New Oriental (EDU, Financial) announced its financial results for the first quarter of fiscal year 2025, ending August 31, 2024. The company reported a net revenue of $1.435 billion, reflecting a 30.5% increase compared to the same period last year. Net profit attributable to New Oriental reached $245.4 million, a 48.4% year-over-year growth. On a non-GAAP basis, net profit was $264.7 million, showing a 39.8% increase.
As of August 31, 2024, New Oriental operated 1,089 schools and learning centers, marking an increase of 64 locations from the previous quarter and 296 locations from the previous year. The company currently maintains 80 schools.
Overseas test preparation and consulting services saw growth of approximately 18.8% and 20.7% respectively. Domestic test preparation services for adults and college students grew by about 30.4%. New educational initiatives contributed to a 49.8% increase in revenue. Among these initiatives, non-academic tutoring expanded to over 60 cities, with 484,000 enrollments in the first quarter. The smart learning systems and devices reached approximately 323,000 active users in 60 cities.
Since the launch of its own brand products in April 2022, Dongfang Zhenxuan has developed 488 SKUs within two years.
Regarding stock repurchase, New Oriental's board approved a buyback plan on July 26, 2022, allowing the repurchase of up to $400 million in American Depositary Shares (ADS) or common stock between July 28, 2022, and May 31, 2023. This plan was extended to May 31, 2025, with the total value increased to $700 million. By October 22, 2024, New Oriental had repurchased approximately 9.8 million ADS for about $457.9 million.
For the first quarter, operating costs and expenses reached $1.1423 billion, up 27.6% from the previous year. Revenue cost was $583.5 million, a 32.3% increase. Sales and marketing expenses grew by 42.3% to $193.7 million, while general and administrative expenses rose by 15.0% to $365.1 million. Non-GAAP general and administrative expenses were $354.5 million, an increase of 22.1%.
The operating profit was $293.2 million, reflecting a 42.9% growth. Excluding non-GAAP adjustments, the operating profit was $300 million, up 22.6%. Operating margin improved to 20.4% from 18.6% the previous year. On a non-GAAP basis, the operating margin was 20.9%, compared to 22.3% last year.
First-quarter net operating cash flow stood at $183.2 million, with capital expenditures at $80.2 million. As of August 31, 2024, New Oriental held $1.147 billion in cash and equivalents, $1.5138 billion in term deposits, and $2.2486 billion in short-term investments. Deferred revenue increased by 23.7% to $1.7331 billion compared to the end of the first quarter of fiscal year 2024.
Looking ahead, New Oriental estimates that for the second quarter of fiscal year 2025 (September 1, 2024, to November 30, 2024), total net revenue, excluding its own brand products and live streaming business, will range from $851.4 million to $871.8 million, representing a 25% to 28% year-over-year increase.
