Gaotu Techedu Announces First Quarter 2025 Unaudited Financial Results and a New Share Repurchase Program
Gaotu Techedu (NYSE: GOTU) reported strong Q1 2025 financial results and announced a new share repurchase program. Net revenues increased by 57.7% year-over-year to RMB1,493.0 million. The company achieved profitability with net income of RMB124.0 million, compared to a net loss of RMB12.3 million in Q1 2024. Non-GAAP net income surged by 4,419.2% to RMB137.3 million.
The Board approved a new US$100 million share repurchase program for the next three years, effective upon completing the current program. Under the existing program, GOTU has repurchased approximately 22.3 million ADSs for US$67.5 million. For Q2 2025, the company expects revenues between RMB1,298-1,318 million, representing 28.5-30.5% year-over-year growth.
Gaotu Techedu (NYSE: GOTU) ha riportato risultati finanziari solidi per il primo trimestre del 2025 e ha annunciato un nuovo programma di riacquisto di azioni. I ricavi netti sono aumentati del 57,7% su base annua, raggiungendo 1.493,0 milioni di RMB. L'azienda ha raggiunto la redditività con un utile netto di 124,0 milioni di RMB, rispetto alla perdita netta di 12,3 milioni di RMB nel primo trimestre del 2024. L'utile netto non-GAAP è aumentato del 4.419,2%, arrivando a 137,3 milioni di RMB.
Il Consiglio ha approvato un nuovo programma di riacquisto di azioni da 100 milioni di dollari USA per i prossimi tre anni, che entrerà in vigore al completamento del programma attuale. Nell'ambito del programma esistente, GOTU ha riacquistato circa 22,3 milioni di ADS per un valore di 67,5 milioni di dollari USA. Per il secondo trimestre del 2025, la società prevede ricavi compresi tra 1.298 e 1.318 milioni di RMB, con una crescita anno su anno del 28,5-30,5%.
Gaotu Techedu (NYSE: GOTU) reportó sólidos resultados financieros en el primer trimestre de 2025 y anunció un nuevo programa de recompra de acciones. Los ingresos netos aumentaron un 57,7% interanual, alcanzando 1.493,0 millones de RMB. La compañía logró rentabilidad con un ingreso neto de 124,0 millones de RMB, en comparación con una pérdida neta de 12,3 millones de RMB en el primer trimestre de 2024. El ingreso neto non-GAAP se incrementó un 4.419,2%, llegando a 137,3 millones de RMB.
La Junta aprobó un nuevo programa de recompra de acciones por 100 millones de dólares estadounidenses para los próximos tres años, que entrará en vigor una vez finalizado el programa actual. Bajo el programa vigente, GOTU ha recomprado aproximadamente 22,3 millones de ADS por 67,5 millones de dólares estadounidenses. Para el segundo trimestre de 2025, la empresa espera ingresos entre 1.298 y 1.318 millones de RMB, representando un crecimiento interanual del 28,5-30,5%.
Gaotu Techedu (NYSE: GOTU)는 2025년 1분기 강력한 재무 실적을 발표하고 새로운 자사주 매입 프로그램을 발표했습니다. 순매출은 전년 동기 대비 57.7% 증가한 14억 9,300만 RMB를 기록했습니다. 회사는 순이익 1억 2,400만 RMB를 달성하며 2024년 1분기 순손실 1,230만 RMB에서 흑자 전환했습니다. 비-GAAP 순이익은 4,419.2% 급증하여 1억 3,730만 RMB에 달했습니다.
이사회는 현재 프로그램 완료 후 효력이 발생하는 향후 3년간 1억 달러 규모의 자사주 매입 프로그램을 승인했습니다. 기존 프로그램 하에서 GOTU는 약 2,230만 ADS를 6,750만 달러에 매입했습니다. 2025년 2분기 매출은 12억 9,800만~13억 1,800만 RMB로 전년 대비 28.5~30.5% 성장할 것으로 예상됩니다.
Gaotu Techedu (NYSE : GOTU) a annoncé de solides résultats financiers pour le premier trimestre 2025 ainsi qu'un nouveau programme de rachat d'actions. Les revenus nets ont augmenté de 57,7% en glissement annuel pour atteindre 1 493,0 millions de RMB. La société a réalisé un bénéfice net de 124,0 millions de RMB, contre une perte nette de 12,3 millions de RMB au premier trimestre 2024. Le bénéfice net non-GAAP a bondi de 4 419,2% pour atteindre 137,3 millions de RMB.
Le conseil d'administration a approuvé un nouveau programme de rachat d'actions de 100 millions de dollars US pour les trois prochaines années, qui prendra effet à l'issue du programme actuel. Dans le cadre du programme en cours, GOTU a racheté environ 22,3 millions d'ADS pour 67,5 millions de dollars US. Pour le deuxième trimestre 2025, la société prévoit des revenus compris entre 1 298 et 1 318 millions de RMB, soit une croissance annuelle de 28,5 à 30,5 %.
Gaotu Techedu (NYSE: GOTU) meldete starke Finanzergebnisse für das erste Quartal 2025 und kündigte ein neues Aktienrückkaufprogramm an. Die Nettoumsätze stiegen im Jahresvergleich um 57,7% auf 1.493,0 Millionen RMB. Das Unternehmen erzielte einen Nettogewinn von 124,0 Millionen RMB, im Vergleich zu einem Nettoverlust von 12,3 Millionen RMB im ersten Quartal 2024. Der Non-GAAP-Nettogewinn stieg um 4.419,2% auf 137,3 Millionen RMB.
Der Vorstand genehmigte ein neues Aktienrückkaufprogramm in Höhe von 100 Millionen US-Dollar für die nächsten drei Jahre, das nach Abschluss des aktuellen Programms wirksam wird. Im Rahmen des bestehenden Programms hat GOTU etwa 22,3 Millionen ADS für 67,5 Millionen US-Dollar zurückgekauft. Für das zweite Quartal 2025 erwartet das Unternehmen Umsätze zwischen 1.298 und 1.318 Millionen RMB, was einem Wachstum von 28,5-30,5% im Jahresvergleich entspricht.
- Achieved profitability with net income of RMB124.0 million vs net loss in Q1 2024
- Strong revenue growth of 57.7% year-over-year to RMB1,493.0 million
- Gross billings increased by 21.8% to RMB888.7 million
- New US$100 million share repurchase program approved
- Deferred revenue balance up 44.0% YoY, indicating strong future revenue potential
- Operating margin and net income margin improved by 10.5 and 9.6 percentage points YoY
- Net operating cash outflow increased to RMB477.2 million from RMB197.4 million YoY
- Gross profit margin decreased to 69.7% from 71.3% YoY
- Operating expenses increased by 33.5% to RMB1,005.8 million
- Cash and investments decreased to RMB3,447.4 million from RMB4,094.3 million in December 2024
Insights
Gaotu's impressive Q1 results mark turnaround with 57.7% revenue growth and significant profitability after previous losses.
Gaotu's Q1 2025 results demonstrate a remarkable financial turnaround, with revenue surging
The
However, investors should note some concerning metrics: net operating cash outflow more than doubled to
The announcement of a new
While operating expenses increased
First Quarter 2025 Highlights[1]
- Net revenues were
RMB1,493.0 million , increased by57.7% fromRMB946.9 million in the same period of 2024. - Gross billings[2] were
RMB888.7 million , increased by21.8% fromRMB729.4 million in the same period of 2024. - Income from operations was
RMB34.8 million , compared with loss from operations ofRMB77.7 million in the same period of 2024. - Net income was
RMB124.0 million , compared with net loss ofRMB12.3 million in the same period of 2024. - Non-GAAP net income was
RMB137.3 million , increased by 4,419.2% fromRMB3.0 million in the same period of 2024. - Net operating cash outflow was
RMB477.2 million , compared withRMB197.4 million in the same period of 2024.
First Quarter 2025 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the three months ended March 31, | |||||||||
2024 | 2025 | Pct. Change | |||||||
Net revenues | 946,885 | 1,493,043 | 57.7 % | ||||||
Gross billings | 729,360 | 888,725 | 21.8 % | ||||||
(Loss)/income from operations | (77,702) | 34,773 | (144.8) % | ||||||
Net (loss)/income | (12,297) | 123,991 | (1,108.3) % | ||||||
Non-GAAP net income | 3,039 | 137,339 | 4,419.2 % | ||||||
Net operating cash outflow | (197,435) | (477,236) | 141.7 % | ||||||
[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 and non-GAAP net income (loss) exclude share-based compensation expenses. |
[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. |
Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented, "In the first quarter of 2025, we delivered results that surpassed expectations across revenue, profit, user growth, and organizational efficiency. Notably, achieving substantial profitability was one of this quarter's most significant milestone. Our revenue increased by nearly
This quarter, we allocated
Strategically, we are accelerating the formation of a technology-empowered value loop in education. By embedding AI deeply into our educational products and learning services, we have made substantial progress in enhancing user experience and learning outcomes, laying a solid foundation for the Company's future growth and profitability."
Shannon Shen, CFO of the Company, added, "In the first quarter, we achieved strong and sustainable growth, achieving profitable at scale. Our revenue increase by over
Driven by the dynamic evolution of customer needs, we have strategically invested in improving product quality, expanding our user base, and delivering more personalized and diversified learning solutions in previous years. With the effective execution of these strategies, our revenue structure has become more growth-oriented and sustainable. The approval of new share buybacks plan, reflects management's confidence in long-term steady operations, profitability improvements, and sustainable operating cash flow generation. Guided by the Board, we will continue to repurchase shares, creating long-term value for our shareholders."
Financial Results for the First Quarter of 2025
Net Revenues
Net revenues increased by
Cost of Revenues
Cost of revenues increased by
Gross Profit and Gross Margin
Gross profit increased by
Non-GAAP gross profit increased by
Operating Expenses
Operating expenses increased by
- Selling expenses increased to
RMB709.4 million fromRMB506.4 million in the first quarter of 2024. - Research and development expenses decreased to
RMB150.5 million fromRMB151.6 million in the first quarter of 2024. - General and administrative expenses increased to
RMB145.9 million fromRMB95.2 million in the first quarter of 2024.
Income/(Loss) from Operations
Income from operations was
Non-GAAP income from operations was
Interest Income and Realized Gains from Investments
Interest income and realized gains from investments, on aggregate, were
Other Income, net
Other income, net was
Net Income/(Loss)
Net income was
Non-GAAP net income was
Cash Flow
Net operating cash outflow in the first quarter of 2025 was
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were
Non-GAAP basic and diluted net income per ADS were
Share Outstanding
As of March 31, 2025, the Company had 165,106,308 ordinary shares outstanding.
Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments
As of March 31, 2025, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments of
Share Repurchase
In November 2022, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to
As of May 14, 2025, the Company had cumulatively repurchased approximately 22.3 million ADSs for approximately
In May 2025, the Company's board of directors authorized a new share repurchase program under which the Company may repurchase up to an aggregate value of
Business Outlook
Based on the Company's current estimates, total net revenues for the second quarter of 2025 are expected to be between
Conference Call
The Company will hold an earnings conference call at 8:00 AM
International: 1-412-317-6061
Mainland
Passcode: 7885398
A telephone replay will be available two hours after the conclusion of the conference call through May 22, 2025. The dial-in details are:
International: 1-412-317-0088
Passcode: 5203831
Additionally, a live and archived webcast of this conference call will be available at https://ir.gaotu.cn/home.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About Gaotu Techedu Inc.
Gaotu is a leading technology-driven education company in
About Non-GAAP Financial Measures
The Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss), each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.
The Company defines gross billings for a specific period 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. The Company's management uses gross billings as a performance measurement because the Company generally bills its students for the entire course fee at the time of sale of its course offerings and recognizes revenue proportionally as the classes are delivered. For some courses, the Company continues to provide students with 12 months to 36 months access to the pre-recorded audio-video courses after the online live courses are delivered. The Company believes that gross billings provides valuable insight into the sales of its course packages and the performance of its business. As gross billings have material limitations as an analytical metrics and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.
Non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Exchange Rate
The Company's business is primarily conducted in
For further information, please contact:
Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn
Piacente Financial Communications
Brandi Piacente
Tel: +1 212 481-2050
Jenny Cai
Tel: +86 10 6508-0677
E-mail: Gaotu@tpg-ir.com
Gaotu Techedu Inc. | |||||||||||
Unaudited condensed consolidated balance sheets | |||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) | |||||||||||
As of December 31, | As of March 31, | ||||||||||
2024 | 2025 | 2025 | |||||||||
RMB | RMB | USD | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | 1,321,118 | 1,015,595 | 139,953 | ||||||||
Restricted cash | 5,222 | 16,407 | 2,261 | ||||||||
Short-term investments | 1,845,242 | 1,419,553 | 195,620 | ||||||||
Inventory, net | 36,401 | 31,254 | 4,307 | ||||||||
Prepaid expenses and other current assets, net | 431,829 | 440,708 | 60,732 | ||||||||
Total current assets | 3,639,812 | 2,923,517 | 402,873 | ||||||||
Non-current assets | |||||||||||
Operating lease right-of-use assets | 503,601 | 491,998 | 67,799 | ||||||||
Property, equipment and software, net | 670,237 | 683,354 | 94,169 | ||||||||
Land use rights, net | 25,762 | 25,561 | 3,522 | ||||||||
Long-term investments | 922,740 | 995,887 | 137,237 | ||||||||
Rental deposit | 45,834 | 47,236 | 6,509 | ||||||||
Other non-current assets | 20,091 | 19,339 | 2,665 | ||||||||
TOTAL ASSETS | 5,828,077 | 5,186,892 | 714,774 | ||||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Accrued expenses and other current liabilities | 1,245,207 | 1,257,692 | 173,314 | ||||||||
Deferred revenue, current portion of the | 1,867,096 | 1,231,456 | 169,699 | ||||||||
Operating lease liabilities, current portion | 147,635 | 151,422 | 20,867 | ||||||||
Income tax payable (including income tax | 665 | 106 | 15 | ||||||||
Total current liabilities | 3,260,603 | 2,640,676 | 363,895 | ||||||||
Gaotu Techedu Inc. | |||||||||||
Unaudited condensed consolidated balance sheets | |||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) | |||||||||||
As of December 31, | As of March 31, | ||||||||||
2024 | 2025 | 2025 | |||||||||
RMB | RMB | USD | |||||||||
Non-current liabilities | |||||||||||
Deferred revenue, non-current portion of | 218,797 | 213,511 | 29,423 | ||||||||
Operating lease liabilities, non-current | 344,609 | 328,245 | 45,233 | ||||||||
Deferred tax liabilities (including deferred | 70,604 | 69,930 | 9,637 | ||||||||
TOTAL LIABILITIES | 3,894,613 | 3,252,362 | 448,188 | ||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Ordinary shares | 116 | 116 | 16 | ||||||||
Treasury stock, at cost | (242,866) | (329,034) | (45,342) | ||||||||
Additional paid-in capital | 7,991,421 | 7,959,114 | 1,096,795 | ||||||||
Accumulated other comprehensive loss | (2,832) | (7,282) | (1,003) | ||||||||
Statutory reserve | 66,042 | 66,042 | 9,101 | ||||||||
Accumulated deficit | (5,878,417) | (5,754,426) | (792,981) | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 1,933,464 | 1,934,530 | 266,586 | ||||||||
TOTAL LIABILITIES AND TOTAL | 5,828,077 | 5,186,892 | 714,774 | ||||||||
Gaotu Techedu Inc. | |||||||||||
Unaudited condensed consolidated statements of operations | |||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) | |||||||||||
For the three months ended March 31, | |||||||||||
2024 | 2025 | 2025 | |||||||||
RMB | RMB | USD | |||||||||
Net revenues | 946,885 | 1,493,043 | 205,747 | ||||||||
Cost of revenues | (271,414) | (452,461) | (62,351) | ||||||||
Gross profit | 675,471 | 1,040,582 | 143,396 | ||||||||
Operating expenses: | |||||||||||
Selling expenses | (506,381) | (709,421) | (97,761) | ||||||||
Research and development expenses | (151,607) | (150,455) | (20,733) | ||||||||
General and administrative expenses | (95,185) | (145,933) | (20,110) | ||||||||
Total operating expenses | (753,173) | (1,005,809) | (138,604) | ||||||||
(Loss)/income from operations | (77,702) | 34,773 | 4,792 | ||||||||
Interest income | 18,673 | 13,041 | 1,797 | ||||||||
Realized gains from investments | 6,552 | 4,038 | 556 | ||||||||
Other income, net | 43,697 | 71,580 | 9,864 | ||||||||
(Loss)/income before provision for income tax and share of | (8,780) | 123,432 | 17,009 | ||||||||
Income tax (expenses)/benefits | (3,517) | 559 | 77 | ||||||||
Net (loss)/income | (12,297) | 123,991 | 17,086 | ||||||||
Net (loss)/income attributable to Gaotu Techedu Inc.'s | (12,297) | 123,991 | 17,086 | ||||||||
Net (loss)/income per ordinary share | |||||||||||
Basic | (0.07) | 0.74 | 0.10 | ||||||||
Diluted | (0.07) | 0.73 | 0.10 | ||||||||
Net (loss)/income per ADS | |||||||||||
Basic | (0.05) | 0.50 | 0.07 | ||||||||
Diluted | (0.05) | 0.49 | 0.07 | ||||||||
Weighted average shares used in net (loss)/income per | |||||||||||
Basic | 172,329,184 | 166,745,668 | 166,745,668 | ||||||||
Diluted | 172,329,184 | 169,581,622 | 169,581,622 | ||||||||
Note: Three ADSs represent two ordinary shares. | |||||||||||
Gaotu Techedu Inc. | |||||||||||
Reconciliations of non-GAAP measures to the most comparable GAAP measures | |||||||||||
(In thousands of RMB and USD, except for share, per share and per ADS data) | |||||||||||
For the three months ended March 31, | |||||||||||
2024 | 2025 | 2025 | |||||||||
RMB | RMB | USD | |||||||||
Net revenues | 946,885 | 1,493,043 | 205,747 | ||||||||
Less: other revenues(1) | 27,267 | 14,824 | 2,043 | ||||||||
Add: VAT and surcharges | 57,407 | 93,376 | 12,868 | ||||||||
Add: ending deferred revenue | 1,003,314 | 1,444,967 | 199,122 | ||||||||
Add: ending refund liability | 53,799 | 86,025 | 11,855 | ||||||||
Less: beginning deferred revenue | 1,237,621 | 2,085,893 | 287,444 | ||||||||
Less: beginning refund liability | 67,157 | 127,969 | 17,635 | ||||||||
Gross billings | 729,360 | 888,725 | 122,470 | ||||||||
Note (1): Include miscellaneous revenues generated from services other than courses. | |||||||||||
For the three months ended March 31, | |||||||||||
2024 | 2025 | 2025 | |||||||||
RMB | RMB | USD | |||||||||
Gross profit | 675,471 | 1,040,582 | 143,396 | ||||||||
Share-based compensation expenses(1) in cost of revenues | 2,321 | 2,110 | 291 | ||||||||
Non-GAAP gross profit | 677,792 | 1,042,692 | 143,687 | ||||||||
(Loss)/income from operations | (77,702) | 34,773 | 4,792 | ||||||||
Share-based compensation expenses(1) | 15,336 | 13,348 | 1,839 | ||||||||
Non-GAAP (loss)/income from operations | (62,366) | 48,121 | 6,631 | ||||||||
Net (loss)/income | (12,297) | 123,991 | 17,086 | ||||||||
Share-based compensation expenses(1) | 15,336 | 13,348 | 1,839 | ||||||||
Non-GAAP net income | 3,039 | 137,339 | 18,925 | ||||||||
Note (1): The tax effects of share-based compensation expenses adjustments were nil. | |||||||||||
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SOURCE Gaotu Techedu Inc.
FAQ
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