17 Education & Technology Group Inc Stock Price, News & Analysis

17 Education & Technology Group Inc. (Nasdaq: YQ) announced on August 25, 2021, that the Shanghai local government implemented new regulations to reduce the burden of homework and after-school tutoring on students. The 'Shanghai Measures' restrict homework assignments for younger grades and impose strict guidelines on after-school tutoring services, including prohibiting classes during holidays and limiting session lengths. Compliance will significantly impact the company’s operations and financial conditions, as it has already halted weekend and holiday academic tutoring services.

17 Education & Technology Group Inc. (Nasdaq: YQ) announced compliance measures following China's new regulatory Opinion aimed at alleviating the burden of homework and after-school tutoring. The Opinion mandates that after-school tutoring institutions must register as non-profit and prohibits foreign ownership among other restrictions. The Company anticipates a material adverse impact on operations due to these changes and is committed to cooperating with government authorities to achieve compliance.

17 Education & Technology Group Inc. (NASDAQ: YQ) announced that the PRC regulators are reviewing new regulations regarding after-school tutoring for subjects taught in China's compulsory education system. These regulations are not yet published, and the company has not received official notification. 17EdTech, a leading education technology company in China, utilizes an integrated model to provide K-12 solutions and online tutoring services, covering over 70,000 schools in 2020. The company refrains from commenting on market speculations.

17 Education & Technology Group (NASDAQ: YQ) reported Q1 2021 net revenues of RMB474.2 million ($72.4 million), a 107.1% increase year-over-year, surpassing guidance by RMB4.2 million. Online K-12 tutoring revenue was RMB463.0 million ($70.7 million), up 118.0% YoY. Despite growth, the company recorded a net loss of RMB659.7 million ($100.7 million), widening from RMB224.2 million in Q1 2020. Gross margin fell to 60.4% from 64.1%. Adjusted net loss was RMB588.8 million ($89.9 million), reflecting negative 124.2% of net revenues. Q2 2021 revenue guidance is RMB640.0 to 660.0 million, indicating strong growth expectations.

17 Education & Technology Group Inc. (NASDAQ: YQ) will release its Q1 2021 unaudited financial results on May 24, 2021, post U.S. market closure. An earnings conference call is scheduled for the same day at 9:00 p.m. ET, with preregistration required for participation. The company, a leader in education technology in China, operates with an ‘in-school + after-school’ model, serving over 70,000 K-12 schools. More details about the company’s operations and their integrated educational solutions are available on their official website.

17 Education & Technology Group Inc. (NASDAQ: YQ) announced the filing of its annual report on Form 20-F with the SEC for the fiscal year ended December 31, 2020, on April 9, 2021. This report includes audited financial statements and can be accessed on the company's investor relations website. Additionally, shareholders can request a hard copy of the annual report at no cost. 17EdTech operates an innovative education model, providing personalized online K-12 large-class after-school tutoring and in-school classroom solutions across over 70,000 K-12 schools in China as of 2020.

17 Education & Technology Group Inc. (NASDAQ: YQ) reported substantial growth in its fourth quarter and fiscal year of 2020. Net revenues increased by 153.1% year-over-year, totaling RMB486.8 million (US$74.6 million), primarily driven by online K-12 tutoring services, which surged by 163.5% to RMB467.5 million (US$71.6 million). However, the company recorded a net loss of RMB365.1 million (US$55.9 million). For FY 2020, revenues reached RMB1.29 billion, a 218.6% increase. The company forecasts first-quarter 2021 revenues between RMB458 million and RMB470 million, reflecting strong growth expectations.

17 Education & Technology Group Inc. (NASDAQ: YQ) will report its unaudited financial results for Q4 and FY 2020 on March 8, 2021, after U.S. market close. A conference call will follow at 8:00 p.m. ET that day. Participants must preregister to obtain dial-in details. The company offers integrated educational solutions in China, covering over 70,000 K-12 schools, combining in-school and after-school tutoring services, which leverage technology for personalized learning.

17 Education & Technology Group (NASDAQ: YQ) has priced its IPO at $10.50 per ADS, offering 27.4 million ADSs, which represent 5 class A ordinary shares each. The offering aims to raise approximately $287.7 million, potentially increasing to $330.9 million if the underwriters fully exercise their over-allotment option. The IPO will commence trading on December 4, 2020, with the closing expected on December 8, 2020. Morgan Stanley, Goldman Sachs, and BofA Securities are the joint bookrunners for the offering.