Q2 2024 Gaotu Techedu Inc Earnings Call Transcript
Key Points
- Net revenues increased by 43.6% year-over-year to RMB1.0 billion, indicating strong growth momentum.
- Gross billings surged by 87.4% year-over-year to RMB1.7 billion, surpassing market expectations.
- Deferred revenue reached RMB1.6 billion, a 71.5% increase from the same period last year, ensuring robust support for future growth.
- The company has maintained industry-leading customer acquisition efficiency, contributing to strong market demand.
- Gaotu Techedu Inc (GOTU) has a strong cash reserve of RMB4.1 billion, which is RMB361.3 million higher than the previous year.
- Total operating expenses increased by 144.2% year-over-year to about RMB1.2 billion, impacting profitability.
- Selling expenses rose by 157.8% year-over-year to RMB835.4 million, accounting for 82.7% of net revenues.
- The company reported a net loss of RMB429.6 million with a negative net income margin of 42.5%.
- General and administrative expenses increased by 209.3% year-over-year to RMB169.6 million, driven by recruitment and operational scaling.
- The expansion into offline operations has led to increased costs and operational challenges, impacting short-term profitability.
Ladies and gentlemen, thank you for standing by, and welcome to the Gaotu Techedu second quarter 2024 earnings conference call.
(Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Ms. Catherine Chen, Head of Investor Relations. Please go ahead.
Thank you, operator. Good evening, everyone. Thank you for joining Gaotu's second quarter 2024 earnings conference call. My name is Catherine, and I'll help host the earnings call today.
Gaotu's earnings release for the quarter was distributed earlier and is available on the company's IR website at ir.gaotu.cn, as well as through PR newswire services.
Joining the call with me tonight from Gaotu senior management is Mr. Larry Chen, Gaotu's Founder, Chairman and Chief Executive Officer, and Ms. Shannon Shen, Gaotu's Chief Financial Officer. Larry will first provide the business highlights for the quarter, and then afterwards, Shannon will discuss our financial performance
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