- The stock price of Gaotu Techedu Inc (NYSE: GOTU) increased by over 25% today. This is why it happened.
The stock price of Gaotu Techedu Inc (NYSE: GOTU) – a leading online large-class tutoring service provider in China – increased by over 25% today. Investors are responding positively to the company’s second-quarter of 2021 unaudited financial results.
These are the second quarter unaudited financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Highlights:
– Net revenues were RMB2,232.3 million, a 35.3% year-over-year increase.
– Gross billings were RMB2,694.7 million, a 12.2% year-over-year increase.
– Paid course enrollments increased 4.1% year-over-year to 1,631 thousand.
– Net loss was RMB918.8 million, compared with a net income of RMB18.6 million in the same period of 2020.
– Non-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.
– Deferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.
Six Months Ended June 30, 2021 Highlights
– Net revenues were RMB4,172.6 million, a 41.5% year-over-year increase.
– Gross billings were RMB3,876.1 million, a 2.7% year-over-year increase.
– Paid course enrollments increased 2.4% year-over-year to 2,398 thousand.
– Net loss was RMB2,344.7 million, compared with a net income of RMB166.6 million in the same period of 2020.
– Non-GAAP net loss was RMB2,093.3 million, compared with non-GAAP net income of RMB263.5 million in the same period of 2020.
KEY QUOTES:
“In the second quarter of 2021, our revenue has reached a record high to 2.232 billion RMB. In order to support the equality of education, ever since May, we have successively collaborated with multiple non-profit organizations such as the China Charity’s Aid Foundation for Children, the China Youth Development Foundation, the China Next Generation Education Foundation, and the Henan Normal University through cash donation or free course offerings, to aid the revitalization of rural area education and achieve the goal of equal access of education for everyone. At the same time, we have recently and rapidly adjusted the organizational structure of the group, to focus on professional education and STEAM education, and further exploring possibilities on digital products and vocational education. We say that 2014 is Gaotu’s first attempt as a startup , and 2016 is our second start, then we can also say that 2021 is our third start. We should always keep the goal of education in mind, always firmly believe that education is a noble profession. It’s undeniable that we have boundless faith in the bright future of the Chinese education industry.”
“Additionally, we are pleased to welcome Ms. Jin Cui to join our Board as the AC Chairwoman. We look forward to drawing upon Ms. Cui’s extensive experience as our business continues to grow. We thank Mr. Xin Fan for his dedication for his tenure as Board Director for the past two years. Despite of the change in board, our business strategy remains unchanged.”
– Larry Xiangdong Chen, the company’s founder, Chairman and CEO
“In the second quarter, we have upgraded our organizational structure. We will continue to develop in the area of professional education, STEAM education, vocational education, and product digitalization. In exploring professional education, the public office exam sector has maintained its relatively high level; paid users in the financial certificate sector have increased 4 times year over year. Professional education is rapidly changing and upgrading. In the future, we will focus on those areas that are strongly supported by the government, creating a multi-facet, interactive platform that encompassing all educational categories for life-long learning.”
– Shannon Shen, CFO of the company
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
