TAL Education Group Announces Unaudited Financial Results for the Second Fiscal Quarter Ended August 31, 2024 and Issues Notice of Annual General Meeting

Rhea-AI Summary

TAL Education Group reported strong financial results for Q2 FY2025. Net revenues increased 50.4% year-over-year to US$619.4 million. Income from operations rose 49.8% to US$47.6 million. Net income attributable to TAL grew 51.5% to US$57.4 million. The company maintained a strong balance sheet with US$3,454.3 million in cash and short-term investments as of August 31, 2024. AI learning devices emerged as one of the faster-growing business lines. The company plans to prudently manage its learning center network while focusing on providing quality learning experiences both online and offline.

Positive

• Revenue growth of 50.4% YoY to US$619.4 million
• Income from operations increased 49.8% to US$47.6 million
• Net income grew 51.5% to US$57.4 million
• Strong cash position of US$3,454.3 million
• Deferred revenue increased to US$517.6 million from US$428.3 million

Negative

• Operating costs and expenses increased 49.5% to US$572.0 million
• Share repurchase program showing activity with only US$13.1 million used
• Income tax expense increased to US$25.6 million from tax benefit of US$10.0 million in prior year

Insights

Financial Analyst

TAL Education has demonstrated remarkable financial performance in Q2 FY2025, with $619.4M in net revenues, marking a substantial 50.4% YoY growth. The company's strategic pivot to AI learning devices is proving successful, contributing significantly to revenue expansion. Operating income increased by 49.8% to $47.6M, showing improved operational efficiency.

Key financial metrics show robust health: strong cash position of $3.45B, increased deferred revenue of $517.6M (up from $428.3M) and positive operating cash flow of $246.2M for H1. The company's transformation post-regulatory changes appears successful, with AI-powered devices leading growth while maintaining disciplined learning center expansion.

Despite higher operating costs, margins remain healthy and the $503.8M share buyback authorization through April 2025 signals management's confidence in future performance.

Tech Industry Analyst

TAL's strategic emphasis on AI learning devices represents a significant technological pivot in China's education sector. The company is effectively leveraging AI technology to create new revenue streams while adapting to regulatory constraints on traditional tutoring services. This hybrid approach, combining AI-powered devices with both online and offline learning services, positions TAL at the forefront of educational technology innovation.

The increased focus on AI learning devices indicates a shift toward scalable, technology-driven solutions that can reach a broader student base while potentially reducing operational costs long-term. This strategy aligns with broader industry trends toward personalized, AI-enhanced learning experiences and could provide sustainable competitive advantages in the evolving EdTech landscape.

BEIJING, Oct. 24, 2024 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the second quarter of fiscal year 2025 ended August 31, 2024 and issued notice of Annual General Meeting.

Highlights for the Second Quarter of Fiscal Year 2025

• Net revenues were US$619.4 million, compared to net revenues of US$411.9 million in the same period of the prior year.
• Income from operations was US$47.6 million, compared to income from operations of US$31.8 million in the same period of the prior year.
• Non-GAAP income from operations, which excluded share-based compensation expenses, was US$64.5 million, compared to non-GAAP income from operations of US$52.7 million in the same period of the prior year.
• Net income attributable to TAL was US$57.4 million, compared to net income attributable to TAL of US$37.9 million in the same period of the prior year.
• Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$74.3 million, compared to non-GAAP net income attributable to TAL of US$58.8 million in the same period of the prior year.
• Basic and diluted net income per American Depositary Share ("ADS") were both US$0.09. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.12. Three ADSs represent one Class A common share.
• Cash, cash equivalents and short-term investments totaled US$3,454.3 million as of August 31, 2024, compared to US$3,303.3 million as of February 29, 2024.

Highlights for the Six Months Ended August 31, 2024

• Net revenues were US$1,033.5 million, compared to net revenues of US$687.4 million in the same period of the prior year.
• Income from operations was US$30.3 million, compared to loss from operations of US$26.0 million in the same period of the prior year.
• Non-GAAP income from operations, which excluded share-based compensation expenses, was US$65.4 million, compared to non-GAAP income from operations of US$20.4 million in the same period of the prior year.
• Net income attributable to TAL was US$68.8 million, compared to net loss attributable to TAL of US$7.1 million in the same period of the prior year.
• Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$103.9 million, compared to non-GAAP net income attributable to TAL of US$39.3 million in the same period of the prior year.
• Basic and diluted net income per ADS were both US$0.11. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.17.

Financial Data——Second Quarter and First Six Months of Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)

	Three Months Ended
	August 31,
	2023		2024		Pct. Change
Net revenues	411,931		619,361		50.4 %
Income from operations	31,790		47,622		49.8 %
Non-GAAP income from operations	52,673		64,520		22.5 %
Net income attributable to TAL	37,902		57,431		51.5 %
Non-GAAP net income attributable to TAL	58,785		74,329		26.4 %
Net income per ADS attributable to TAL – basic	0.06		0.09		50.6 %
Net income per ADS attributable to TAL – diluted	0.06		0.09		50.7 %
Non-GAAP net income per ADS attributable to TAL – basic	0.10		0.12		25.7 %
Non-GAAP net income per ADS attributable to TAL – diluted	0.10		0.12		25.8 %

 

	Six Months Ended
	August 31,
	2023		2024		Pct. Change
Net revenues	687,371		1,033,548		50.4 %
(Loss)/Income from operations	(25,983)		30,292		(216.6 %)
Non-GAAP income from operations	20,413		65,396		220.4 %
Net (loss)/income attributable to TAL	(7,135)		68,833		(1,064.7 %)
Non-GAAP net income attributable to TAL	39,261		103,937		164.7 %
Net (loss)/income per ADS attributable to TAL – basic	(0.01)		0.11		(1,085.2 %)
Net (loss)/income per ADS attributable to TAL – diluted	(0.01)		0.11		(1,068.4 %)
Non-GAAP net income per ADS attributable to TAL – basic	0.06		0.17		170.3 %
Non-GAAP net income per ADS attributable to TAL – diluted	0.06		0.17		169.9 %

 

"In this quarter we achieved year-on-year revenue growth of 50.4%. AI learning device was one of the faster growing business lines. We are excited about the opportunity to provide for our customers more accessibility to quality learning contents through these AI-power devices," said Alex Peng, TAL's President & Chief Financial Officer.

Mr. Peng added: "As for learning services, we will prudently manage our learning center network, balancing operating efficiency and growth rate. Our primary objective for learning service is to offer quality learning experience to our learners both online and offline."

Financial Results for the Second Quarter of Fiscal Year 2025

Net Revenues

In the second quarter of fiscal year 2025, TAL reported net revenues of US$619.4 million, representing a 50.4% increase from US$411.9 million in the second quarter of fiscal year 2024.

Operating Costs and Expenses

In the second quarter of fiscal year 2025, operating costs and expenses were US$572.0 million, representing a 49.5% increase from US$382.8 million in the second quarter of fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$555.1 million, representing a 53.4% increase from US$361.9 million in the second quarter of fiscal year 2024.

Cost of revenues increased by 59.8% to US$270.6 million from US$169.4 million in the second quarter of fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 60.7% to US$268.8 million, from US$167.3 million in the second quarter of fiscal year 2024.

Selling and marketing expenses increased by 56.4% to US$181.9 million from US$116.3 million in the second quarter of fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 61.6% to US$177.9 million, from US$110.1 million in the second quarter of fiscal year 2024.

General and administrative expenses increased by 23.1% to US$119.5 million from US$97.1 million in the second quarter of fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 28.3% to US$108.3 million, from US$84.4 million in the second quarter of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 19.1% to US$16.9 million in the second quarter of fiscal year 2025 from US$20.9 million in the same period of fiscal year 2024.

Gross Profit                                                                                                                                 

Gross profit increased by 43.8% to US$348.7 million from US$242.5 million in the second quarter of fiscal year 2024.

Income/(Loss) from Operations

Income from operations was US$47.6 million in the second quarter of fiscal year 2025, compared to income from operations of US$31.8 million in the second quarter of fiscal year 2024. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$64.5 million, compared to Non-GAAP income from operations of US$52.7 million in the same period of the prior year.

Other Income/(Expense)

Other income was US$20.5 million for the second quarter of fiscal year 2025, compared to other income of US$5.0 million in the second quarter of fiscal year 2024.

Impairment Loss on Long-term Investments

Impairment loss on Long-term investment was US$4.9 million for the second quarter of fiscal year 2025, compared to US$30.8 million for the same period of fiscal year 2024.

Income Tax Benefit/(Expense)

Income tax expense was US$25.6 million in the second quarter of fiscal year 2025, compared to US$10.0 million of income tax benefit in the second quarter of fiscal year 2024.

Net Income/(Loss) attributable to TAL Education Group

Net income attributable to TAL was US$57.4 million in the second quarter of fiscal year 2025, compared to net income attributable to TAL of US$37.9 million in the second quarter of fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$74.3 million, compared to Non-GAAP net income attributable to TAL of US$58.8 million in the second quarter of fiscal year 2024.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net income per ADS were both US$0.09 in the second quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.12 in the second quarter of fiscal year 2025.

Cash Flow 

Net cash used in operating activities for the second quarter of fiscal year 2025 was US$0.6 million.

Cash, Cash Equivalents, and Short-Term Investments

As of August 31, 2024, the Company had US$2,085.9 million of cash and cash equivalents and US$1,368.4 million of short-term investments, compared to US$2,208.7 million of cash and cash equivalents and US$1,094.6 million of short-term investments as of February 29, 2024.

Deferred Revenue

As of August 31, 2024, the Company's deferred revenue balance was US$517.6 million, compared to US$428.3 million as of February 29, 2024.

Financial Results for the First Six Months of Fiscal Year 2025

Net Revenues

For the first six months of fiscal year 2025, TAL reported net revenues of US$1,033.5 million, representing a 50.4% increase from US$687.4 million in the first six months of fiscal year 2024.

Operating Costs and Expenses

In the first six months of fiscal year 2025, operating costs and expenses were US$1,004.1 million, representing a 38.5% increase from US$724.8 million in the first six months of fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$969.0 million, representing a 42.8% increase from US$678.5 million in the first six months of fiscal year 2024.

Cost of revenues increased by 52.4% to US$470.6 million from US$308.9 million in the first six months of fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 53.2% to US$466.5 million from US$304.4 million in the first six months of fiscal year 2024 .

Selling and marketing expenses increased by 42.3% to US$304.3 million from US$213.9 million in the first six months of fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 47.7% to US$296.0 million from US$200.4 million in the first six months of fiscal year 2024.

General and administrative expenses increased by 13.4% to US$229.2 million from US$202.0 million in the first six months of fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 18.9% to US$206.6 million from US$173.7 million in the first six months of fiscal year 2024.

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 24.3% to US$35.1 million in the first six months of fiscal year 2025 from US$46.4 million in the same period of fiscal year 2024.

Gross Profit

Gross profit increased by 48.7% to US$562.9 million from US$378.5 million in the first six months of fiscal year 2024.

Income/(Loss) from Operations

Income from operations was US$30.3 million in the first six months of fiscal year 2025, compared to loss from operations of US$26.0 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$65.4 million, compared to US$20.4 million Non-GAAP income from operations in the same period of the prior year.

Other Income/(Expense)

Other income was US$33.6 million for the first six months of fiscal year 2025, compared to other expense of US$1.8 million in the same period of the prior year.

Impairment Loss on Long-term Investments

Impairment loss on long-term investments was US$8.7 million for the first six months of fiscal year 2025, compared to US$30.8 million for the first six months of fiscal year 2024.

Income Tax Benefit/(Expense)

Income tax expense was US$27.9 million in the first six months of fiscal year 2025, compared to US$6.5 million of income tax benefit in the first six months of fiscal year 2024.

Net Income/(Loss) Attributable to TAL Education Group

Net income attributable to TAL was US$68.8 million in the first six months of fiscal year 2025, compared to net loss attributable to TAL of US$7.1 million in the first six months of fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$103.9 million, compared to US$39.3 million Non-GAAP income attributable to TAL in the same period of the prior year.

Cash Flow 

Net cash provided by operating activities for the first six months of fiscal year 2025 was US$246.2 million.

Basic and Diluted Net Income/(Loss) per ADS

Basic and diluted net income per ADS were both US$0.11 in the first six months of fiscal year 2025. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.17 in the first six months of fiscal year 2025.

Share Repurchase

In April 2024, the Company's board of directors authorized to extend its share repurchase program launched in April 2021 by 12 months. Pursuant to the extended share repurchase program, the Company may repurchase up to approximately US$503.8 million of its common shares through April 30, 2025. As of August 31, 2024, the Company has repurchased 499,933 common shares at an aggregate consideration of approximately US$13.1 million under the share repurchase program.

TAL to Hold Annual General Meeting on November 15, 2024

The Company announced that it will hold its annual general meeting of shareholders (the "AGM") at TAL Building No.1, Courtyard No. 9, Qixin Middle Street, Changping District, Beijing, China, on November 15, 2024 at 3:00PM (Beijing time). No proposal will be submitted to shareholders for approval at the AGM. Instead, the AGM will serve as an open forum for shareholders and beneficial owners of the Company's ADSs to discuss Company's affairs with management.

The board of directors of the Company has fixed the close of business on November 4, 2024 (Eastern Standard Time) as the record date (the "Record Date"). Holders of record of the Company's common shares at the close of business on the Record Date are entitled to notice of the AGM and any adjournment or postponement thereof. Beneficial owners of the Company's ADSs are welcome to attend the AGM in person.

The notice of the AGM is available on the Investor Relations section of the Company's website at https://ir.100tal.com/. The Company has filed its annual report on Form 20-F (the "Annual Report"), which includes the Company's audited financial statements for the fiscal year ended February 29, 2024, with the U.S. Securities and Exchange Commission (the "SEC"). The Company's Annual Report can be accessed on the Investor Relations section of its website at https://ir.100tal.com, as well as on the SEC's website at http://www.sec.gov.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the second fiscal quarter of fiscal year 2025 ended August 31, 2024 at 8:00 a.m. Eastern Time on October 24, 2024 (8:00 p.m. Beijing time on October 24, 2024).

Please note that you will need to pre-register for conference call participation at
https://register.vevent.com/register/BIb77ca114970c4bd1bfe7d1770af84eac.

Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

About TAL Education Group

TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

About Non-GAAP Financial Measures

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation 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.

TAL 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. TAL 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 TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. 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. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

For further information, please contact:

Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
	As of February 29, 2024			As of August 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$ 2,208,756			$ 2,085,891
Restricted cash-current	167,656			251,072
Short-term investments	1,094,593			1,368,446
Inventory	68,328			82,372
Amounts due from related parties-current	343			394
Prepaid expenses and other current assets	159,498			167,538
Total current assets	3,699,174			3,955,713
Restricted cash-non-current	81,064			43,991
Property and equipment, net	405,319			463,595
Deferred tax assets	4,620			4,061
Rental deposits	16,947			20,406
Intangible assets, net	1,988			1,848
Land use rights, net	189,049			189,763
Amounts due from related parties-non-current	59			60
Long-term investments	284,266			299,330
Long-term prepayments and other non-current assets	14,359			25,585
Operating lease right-of-use assets	231,104			336,573
Total assets	$ 4,927,949			$ 5,340,925
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$ 127,321			$ 167,317
Deferred revenue-current	400,286			485,391
Amounts due to related parties-current	96			111
Accrued expenses and other current liabilities	491,911			555,292
Short-term debt	-			6,347
Operating lease liabilities, current portion	62,604			79,584
Total current liabilities	1,082,218			1,294,042
Deferred revenue-non-current	27,993			32,171
Deferred tax liabilities	2,360			3,662
Operating lease liabilities, non-current portion	176,614			262,357
Total liabilities	1,289,185			1,592,232
Equity
Class A common shares	152			153
Class B common shares	49			49
Additional paid-in capital	4,256,957			4,264,582
Statutory reserve	165,138			164,490
Accumulated deficit	(694,270)			(624,789)
Accumulated other comprehensive loss	(65,928)			(46,630)
Total TAL Education Group's equity	3,662,098			3,757,855
Noncontrolling interests	(23,334)			(9,162)
Total equity	3,638,764			3,748,693
Total liabilities and equity	$ 4,927,949			$ 5,340,925

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
	For the Three Months Ended  August 31,				For the Six Months Ended August 31,
	2023		2024		2023		2024
Net revenues	$ 411,931		$ 619,361		$ 687,371		$ 1,033,548
Cost of revenues (note 1)	169,382		270,632		308,895		470,640
Gross profit	242,549		348,729		378,476		562,908
Operating expenses (note 1)
Selling and marketing	116,268		181,900		213,925		304,328
General and administrative	97,106		119,499		202,029		229,181
Total operating expenses	213,374		301,399		415,954		533,509
Government subsidies	2,615		292		11,495		893
Income/(loss) from operations	31,790		47,622		(25,983)		30,292
Interest income, net	20,976		20,397		43,957		42,919
Other income/(expense)	5,032		20,466		(1,813)		33,617
Impairment loss on long-term     investments	(30,761)		(4,925)		(30,761)		(8,692)
Income/(loss) before income tax     benefit/(expense) and     income/(loss) from equity     method investments	27,037		83,560		(14,600)		98,136
Income tax benefit/(expense)	10,018		(25,635)		6,499		(27,930)
Income/(loss) from equity method     investments	779		(587)		708		(1,572)
Net income/(loss)	37,834		57,338		(7,393)		68,634
Add: Net loss attributable to     noncontrolling interests	68		93		258		199
Total net income/(loss)     attributable to TAL       Education Group	$ 37,902		$ 57,431		$ (7,135)		$ 68,833
Net income/(loss) per common     share
Basic	$ 0.19		$ 0.28		$ (0.03)		$ 0.34
Diluted	0.19		0.28		(0.03)		0.34
Net income/(loss) per ADS (note 2)
Basic	$ 0.06		$ 0.09		$ (0.01)		$ 0.11
Diluted	0.06		0.09		(0.01)		0.11
Weighted average shares used in     calculating net income/(loss)     per common share
Basic	200,565,383		201,768,916		205,942,678		201,668,024
Diluted	203,859,192		204,949,839		205,942,678		205,166,141
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows:
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2023		2024		2023		2024
Cost of revenues	$ 2,081		$ 1,793		$ 4,490		$ 4,155
Selling and marketing expenses	6,134		3,953		13,562		8,328
General and administrative expenses	12,668		11,152		28,344		22,621
Total	$ 20,883		$ 16,898		$ 46,396		$ 35,104
Note 2: Three ADSs represent one Class A common Share.

 

 

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME/(LOSS)
(In thousands of U.S. dollars)
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2023		2024		2023		2024
Net income/(loss)	$ 37,834		$ 57,338		$ (7,393)		$ 68,634
Other comprehensive     (loss)/income, net of tax	(20,782)		24,744		(44,595)		17,164
Comprehensive income/(loss)	17,052		82,082		(51,988)		85,798
Add: Comprehensive     (income)/loss attributable to      noncontrolling interests	(452)		2,378		(913)		2,333
Comprehensive income/(loss)     attributable to TAL       Education Group	$ 16,600		$ 84,460		$ (52,901)		$ 88,131

 

 

 

TAL EDUCATION GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands of U.S. dollars)
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2023		2024		2023		2024
Net cash (used in)/provided by     operating activities	$ (42,721)		$ (576)		$ 82,795		$ 246,217
Net cash provided by/(used in)     investing activities	181,887		(193,669)		342,802		(318,304)
Net cash used in financing     activities	(82,271)		(6,799)		(233,508)		(6,794)
Effect of exchange rate     changes	(5,406)		3,576		(9,916)		2,359
Net increase/(decrease) in     cash, cash equivalents and     restricted cash	51,489		(197,468)		182,173		(76,522)
Cash, cash equivalents and     restricted cash at the     beginning of period	$ 2,425,591		$ 2,578,422		$ 2,294,907		$ 2,457,476
Cash, cash equivalents and     restricted cash at the end     of period	$ 2,477,080		$ 2,380,954		$ 2,477,080		$ 2,380,954

 

 

 

TAL EDUCATION GROUP
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)
	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2023		2024		2023		2024
Cost of revenues	$ 169,382		$270,632		$ 308,895		$ 470,640
Share-based compensation expense     in cost of revenues	2,081		1,793		4,490		4,155
Non-GAAP cost of revenues	167,301		268,839		304,405		466,485
Selling and marketing expenses	116,268		181,900		213,925		304,328
Share-based compensation expense     in selling and marketing expenses	6,134		3,953		13,562		8,328
Non-GAAP selling and marketing expenses	110,134		177,947		200,363		296,000
General and administrative expenses	97,106		119,499		202,029		229,181
Share-based compensation expense in general and administrative expenses	12,668		11,152		28,344		22,621
Non-GAAP general and administrative expenses	84,438		108,347		173,685		206,560
Operating costs and expenses	382,756		572,031		724,849		1,004,149
Share-based compensation expense     in operating costs and expenses	20,883		16,898		46,396		35,104
Non-GAAP operating costs and expenses	361,873		555,133		678,453		969,045
Income/(loss) from operations	31,790		47,622		(25,983)		30,292
Share based compensation expenses	20,883		16,898		46,396		35,104
Non-GAAP income from operations (note 3)	52,673		64,520		20,413		65,396
Net income/(loss) attributable to TAL Education Group	37,902		57,431		(7,135)		68,833
Share based compensation expenses	20,883		16,898		46,396		35,104
Non-GAAP net income attributable to TAL Education Group (note 3)	$ 58,785		$74,329		$ 39,261		$ 103,937
Net income/(loss) per ADS
Basic	$ 0.06		$ 0.09		$ (0.01)		$ 0.11
Diluted	0.06		0.09		(0.01)		0.11
Non-GAAP Net income per ADS
Basic	$ 0.10		$ 0.12		$ 0.06		$ 0.17
Diluted	0.10		0.12		0.06		0.17
ADSs used in calculating net income/(loss) per ADS
Basic	601,696,149		605,306,748		617,828,034		605,004,072
Diluted	611,577,576		614,849,517		617,828,034		615,498,423
ADSs used in calculating Non- GAAP net income per ADS
Basic	601,696,149		605,306,748		617,828,034		605,004,072
Diluted	611,577,576		614,849,517		627,500,331		615,498,423
Note 3: The tax effect of share-based compensation expenses was immaterial in the second quarter and in the first six months of fiscal year 2025.

 

 

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SOURCE TAL Education Group

FAQ

What was TAL Education Group's revenue for Q2 FY2025?

TAL Education Group reported net revenues of US$619.4 million for Q2 FY2025, representing a 50.4% increase from US$411.9 million in Q2 FY2024.

How much cash does TAL have as of August 31, 2024?

TAL had US$3,454.3 million in total cash, cash equivalents, and short-term investments as of August 31, 2024.

What was TAL's net income for Q2 FY2025?

TAL's net income was US$57.4 million in Q2 FY2025, compared to US$37.9 million in Q2 FY2024, showing a 51.5% increase.

When will TAL hold its Annual General Meeting?

TAL will hold its Annual General Meeting on November 15, 2024, at 3:00 PM Beijing time at TAL Building in Beijing, China.