|
|
|
313 |
|
Non-GAAP gross profit |
|
522,299 |
|
|
|
696,321 |
|
|
|
95,817 |
|
|
|
1,073,599 |
|
|
|
1,374,113 |
|
|
|
189,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income/(loss) from operations |
|
43,311 |
|
|
|
(464,750) |
|
|
|
(63,951) |
|
|
|
138,450 |
|
|
|
(542,452) |
|
|
|
(74,645) |
|
Share-based compensation expenses(1) |
|
6,998 |
|
|
|
11,510 |
|
|
|
1,584 |
|
|
|
26,740 |
|
|
|
26,846 |
|
|
|
3,694 |
|
Non-GAAP income/(loss) from operations |
|
50,309 |
|
|
|
(453,240) |
|
|
|
(62,367) |
|
|
|
165,190 |
|
|
|
(515,606) |
|
|
|
(70,951) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income/(loss) |
|
56,161 |
|
|
|
(429,550) |
|
|
|
(59,108) |
|
|
|
170,014 |
|
|
|
(441,847) |
|
|
|
(60,801) |
|
Share-based compensation expenses(1) |
|
6,998 |
|
|
|
11,510 |
|
|
|
1,584 |
|
|
|
26,740 |
|
|
|
26,846 |
|
|
|
3,694 |
|
Non-GAAP net income/(loss) |
|
63,159 |
|
|
|
(418,040) |
|
|
|
(57,524) |
|
|
|
196,754 |
|
|
|
(415,001) |
|
|
|
(57,107) |
|
|
|
||||||||||||||||||||||
Note (1): The tax effects of share-based compensation expenses adjustments were nil. |
View original content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-second-quarter-2024-unaudited-financial-results-302231221.html
SOURCE