Gaotu Techedu Announces First Quarter 2025 Unaudited Financial Results and a New Share Repurchase Program
First Quarter 2025 Highlights [1]
-
Net revenues were
RMB1,493.0 million , increased by 57.7% fromRMB946.9 million in the same period of 2024. -
Gross billings[2] were
RMB888.7 million , increased by 21.8% fromRMB729.4 million in the same period of 2024. -
Income from operations was
RMB34.8 million , compared with loss from operations ofRMB77.7 million in the same period of 2024. -
Net income was
RMB124.0 million , compared with net loss ofRMB12.3 million in the same period of 2024. -
Non-GAAP net income was
RMB137.3 million , increased by 4,419.2% fromRMB3.0 million in the same period of 2024. -
Net operating cash outflow was
RMB477.2 million , compared withRMB197.4 million in the same period of 2024.
First Quarter 2025 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
|
For the three months ended |
||||||||
|
2024 |
|
|
2025 |
|
|
Pct. Change |
||
Net revenues |
|
946,885 |
|
|
|
1,493,043 |
|
|
57.7 % |
Gross billings |
|
729,360 |
|
|
|
888,725 |
|
|
21.8 % |
(Loss)/income from operations |
|
(77,702) |
|
|
|
34,773 |
|
|
(144.8) % |
Net (loss)/income |
|
(12,297) |
|
|
|
123,991 |
|
|
(1,108.3) % |
Non-GAAP net income |
|
3,039 |
|
|
|
137,339 |
|
|
4,419.2 % |
Net operating cash outflow |
|
(197,435) |
|
|
|
(477,236) |
|
|
141.7 % |
[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. |
This quarter, we allocated
Strategically, we are accelerating the formation of a technology-empowered value loop in education. By embedding AI deeply into our educational products and learning services, we have made substantial progress in enhancing user experience and learning outcomes, laying a solid foundation for the Company's future growth and profitability."
Driven by the dynamic evolution of customer needs, we have strategically invested in improving product quality, expanding our user base, and delivering more personalized and diversified learning solutions in previous years. With the effective execution of these strategies, our revenue structure has become more growth-oriented and sustainable. The approval of new share buybacks plan, reflects management's confidence in long-term steady operations, profitability improvements, and sustainable operating cash flow generation. Guided by the Board, we will continue to repurchase shares, creating long-term value for our shareholders."
Financial Results for the First Quarter of 2025
Net Revenues
Net revenues increased by 57.7% to
Cost of Revenues
Cost of revenues increased by 66.7% to
Gross Profit and Gross Margin
Gross profit increased by 54.0% to
Non-GAAP gross profit increased by 53.8% to
Operating Expenses
Operating expenses increased by 33.5% to
- Selling expenses increased to
RMB709.4 million fromRMB506.4 million in the first quarter of 2024. - Research and development expenses decreased to
RMB150.5 million fromRMB151.6 million in the first quarter of 2024. - General and administrative expenses increased to
RMB145.9 million fromRMB95.2 million in the first quarter of 2024.
Income/(Loss) from Operations
Income from operations was
Non-GAAP income from operations was
Interest Income and Realized Gains from Investments
Interest income and realized gains from investments, on aggregate, were
Other Income, net
Other income, net was
Net Income/(Loss)
Net income was
Non-GAAP net income was
Cash Flow
Net operating cash outflow in the first quarter of 2025 was
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were
Non-GAAP basic and diluted net income per ADS were
Share Outstanding
As of
Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments
As of
Share Repurchase
In
As of
In
Business Outlook
Based on the Company's current estimates, total net revenues for the second quarter of 2025 are expected to be between
Conference Call
The Company will hold an earnings conference call at
International: 1-412-317-6061
Mainland
Passcode: 7885398
A telephone replay will be available two hours after the conclusion of the conference call through
International: 1-412-317-0088
Passcode: 5203831
Additionally, a live and archived webcast of this conference call will be available at https://ir.gaotu.cn/home.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About
Gaotu is a leading technology-driven education company 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
Tel: +1 212 481-2050
Tel: +86 10 6508-0677
E-mail: Gaotu@tpg-ir.com
|
|
||||||||||
Unaudited condensed consolidated balance sheets |
|
||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) |
|
||||||||||
|
|
||||||||||
|
As of |
|
|
As of |
|
||||||
|
2024 |
|
|
2025 |
|
|
2025 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|||
Current assets |
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
1,321,118 |
|
|
|
1,015,595 |
|
|
|
139,953 |
|
Restricted cash |
|
5,222 |
|
|
|
16,407 |
|
|
|
2,261 |
|
Short-term investments |
|
1,845,242 |
|
|
|
1,419,553 |
|
|
|
195,620 |
|
Inventory, net |
|
36,401 |
|
|
|
31,254 |
|
|
|
4,307 |
|
Prepaid expenses and other current assets, net |
|
431,829 |
|
|
|
440,708 |
|
|
|
60,732 |
|
Total current assets |
|
3,639,812 |
|
|
|
2,923,517 |
|
|
|
402,873 |
|
|
|
|
|
|
|
|
|
|
|||
Non-current assets |
|
|
|
|
|
|
|
|
|||
Operating lease right-of-use assets |
|
503,601 |
|
|
|
491,998 |
|
|
|
67,799 |
|
Property, equipment and software, net |
|
670,237 |
|
|
|
683,354 |
|
|
|
94,169 |
|
Land use rights, net |
|
25,762 |
|
|
|
25,561 |
|
|
|
3,522 |
|
Long-term investments |
|
922,740 |
|
|
|
995,887 |
|
|
|
137,237 |
|
Rental deposit |
|
45,834 |
|
|
|
47,236 |
|
|
|
6,509 |
|
Other non-current assets |
|
20,091 |
|
|
|
19,339 |
|
|
|
2,665 |
|
TOTAL ASSETS |
|
5,828,077 |
|
|
|
5,186,892 |
|
|
|
714,774 |
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
|
|
|
|
|
|
|
|||
Accrued expenses and other current liabilities |
|
1,245,207 |
|
|
|
1,257,692 |
|
|
|
173,314 |
|
Deferred revenue, current portion of the |
|
1,867,096 |
|
|
|
1,231,456 |
|
|
|
169,699 |
|
Operating lease liabilities, current portion |
|
147,635 |
|
|
|
151,422 |
|
|
|
20,867 |
|
Income tax payable (including income tax |
|
665 |
|
|
|
106 |
|
|
|
15 |
|
Total current liabilities |
|
3,260,603 |
|
|
|
2,640,676 |
|
|
|
363,895 |
|
|
|
||||||||||
Unaudited condensed consolidated balance sheets |
|
||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) |
|
||||||||||
|
|
||||||||||
|
As of |
|
|
As of |
|
||||||
|
2024 |
|
|
2025 |
|
|
2025 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
Non-current liabilities |
|
|
|
|
|
|
|
|
|||
Deferred revenue, non-current portion of |
|
218,797 |
|
|
|
213,511 |
|
|
|
29,423 |
|
Operating lease liabilities, non-current |
|
344,609 |
|
|
|
328,245 |
|
|
|
45,233 |
|
Deferred tax liabilities (including deferred |
|
70,604 |
|
|
|
69,930 |
|
|
|
9,637 |
|
TOTAL LIABILITIES |
|
3,894,613 |
|
|
|
3,252,362 |
|
|
|
448,188 |
|
|
|
|
|
|
|
|
|
|
|||
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|||
Ordinary shares |
|
116 |
|
|
|
116 |
|
|
|
16 |
|
|
|
(242,866) |
|
|
|
(329,034) |
|
|
|
(45,342) |
|
Additional paid-in capital |
|
7,991,421 |
|
|
|
7,959,114 |
|
|
|
1,096,795 |
|
Accumulated other comprehensive loss |
|
(2,832) |
|
|
|
(7,282) |
|
|
|
(1,003) |
|
Statutory reserve |
|
66,042 |
|
|
|
66,042 |
|
|
|
9,101 |
|
Accumulated deficit |
|
(5,878,417) |
|
|
|
(5,754,426) |
|
|
|
(792,981) |
|
TOTAL SHAREHOLDERS' EQUITY |
|
1,933,464 |
|
|
|
1,934,530 |
|
|
|
266,586 |
|
|
|
|
|
|
|
|
|
|
|||
TOTAL LIABILITIES AND TOTAL |
|
5,828,077 |
|
|
|
5,186,892 |
|
|
|
714,774 |
|
|
|
||||||||||
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 |
|
|||||||||
|
2024 |
|
|
2025 |
|
|
2025 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
Net revenues |
|
946,885 |
|
|
|
1,493,043 |
|
|
|
205,747 |
|
Cost of revenues |
|
(271,414) |
|
|
|
(452,461) |
|
|
|
(62,351) |
|
Gross profit |
|
675,471 |
|
|
|
1,040,582 |
|
|
|
143,396 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|||
Selling expenses |
|
(506,381) |
|
|
|
(709,421) |
|
|
|
(97,761) |
|
Research and development expenses |
|
(151,607) |
|
|
|
(150,455) |
|
|
|
(20,733) |
|
General and administrative expenses |
|
(95,185) |
|
|
|
(145,933) |
|
|
|
(20,110) |
|
Total operating expenses |
|
(753,173) |
|
|
|
(1,005,809) |
|
|
|
(138,604) |
|
(Loss)/income from operations |
|
(77,702) |
|
|
|
34,773 |
|
|
|
4,792 |
|
Interest income |
|
18,673 |
|
|
|
13,041 |
|
|
|
1,797 |
|
Realized gains from investments |
|
6,552 |
|
|
|
4,038 |
|
|
|
556 |
|
Other income, net |
|
43,697 |
|
|
|
71,580 |
|
|
|
9,864 |
|
(Loss)/income before provision for income tax and share of |
|
(8,780) |
|
|
|
123,432 |
|
|
|
17,009 |
|
Income tax (expenses)/benefits |
|
(3,517) |
|
|
|
559 |
|
|
|
77 |
|
Net (loss)/income |
|
(12,297) |
|
|
|
123,991 |
|
|
|
17,086 |
|
Net (loss)/income attributable to |
|
(12,297) |
|
|
|
123,991 |
|
|
|
17,086 |
|
Net (loss)/income per ordinary share |
|
|
|
|
|
|
|
|
|||
Basic |
|
(0.07) |
|
|
|
0.74 |
|
|
|
0.10 |
|
Diluted |
|
(0.07) |
|
|
|
0.73 |
|
|
|
0.10 |
|
Net (loss)/income per ADS |
|
|
|
|
|
|
|
|
|||
Basic |
|
(0.05) |
|
|
|
0.50 |
|
|
|
0.07 |
|
Diluted |
|
(0.05) |
|
|
|
0.49 |
|
|
|
0.07 |
|
Weighted average shares used in net (loss)/income per |
|
|
|
|
|
|
|
|
|||
Basic |
|
172,329,184 |
|
|
|
166,745,668 |
|
|
|
166,745,668 |
|
Diluted |
|
172,329,184 |
|
|
|
169,581,622 |
|
|
|
169,581,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Three ADSs represent two ordinary shares. |
|
|
|
||||||||||
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 |
|
|||||||||
|
2024 |
|
|
2025 |
|
|
2025 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
Net revenues |
|
946,885 |
|
|
|
1,493,043 |
|
|
|
205,747 |
|
Less: other revenues(1) |
|
27,267 |
|
|
|
14,824 |
|
|
|
2,043 |
|
Add: VAT and surcharges |
|
57,407 |
|
|
|
93,376 |
|
|
|
12,868 |
|
Add: ending deferred revenue |
|
1,003,314 |
|
|
|
1,444,967 |
|
|
|
199,122 |
|
Add: ending refund liability |
|
53,799 |
|
|
|
86,025 |
|
|
|
11,855 |
|
Less: beginning deferred revenue |
|
1,237,621 |
|
|
|
2,085,893 |
|
|
|
287,444 |
|
Less: beginning refund liability |
|
67,157 |
|
|
|
127,969 |
|
|
|
17,635 |
|
Gross billings |
|
729,360 |
|
|
|
888,725 |
|
|
|
122,470 |
|
|
|
||||||||||
Note (1): Include miscellaneous revenues generated from services other than courses. |
|
||||||||||
|
|
||||||||||
|
For the three months ended |
|
|||||||||
|
2024 |
|
|
2025 |
|
|
2025 |
|
|||
|
RMB |
|
|
RMB |
|
|
USD |
|
|||
Gross profit |
|
675,471 |
|
|
|
1,040,582 |
|
|
|
143,396 |
|
Share-based compensation expenses(1) in cost of revenues |
|
2,321 |
|
|
|
2,110 |
|
|
|
291 |
|
Non-GAAP gross profit |
|
677,792 |
|
|
|
1,042,692 |
|
|
|
143,687 |
|
|
|
|
|
|
|
|
|
|
|||
(Loss)/income from operations |
|
(77,702) |
|
|
|
34,773 |
|
|
|
4,792 |
|
Share-based compensation expenses(1) |
|
15,336 |
|
|
|
13,348 |
|
|
|
1,839 |
|
Non-GAAP (loss)/income from operations |
|
(62,366) |
|
|
|
48,121 |
|
|
|
6,631 |
|
|
|
|
|
|
|
|
|
|
|||
Net (loss)/income |
|
(12,297) |
|
|
|
123,991 |
|
|
|
17,086 |
|
Share-based compensation expenses(1) |
|
15,336 |
|
|
|
13,348 |
|
|
|
1,839 |
|
Non-GAAP net income |
|
3,039 |
|
|
|
137,339 |
|
|
|
18,925 |
|
|
|
||||||||||
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-first-quarter-2025-unaudited-financial-results-and-a-new-share-repurchase-program-302456280.html
SOURCE