BEIJING, Sept. 22, 2021 /PRNewswire/ -- Gaotu Techedu Inc.
(NYSE: GOTU) ("Gaotu" or the "Company"), a
leading online large-class tutoring service provider in
China, today announced its
unaudited financial results for the second quarter ended
June 30, 2021.
Second Quarter 2021 Highlights[1]
- Net revenues was RMB2,232.3
million, a 35.3% year-over-year increase.
-
- Net revenues of online K-12 courses increased 51.0%
year-over-year to RMB2,091.4
million.
- Gross billings[2] was RMB2,694.7 million, a 12.2% year-over-year
increase.
-
- Gross billings of online K-12 courses increased 17.2%
year-over-year to RMB2,574.5
million.
- Paid course enrollments[3] increased 4.1%
year-over-year to 1,631 thousand.
-
- Paid course enrollments of online K-12 increased 4.5%
year-over-year to 1,563 thousand.
- Net loss was RMB918.8
million, compared with 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.
Second Quarter
2021 Key Financial and Operating Data
|
(In thousands of RMB,
except for paid course enrollments and percentages)
|
|
|
Three Months Ended
June 30,
|
|
2020
|
|
2021
|
|
Pct.
Change
|
Net
revenues
|
1,650,314
|
|
2,232,254
|
|
35.3%
|
K-12
courses
|
1,384,968
|
|
2,091,355
|
|
51.0%
|
Foreign language,
professional, admission and
other services
|
265,346
|
|
140,899
|
|
(46.9%)
|
Gross
billings
|
2,400,996
|
|
2,694,732
|
|
12.2%
|
K-12
courses
|
2,196,077
|
|
2,574,536
|
|
17.2%
|
Foreign language,
professional, admission and
other services
|
204,919
|
|
120,196
|
|
(41.3%)
|
Paid course
enrollments (In thousands)
|
1,567
|
|
1,631
|
|
4.1%
|
K-12
courses
|
1,496
|
|
1,563
|
|
4.5%
|
Foreign language,
professional, admission and
other services
|
71
|
|
68
|
|
(4.2)%
|
Net income
(loss)
|
18,627
|
|
(918,791)
|
|
NM
|
Non-GAAP net income
(loss)
|
72,712
|
|
(763,890)
|
|
NM
|
[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, 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.
|
[3] Paid course enrollments for a
certain period refer to the cumulative number of paid courses
enrolled in and paid for by our students, including multiple paid
courses enrolled in and paid for by the same student. Paid courses
refer to our courses that are charged not less than RMB99.0 per
course in fees.
|
Six Months Ended June 30, 2021
Highlights
- Net revenues was RMB4,172.6
million, a 41.5% year-over-year increase.
-
- Net revenues of online K-12 courses increased 56.0%
year-over-year to RMB3,907.6
million.
- Gross billings was RMB3,876.1
million, a 2.7% year-over-year increase.
-
- Gross billings of online K-12 courses increased 8.8%
year-over-year to RMB3,577.1
million.
- Paid course enrollments increased 2.4% year-over-year to
2,398 thousand.
-
- Paid course enrollments of online K-12 increased 2.4%
year-over-year to 2,195 thousand.
- Net loss was RMB2,344.7
million, compared with 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.
First Six Months
of 2021 Key Financial and Operating Data
|
(In thousands of RMB,
except for paid course enrollments and percentages)
|
|
|
Six Months Ended June
30,
|
|
2020
|
|
2021
|
|
Pct.
Change
|
Net
revenues
|
2,947,894
|
|
4,172,597
|
|
41.5%
|
K-12
courses
|
2,505,057
|
|
3,907,626
|
|
56.0%
|
Foreign language,
professional, admission and
other services
|
442,837
|
|
264,971
|
|
(40.2)%
|
Gross
billings
|
3,775,395
|
|
3,876,074
|
|
2.7%
|
K-12
courses
|
3,286,669
|
|
3,577,148
|
|
8.8%
|
Foreign language,
professional, admission and
other services
|
488,726
|
|
298,926
|
|
(38.8)%
|
Paid course
enrollments (In thousands)
|
2,341
|
|
2,398
|
|
2.4%
|
K-12
courses
|
2,143
|
|
2,195
|
|
2.4%
|
Foreign language,
professional, admission and
other services
|
198
|
|
203
|
|
2.5%
|
Net income
(loss)
|
166,615
|
|
(2,344,710)
|
|
NM
|
Non-GAAP net income
(loss)
|
263,453
|
|
(2,093,310)
|
|
NM
|
Larry Xiangdong Chen,
the Company's founder, Chairman and CEO, commented, "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."
Shannon Shen, CFO of the
Company, added, "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."
Financial Results for the Second Quarter of 2021
Net Revenues
Net revenues reached RMB2,232.3
million, a 35.3% increase from RMB1,650.3 million in the second quarter of 2020.
The increase was mainly driven by the growth in paid course
enrollments for K-12 courses during the period from the fourth
quarter of 2020 to the second quarter of 2021, which was
contributed by both first-time paid course enrollments and
retention of existing students. The net revenues in the second
quarter of 2021 was partially attributable to the paid course
enrollments of the fourth quarter of 2020.
Cost of Revenues
Cost of revenues rose by 100.8% to RMB724.3 million from RMB360.7 million in the second quarter of 2020,
mainly due to the increased recruitment of instructors and tutors,
the increase in compensation for attracting and retaining high
quality teaching staff, as well as the increase in learning
material cost and rental expenses.
Gross Profit and Gross Margin
Gross profit increased 16.9% to RMB1,508.0 million from RMB1,289.7 million in the second quarter of
2020. Gross profit margin decreased to 67.6% from 78.1% in the
same period of 2020. The decrease was primarily due to the increase
in compensation for instructors and tutors, simultaneously
resulting from the increased number of them and more competitive
salaries provided, to attract excellent talents to improve teaching
quality and students' learning experience.
Non-GAAP gross profit increased by 18.2% to RMB1,543.5 million from RMB1,305.4 million in the same period of 2020.
Non-GAAP gross profit margin decreased to 69.1% from 79.1% in the
same period of 2020.
Operating Expenses
Operating expenses were RMB2,362.7
million, which increased from RMB1,450.4 million in the second quarter of
2020.
Selling expenses increased to RMB1,641.1
million from RMB1,204.8
million in the second quarter of 2020. The increase was
primarily a result of higher marketing expenses to expand user base
and enhance our brands, and an increase in compensation to sales
and marketing staff.
Research and development expenses increased by 204.9% to
RMB426.5 million, from RMB139.9 million in the second quarter of 2020.
The increase was primarily due to an increase in the number of
education content development professionals and technology
development personnel, as well as an increase in compensation for
such staff.
General and administrative expenses increased to RMB242.0 million from RMB105.7 million in the second quarter of 2020.
The increase in general and administrative expenses was mainly due
to an increase in the number of general and administrative
personnel, an increase in compensation paid to such staff.
Impairment loss on intangible assets and goodwill was
RMB53.1 million for the second
quarter of 2021, compared to nil for the same period of 2020. The
impairment loss was mainly due to the decline of fair value related
to the intangible assets and goodwill in connection with the
acquisition of Tianjin Puxin Online School Education Technology
Co., Ltd. that was completed in December
2020. Considering recent regulatory policies concerning
after-school tutoring services, the acquisition will not likely to
achieve the target goals the management had estimated at the time
of acquisition.
Loss from Operations
Loss from operations was RMB854.7
million, compared with the loss from operations of
RMB160.8 million in the second
quarter of 2020. The decrease was primarily due to higher spending
in sales and marketing activities to extend volume growth and
strengthen brand perception and an increase in the number of
personnel, as well as an increase in compensation for our
staff.
Non-GAAP loss from operations was RMB699.8 million, compared with non-GAAP loss
from operations of RMB106.7 million
in the second quarter of 2020.
Interest Income and Realized Gains from
Investment
Interest income and realized gains from investments, on
aggregate, was RMB23.5 million,
compared with RMB24.2 million in the
second quarter of 2020. Interest income and realized gains from
investments was primarily the interest income of cash, cash
equivalents and short-term wealth management investments, as well
as the realization of gains generated from short-term and long-term
wealth management investments.
Other Income (Expense)
Other expense was RMB36.5 million,
compared with other income of RMB87.7
million in the second quarter of 2020. Other expense in the
second quarter of 2021 primarily consisted of related cost of the
value-added tax exemption offered by the government during the
COVID-19 outbreak, which amounted to RMB56.7
million, net of other income of RMB20.2 million.
Net Income
(Loss)
Net loss was RMB918.8 million,
compared with net income of RMB18.6
million in the second quarter of 2020.
Non-GAAP net loss was RMB763.9
million, compared with non-GAAP net income of RMB72.7 million in the second quarter of
2020.
Cash Flow
Net operating cash outflow for the second quarter of 2021 was
RMB318.6 million. The outflow of net
operating cash this quarter was primarily due to higher marketing
expenses paid to improve our market share and brand awareness, and
an increase in compensation. Cash used in capital expenditures was
RMB107.0 million.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.
Non-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.
Share Outstanding
As of June 30, 2021, the Company
had 170,935,557 ordinary shares outstanding.
Cash and Cash Equivalents, Restricted Cash, Short-term
Investments and Long-term Investments
As of June 30, 2021, the Company
had cash and cash equivalents, restricted cash, short-term
investments and long-term investments of RMB5,486.9 million in the aggregate, compared
with a total of RMB8,217.2 million of
cash and cash equivalents, short-term investments and long-term
investments as of December 31,
2020.
Deferred Revenue
As of June 30, 2021, the Company's
deferred revenue balance was RMB1,976.4
million, compared with RMB2,733.7
million as of December 31,
2020. Deferred revenue primarily consisted of tuition
collected in advance.
Other Payables
As of June 30, 2021, other
payables in non-current liabilities totaled RMB26.6 million, all of which were payables
related to the purchase of the Zhengzhou properties.
Update on PRC Regulatory Policy
As previously disclosed, Gaotu's business, financial condition
and corporate structure are expected to be materially affected in
future periods by the changing regulatory environment primarily in
China's after school tutoring
industry, although the magnitude of the impact remains uncertain at
this time.
Business Outlook
Due to the uncertainty related to the recent regulatory and
operating environment, the Company has decided not to issue
guidance in the near term in order to give the management more
flexibility to focus on the Company's operations.
Board Change
Mr. Xin Fan has resigned from the
board of directors of the Company, for personal reasons, effective
on September 22, 2021. The Company
has appointed Ms. Jin Cui as an
independent director of the Company, effective on the same day. Ms.
Cui will also become the chairwoman of the audit committee of the
board of directors, as well as a member of the compensation
committee and the nominating and corporate governance
committee.
Conference Call
The Company will hold an earnings conference call on
Wednesday, September 22, 2021, at
8:00 AM U.S. Eastern Time
(8:00 PM on the same day,
Beijing/Hong Kong Time). Dial-in
details for the earnings conference call are as follows:
International:
|
1-412-317-6061
|
US:
|
1-888-317-6003
|
Hong Kong:
|
800-963976
|
Mainland
China:
|
4001-206115
|
Passcode:
|
4155009
|
A telephone replay will be available two hours after the
conclusion of the conference call through September 29, 2021. The dial-in details are:
International:
|
1-412-317-0088
|
US:
|
1-877-344-7529
|
Passcode:
|
10160189
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.gaotu.cn/home.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the Company's strategic and operational plans, contain
forward-looking statements. The Company may also make written or
oral forward-looking statements in its reports filed with, or
furnished to, the U.S. Securities and Exchange Commission, in its
annual reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the Company's ability to continue to
attract students to enroll in its courses; the Company's ability to
continue to recruit, train and retain qualified teachers; the
Company's ability to improve the content of its existing course
offerings and to develop new courses; the Company's ability to
maintain and enhance its brand; the Company's ability to maintain
and continue to improve its teaching results; and the Company's
ability to compete effectively against its competitors. Further
information regarding these and other risks is included in the
Company's reports filed with, or furnished to the U.S. Securities
and Exchange Commission. All information provided in this press
release and in the attachments is as of the date of this press
release, and the Company undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
About Gaotu Techedu Inc.
Gaotu is a technology-driven education
company and online large-class tutoring service provider in
China. The Company offers foreign
language, vocational, professional and admission courses, STEAM
courses, as well as K-12 courses. Gaotu adopts an online live
large-class format to deliver its courses, which the Company
believes is the most effective and scalable model to disseminate
scarce, high-quality teaching resources to aspiring students in
China. The Company leverages big
data analytics and the latest technologies in multiple aspects of
its business to improve teaching delivery, student learning
experience, and operational efficiency.
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
over usually no more than 60 classes for K-12 courses. 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, and such adjustment excludes the impact on income tax.
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 China and the significant majority of revenues
generated are denominated in Renminbi ("RMB"). This announcement
contains currency conversions of RMB amounts into U.S. dollars
("USD") solely for the convenience of the reader. Unless otherwise
noted, all translations from RMB to USD are made at a rate of
RMB6.4566 to USD1.0000, the effective noon buying rate for
June 30, 2021 as set forth in the
H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into USD at that rate on
June 30, 2021, or at any other
rate.
For further information, please contact:
Gaotu Techedu Inc.
Ms. Sandy Qin, CFA
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
E-mail: gotu@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.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
December 31,
|
|
As of June
30,
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
355,224
|
|
1,005,328
|
|
155,705
|
Restricted cash
|
-
|
|
13,453
|
|
2,084
|
Short-term investments
|
7,331,268
|
|
3,949,619
|
|
611,718
|
Inventory
|
48,074
|
|
62,722
|
|
9,714
|
Prepaid expenses and other current assets
|
722,682
|
|
690,698
|
|
106,976
|
Total current
assets
|
8,457,248
|
|
5,721,820
|
|
886,197
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Operating lease right-of-use assets
|
806,591
|
|
856,626
|
|
132,674
|
Property, equipment and software, net
|
704,338
|
|
857,780
|
|
132,853
|
Land use rights, net
|
28,983
|
|
28,580
|
|
4,426
|
Long-term investments
|
530,729
|
|
518,549
|
|
80,313
|
Deferred tax assets
|
48,324
|
|
-
|
|
-
|
Rental deposit
|
51,499
|
|
53,530
|
|
8,291
|
Other non-current assets
|
58,080
|
|
2,507
|
|
388
|
TOTAL
ASSETS
|
10,685,792
|
|
8,039,392
|
|
1,245,142
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accrued expenses and
other current liabilities
(including accrued expenses and other current
liabilities of the consolidated VIE without
recourse to the Group of RMB623,002 and
RMB1,104,191 as of December 31, 2020 and
June 30, 2021, respectively)
|
1,315,502
|
|
1,513,739
|
|
234,447
|
Deferred revenue,
current portion of the
consolidated VIE without recourse to the Group
|
2,724,614
|
|
1,968,608
|
|
304,899
|
Current portion of
operating lease liabilities
(including current portion of operating lease
liabilities of the consolidated VIE without
recourse to the Group of RMB125,986 and
RMB210,496 as of December 31, 2020 and
June 30, 2021, respectively)
|
152,622
|
|
241,515
|
|
37,406
|
Income tax payable of
the consolidated VIE
without recourse to the Group
|
4,654
|
|
-
|
|
-
|
Total Current
liabilities
|
4,197,392
|
|
3,723,862
|
|
576,752
|
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
December 31,
|
|
As of June
30,
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
Non-current
liabilities
|
|
|
|
|
|
Deferred revenue,
non-current portion of the
consolidated VIE without recourse to the
Group
|
9,125
|
|
7,761
|
|
1,202
|
Non-current portion of
operating lease liabilities
(including non-current portion of operating
lease liabilities of the consolidated VIE without
recourse to the Group of RMB527,692 and
RMB534,172 as of December 31, 2020 and
June 30, 2021, respectively)
|
644,143
|
|
615,227
|
|
95,287
|
Deferred tax
liabilities
(including deferred tax
liabilities of the
consolidated VIE without recourse to the
Group of RMB78,697 and RMB72,484 as of
December 31, 2020 and June 30, 2021,
respectively)
|
78,697
|
|
72,921
|
|
11,294
|
Other payables of the
consolidated VIE without
recourse to the Group
|
26,580
|
|
26,580
|
|
4,116
|
TOTAL
LIABILITIES
|
4,955,937
|
|
4,446,351
|
|
688,651
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary
shares
|
113
|
|
113
|
|
18
|
Treasury stock, at
cost
|
(139,572)
|
|
-
|
|
-
|
Additional paid-in
capital
|
7,595,049
|
|
7,723,745
|
|
1,196,256
|
Accumulated other
comprehensive loss
|
(59,905)
|
|
(120,277)
|
|
(18,629)
|
Statutory
reserve
|
40,380
|
|
40,380
|
|
6,254
|
Accumulated
deficit
|
(1,706,210)
|
|
(4,050,920)
|
|
(627,408)
|
TOTAL
SHAREHOLDERS' EQUITY
|
5,729,855
|
|
3,593,041
|
|
556,491
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND TOTAL
SHAREHOLDERS' EQUITY
|
10,685,792
|
|
8,039,392
|
|
1,245,142
|
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 June 30,
|
|
For the six months
ended June 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
RMB
|
RMB
|
USD
|
Net
Revenues:
|
1,650,314
|
|
2,232,254
|
|
345,732
|
|
2,947,894
|
|
4,172,597
|
|
646,253
|
Online K-12
Courses
|
1,384,968
|
|
2,091,355
|
|
323,910
|
|
2,505,057
|
|
3,907,626
|
|
605,214
|
Foreign
language, professional and admission
|
260,371
|
|
140,062
|
|
21,693
|
|
434,557
|
|
263,148
|
|
40,756
|
Other
services
|
4,975
|
|
837
|
|
129
|
|
8,280
|
|
1,823
|
|
283
|
Cost of
revenues
|
(360,661)
|
|
(724,278)
|
|
(112,176)
|
|
(643,911)
|
|
(1,295,780)
|
|
(200,691)
|
Gross
profit
|
1,289,653
|
|
1,507,976
|
|
233,556
|
|
2,303,983
|
|
2,876,817
|
|
445,562
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
(1,204,803)
|
|
(1,641,083)
|
|
(254,171)
|
|
(1,962,037)
|
|
(3,929,793)
|
|
(608,647)
|
Research and
development expenses
|
(139,878)
|
|
(426,502)
|
|
(66,057)
|
|
(239,288)
|
|
(791,612)
|
|
(122,605)
|
General and
administrative expenses
|
(105,744)
|
|
(241,982)
|
|
(37,478)
|
|
(171,500)
|
|
(459,597)
|
|
(71,183)
|
Impairment loss on
intangible assets and
goodwill
|
-
|
|
(53,131)
|
|
(8,229)
|
-
|
(53,131)
|
(8,229)
|
Total operating
expenses
|
(1,450,425)
|
|
(2,362,698)
|
|
(365,935)
|
(2,372,825)
|
(5,234,133)
|
(810,664)
|
Loss from
operations
|
(160,772)
|
|
(854,722)
|
|
(132,379)
|
(68,842)
|
(2,357,316)
|
(365,102)
|
Interest
income
|
274
|
|
7,667
|
|
1,187
|
519
|
21,752
|
3,369
|
Realized gains from
investments
|
23,885
|
|
15,826
|
|
2,451
|
|
36,238
|
|
24,636
|
|
3,816
|
Other
income(expense)
|
87,722
|
|
(36,519)
|
|
(5,656)
|
|
149,653
|
|
8,368
|
|
1,296
|
Loss before
provision for income tax and
share of results of equity investees
|
(48,891)
|
|
(867,748)
|
|
(134,397)
|
|
117,568
|
|
(2,302,560)
|
|
(356,621)
|
Income tax
benefits(expenses)
|
68,520
|
|
(51,658)
|
|
(8,001)
|
50,528
|
(41,848)
|
(6,481)
|
Share of results of
equity investees
|
(1,002)
|
|
615
|
|
95
|
|
(1,481)
|
|
(302)
|
|
(47)
|
Net
income(loss)
|
18,627
|
|
(918,791)
|
|
(142,303)
|
166,615
|
(2,344,710)
|
(363,149)
|
Net income(loss)
attributable to Gaotu
Techedu Inc.'s ordinary shareholders
|
18,627
|
|
(918,791)
|
|
(142,303)
|
166,615
|
(2,344,710)
|
(363,149)
|
Net income(loss)
per ordinary share
|
|
|
|
|
|
|
|
|
Basic
|
0.12
|
|
(5.38)
|
|
(0.83)
|
|
1.05
|
|
(13.75)
|
|
(2.13)
|
Diluted
|
0.11
|
|
(5.38)
|
|
(0.83)
|
|
0.99
|
|
(13.75)
|
|
(2.13)
|
Net income(loss)
per ADS
|
|
|
|
|
|
|
|
|
Basic
|
0.08
|
|
(3.59)
|
|
(0.55)
|
|
0.70
|
|
(9.17)
|
|
(1.42)
|
Diluted
|
0.07
|
|
(3.59)
|
|
(0.55)
|
|
0.66
|
|
(9.17)
|
|
(1.42)
|
Weighted average
shares used in net income
per share
|
|
|
|
|
|
|
|
|
Basic
|
159,135,290
|
|
170,634,264
|
|
170,634,264
|
|
159,124,542
|
|
170,482,819
|
|
170,482,819
|
Diluted
|
167,718,073
|
|
170,634,264
|
|
170,634,264
|
|
167,759,386
|
|
170,482,819
|
|
170,482,819
|
|
Note: Three ADS
represents 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 June 30,
|
|
For the six months
ended June 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenues
|
1,650,314
|
|
2,232,254
|
|
345,732
|
|
2,947,894
|
|
4,172,597
|
|
646,253
|
Less: other
revenues(1)
|
999
|
|
78
|
|
12
|
|
999
|
|
471
|
|
73
|
Add: VAT and
surcharges
|
99,332
|
|
142,600
|
|
22,086
|
|
176,904
|
|
257,523
|
|
39,885
|
Add: ending deferred
revenue
|
1,961,103
|
|
1,976,369
|
|
306,101
|
|
1,961,103
|
|
1,976,369
|
|
306,101
|
Add: ending refund
liability
|
82,696
|
|
324,504
|
|
50,259
|
|
82,696
|
|
324,504
|
|
50,259
|
Less: beginning
deferred revenue
|
1,338,791
|
|
1,896,528
|
|
293,735
|
|
1,337,636
|
|
2,733,739
|
|
423,402
|
Less: beginning
refund liability
|
52,659
|
|
84,389
|
|
13,070
|
|
54,567
|
|
120,709
|
|
18,695
|
Gross billings
(non-GAAP)
|
2,400,996
|
|
2,694,732
|
|
417,361
|
|
3,775,395
|
|
3,876,074
|
|
600,328
|
|
|
|
|
|
|
|
|
|
|
|
|
Note (1): Include
miscellaneous revenues generated from services other than
courses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30,
|
|
For the six months
ended June 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
RMB
|
RMB
|
USD
|
Gross
profit
|
1,289,653
|
|
1,507,976
|
|
233,556
|
|
2,303,983
|
|
2,876,817
|
|
445,562
|
Share-based
compensation
expense in cost of revenues
|
15,744
|
|
35,561
|
|
5,508
|
|
29,588
|
|
60,342
|
|
9,346
|
Non-GAAP gross
profit
|
1,305,397
|
|
1,543,537
|
|
239,064
|
2,333,571
|
2,937,159
|
454,908
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(160,772)
|
|
(854,722)
|
|
(132,379)
|
|
(68,842)
|
|
(2,357,316)
|
|
(365,102)
|
Share-based
compensation
expenses
|
54,085
|
|
154,901
|
|
23,991
|
|
96,838
|
|
251,400
|
|
38,937
|
Non-GAAP
(loss)income
from operations
|
(106,687)
|
|
(699,821)
|
|
(108,388)
|
27,996
|
(2,105,916)
|
(326,165)
|
|
|
|
|
|
|
|
|
|
Net
income(loss)
|
18,627
|
|
(918,791)
|
|
(142,303)
|
|
166,615
|
|
(2,344,710)
|
|
(363,149)
|
Share-based
compensation
expenses
|
54,085
|
|
154,901
|
|
23,991
|
|
96,838
|
|
251,400
|
|
38,937
|
Non-GAAP net
income(loss)
|
72,712
|
|
(763,890)
|
|
(118,312)
|
263,453
|
(2,093,310)
|
(324,212)
|
View original
content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-second-quarter-of-2021-unaudited-financial-results-and-change-to-board-composition-301382320.html
SOURCE Gaotu Techedu Inc.