Good Future (TAL, Financial) has released its financial results for the second quarter of fiscal year 2025, ending August 31, 2024. The company reported net revenues of $619.4 million, a 50.4% increase compared to $411.9 million in the same period last year.
Net profit attributable to Good Future was $57.4 million, up from $37.9 million in the previous year. On a non-GAAP basis, the net profit was $74.3 million, compared to $58.8 million a year ago.
Operating costs and expenses rose to $572.0 million, a 49.5% increase from $382.8 million in the previous year. Non-GAAP operating costs were $555.1 million, marking a 53.4% increase from $361.9 million last year. Revenue costs surged to $270.6 million, up 59.8% from $169.4 million a year prior, with non-GAAP revenue costs rising 60.7% to $268.8 million.
Sales and marketing expenses grew by 56.4% to $181.9 million. Non-GAAP sales and marketing expenses jumped 61.6% to $177.9 million. General and administrative expenses increased by 23.1% to $119.5 million, with non-GAAP figures showing a 28.3% rise to $108.3 million.
The company's gross profit reached $348.7 million, a rise of 43.8% from $242.5 million in the previous year. Operating profit was $47.6 million compared to $31.8 million last year. Non-GAAP operating profit was $64.5 million, up from $52.7 million a year ago. Other income was $20.5 million, compared to $5 million last year, while impairment losses on long-term investments reduced to $4.9 million from $30.8 million.
Earnings per American Depository Share (ADS) were $0.09, both basic and diluted. Non-GAAP ADS earnings were $0.12. The net cash provided by operating activities for Q2 was $0.6 million. As of August 31, 2024, Good Future held $2.0859 billion in cash and cash equivalents and $1.3684 billion in short-term investments.
Deferred revenue was $517.6 million, up from $428.3 million at the end of February 2024. For the first six months of fiscal year 2025, Good Future reported net revenues of $1.0335 billion, a 50.4% increase from the previous year, and gross profit of $562.9 million, up 48.7%. Net profit stood at $68.8 million, reversing a net loss of $7.1 million from the previous year. Non-GAAP net profit was $103.9 million, compared to $39.3 million last year. Basic and diluted ADS earnings were $0.11, with non-GAAP earnings at $0.17. Net cash provided by operating activities was $246.2 million.
In April 2024, Good Future’s board extended a stock repurchase program, allowing up to $503.8 million in common stock repurchases by April 30, 2025. By August 31, 2024, the company had repurchased 499,933 shares valued at approximately $13.1 million.
Good Future will hold its annual shareholders' meeting on November 15, 2024.
