TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2024
PR Newswire
BEIJING, April 25, 2024
BEIJING, April 25, 2024 /PRNewswire/ -- TAL Education Group $(TAL)$ ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended February 29, 2024.
Highlights for the Fourth Quarter of Fiscal Year 2024
-- Net revenues was US$429.6 million, compared to net revenues of US$269.0
million in the same period of the prior year.
-- Loss from operations was US$11.1 million, compared to loss from
operations of US$44.4 million in the same period of the prior year.
-- Non-GAAP income from operations, which excluded share-based compensation
expenses, was US$9.4 million, compared to non-GAAP loss from operations
of US$18.1 million in the same period of the prior year.
-- Net income attributable to TAL was US$27.5 million, compared to net loss
attributable to TAL of US$39.4 million in the same period of the prior
year.
-- Non-GAAP net income attributable to TAL, which excluded share-based
compensation expenses, was US$48.0 million, compared to non-GAAP net loss
attributable to TAL of US$13.1 million in the same period of the prior
year.
-- Basic net income per American Depositary Share ("ADS") was US$0.05, and
diluted net income per ADS was US$0.04. Non-GAAP basic and diluted net
income per ADS, which excluded share-based compensation expenses, were
both US$0.08. Three ADSs represent one Class A common share.
-- Cash, cash equivalents and short-term investments totaled US$3,303.3
million as of February 29, 2024, compared to US$3,171.5 million as of
February 28, 2023.
Highlights for the Fiscal Year Ended February 29, 2024
-- Net revenues was US$1,490.4 million, compared to net revenues of
US$1,019.8 million in the same period of the prior year.
-- Loss from operations was US$69.2 million, compared to loss from
operations of US$90.7 million in the same period of the prior year.
-- Non-GAAP income from operations, which excluded share-based compensation
expenses, was US$19.7 million, compared to non-GAAP income from
operations of US$17.8 million in the same period of the prior year.
-- Net loss attributable to TAL was US$3.6 million, compared to net loss
attributable to TAL of US$135.6 million in the same period of the prior
year.
-- Non-GAAP net income attributable to TAL, which excluded share-based
compensation expenses, was US$85.3 million, compared to non-GAAP net loss
attributable to TAL of US$27.0 million in the same period of the prior
year.
-- Basic and diluted net loss per ADS were both US$0.01. Non-GAAP basic and
diluted net income per ADS, which excluded share-based compensation
expenses, were both US$0.14.
Financial Data----Fourth Quarter and Fiscal Year 2024
(In US$ thousands, except per ADS data and percentages)
Three Months Ended
February 28/29,
2023 2024 Pct. Change
--------- --------- -----------
Net revenues 268,986 429,563 59.7 %
Loss from operations (44,416) (11,061) (75.1 %)
Non-GAAP (loss)/income from operations (18,090) 9,440 (152.2 %)
Net (loss)/income attributable to TAL (39,417) 27,508 (169.8 %)
Non-GAAP net (loss)/income attributable
to TAL (13,091) 48,009 (466.7 %)
Net (loss)/income per ADS attributable to
TAL -- basic (0.06) 0.05 (173.5 %)
Net (loss)/income per ADS attributable to
TAL -- diluted (0.06) 0.04 (172.1 %)
Non-GAAP net (loss)/income per ADS
attributable to TAL -- basic (0.02) 0.08 (486.5 %)
Non-GAAP net (loss)/income per ADS
attributable to TAL -- diluted (0.02) 0.08 (478.9 %)
Fiscal Year Ended
February 28/29,
2023 2024 Pct. Change
--------- --------- -------------
Net revenues 1,019,772 1,490,440 46.2 %
Loss from operations (90,730) (69,229) (23.7 %)
Non-GAAP income from operations 17,841 19,669 10.2 %
Net loss attributable to TAL (135,612) (3,573) (97.4 %)
Non-GAAP net (loss)/income attributable
to TAL (27,041) 85,325 (415.5 %)
Net loss per ADS attributable to TAL --
basic (0.21) (0.01) (97.2 %)
Net loss per ADS attributable to TAL --
diluted (0.21) (0.01) (97.2 %)
Non-GAAP net (loss)/income per ADS
attributable to TAL -- basic (0.04) 0.14 (429.9 %)
Non-GAAP net (loss)/income per ADS
attributable to TAL -- diluted (0.04) 0.14 (424.2 %)
"We ended the 2024 fiscal year with continued development across our core businesses, each delivering distinct value propositions to our customers." said Alex Peng, TAL's President & Chief Financial Officer.
Mr. Peng added: "As we move into fiscal year 2025, we remain focused on delivering high quality products and services, managing our overall operational efficiency, while also harnessing new technologies to transform our business."
Financial Results for the Fourth Quarter of Fiscal Year 2024
Net Revenues
In the fourth quarter of fiscal year 2024, TAL reported net revenues of US$429.6 million, representing a 59.7% increase from US$269.0 million in the fourth quarter of fiscal year 2023.
Operating Costs and Expenses
In the fourth quarter of fiscal year 2024, operating costs and expenses were US$445.4 million, representing a 41.7% increase from US$314.4 million in the fourth quarter of fiscal year 2023. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$424.9 million, representing a 47.5% increase from US$288.1 million in the fourth quarter of fiscal year 2023.
Cost of revenues increased by 58.4% to US$202.2 million from US$127.7 million in the fourth quarter of fiscal year 2023. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 59.8% to US$199.6 million, from US$124.9 million in the fourth quarter of fiscal year 2023.
Selling and marketing expenses increased by 69.0% to US$125.9 million from US$74.5 million in the fourth quarter of fiscal year 2023. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 80.1% to US$120.4 million, from US$66.9 million in the fourth quarter of fiscal year 2023.
General and administrative expenses increased by 4.5% to US$117.2 million from US$112.2 million in the fourth quarter of fiscal year 2023. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 8.9% to US$104.9 million, from US$96.3 million in the fourth quarter of fiscal year 2023.
Total share-based compensation expenses allocated to the related operating costs and expenses in the fourth quarter of fiscal year 2024 was US$20.5 million, compared to US$26.3 million for the fourth quarter of fiscal year 2023.
Gross Profit
Gross profit increased by 60.9% to US$227.3 million from US$141.3 million in the fourth quarter of fiscal year 2023.
(Loss)/Income from Operations
Loss from operations was US$11.1 million in the fourth quarter of fiscal year 2024, compared to loss from operations of US$44.4 million in the fourth quarter of fiscal year 2023. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$9.4 million, compared to Non-GAAP loss from operations of US$18.1 million in the same period of the prior year.
Other Income/(Expense)
Other income was US$37.3 million for the fourth quarter of fiscal year 2024, compared to other income of US$2.1 million in the fourth quarter of fiscal year 2023.
Impairment Loss on Long-term Investments
Impairment loss on Long-term investment was US$14.0 million for the fourth quarter of fiscal year 2024, compared to US$0.9 million for the fourth quarter of fiscal year 2023.
Income Tax Expense
Income tax expense was US$6.5 million in the fourth quarter of fiscal year 2024, compared to US$10.5 million of income tax expense in the fourth quarter of fiscal year 2023.
Net (Loss)/Income attributable to TAL Education Group
Net income attributable to TAL was US$27.5 million in the fourth quarter of fiscal year 2024, compared to net loss attributable to TAL of US$39.4 million in the fourth quarter of fiscal year 2023. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$48.0 million, compared to Non-GAAP net loss attributable to TAL of US$13.1 million in the fourth quarter of fiscal year 2023.
Basic and Diluted Net (Loss)/Income per ADS
Basic net income per ADS was US$0.05, and diluted net income per ADS was US$0.04 in the fourth quarter of fiscal year 2024. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.08 in the fourth quarter of fiscal year 2024.
Cash Flow
Net cash used in operating activities for the fourth quarter of fiscal year 2024 was US$23.7 million.
Cash, Cash Equivalents, and Short-Term Investments
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