Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition

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Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition

StreetInsider2021-09-22

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 ...

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(NYSE: GOTU) (\"Gaotu\" or the \"Company\"), a leading online large-class tutoring service provider in China, today announced its unaudited ...\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=18966682\">Source Link</a>\n\n</div>\n","source":"highlight_streetinsider","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-22 13:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.streetinsider.com/dr/news.php?id=18966682>StreetInsider</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nBEIJING, 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 ...\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=18966682\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GOTU","symbol_name":"高途","start_time":0,"source_url":"https://www.streetinsider.com/dr/news.php?id=18966682","article_id":"2169653385","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2169653385","pubTimestamp":1632289080,"columns":[],"sourceInfo":{"source_id":"highlight_streetinsider","name":"StreetInsider"},"weMediaInfo":null,"summary":"BEIJING, Sept. 22, 2021 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) (\"Gaotu\" or the \"Company\"), ","collect":0,"end_time":0,"defaultTopTitle":"streetinsider.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GOTU":"高途"},"translate_title":"高图特车度公布2021年第二季度未经审计财务业绩及变更董事会组成","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GOTU":0.9},"content_text":"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.\nSecond Quarter 2021 Highlights[1]\n\nNet revenues was RMB2,232.3 million, a 35.3% year-over-year increase.\n\nNet revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.\n\nGross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.\n\nGross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. \n\nPaid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.\n\nPaid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.\n\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.\nDeferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.\n\n\n\n\nSecond Quarter 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nThree Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change\n\n\nNet revenues\n1,650,314\n\n2,232,254\n\n35.3%\n\n\nK-12 courses\n1,384,968\n\n2,091,355\n\n51.0%\n\n\nForeign language, professional, admission and other services\n265,346\n\n140,899\n\n(46.9%)\n\n\nGross billings\n2,400,996\n\n2,694,732\n\n12.2%\n\n\nK-12 courses\n2,196,077\n\n2,574,536\n\n17.2%\n\n\nForeign language, professional, admission and other services\n204,919\n\n120,196\n\n(41.3%)\n\n\nPaid course enrollments (In thousands)\n1,567\n\n1,631\n\n4.1%\n\n\nK-12 courses\n1,496\n\n1,563\n\n4.5%\n\n\nForeign language, professional, admission and other services\n71\n\n68\n\n(4.2)%\n\n\nNet income (loss)\n18,627\n\n(918,791)\n\nNM\n\n\nNon-GAAP net income (loss)\n72,712\n\n(763,890)\n\nNM\n\n\n\n\n\n\n[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.\n\n\n[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.\n\n\n[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.\n\n\n\nSix Months Ended June 30, 2021 Highlights\n\nNet revenues was RMB4,172.6 million, a 41.5% year-over-year increase.\n\nNet revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.\n\nGross billings was RMB3,876.1 million, a 2.7% year-over-year increase.\n\nGross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. \n\nPaid course enrollments increased 2.4% year-over-year to 2,398 thousand.\n\nPaid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.\n\nNet loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.\nNon-GAAP net loss was RMB2,093.3 million, compared with non-GAAP net income of RMB263.5 million in the same period of 2020.\n\n\n\n\nFirst Six Months of 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nSix Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change \n\n\nNet revenues \n2,947,894\n\n4,172,597\n\n41.5%\n\n\nK-12 courses\n2,505,057\n\n3,907,626\n\n56.0%\n\n\nForeign language, professional, admission and other services \n442,837\n\n264,971\n\n(40.2)%\n\n\nGross billings \n3,775,395\n\n3,876,074\n\n2.7%\n\n\nK-12 courses\n3,286,669\n\n3,577,148\n\n8.8%\n\n\nForeign language, professional, admission and other services \n488,726\n\n298,926\n\n(38.8)%\n\n\nPaid course enrollments (In thousands)\n2,341\n\n2,398\n\n2.4%\n\n\nK-12 courses\n2,143\n\n2,195\n\n2.4%\n\n\nForeign language, professional, admission and other services \n198\n\n203\n\n2.5%\n\n\nNet income (loss)\n166,615\n\n(2,344,710)\n\nNM\n\n\nNon-GAAP net income (loss)\n263,453\n\n(2,093,310)\n\nNM\n\n\n\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":869214356,"gmtCreate":1632292117975,"gmtModify":1676530744742,"author":{"id":"3572874548548490","authorId":"3572874548548490","name":"kevinlaisq","avatar":"https://static.tigerbbs.com/329de1199f764a89b7cadf50308e183d","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3572874548548490","authorIdStr":"3572874548548490"},"htmlText":"Pls like","listText":"Pls like","text":"Pls like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/869214356","repostId":2169653385,"repostType":4,"repost":{"id":"2169653385","kind":"news","pubTimestamp":1632289080,"share":"https://ttm.financial/m/news/2169653385?lang=&edition=fundamental","pubTime":"2021-09-22 13:38","market":"us","language":"en","title":"Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition","url":"https://stock-news.laohu8.com/highlight/detail?id=2169653385","media":"StreetInsider","summary":"BEIJING, Sept. 22, 2021 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) (\"Gaotu\" or the \"Company\"), ","content":"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.\nSecond Quarter 2021 Highlights[1]\n<ul>\n <li>Net revenues was RMB2,232.3 million, a 35.3% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.</li>\n </ul>\n <li>Gross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. </li>\n </ul>\n <li>Paid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.</li>\n </ul>\n <li>Net loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.</li>\n <li>Non-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.</li>\n <li>Deferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">Second Quarter 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Three Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change</td>\n </tr>\n <tr>\n <td>Net revenues</td>\n <td>1,650,314</td>\n <td></td>\n <td>2,232,254</td>\n <td></td>\n <td>35.3%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,384,968</td>\n <td></td>\n <td>2,091,355</td>\n <td></td>\n <td>51.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>265,346</td>\n <td></td>\n <td>140,899</td>\n <td></td>\n <td>(46.9%)</td>\n </tr>\n <tr>\n <td>Gross billings</td>\n <td>2,400,996</td>\n <td></td>\n <td>2,694,732</td>\n <td></td>\n <td>12.2%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,196,077</td>\n <td></td>\n <td>2,574,536</td>\n <td></td>\n <td>17.2%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>204,919</td>\n <td></td>\n <td>120,196</td>\n <td></td>\n <td>(41.3%)</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>1,567</td>\n <td></td>\n <td>1,631</td>\n <td></td>\n <td>4.1%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,496</td>\n <td></td>\n <td>1,563</td>\n <td></td>\n <td>4.5%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>71</td>\n <td></td>\n <td>68</td>\n <td></td>\n <td>(4.2)%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>18,627</td>\n <td></td>\n <td>(918,791)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>72,712</td>\n <td></td>\n <td>(763,890)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\n<table border=\"0\">\n <tbody>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n </tbody>\n</table>\nSix Months Ended June 30, 2021 Highlights\n<ul>\n <li>Net revenues was RMB4,172.6 million, a 41.5% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.</li>\n </ul>\n <li>Gross billings was RMB3,876.1 million, a 2.7% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. </li>\n </ul>\n <li>Paid course enrollments increased 2.4% year-over-year to 2,398 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.</li>\n </ul>\n <li>Net loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.</li>\n <li>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.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">First Six Months of 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Six Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change </td>\n </tr>\n <tr>\n <td>Net revenues </td>\n <td>2,947,894</td>\n <td></td>\n <td>4,172,597</td>\n <td></td>\n <td>41.5%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,505,057</td>\n <td></td>\n <td>3,907,626</td>\n <td></td>\n <td>56.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>442,837</td>\n <td></td>\n <td>264,971</td>\n <td></td>\n <td>(40.2)%</td>\n </tr>\n <tr>\n <td>Gross billings </td>\n <td>3,775,395</td>\n <td></td>\n <td>3,876,074</td>\n <td></td>\n <td>2.7%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>3,286,669</td>\n <td></td>\n <td>3,577,148</td>\n <td></td>\n <td>8.8%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>488,726</td>\n <td></td>\n <td>298,926</td>\n <td></td>\n <td>(38.8)%</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>2,341</td>\n <td></td>\n <td>2,398</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,143</td>\n <td></td>\n <td>2,195</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>198</td>\n <td></td>\n <td>203</td>\n <td></td>\n <td>2.5%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>166,615</td>\n <td></td>\n <td>(2,344,710)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>263,453</td>\n <td></td>\n <td>(2,093,310)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","source":"highlight_streetinsider","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-22 13:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.streetinsider.com/dr/news.php?id=18966682>StreetInsider</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nBEIJING, 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 ...\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=18966682\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOTU":"高途"},"source_url":"https://www.streetinsider.com/dr/news.php?id=18966682","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2169653385","content_text":"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.\nSecond Quarter 2021 Highlights[1]\n\nNet revenues was RMB2,232.3 million, a 35.3% year-over-year increase.\n\nNet revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.\n\nGross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.\n\nGross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. \n\nPaid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.\n\nPaid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.\n\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.\nDeferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.\n\n\n\n\nSecond Quarter 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nThree Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change\n\n\nNet revenues\n1,650,314\n\n2,232,254\n\n35.3%\n\n\nK-12 courses\n1,384,968\n\n2,091,355\n\n51.0%\n\n\nForeign language, professional, admission and other services\n265,346\n\n140,899\n\n(46.9%)\n\n\nGross billings\n2,400,996\n\n2,694,732\n\n12.2%\n\n\nK-12 courses\n2,196,077\n\n2,574,536\n\n17.2%\n\n\nForeign language, professional, admission and other services\n204,919\n\n120,196\n\n(41.3%)\n\n\nPaid course enrollments (In thousands)\n1,567\n\n1,631\n\n4.1%\n\n\nK-12 courses\n1,496\n\n1,563\n\n4.5%\n\n\nForeign language, professional, admission and other services\n71\n\n68\n\n(4.2)%\n\n\nNet income (loss)\n18,627\n\n(918,791)\n\nNM\n\n\nNon-GAAP net income (loss)\n72,712\n\n(763,890)\n\nNM\n\n\n\n\n\n\n[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.\n\n\n[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.\n\n\n[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.\n\n\n\nSix Months Ended June 30, 2021 Highlights\n\nNet revenues was RMB4,172.6 million, a 41.5% year-over-year increase.\n\nNet revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.\n\nGross billings was RMB3,876.1 million, a 2.7% year-over-year increase.\n\nGross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. \n\nPaid course enrollments increased 2.4% year-over-year to 2,398 thousand.\n\nPaid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.\n\nNet loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.\nNon-GAAP net loss was RMB2,093.3 million, compared with non-GAAP net income of RMB263.5 million in the same period of 2020.\n\n\n\n\nFirst Six Months of 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nSix Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change \n\n\nNet revenues \n2,947,894\n\n4,172,597\n\n41.5%\n\n\nK-12 courses\n2,505,057\n\n3,907,626\n\n56.0%\n\n\nForeign language, professional, admission and other services \n442,837\n\n264,971\n\n(40.2)%\n\n\nGross billings \n3,775,395\n\n3,876,074\n\n2.7%\n\n\nK-12 courses\n3,286,669\n\n3,577,148\n\n8.8%\n\n\nForeign language, professional, admission and other services \n488,726\n\n298,926\n\n(38.8)%\n\n\nPaid course enrollments (In thousands)\n2,341\n\n2,398\n\n2.4%\n\n\nK-12 courses\n2,143\n\n2,195\n\n2.4%\n\n\nForeign language, professional, admission and other services \n198\n\n203\n\n2.5%\n\n\nNet income (loss)\n166,615\n\n(2,344,710)\n\nNM\n\n\nNon-GAAP net income (loss)\n263,453\n\n(2,093,310)\n\nNM\n\n\n\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":869212353,"gmtCreate":1632291689872,"gmtModify":1676530744695,"author":{"id":"4087686543844860","authorId":"4087686543844860","name":"Maybl","avatar":"https://static.tigerbbs.com/8528a3b3e7bad2aa55b4c86ab0e2cedc","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4087686543844860","authorIdStr":"4087686543844860"},"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/869212353","repostId":2169653385,"repostType":4,"repost":{"id":"2169653385","kind":"news","pubTimestamp":1632289080,"share":"https://ttm.financial/m/news/2169653385?lang=&edition=fundamental","pubTime":"2021-09-22 13:38","market":"us","language":"en","title":"Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition","url":"https://stock-news.laohu8.com/highlight/detail?id=2169653385","media":"StreetInsider","summary":"BEIJING, Sept. 22, 2021 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) (\"Gaotu\" or the \"Company\"), ","content":"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.\nSecond Quarter 2021 Highlights[1]\n<ul>\n <li>Net revenues was RMB2,232.3 million, a 35.3% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.</li>\n </ul>\n <li>Gross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. </li>\n </ul>\n <li>Paid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.</li>\n </ul>\n <li>Net loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.</li>\n <li>Non-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.</li>\n <li>Deferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">Second Quarter 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Three Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change</td>\n </tr>\n <tr>\n <td>Net revenues</td>\n <td>1,650,314</td>\n <td></td>\n <td>2,232,254</td>\n <td></td>\n <td>35.3%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,384,968</td>\n <td></td>\n <td>2,091,355</td>\n <td></td>\n <td>51.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>265,346</td>\n <td></td>\n <td>140,899</td>\n <td></td>\n <td>(46.9%)</td>\n </tr>\n <tr>\n <td>Gross billings</td>\n <td>2,400,996</td>\n <td></td>\n <td>2,694,732</td>\n <td></td>\n <td>12.2%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,196,077</td>\n <td></td>\n <td>2,574,536</td>\n <td></td>\n <td>17.2%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>204,919</td>\n <td></td>\n <td>120,196</td>\n <td></td>\n <td>(41.3%)</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>1,567</td>\n <td></td>\n <td>1,631</td>\n <td></td>\n <td>4.1%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,496</td>\n <td></td>\n <td>1,563</td>\n <td></td>\n <td>4.5%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>71</td>\n <td></td>\n <td>68</td>\n <td></td>\n <td>(4.2)%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>18,627</td>\n <td></td>\n <td>(918,791)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>72,712</td>\n <td></td>\n <td>(763,890)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\n<table border=\"0\">\n <tbody>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n </tbody>\n</table>\nSix Months Ended June 30, 2021 Highlights\n<ul>\n <li>Net revenues was RMB4,172.6 million, a 41.5% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.</li>\n </ul>\n <li>Gross billings was RMB3,876.1 million, a 2.7% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. </li>\n </ul>\n <li>Paid course enrollments increased 2.4% year-over-year to 2,398 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.</li>\n </ul>\n <li>Net loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.</li>\n <li>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.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">First Six Months of 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Six Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change </td>\n </tr>\n <tr>\n <td>Net revenues </td>\n <td>2,947,894</td>\n <td></td>\n <td>4,172,597</td>\n <td></td>\n <td>41.5%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,505,057</td>\n <td></td>\n <td>3,907,626</td>\n <td></td>\n <td>56.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>442,837</td>\n <td></td>\n <td>264,971</td>\n <td></td>\n <td>(40.2)%</td>\n </tr>\n <tr>\n <td>Gross billings </td>\n <td>3,775,395</td>\n <td></td>\n <td>3,876,074</td>\n <td></td>\n <td>2.7%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>3,286,669</td>\n <td></td>\n <td>3,577,148</td>\n <td></td>\n <td>8.8%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>488,726</td>\n <td></td>\n <td>298,926</td>\n <td></td>\n <td>(38.8)%</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>2,341</td>\n <td></td>\n <td>2,398</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,143</td>\n <td></td>\n <td>2,195</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>198</td>\n <td></td>\n <td>203</td>\n <td></td>\n <td>2.5%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>166,615</td>\n <td></td>\n <td>(2,344,710)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>263,453</td>\n <td></td>\n <td>(2,093,310)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","source":"highlight_streetinsider","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-22 13:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.streetinsider.com/dr/news.php?id=18966682>StreetInsider</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nBEIJING, 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 ...\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=18966682\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOTU":"高途"},"source_url":"https://www.streetinsider.com/dr/news.php?id=18966682","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2169653385","content_text":"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.\nSecond Quarter 2021 Highlights[1]\n\nNet revenues was RMB2,232.3 million, a 35.3% year-over-year increase.\n\nNet revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.\n\nGross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.\n\nGross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. \n\nPaid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.\n\nPaid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.\n\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.\nDeferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.\n\n\n\n\nSecond Quarter 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nThree Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change\n\n\nNet revenues\n1,650,314\n\n2,232,254\n\n35.3%\n\n\nK-12 courses\n1,384,968\n\n2,091,355\n\n51.0%\n\n\nForeign language, professional, admission and other services\n265,346\n\n140,899\n\n(46.9%)\n\n\nGross billings\n2,400,996\n\n2,694,732\n\n12.2%\n\n\nK-12 courses\n2,196,077\n\n2,574,536\n\n17.2%\n\n\nForeign language, professional, admission and other services\n204,919\n\n120,196\n\n(41.3%)\n\n\nPaid course enrollments (In thousands)\n1,567\n\n1,631\n\n4.1%\n\n\nK-12 courses\n1,496\n\n1,563\n\n4.5%\n\n\nForeign language, professional, admission and other services\n71\n\n68\n\n(4.2)%\n\n\nNet income (loss)\n18,627\n\n(918,791)\n\nNM\n\n\nNon-GAAP net income (loss)\n72,712\n\n(763,890)\n\nNM\n\n\n\n\n\n\n[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.\n\n\n[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.\n\n\n[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.\n\n\n\nSix Months Ended June 30, 2021 Highlights\n\nNet revenues was RMB4,172.6 million, a 41.5% year-over-year increase.\n\nNet revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.\n\nGross billings was RMB3,876.1 million, a 2.7% year-over-year increase.\n\nGross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. \n\nPaid course enrollments increased 2.4% year-over-year to 2,398 thousand.\n\nPaid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.\n\nNet loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.\nNon-GAAP net loss was RMB2,093.3 million, compared with non-GAAP net income of RMB263.5 million in the same period of 2020.\n\n\n\n\nFirst Six Months of 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nSix Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change \n\n\nNet revenues \n2,947,894\n\n4,172,597\n\n41.5%\n\n\nK-12 courses\n2,505,057\n\n3,907,626\n\n56.0%\n\n\nForeign language, professional, admission and other services \n442,837\n\n264,971\n\n(40.2)%\n\n\nGross billings \n3,775,395\n\n3,876,074\n\n2.7%\n\n\nK-12 courses\n3,286,669\n\n3,577,148\n\n8.8%\n\n\nForeign language, professional, admission and other services \n488,726\n\n298,926\n\n(38.8)%\n\n\nPaid course enrollments (In thousands)\n2,341\n\n2,398\n\n2.4%\n\n\nK-12 courses\n2,143\n\n2,195\n\n2.4%\n\n\nForeign language, professional, admission and other services \n198\n\n203\n\n2.5%\n\n\nNet income (loss)\n166,615\n\n(2,344,710)\n\nNM\n\n\nNon-GAAP net income (loss)\n263,453\n\n(2,093,310)\n\nNM\n\n\n\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":869211509,"gmtCreate":1632291281201,"gmtModify":1676530744641,"author":{"id":"4087278718158970","authorId":"4087278718158970","name":"Alright","avatar":"https://static.tigerbbs.com/17b986a304be5031eab7c252ee5ea49f","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4087278718158970","authorIdStr":"4087278718158970"},"htmlText":"Not good","listText":"Not good","text":"Not good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/869211509","repostId":2169653385,"repostType":4,"repost":{"id":"2169653385","kind":"news","pubTimestamp":1632289080,"share":"https://ttm.financial/m/news/2169653385?lang=&edition=fundamental","pubTime":"2021-09-22 13:38","market":"us","language":"en","title":"Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition","url":"https://stock-news.laohu8.com/highlight/detail?id=2169653385","media":"StreetInsider","summary":"BEIJING, Sept. 22, 2021 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) (\"Gaotu\" or the \"Company\"), ","content":"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.\nSecond Quarter 2021 Highlights[1]\n<ul>\n <li>Net revenues was RMB2,232.3 million, a 35.3% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.</li>\n </ul>\n <li>Gross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. </li>\n </ul>\n <li>Paid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.</li>\n </ul>\n <li>Net loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.</li>\n <li>Non-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.</li>\n <li>Deferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">Second Quarter 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Three Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change</td>\n </tr>\n <tr>\n <td>Net revenues</td>\n <td>1,650,314</td>\n <td></td>\n <td>2,232,254</td>\n <td></td>\n <td>35.3%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,384,968</td>\n <td></td>\n <td>2,091,355</td>\n <td></td>\n <td>51.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>265,346</td>\n <td></td>\n <td>140,899</td>\n <td></td>\n <td>(46.9%)</td>\n </tr>\n <tr>\n <td>Gross billings</td>\n <td>2,400,996</td>\n <td></td>\n <td>2,694,732</td>\n <td></td>\n <td>12.2%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,196,077</td>\n <td></td>\n <td>2,574,536</td>\n <td></td>\n <td>17.2%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>204,919</td>\n <td></td>\n <td>120,196</td>\n <td></td>\n <td>(41.3%)</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>1,567</td>\n <td></td>\n <td>1,631</td>\n <td></td>\n <td>4.1%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,496</td>\n <td></td>\n <td>1,563</td>\n <td></td>\n <td>4.5%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>71</td>\n <td></td>\n <td>68</td>\n <td></td>\n <td>(4.2)%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>18,627</td>\n <td></td>\n <td>(918,791)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>72,712</td>\n <td></td>\n <td>(763,890)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\n<table border=\"0\">\n <tbody>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n </tbody>\n</table>\nSix Months Ended June 30, 2021 Highlights\n<ul>\n <li>Net revenues was RMB4,172.6 million, a 41.5% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.</li>\n </ul>\n <li>Gross billings was RMB3,876.1 million, a 2.7% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. </li>\n </ul>\n <li>Paid course enrollments increased 2.4% year-over-year to 2,398 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.</li>\n </ul>\n <li>Net loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.</li>\n <li>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.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">First Six Months of 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Six Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change </td>\n </tr>\n <tr>\n <td>Net revenues </td>\n <td>2,947,894</td>\n <td></td>\n <td>4,172,597</td>\n <td></td>\n <td>41.5%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,505,057</td>\n <td></td>\n <td>3,907,626</td>\n <td></td>\n <td>56.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>442,837</td>\n <td></td>\n <td>264,971</td>\n <td></td>\n <td>(40.2)%</td>\n </tr>\n <tr>\n <td>Gross billings </td>\n <td>3,775,395</td>\n <td></td>\n <td>3,876,074</td>\n <td></td>\n <td>2.7%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>3,286,669</td>\n <td></td>\n <td>3,577,148</td>\n <td></td>\n <td>8.8%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>488,726</td>\n <td></td>\n <td>298,926</td>\n <td></td>\n <td>(38.8)%</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>2,341</td>\n <td></td>\n <td>2,398</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,143</td>\n <td></td>\n <td>2,195</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>198</td>\n <td></td>\n <td>203</td>\n <td></td>\n <td>2.5%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>166,615</td>\n <td></td>\n <td>(2,344,710)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>263,453</td>\n <td></td>\n <td>(2,093,310)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","source":"highlight_streetinsider","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-22 13:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.streetinsider.com/dr/news.php?id=18966682>StreetInsider</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nBEIJING, 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 ...\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=18966682\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOTU":"高途"},"source_url":"https://www.streetinsider.com/dr/news.php?id=18966682","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2169653385","content_text":"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.\nSecond Quarter 2021 Highlights[1]\n\nNet revenues was RMB2,232.3 million, a 35.3% year-over-year increase.\n\nNet revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.\n\nGross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.\n\nGross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. \n\nPaid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.\n\nPaid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.\n\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.\nDeferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.\n\n\n\n\nSecond Quarter 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nThree Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change\n\n\nNet revenues\n1,650,314\n\n2,232,254\n\n35.3%\n\n\nK-12 courses\n1,384,968\n\n2,091,355\n\n51.0%\n\n\nForeign language, professional, admission and other services\n265,346\n\n140,899\n\n(46.9%)\n\n\nGross billings\n2,400,996\n\n2,694,732\n\n12.2%\n\n\nK-12 courses\n2,196,077\n\n2,574,536\n\n17.2%\n\n\nForeign language, professional, admission and other services\n204,919\n\n120,196\n\n(41.3%)\n\n\nPaid course enrollments (In thousands)\n1,567\n\n1,631\n\n4.1%\n\n\nK-12 courses\n1,496\n\n1,563\n\n4.5%\n\n\nForeign language, professional, admission and other services\n71\n\n68\n\n(4.2)%\n\n\nNet income (loss)\n18,627\n\n(918,791)\n\nNM\n\n\nNon-GAAP net income (loss)\n72,712\n\n(763,890)\n\nNM\n\n\n\n\n\n\n[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.\n\n\n[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.\n\n\n[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.\n\n\n\nSix Months Ended June 30, 2021 Highlights\n\nNet revenues was RMB4,172.6 million, a 41.5% year-over-year increase.\n\nNet revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.\n\nGross billings was RMB3,876.1 million, a 2.7% year-over-year increase.\n\nGross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. \n\nPaid course enrollments increased 2.4% year-over-year to 2,398 thousand.\n\nPaid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.\n\nNet loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.\nNon-GAAP net loss was RMB2,093.3 million, compared with non-GAAP net income of RMB263.5 million in the same period of 2020.\n\n\n\n\nFirst Six Months of 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nSix Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change \n\n\nNet revenues \n2,947,894\n\n4,172,597\n\n41.5%\n\n\nK-12 courses\n2,505,057\n\n3,907,626\n\n56.0%\n\n\nForeign language, professional, admission and other services \n442,837\n\n264,971\n\n(40.2)%\n\n\nGross billings \n3,775,395\n\n3,876,074\n\n2.7%\n\n\nK-12 courses\n3,286,669\n\n3,577,148\n\n8.8%\n\n\nForeign language, professional, admission and other services \n488,726\n\n298,926\n\n(38.8)%\n\n\nPaid course enrollments (In thousands)\n2,341\n\n2,398\n\n2.4%\n\n\nK-12 courses\n2,143\n\n2,195\n\n2.4%\n\n\nForeign language, professional, admission and other services \n198\n\n203\n\n2.5%\n\n\nNet income (loss)\n166,615\n\n(2,344,710)\n\nNM\n\n\nNon-GAAP net income (loss)\n263,453\n\n(2,093,310)\n\nNM\n\n\n\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":869237656,"gmtCreate":1632290580175,"gmtModify":1676530744536,"author":{"id":"3575280267029660","authorId":"3575280267029660","name":"Cindypoonyw","avatar":"https://static.tigerbbs.com/b45818b9b1b80dfeb87d018927a22632","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3575280267029660","authorIdStr":"3575280267029660"},"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/869237656","repostId":2169653385,"repostType":4,"repost":{"id":"2169653385","kind":"news","pubTimestamp":1632289080,"share":"https://ttm.financial/m/news/2169653385?lang=&edition=fundamental","pubTime":"2021-09-22 13:38","market":"us","language":"en","title":"Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition","url":"https://stock-news.laohu8.com/highlight/detail?id=2169653385","media":"StreetInsider","summary":"BEIJING, Sept. 22, 2021 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) (\"Gaotu\" or the \"Company\"), ","content":"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.\nSecond Quarter 2021 Highlights[1]\n<ul>\n <li>Net revenues was RMB2,232.3 million, a 35.3% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.</li>\n </ul>\n <li>Gross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. </li>\n </ul>\n <li>Paid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.</li>\n </ul>\n <li>Net loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.</li>\n <li>Non-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.</li>\n <li>Deferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">Second Quarter 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Three Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change</td>\n </tr>\n <tr>\n <td>Net revenues</td>\n <td>1,650,314</td>\n <td></td>\n <td>2,232,254</td>\n <td></td>\n <td>35.3%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,384,968</td>\n <td></td>\n <td>2,091,355</td>\n <td></td>\n <td>51.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>265,346</td>\n <td></td>\n <td>140,899</td>\n <td></td>\n <td>(46.9%)</td>\n </tr>\n <tr>\n <td>Gross billings</td>\n <td>2,400,996</td>\n <td></td>\n <td>2,694,732</td>\n <td></td>\n <td>12.2%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,196,077</td>\n <td></td>\n <td>2,574,536</td>\n <td></td>\n <td>17.2%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>204,919</td>\n <td></td>\n <td>120,196</td>\n <td></td>\n <td>(41.3%)</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>1,567</td>\n <td></td>\n <td>1,631</td>\n <td></td>\n <td>4.1%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>1,496</td>\n <td></td>\n <td>1,563</td>\n <td></td>\n <td>4.5%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services</td>\n <td>71</td>\n <td></td>\n <td>68</td>\n <td></td>\n <td>(4.2)%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>18,627</td>\n <td></td>\n <td>(918,791)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>72,712</td>\n <td></td>\n <td>(763,890)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\n<table border=\"0\">\n <tbody>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n <tr>\n <td>[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.</td>\n </tr>\n </tbody>\n</table>\nSix Months Ended June 30, 2021 Highlights\n<ul>\n <li>Net revenues was RMB4,172.6 million, a 41.5% year-over-year increase.</li>\n <ul>\n <li>Net revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.</li>\n </ul>\n <li>Gross billings was RMB3,876.1 million, a 2.7% year-over-year increase.</li>\n <ul>\n <li>Gross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. </li>\n </ul>\n <li>Paid course enrollments increased 2.4% year-over-year to 2,398 thousand.</li>\n <ul>\n <li>Paid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.</li>\n </ul>\n <li>Net loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.</li>\n <li>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.</li>\n</ul>\n<table border=\"0\">\n <tbody>\n <tr>\n <td colspan=\"6\">First Six Months of 2021 Key Financial and Operating Data</td>\n </tr>\n <tr>\n <td colspan=\"6\">(In thousands of RMB, except for paid course enrollments and percentages)</td>\n </tr>\n <tr>\n <td colspan=\"6\"></td>\n </tr>\n <tr>\n <td></td>\n <td colspan=\"5\">Six Months Ended June 30,</td>\n </tr>\n <tr>\n <td></td>\n <td>2020</td>\n <td></td>\n <td>2021</td>\n <td></td>\n <td>Pct. Change </td>\n </tr>\n <tr>\n <td>Net revenues </td>\n <td>2,947,894</td>\n <td></td>\n <td>4,172,597</td>\n <td></td>\n <td>41.5%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,505,057</td>\n <td></td>\n <td>3,907,626</td>\n <td></td>\n <td>56.0%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>442,837</td>\n <td></td>\n <td>264,971</td>\n <td></td>\n <td>(40.2)%</td>\n </tr>\n <tr>\n <td>Gross billings </td>\n <td>3,775,395</td>\n <td></td>\n <td>3,876,074</td>\n <td></td>\n <td>2.7%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>3,286,669</td>\n <td></td>\n <td>3,577,148</td>\n <td></td>\n <td>8.8%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>488,726</td>\n <td></td>\n <td>298,926</td>\n <td></td>\n <td>(38.8)%</td>\n </tr>\n <tr>\n <td>Paid course enrollments (In thousands)</td>\n <td>2,341</td>\n <td></td>\n <td>2,398</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>K-12 courses</td>\n <td>2,143</td>\n <td></td>\n <td>2,195</td>\n <td></td>\n <td>2.4%</td>\n </tr>\n <tr>\n <td>Foreign language, professional, admission and other services </td>\n <td>198</td>\n <td></td>\n <td>203</td>\n <td></td>\n <td>2.5%</td>\n </tr>\n <tr>\n <td>Net income (loss)</td>\n <td>166,615</td>\n <td></td>\n <td>(2,344,710)</td>\n <td></td>\n <td>NM</td>\n </tr>\n <tr>\n <td>Non-GAAP net income (loss)</td>\n <td>263,453</td>\n <td></td>\n <td>(2,093,310)</td>\n <td></td>\n <td>NM</td>\n </tr>\n </tbody>\n</table>\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","source":"highlight_streetinsider","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGaotu Techedu Announces Second Quarter of 2021 Unaudited Financial Results and Change to Board Composition\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-22 13:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.streetinsider.com/dr/news.php?id=18966682>StreetInsider</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nBEIJING, 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 ...\n\n<a href=\"https://www.streetinsider.com/dr/news.php?id=18966682\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOTU":"高途"},"source_url":"https://www.streetinsider.com/dr/news.php?id=18966682","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2169653385","content_text":"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.\nSecond Quarter 2021 Highlights[1]\n\nNet revenues was RMB2,232.3 million, a 35.3% year-over-year increase.\n\nNet revenues of online K-12 courses increased 51.0% year-over-year to RMB2,091.4 million.\n\nGross billings[2] was RMB2,694.7 million, a 12.2% year-over-year increase.\n\nGross billings of online K-12 courses increased 17.2% year-over-year to RMB2,574.5 million. \n\nPaid course enrollments[3] increased 4.1% year-over-year to 1,631 thousand.\n\nPaid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.\n\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the same period of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the same period of 2020.\nDeferred revenue was RMB1,976.4 million, compared with RMB2,733.7 million as of December 31, 2020.\n\n\n\n\nSecond Quarter 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nThree Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change\n\n\nNet revenues\n1,650,314\n\n2,232,254\n\n35.3%\n\n\nK-12 courses\n1,384,968\n\n2,091,355\n\n51.0%\n\n\nForeign language, professional, admission and other services\n265,346\n\n140,899\n\n(46.9%)\n\n\nGross billings\n2,400,996\n\n2,694,732\n\n12.2%\n\n\nK-12 courses\n2,196,077\n\n2,574,536\n\n17.2%\n\n\nForeign language, professional, admission and other services\n204,919\n\n120,196\n\n(41.3%)\n\n\nPaid course enrollments (In thousands)\n1,567\n\n1,631\n\n4.1%\n\n\nK-12 courses\n1,496\n\n1,563\n\n4.5%\n\n\nForeign language, professional, admission and other services\n71\n\n68\n\n(4.2)%\n\n\nNet income (loss)\n18,627\n\n(918,791)\n\nNM\n\n\nNon-GAAP net income (loss)\n72,712\n\n(763,890)\n\nNM\n\n\n\n\n\n\n[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.\n\n\n[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.\n\n\n[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.\n\n\n\nSix Months Ended June 30, 2021 Highlights\n\nNet revenues was RMB4,172.6 million, a 41.5% year-over-year increase.\n\nNet revenues of online K-12 courses increased 56.0% year-over-year to RMB3,907.6 million.\n\nGross billings was RMB3,876.1 million, a 2.7% year-over-year increase.\n\nGross billings of online K-12 courses increased 8.8% year-over-year to RMB3,577.1 million. \n\nPaid course enrollments increased 2.4% year-over-year to 2,398 thousand.\n\nPaid course enrollments of online K-12 increased 2.4% year-over-year to 2,195 thousand.\n\nNet loss was RMB2,344.7 million, compared with net income of RMB166.6 million in the same period of 2020.\nNon-GAAP net loss was RMB2,093.3 million, compared with non-GAAP net income of RMB263.5 million in the same period of 2020.\n\n\n\n\nFirst Six Months of 2021 Key Financial and Operating Data\n\n\n(In thousands of RMB, except for paid course enrollments and percentages)\n\n\n\n\n\n\nSix Months Ended June 30,\n\n\n\n2020\n\n2021\n\nPct. Change \n\n\nNet revenues \n2,947,894\n\n4,172,597\n\n41.5%\n\n\nK-12 courses\n2,505,057\n\n3,907,626\n\n56.0%\n\n\nForeign language, professional, admission and other services \n442,837\n\n264,971\n\n(40.2)%\n\n\nGross billings \n3,775,395\n\n3,876,074\n\n2.7%\n\n\nK-12 courses\n3,286,669\n\n3,577,148\n\n8.8%\n\n\nForeign language, professional, admission and other services \n488,726\n\n298,926\n\n(38.8)%\n\n\nPaid course enrollments (In thousands)\n2,341\n\n2,398\n\n2.4%\n\n\nK-12 courses\n2,143\n\n2,195\n\n2.4%\n\n\nForeign language, professional, admission and other services \n198\n\n203\n\n2.5%\n\n\nNet income (loss)\n166,615\n\n(2,344,710)\n\nNM\n\n\nNon-GAAP net income (loss)\n263,453\n\n(2,093,310)\n\nNM\n\n\n\nLarry 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.\"\n\"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.\"\nShannon 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.\"\nFinancial Results for the Second Quarter of 2021\nNet Revenues\nNet 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.\nCost of Revenues\nCost 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.\nGross Profit and Gross Margin\nGross 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.\nNon-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.\nOperating Expenses\nOperating expenses were RMB2,362.7 million, which increased from RMB1,450.4 million in the second quarter of 2020.\nSelling 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.\nResearch 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.\nGeneral 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.\nImpairment 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.\nLoss from Operations\nLoss 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.\nNon-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.\nInterest Income and Realized Gains from Investment\nInterest 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.\nOther Income (Expense)\nOther 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.\nNet Income (Loss)\nNet loss was RMB918.8 million, compared with net income of RMB18.6 million in the second quarter of 2020.\nNon-GAAP net loss was RMB763.9 million, compared with non-GAAP net income of RMB72.7 million in the second quarter of 2020.\nCash Flow\nNet 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.\nBasic and Diluted Net Loss per ADS\nBasic and diluted net loss per ADS were RMB3.59, in the second quarter of 2021.\nNon-GAAP basic and diluted net loss per ADS, were RMB2.99, in the second quarter of 2021.\nShare Outstanding\nAs of June 30, 2021, the Company had 170,935,557 ordinary shares outstanding.\nCash and Cash Equivalents, Restricted Cash, Short-term Investments and Long-term Investments\nAs 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.\nDeferred Revenue\nAs 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.\nOther Payables\nAs 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.\nUpdate on PRC Regulatory Policy\nAs 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.\nBusiness Outlook\nDue 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.\nBoard Change\nMr. 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.\nAbout Gaotu Techedu Inc.\nGaotu 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.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5956453,"gmtCreate":1632291259568,"gmtModify":1663234260739,"authorId":4087278718158970,"author":{"id":4087278718158970,"idStr":"4087278718158970","authorId":4087278718158970,"name":"Alright","avatar":"https://static.tigerbbs.com/17b986a304be5031eab7c252ee5ea49f","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":869237656,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":21,"commentSize":4,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}