BEIJING, Feb. 22, 2022 /PRNewswire/ -- Gaotu Techedu Inc.
(NYSE: GOTU) ("Gaotu" or the "Company"), a technology-driven
education company and online large-class tutoring service provider
in China, today announced its
unaudited financial results for the third quarter ended
September 30, 2021.
In July 2021, the General Office
of the CPC Central Committee and the General Office of the State
Council of the PRC published the "Opinions on Further Alleviating
the Burden of Homework and After-School Tutoring for Students in
Compulsory Education." Later in August
2021, the Beijing Municipal Committee of the Communist Party
of China and the Beijing
Municipality Government jointly issued the "Beijing Municipality's
Measures to Further Reduce the Burden of Homework and After-School
Tutoring on Students in Compulsory Education in Beijing," and promulgated the related
implementation rules, regulations and measures (collectively, the
"New Regulations").
In compliance with the New Regulations, the Company has stopped
offering tutoring services related to academic subjects to students
from kindergarten through grade nine ("K-9 Services") by the end of
2021, which had a substantial adverse impact on the Company's
business and results of operations for the fiscal year ended
December 31, 2021 and the subsequent periods. The Company will
cease offering tutoring services related to academic subjects to
students in senior high schools before the end of February 2022, which will have a substantial
adverse impact on the Company's revenues for 2022 and subsequent
periods.
The Company will leverage the resources and knowhow accumulated
through its past K-12 academic subject tutoring services, and turn
its focus on its professional education service, vocational
education service and digital products.
Larry Xiangdong Chen,
the Company's founder, Chairman and CEO, commented, "During the
third quarter of 2021, we proactively, decisively, and swiftly
restructured our business and organization in accordance with the
New Regulations. Leaning on the insights and knowledge we
accumulated in the online non-K12 education sector over the past 6
years, and leaning on our commitment to fully complying with
government policies and undertaking proactive reforms, we
reconvened and united all employees through our strong corporate
culture of solidarity, to collaborate towards the common goal of
business transformation and quickly pivoted our focus to vocational
education, professional education, and digital education
products."
"In the third quarter, we maintained a healthy cash balance and
have begun to see a fresh and promising start in our non-K12
business. Going forward, we will continue to increase our
investments in technology and product innovation, continue to
provide reliable products and services to our students, continue to
invest in corporate social responsibilities, and remain fully
dedicated to the innovation and development of China's education. "
Shannon Shen, CFO of the
Company, added, "Following the introduction of the New
Regulations related to the after-school tutoring sector, we
promptly turned our focus to non-K12 business. Adjustment has been
implemented to our organizational structure, which is more
conductive to our business innovation strategy. The improved
structure is expected to serve as a solid foundation for exploring
new opportunities and for long-term development. Additionally,
payments in association with the
termination of after-school tutoring business, including expenses
for severance costs, summer tuition refunds and lease cancellation,
etc., have largely been settled before the end of the third quarter
of 2021."
"As of the end of the third quarter, our cash, cash equivalents,
restricted cash and short-term wealth management investments
totaled RMB3.5 billion, which is
sufficient to support both our current operating scale and the
exploration into new businesses. We expect to achieve profitability
and positive operating cash flow as early as the fourth quarter of
2021. Going forward, we will remain committed to delivering healthy
and sustainable long-term growth."
Third Quarter 2021 Highlights[1]
- Net revenues was RMB1,114.9
million, compared with net revenue of RMB1,965.8 million in the same period of
2020.
- Net revenues of online K-12 courses was RMB993.2 million, compared with net
revenue of online K-12 courses of RMB1,757.2
million in the same period of 2020.
- Gross billings[2] was RMB301.6 million, compared with gross billings of
RMB2,086.2 million in the same period
of 2020.
- Gross billings of online K-12 courses was RMB198.8 million, compared with gross billings of
online K-12 courses of RMB1,793.5
million in the same period of 2020.
- Paid course enrollments[3] was 86 thousand, compared with paid course
enrollments of 1,256 thousand in the same period of 2020.
- Paid course enrollments of online K-12 courses was 46
thousand, compared with paid course enrollments of online K-12
courses of 1,147 thousand in the same period of 2020.
- Net loss was RMB1,044.6
million, compared with net loss of RMB932.5 million in the same period of 2020.
- Non-GAAP net loss was RMB989.3
million, compared with non-GAAP net loss of RMB863.6 million in the same period of 2020.
- Deferred revenue was RMB1,360.3
million, compared with RMB2,733.7
million as of December 31,
2020.
[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 gross profit,
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.
|
Third Quarter 2021 Key Financial and Operating Data
(In thousands of RMB, except for paid course enrollments and
percentages)
|
Three Months Ended
September 30,
|
|
2020
|
|
2021
|
|
Pct.
Change
|
Net
revenues
|
1,965,809
|
|
1,114,883
|
|
(43.3%)
|
Online K-12
courses
|
1,757,180
|
|
993,249
|
|
(43.5%)
|
Foreign language,
professional, admission and
other services
|
208,629
|
|
121,634
|
|
(41.7%)
|
Gross
billings
|
2,086,193
|
|
301,632
|
|
(85.5%)
|
Online K-12
courses
|
1,793,462
|
|
198,817
|
|
(88.9%)
|
Foreign language,
professional, admission and
other services
|
292,731
|
|
102,815
|
|
(64.9%)
|
Paid course
enrollments (In thousands)
|
1,256
|
|
86
|
|
(93.2%)
|
Online K-12
courses
|
1,147
|
|
46
|
|
(96.0%)
|
Foreign language,
professional, admission and
other services
|
109
|
|
40
|
|
(63.3%)
|
Net loss
|
(932,512)
|
|
(1,044,613)
|
|
12.0%
|
Non-GAAP net
loss
|
(863,583)
|
|
(989,283)
|
|
14.6%
|
Nine Months Ended September 30,
2021 Highlights
- Net revenues was RMB5,287.5
million, a 7.6% year-over-year increase.
- Net revenues of online K-12 courses increased 15.0%
year-over-year to RMB4,900.9
million.
- Gross billings was RMB4,177.7
million, compared with gross billings of RMB5,861.6 million in the same period of
2020.
- Gross billings of online K-12 courses was RMB3,776.0 million, compared with gross billings
of online K-12 courses of RMB5,080.1
million in the same period of 2020.
- Paid course enrollments was 2,484 thousand, compared with paid course
enrollments of 3,596 thousand in the same period of 2020.
- Paid course enrollments of online K-12 courses was 2,241
thousand, compared with paid course enrollments of online K-12
courses of 3,290 thousand in the same period of 2020.
- Net loss was RMB3,389.3
million, compared with net loss of RMB765.9 million in the same period of 2020.
- Non-GAAP net loss was RMB3,082.6
million, compared with non-GAAP net loss of RMB600.1 million in the same period of 2020.
First Nine Months of 2021 Key Financial and Operating
Data
(In thousands of RMB, except for paid course enrollments and
percentages)
|
Nine Months Ended
September 30,
|
|
2020
|
|
2021
|
|
Pct.
Change
|
Net
revenues
|
4,913,703
|
|
5,287,480
|
|
7.6%
|
Online K-12
courses
|
4,262,237
|
|
4,900,875
|
|
15.0%
|
Foreign language,
professional, admission and
other services
|
651,466
|
|
386,605
|
|
(40.7%)
|
Gross
billings
|
5,861,588
|
|
4,177,706
|
|
(28.7%)
|
Online K-12
courses
|
5,080,131
|
|
3,775,965
|
|
(25.7%)
|
Foreign language,
professional, admission and
other services
|
781,457
|
|
401,741
|
|
(48.6%)
|
Paid course
enrollments (In thousands)
|
3,596
|
|
2,484
|
|
(30.9%)
|
Online K-12
courses
|
3,290
|
|
2,241
|
|
(31.9%)
|
Foreign language,
professional, admission and
other services
|
306
|
|
243
|
|
(20.6%)
|
Net loss
|
(765,897)
|
|
(3,389,323)
|
|
342.5%
|
Non-GAAP net
loss
|
(600,130)
|
|
(3,082,593)
|
|
413.7%
|
Financial Results for the Third Quarter of 2021
Net Revenues
Net revenues was RMB1,114.9
million, compared with net revenues of RMB1,965.8 million in the third quarter of 2020.
The decrease was mainly due to the cessation of K-9 service as a
result of the impact of the New Regulations.
Cost of Revenues
Cost of revenues rose by 42.4% to RMB715.2 million from RMB502.3 million in the third quarter of 2020,
which included severance costs for the reduction of instructors and
tutors due to the impact of the New Regulations.
Gross Profit and Gross Margin
Gross profit was RMB399.7 million,
compared with gross profit of RMB1,463.5
million in the third quarter of 2020. Gross profit
margin decreased to 35.9% from 74.4% in the same period of 2020.
The decrease was attributable to the decrease of net revenues and
the severance costs for the reduction in staffing recognized in the
third quarter of 2021, as a result of the impact of the New
Regulations.
Non-GAAP gross profit was RMB436.9
million, compared with non-GAAP gross profit of RMB1,481.4 million in the same period of 2020.
Non-GAAP gross profit margin decreased to 39.2% from 75.4% in the
same period of 2020.
Operating Expenses
Operating expenses were RMB1,481.1
million, which were decreased from RMB2,453.7 million in the third quarter of
2020.
Selling expenses decreased to RMB826.4
million from RMB2,055.8
million in the third quarter of 2020. The decrease was
primarily due to decreases in brand advertisement and promotional
course expenses, which were partially offset by an increase in
salaries and welfare for sales and marketing personnel, which was
primarily resulted from severance costs for the reduction of sales
and marketing personnel in the third quarter of 2021 due to the
impact of the New Regulations.
Research and development expenses increased by 52.6% to
RMB336.3 million, from RMB220.4 million in the third quarter of 2020.
The increase was primarily due to an increase in salaries and
welfare for research and development personnel, which was primarily
resulted from severance costs for the reduction of research and
development personnel in the third quarter of 2021 due to the
impact of the New Regulations.
General and administrative expenses decreased to RMB164.7 million from RMB177.4 million in the third quarter of 2020.
The expenses included severance costs for the reduction of general
and administrative personnel in the third quarter of 2021 due to
the impact of the New Regulations.
Impairment loss on long-lived assets and disposal loss on assets
was RMB28.6 million and RMB125.0 million respectively for the third
quarter of 2021, compared with nil and nil for the same period of
2020. As a result of the changes in the regulatory environment of
the online education industry and the restructuring of our business
and organization, the Company disposed some assets and performed an
impairment assessment on long-lived assets, and recognized the
disposal loss and impairment loss in the third quarter of 2021.
Loss from Operations
Loss from operations was RMB1,081.3
million, compared with the loss from operations of
RMB990.1 million in the third quarter
of 2020. The increase was primarily due to the decrease of net
revenue and the severance costs for the reduction of our personnel
in the third quarter of 2021 due to the impact of the New
Regulations.
Non-GAAP loss from operations was RMB1,026.0 million, compared with non-GAAP loss
from operations of RMB921.2 million
in the third quarter of 2020.
Interest Income and Realized Gains from
Investment
Interest income and realized gains from investments, on
aggregate, was RMB35.0 million,
compared with RMB18.4 million in the
third quarter of 2020. Interest income and realized gains from
investments was primarily the interest income and realization of
gains generated from cash, cash equivalents and short-term wealth
management investments.
Other Income
Other income was RMB1.3 million,
compared with other income of RMB49.9
million in the third quarter of 2020.
Net Loss
Net loss was RMB1,044.6 million,
compared with net loss of RMB932.5
million in the third quarter of 2020.
Non-GAAP net loss was RMB989.3
million, compared with non-GAAP net loss of RMB863.6 million in the third quarter of
2020.
Cash Flow
Net operating cash outflow for the third quarter of 2021 was
RMB2,017.8 million. The outflow of
net operating cash this quarter was primarily due to the tuition
fee refunds and the severance costs for reduction of our personnel
in the third quarter of 2021 due to the impact of the New
Regulations.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were RMB4.07, in the third quarter of 2021.
Non-GAAP basic and diluted net loss per ADS were RMB3.86, in the third quarter of 2021.
Share Outstanding
As of September 30, 2021, the
Company had 171,171,098 ordinary shares outstanding.
Cash and Cash Equivalents, Restricted Cash, Short-term
Investments and Long-term Investments
As of September 30, 2021, the
Company had cash and cash equivalents, restricted cash and
short-term investments of RMB3,454.4
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. Restricted cash
mainly represented the upfront tuition fee in the government
custodian account, and will be released as
the courses are being delivered.
Deferred Revenue
As of September 30, 2021, the
Company's deferred revenue balance was RMB1,360.3 million, compared with RMB2,733.7 million as of December 31, 2020. Deferred revenue primarily
consisted of tuition collected in advance. The decrease was
primarily attributable to the decrease in paid course enrollments
in the third quarter of 2021 due to the cessation of K-9 service as
a result of the impact of the New Regulations.
Other Payables
As of September 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.
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 vocational
education, professional education and digital products. 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. Big data
analytics permeates every aspect of the Company's business and
facilitates the application of the latest technology 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
RMB6.4434 to USD1.0000, the effective noon buying rate for
September 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
September 30, 2021, or at any other
rate.
For further information, please contact:
Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
E-mail: gotu@christensenir.com
In the 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 September
30,
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
355,224
|
|
770,484
|
|
119,577
|
Restricted cash
|
-
|
|
699,969
|
|
108,633
|
Short-term investments
|
7,331,268
|
|
1,983,925
|
|
307,900
|
Inventory
|
48,074
|
|
24,291
|
|
3,770
|
Prepaid expenses and other current assets
|
722,682
|
|
522,698
|
|
81,121
|
Total current
assets
|
8,457,248
|
|
4,001,367
|
|
621,001
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Operating lease right-of-use
assets
|
806,591
|
|
451,911
|
|
70,135
|
Property, equipment and software, net
|
704,338
|
|
699,652
|
|
108,584
|
Land use rights, net
|
28,983
|
|
28,379
|
|
4,404
|
Long-term investments
|
530,729
|
|
-
|
|
-
|
Deferred tax assets
|
48,324
|
|
-
|
|
-
|
Rental deposit
|
51,499
|
|
44,638
|
|
6,928
|
Other non-current assets
|
58,080
|
|
1,710
|
|
266
|
TOTAL
ASSETS
|
10,685,792
|
|
5,227,657
|
|
811,318
|
|
|
|
|
|
|
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
RMB346,121 as of December 31, 2020 and
September 30, 2021, respectively)
|
1,315,502
|
|
743,708
|
|
115,421
|
Deferred revenue,
current portion of the
consolidated VIE without recourse to the Group
|
2,724,614
|
|
1,349,640
|
|
209,461
|
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
RMB104,937 as of December 31, 2020 and
September 30, 2021, respectively)
|
152,622
|
|
110,484
|
|
17,147
|
Income tax payable of
the consolidated VIE
without recourse to the Group
|
4,654
|
|
-
|
|
-
|
Total Current
liabilities
|
4,197,392
|
|
2,203,832
|
|
342,029
|
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
September 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
|
|
10,689
|
|
1,659
|
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
RMB328,244 as of December 31, 2020 and
September 30, 2021, respectively)
|
644,143
|
|
346,568
|
|
53,787
|
Deferred tax
liabilities of the consolidated VIE
without recourse to the Group
|
78,697
|
|
72,137
|
|
11,195
|
Other payables of the
consolidated VIE without
recourse to the Group
|
26,580
|
|
26,580
|
|
4,124
|
TOTAL
LIABILITIES
|
4,955,937
|
|
2,659,806
|
|
412,794
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary
shares
|
113
|
|
113
|
|
18
|
Treasury stock, at
cost
|
(139,572)
|
|
-
|
|
-
|
Additional paid-in
capital
|
7,595,049
|
|
7,755,765
|
|
1,203,676
|
Accumulated other
comprehensive loss
|
(59,905)
|
|
(132,874)
|
|
(20,622)
|
Statutory
reserve
|
40,380
|
|
40,380
|
|
6,267
|
Accumulated
deficit
|
(1,706,210)
|
|
(5,095,533)
|
|
(790,815)
|
TOTAL
SHAREHOLDERS' EQUITY
|
5,729,855
|
|
2,567,851
|
|
398,524
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND TOTAL
SHAREHOLDERS' EQUITY
|
10,685,792
|
|
5,227,657
|
|
811,318
|
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 September 30,
|
|
For the nine
months ended September 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD
|
RMB
|
RMB
|
USD
|
|
Net
Revenues:
|
1,965,809
|
|
1,114,883
|
|
173,027
|
|
4,913,703
|
|
5,287,480
|
|
820,604
|
|
Online K-12
Courses
|
1,757,180
|
|
993,249
|
|
154,150
|
|
4,262,237
|
|
4,900,875
|
|
760,604
|
|
Foreign
language, professional and admission
|
203,469
|
|
120,738
|
|
18,738
|
|
638,026
|
|
383,886
|
|
59,578
|
|
Other
services
|
5,160
|
|
896
|
|
139
|
|
13,440
|
|
2,719
|
|
422
|
|
Cost of
revenues
|
(502,274)
|
|
(715,172)
|
|
(110,993)
|
|
(1,146,185)
|
|
(2,010,952)
|
|
(312,095)
|
|
Gross
profit
|
1,463,535
|
|
399,711
|
|
62,034
|
|
3,767,518
|
|
3,276,528
|
|
508,509
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
(2,055,820)
|
|
(826,439)
|
|
(128,261)
|
|
(4,017,857)
|
|
(4,756,232)
|
|
(738,156)
|
|
Research and
development expenses
|
(220,436)
|
|
(336,288)
|
|
(52,191)
|
|
(459,724)
|
|
(1,127,900)
|
|
(175,047)
|
|
General and
administrative expenses
|
(177,395)
|
|
(164,743)
|
|
(25,568)
|
|
(348,895)
|
|
(624,340)
|
|
(96,896)
|
|
Impairment loss on
long-lived assets
|
-
|
|
(28,609)
|
|
(4,440)
|
-
|
(81,740)
|
(12,686)
|
|
Disposal loss on
assets
|
-
|
|
(124,975)
|
|
(19,396)
|
-
|
(124,975)
|
(19,396)
|
|
Total operating
expenses
|
(2,453,651)
|
|
(1,481,054)
|
|
(229,856)
|
(4,826,476)
|
(6,715,187)
|
(1,042,181)
|
|
Loss from
operations
|
(990,116)
|
|
(1,081,343)
|
|
(167,822)
|
(1,058,958)
|
(3,438,659)
|
(533,672)
|
|
Interest
income
|
1,580
|
|
5,412
|
|
840
|
2,099
|
27,164
|
4,216
|
|
Realized gains from
investments
|
16,831
|
|
29,545
|
|
4,585
|
|
53,069
|
|
54,181
|
|
8,409
|
|
Other
income
|
49,884
|
|
1,323
|
|
205
|
|
199,537
|
|
9,691
|
|
1,504
|
|
Loss before
provision for income tax and
share of results of equity investees
|
(921,821)
|
|
(1,045,063)
|
|
(162,192)
|
|
(804,253)
|
|
(3,347,623)
|
|
(519,543)
|
|
Income tax
(expenses)benefits
|
(10,435)
|
|
450
|
|
70
|
40,093
|
(41,398)
|
(6,425)
|
|
Share of results of
equity investees
|
(256)
|
|
-
|
|
-
|
|
(1,737)
|
|
(302)
|
|
(47)
|
|
Net
loss
|
(932,512)
|
|
(1,044,613)
|
|
(162,122)
|
(765,897)
|
(3,389,323)
|
(526,015)
|
|
Net loss
attributable to Gaotu Techedu Inc.'s
ordinary shareholders
|
(932,512)
|
|
(1,044,613)
|
|
(162,122)
|
(765,897)
|
(3,389,323)
|
(526,015)
|
|
Net loss per
ordinary share
|
|
|
|
|
|
|
|
|
|
Basic
|
(5.87)
|
|
(6.11)
|
|
(0.95)
|
|
(4.82)
|
|
(19.86)
|
|
(3.08)
|
|
Diluted
|
(5.87)
|
|
(6.11)
|
|
(0.95)
|
|
(4.82)
|
|
(19.86)
|
|
(3.08)
|
|
Net loss per
ADS
|
|
|
|
|
|
|
|
|
|
Basic
|
(3.91)
|
|
(4.07)
|
|
(0.63)
|
|
(3.21)
|
|
(13.24)
|
|
(2.05)
|
|
Diluted
|
(3.91)
|
|
(4.07)
|
|
(0.63)
|
|
(3.21)
|
|
(13.24)
|
|
(2.05)
|
|
Weighted average
shares used in net income
per share
|
|
|
|
|
|
|
|
|
|
Basic
|
158,934,937
|
|
170,964,073
|
|
170,964,073
|
|
159,061,256
|
|
170,645,019
|
|
170,645,019
|
|
Diluted
|
158,934,937
|
|
170,964,073
|
|
170,964,073
|
|
159,061,256
|
|
170,645,019
|
|
170,645,019
|
|
|
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 September 30,
|
|
For the nine
months ended September 30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD
|
RMB
|
RMB
|
USD
|
Net
revenues
|
|
1,965,809
|
|
1,114,883
|
|
173,027
|
|
4,913,703
|
|
5,287,480
|
|
820,604
|
Less: other
revenues(1)
|
|
216
|
|
134
|
|
21
|
1,215
|
605
|
94
|
Add: VAT and
surcharges
|
117,916
|
|
68,772
|
|
10,673
|
294,820
|
326,295
|
50,640
|
Add: ending deferred
revenue
|
1,964,785
|
|
1,360,329
|
|
211,120
|
|
1,964,785
|
|
1,360,329
|
|
211,120
|
Add: ending refund
liability
|
81,698
|
|
58,655
|
|
9,103
|
|
81,698
|
|
58,655
|
|
9,103
|
Less: beginning
deferred revenue
|
1,961,103
|
|
1,976,369
|
|
306,728
|
|
1,337,636
|
|
2,733,739
|
|
424,270
|
Less: beginning
refund liability
|
82,696
|
|
324,504
|
|
50,362
|
|
54,567
|
|
120,709
|
|
18,734
|
Gross billings
(non-GAAP)
|
2,086,193
|
|
301,632
|
|
46,812
|
5,861,588
|
4,177,706
|
648,369
|
|
Note (1): Include
miscellaneous revenues generated from services other than
courses.
|
|
For the three
months ended September 30,
|
|
For the nine
months ended September 30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
USD
|
RMB
|
RMB
|
USD
|
Gross
profit
|
1,463,535
|
|
399,711
|
|
62,034
|
|
3,767,518
|
|
3,276,528
|
|
508,509
|
Share-based
compensation
expense in cost of revenues
|
17,902
|
|
37,212
|
|
5,775
|
|
47,490
|
|
97,554
|
|
15,140
|
Non-GAAP gross
profit
|
1,481,437
|
|
436,923
|
|
67,809
|
3,815,008
|
3,374,082
|
523,649
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(990,116)
|
|
(1,081,343)
|
|
(167,822)
|
|
(1,058,958)
|
|
(3,438,659)
|
|
(533,672)
|
Share-based
compensation
expenses
|
68,929
|
|
55,330
|
|
8,587
|
|
165,767
|
|
306,730
|
|
47,604
|
Non-GAAP loss
from
operations
|
(921,187)
|
|
(1,026,013)
|
|
(159,235)
|
(893,191)
|
(3,131,929)
|
(486,068)
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(932,512)
|
|
(1,044,613)
|
|
(162,122)
|
|
(765,897)
|
|
(3,389,323)
|
|
(526,015)
|
Share-based
compensation
expenses
|
68,929
|
|
55,330
|
|
8,587
|
|
165,767
|
|
306,730
|
|
47,604
|
Non-GAAP net
loss
|
(863,583)
|
|
(989,283)
|
|
(153,535)
|
(600,130)
|
(3,082,593)
|
(478,411)
|
View original
content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-third-quarter-of-2021-unaudited-financial-results-301487123.html
SOURCE Gaotu Techedu Inc.