Gaotu (GOTU) Reports Q3 Revenue Increase Despite Larger Operating Loss

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Dec 04, 2024

Gaotu (GOTU, Financial) announced its financial results for the third quarter of fiscal year 2024. The company's revenue reached 1.21 billion RMB, marking a 53.3% year-over-year increase. However, the Non-GAAP net loss per share was 1.78 RMB. Operating losses widened to 490 million RMB from 99.5 million RMB in the previous year. The gross margin decreased from 72.4% to 64.4%.

Operating expenses surged by 89.1% to 1.268 billion RMB, driven by workforce expansion and increased marketing and branding expenditures. The net cash outflow from operations was 714.4 million RMB, compared to a net inflow of 209.9 million RMB last year. As of September 30, 2024, the company's cash and equivalents totaled 3.31 billion RMB.

Gaotu forecasts Q4 revenue between 1.288 billion RMB and 1.308 billion RMB, representing a 69.2% to 71.9% year-over-year growth. Pre-market trading saw Gaotu shares drop over 12%.

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