Gaotu Techedu Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
BEIJING, Feb. 27, 2024 /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 fourth quarter and fiscal year ended December 31, 2023.
*Fourth Quarter 2023 Highlights^[1]*
· *Net revenues *were RMB761.0 million, increased by 20.9% from RMB629.6 million in the same period of 2022.
· *Gross billings^[2] *were RMB1,278.1 million, increased by 28.1% from RMB997.4 million in the same period of 2022.
· *Loss from operations* was RMB187.9 million, compared with RMB13.2 million in the same period of 2022.
· *Net loss* was RMB119.6 million, compared with net income of RMB70.6 million in the same period of 2022.
· *Non-GAAP net loss *was RMB104.0 million, compared with non-GAAP net income of RMB87.4 million in the same period of 2022.
· *Net operating cash inflow* was RMB491.5 million, increased by 3.1% from RMB476.7 million in the same period of 2022.
*Fourth Quarter 2023 Key Financial and Operating Data
*(In thousands of RMB, except for percentages)
For the three months ended December 31, 2022
2023
Pct. Change
Net revenues
629,631
761,014
20.9 %
Gross billings
997,439
1,278,132
28.1 %
Loss from operations
(13,248)
(187,915)
1,318.4 %
Net income/(loss)
70,613
(119,649)
(269.4) %
Non-GAAP net income/(loss)
87,392
(103,970)
(219.0) %
Net operating cash inflow
476,698
491,493
3.1 %
^[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.
*Fiscal Year Ended December 31, 2023 Highlights*
· *Net revenues *were RMB2,960.8 million, increased by 18.5% from RMB2,498.2 million in the same period of 2022.
· *Gross billings *were RMB3,338.8 million, increased by 31.7% from RMB2,534.2 million in the same period of 2022.
· *Loss from operations* was RMB149.0 million, compared with RMB118.1 million in the same period of 2022.
· *Net loss* was RMB7.3 million, compared with net income of RMB13.2 million in the same period of 2022.
· *Non-GAAP net income* was RMB51.1 million, compared with RMB135.8 million in the same period of 2022.
· *Net operating cash inflow* was RMB353.7 million, increased by 548.4% from RMB54.5 million in the same period of 2022.
*Fiscal Year 2023 Key Financial and Operating Data*
(In thousands of RMB, except for percentages)
Fiscal Year ended December 31, 2022
2023
Pct. Change
Net revenues
2,498,214
2,960,813
18.5 %
Gross billings
2,534,244
3,338,750
31.7 %
Loss from operations
(118,052)
(149,006)
26.2 %
Net income/(loss)
13,172
(7,298)
(155.4) %
Non-GAAP net income
135,826
51,055
(62.4) %
Net operating cash inflow
54,545
353,697
548.4 %
*Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented,* " During the past quarter, we continued to bolster our core business strengths while simultaneously pushing the boundaries of new initiatives. We observed a notable uptick in demand for high-quality educational products and learning services and our deep industry insights, exceptional organizational capabilities and well-established teacher recruitment and training systems have provided a robust foundation for the sustainable development of our business. Our net revenues increased 20.9% year-over-year to RMB761.0 million, exceeding our expectations. Our gross billings grew 28.1% year-over-year to approximately RMB1.3 billion, indicating an accelerating growth trend compared to prior quarters. We expect this accelerating momentum of our business to continue.
We have full confidence in Gaotu's prospects for 2024 and for the further future. Moving forward, we believe that we can achieve promising topline growth while enhancing profitability by consistently delivering top-notch educational products and learning services, thus generating long-term value for both our shareholders and society."
*Shannon Shen, CFO of the Company, added,* " During the quarter, our business entered a healthy phase of rapid and sustainable expansion. Our traditional learning services continue to maintain a leading edge in the online space while our new initiatives focused on non-academic tutoring services have shown excellent growth momentum. For the full year of 2023, the gross billings for traditional services combined with new initiatives achieved nearly 50% year-over-year growth. This outcome was underpinned by a combination of top-notch educational products and high-caliber learning services. Benefiting from ongoing improvements in operational efficiency, our net operating cash inflow reached RMB491.5 million, while our cash, cash equivalents, restricted cash, withdrawable cash balance on third-party payment as well as short and long-term investments exceeded RMB4.0 billion, laying solid groundwork for the long-term growth of our business.
By strengthening our core competencies, we were able to swiftly deploy resources based on changes in the market environment and user demand. We will continue to execute stock buybacks in accordance with the guidance of the board of directors, and create long-term value for our shareholders."
*Financial Results for the Fourth Quarter of 2023*
*Net Revenues*
Net revenues increased by 20.9% to RMB761.0 million from RMB629.6 million in the fourth quarter of 2022, which was mainly due to the continuous year-over-year growth of gross billings in 2023 as a result of our sufficient and effective response to the strong market demand.
*Cost of Revenues*
Cost of revenues increased by 42.9% to RMB227.7 million from RMB159.3 million in the fourth quarter of 2022. The increase was mainly due to the growth of labor cost of instructors and tutors, as well as the increase of learning materials cost.
*Gross Profit and Gross Margin*
Gross profit increased by 13.4% to RMB533.3 million from RMB470.3 million in the fourth quarter of 2022. Gross profit margin decreased to 70.1% from 74.7% in the same period of 2022.
Non-GAAP gross profit increased by 13.4% to RMB537.2 million from RMB473.9 million in the fourth quarter of 2022. Non-GAAP gross profit margin decreased to 70.6% from 75.3% in the same period of 2022.
*Operating Expenses*
Operating expenses increased by 49.1% to RMB721.2 million from RMB483.6 million in the fourth quarter of 2022. The increase was primarily due to the growth of labor expenses, as well as a higher expenditure on marketing and branding activities.
· Selling expenses increased to RMB465.7 million from RMB289.8 million in the fourth quarter of 2022.
· Research and development expenses increased to RMB136.0 million from RMB111.4 million in the fourth quarter of 2022.
· General and administrative expenses increased to RMB119.5 million from RMB82.4 million in the fourth quarter of 2022.
*(Loss)/income from Operations*
Loss from operations was RMB187.9 million, compared with loss from operations of RMB13.2 million in the fourth quarter of 2022.
Non-GAAP loss from operations was RMB172.2 million, compared with non-GAAP income from operations of RMB3.5 million in the fourth quarter of 2022.
*Interest Income and Realized Gains from Investments*
Interest income and realized gains from investments, on aggregate, were RMB23.9 million, compared with a total of RMB22.4 million in the fourth quarter of 2022.
*Other Income*
Other income was RMB32.8 million, compared with RMB26.9 million in the fourth quarter of 2022.
*Net (Loss)/income *
Net loss was RMB119.6 million, compared with net income of RMB70.6 million in the fourth quarter of 2022.
Non-GAAP net loss was RMB104.0 million, compared with non-GAAP net income of RMB87.4 million in the fourth quarter of 2022.
*Cash Flow*
Net operating cash inflow in the fourth quarter of 2023 was RMB491.5 million.
*Basic and Diluted Net Loss per ADS*
Basic and diluted net loss per ADS were both RMB0.46 in the fourth quarter of 2023.
Non-GAAP basic and diluted net loss per ADS were both RMB0.40 in the fourth quarter of 2023.
*Share Outstanding*
As of December 31, 2023, the Company had 172,111,890 ordinary shares outstanding.
*Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments and Withdrawable Cash Balance on Third-party Payment Platforms*
As of December 31, 2023, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments and withdrawable cash balance on third-party payment platforms of RMB4,025.2 million in aggregate, compared with a total of RMB3,768.3 million as of December 31, 2022.
Withdrawable cash balance on third-party payment platforms consisted of cash payments received from students but held by third-party payment platforms such as WeChat Pay and Alipay, which are highly liquid and can be quickly converted into cash and cash equivalents.
*Financial Results for the Fiscal Year of 2023*
*Net Revenues*
Net revenues increased by 18.5% to RMB2,960.8 million from RMB2,498.2 million in 2022. The increase was mainly due to the growth of gross billings in 2023.
*Cost of Revenues*
Cost of revenues increased by 12.7% to RMB790.2 million from RMB701.1 million in 2022. The increase was mainly due to the growth of labor cost of instructors and tutors, as well as the increase of learning materials cost, which was partially offset by the decrease of share-based compensation cost.
*Gross Profit and Gross Margin*
Gross profit increased by 20.8% to RMB2,170.6 million from RMB1,797.2 million in 2022. Gross profit margin increased to 73.3% from 71.9% in 2022.
Non-GAAP gross profit increased by 18.7% to RMB2,183.6 million from RMB1,839.7 million in 2022. Non-GAAP gross profit margin increased to 73.7% from 73.6% in 2022.
*Operating Expenses*
Operating expenses increased by 21.1% to RMB2,319.6 million from RMB1,915.2 million in 2022. The increase was primarily due to the growth of labor expenses, as well as a higher expenditure on marketing and branding activities, which was partially offset by the decrease of share-based compensation expenses.
· Selling expenses increased to RMB1,501.2 million from RMB1,179.8 million in 2022.
· Research and development expenses increased to RMB462.0 million from RMB445.1 million in 2022.
· General and administrative expenses increased to RMB356.4 million from RMB290.3 million in 2022.
*(Loss)/income from Operations*
Loss from operations was RMB149.0 million, compared with loss from operations of RMB118.1 million in 2022.
Non-GAAP loss from operations was RMB90.7 million, compared with non-GAAP income from operations of RMB4.6 million in 2022.
*Interest Income and Realized Gains from Investments*
Interest income and realized gains from investments, on aggregate, were RMB107.1 million, compared with a total of RMB63.6 million in 2022.
*Other Income*
Other income was RMB54.5 million, compared with RMB51.9 million in 2022.
*Net (Loss)/income *
Net loss was RMB7.3 million, compared with net income of RMB13.2 million in 2022.
Non-GAAP net income was RMB51.1 million, compared with non-GAAP net income of RMB135.8 million in 2022.
*Cash Flow*
Net operating cash inflow in 2023 was RMB353.7 million.
*Basic and Diluted Net (Loss)/income per ADS*
Basic and diluted net loss per ADS were both RMB0.03 in 2023.
Non-GAAP basic and diluted net income per ADS were both RMB0.19 in 2023.
*Share Repurchase*
In November 2022, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to US$30 million worth of its shares, effective until November 22, 2025. In November 2023, the Company's board of directors authorized modifications to its existing share repurchase program, increasing the aggregate value of shares that may be repurchased from US$30 million to US$80 million, effective until November 22, 2025.
As of December 31, 2023, the Company had cumulatively repurchased approximately 4.9 million ADSs for approximately US$12.4 million under its existing share repurchase program.
In November 2022, Mr. Larry Xiangdong Chen, the Company's founder, Chairman and CEO, announced his plan to personally purchase up to US$20 million of the Company's shares. In 2023, Mr. Larry Xiangdong Chen, had cumulatively purchased approximately 0.88 million ADSs under the existing purchase plan.
*Business Outlook*
Based on the Company's current estimates, total net revenues for the first quarter of 2024 are expected to be between RMB908 million and RMB928 million, representing an increase of 28.4% to 31.2% on a year-over-year basis. These estimates reflect the Company's current expectations, which are subject to change.
*Conference Call*
The Company will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, February 27, 2024 (9:00 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
United States: 1-888-317-6003
Hong Kong: 800-963-976
Mainland China: 400-120-6115
Passcode: 4247479
A telephone replay will be available two hours after the conclusion of the conference call through March 5, 2024. The dial-in details are:
International: 1-412-317-0088
United States: 1-877-344-7529
Passcode: 8489727
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 business outlook, as well as 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 learning services and educational content & digitalized learning 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. 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 China and a 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 RMB7.0999 to USD1.0000, the effective noon buying rate for December 29, 2023 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 December 29, 2023, 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@christensencomms.com
In the US
Ms. Linda Bergkamp
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 December
31,*
*As of December 31,*
*2022*
*2023*
*2023*
*RMB*
*RMB*
*USD*
*ASSETS*
*Current assets*
Cash and cash equivalents
819,911
636,052
89,586
Restricted cash
22
33,901
4,775
Short-term investments
2,923,864
2,253,910
317,457
Inventory, net
22,783
24,596
3,464
Prepaid expenses and other current assets
399,897
638,248
89,895
*Total current assets*
*4,166,477*
*3,586,707*
*505,177*
*Non-current assets*
Operating lease right-of-use assets
83,663
189,662
26,713
Property, equipment and software, net
552,032
533,531
75,146
Land use rights, net
27,373
26,568
3,742
Long-term investments
-
1,029,632
145,021
Deferred tax assets
15,679
11,312
1,593
Rental deposit
9,502
17,742
2,499
Other non-current assets
21,449
18,155
2,557
*TOTAL ASSETS*
*4,876,175*
*5,413,309*
*762,448*
*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 RMB367,477 and RMB484,222 as of December 31, 2022 and December 31, 2023, respectively)
662,189
805,032
113,386
Deferred revenue, current portion of the consolidated VIE without recourse to the Group
906,914
1,113,480
156,830
Operating lease liabilities, current portion (including current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB21,281 and RMB34,401 as of December 31, 2022 and December 31, 2023, respectively)
38,326
50,494
7,112
Income tax payable (including income tax payable of the consolidated VIE without recourse to the Group of RMB260 and RMB4,210 as of December 31, 2022 and December 31, 2023, respectively)
1,793
4,278
603
*Total current liabilities*
*1,609,222*
*1,973,284*
*277,931*
*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 December 31,*
*2022*
*2023*
*2023*
*RMB*
*RMB*
*USD*
*Non-current liabilities*
Deferred revenue, non-current portion of the consolidated VIE without recourse to the Group
52,419
124,141
17,485
Operating lease liabilities, non-current portion (including non-current portion of operating lease liabilities of the consolidated VIE without recourse to the Group of RMB17,457 and RMB121,277 as of December 31, 2022 and December 31, 2023, respectively)
44,198
137,652
19,388
Deferred tax liabilities(including deferred tax liabilities of the consolidated VIE without recourse to the Group of RMB74,341 and RMB71,850 as of December 31, 2022 and December 31, 2023, respectively)
74,507
71,967
10,136
*TOTAL LIABILITIES*
*1,780,346*
*2,307,044*
*324,940*
*SHAREHOLDERS' EQUITY*
Ordinary shares
115
116
16
Treasury stock, at cost
-
(85,178)
(11,997)
Additional paid-in capital
7,915,899
7,987,957
1,125,080
Accumulated other comprehensive loss
(64,062)
(33,209)
(4,677)
Statutory reserve
40,380
50,225
7,074
Accumulated deficit
(4,796,503)
(4,813,646)
(677,988)
*TOTAL SHAREHOLDERS' EQUITY*
*3,095,829*
*3,106,265*
*437,508*
*TOTAL LIABILITIES AND TOTAL SHAREHOLDERS' EQUITY*
*4,876,175*
*5,413,309*
*762,448*
*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 December 31,*
*For the year ended December 31,*
*2022*
*2023*
*2023*
*2022*
*2023*
*2023*
*RMB*
*RMB*
*USD*
*RMB*
*RMB*
*USD*
*Net revenues*
*629,631*
*761,014*
*107,187*
*2,498,214*
*2,960,813*
*417,022*
*Cost of revenues*
*(159,302)*
*(227,719)*
*(32,074)*
*(701,050)*
*(790,207)*
*(111,298)*
*Gross profit*
*470,329*
*533,295*
*75,113*
*1,797,164*
*2,170,606*
*305,724*
*Operating expenses:*
Selling expenses
(289,812)
(465,686)
(65,591)
(1,179,760)
(1,501,200)
(211,440)
Research and development
expenses
(111,401)
(136,046)
(19,162)
(445,117)
(462,043)
(65,077)
General and administrative
expenses
(82,364)
(119,478)
(16,828)
(290,339)
(356,369)
(50,194)
*Total operating expenses*
*(483,577)*
*(721,210)*
*(101,581)*
*(1,915,216)*
*(2,319,612)*
*(326,711)*
*Loss from operations*
*(13,248)*
*(187,915)*
*(26,468)*
*(118,052)*
*(149,006)*
*(20,987)*
Interest income
7,600
18,603
2,620
21,370
75,829
10,680
Realized gains from
investments
14,778
5,269
742
42,264
31,230
4,399
Other income
26,922
32,776
4,616
51,885
54,471
7,672
*Income/(loss) before
provision for income tax
and share of results of
equity investees*
*36,052*
*(131,267)*
*(18,490)*
*(2,533)*
*12,524*
*1,764*
Income tax
benefits/(expenses)
34,561
11,618
1,636
15,705
(10,657)
(1,501)
Share of results of equity
investees
-
-
-
-
(9,165)
(1,291)
*Net income/(loss)*
*70,613*
*(119,649)*
*(16,854)*
*13,172*
*(7,298)*
*(1,028)*
*Net income/(loss)
attributable to Gaotu
Techedu Inc.'s ordinary
shareholders*
*70,613*
*(119,649)*
*(16,854)*
*13,172*
*(7,298)*
*(1,028)*
*Net income/(loss) per
ordinary share*
Basic
0.41
(0.69)
(0.10)
0.08
(0.04)
(0.01)
Diluted
0.40
(0.69)
(0.10)
0.07
(0.04)
(0.01)
*Net income/(loss) per
ADS*
Basic
0.27
(0.46)
(0.07)
0.05
(0.03)
(0.00)
Diluted
0.27
(0.46)
(0.07)
0.05
(0.03)
(0.00)
*Weighted average shares
used in net income/(loss)
per share*
Basic
172,754,938
172,545,719
172,545,719
172,254,080
173,725,790
173,725,790
Diluted
176,653,111
172,545,719
172,545,719
175,991,484
173,725,790
173,725,790
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 December 31,*
*For the year ended December 31,*
*2022*
*2023*
*2023*
*2022*
*2023*
*2023*
*RMB*
*RMB*
*USD*
*RMB*
*RMB*
*USD*
*Net revenues*
*629,631*
*761,014*
*107,187*
*2,498,214*
*2,960,813*
*417,022*
Less: other revenues^(1)
11,600
25,237
3,555
62,104
87,912
12,382
Add: VAT and surcharges
38,716
46,509
6,551
153,052
181,001
25,493
Add: ending deferred revenue
959,333
1,237,621
174,315
959,333
1,237,621
174,315
Add: ending refund liability
60,597
67,157
9,459
60,597
67,157
9,459
Less: beginning deferred revenue
638,426
761,301
107,227
996,218
959,333
135,119
Less: beginning refund liability
40,812
47,631
6,709
78,630
60,597
8,535
*Gross billings*
*997,439*
*1,278,132*
*180,021*
*2,534,244*
*3,338,750*
*470,253*
Note (1): Include miscellaneous revenues generated from services other than courses.
*For the three months ended December
31,*
*For the year ended December 31,*
*2022*
*2023*
*2023*
*2022*
*2023*
*2023*
*RMB*
*RMB*
*USD*
*RMB*
*RMB*
*USD*
*Gross profit*
*470,329*
*533,295*
*75,113*
*1,797,164*
*2,170,606*
*305,724*
Share-based compensation expenses^(1) in
cost of revenues
3,572
3,862
544
42,490
12,959
1,825
*Non-GAAP gross profit*
*473,901*
*537,157*
*75,657*
*1,839,654*
*2,183,565*
*307,549*
*Loss from operations*
*(13,248)*
*(187,915)*
*(26,468)*
*(118,052)*
*(149,006)*
*(20,987)*
Share-based compensation expenses^(1)
16,779
15,679
2,208
122,654
58,353
8,219
*Non-GAAP income/(loss) from
operations*
*3,531*
*(172,236)*
*(24,260)*
*4,602*
*(90,653)*
*(12,768)*
*Net income/(loss)*
*70,613*
*(119,649)*
*(16,854)*
*13,172*
*(7,298)*
*(1,028)*
Share-based compensation expenses^(1)
16,779
15,679
2,208
122,654
58,353
8,219
*Non-GAAP net income/(loss)*
*87,392*
*(103,970)*
*(14,646)*
*135,826*
*51,055*
*7,191*
Note (1): The tax effects of share-based compensation expenses adjustments were nil.