BEIJING, Nov. 22,
2022 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU)
("Gaotu" or the "Company"), a technology-driven education company
and online large-class tutoring service provider in China, today announced its unaudited financial
results for the third quarter ended September 30, 2022.
Third Quarter 2022 Highlights[1]
- Net revenues were RMB606.2
million, compared with net revenues of RMB1,114.9 million in the same period of
2021.
- Gross billings[2] were RMB607.0 million, compared with gross billings of
RMB301.6 million in the same period
of 2021.
- Net loss was RMB61.4
million, compared with net loss of RMB1,044.6 million in the same period of
2021.
- Non-GAAP net loss was RMB44.8
million, compared with non-GAAP net loss of RMB989.3 million in the same period of 2021.
Third Quarter 2022 Key Financial and Operating
Data
(In thousands of RMB, except for percentages)
|
For the three months
ended September 30,
|
|
2021
|
|
|
2022
|
|
|
Pct. Change
|
Net revenues
|
|
1,114,883
|
|
|
|
606,169
|
|
|
(45.6) %
|
Gross
billings
|
|
301,632
|
|
|
|
607,042
|
|
|
101.3 %
|
Net loss
|
|
(1,044,613)
|
|
|
|
(61,350)
|
|
|
(94.1) %
|
Non-GAAP net
loss
|
|
(989,283)
|
|
|
|
(44,754)
|
|
|
(95.5) %
|
Nine Months Ended September 30,
2022 Highlights
- Net revenues were RMB1,868.6
million, compared with net revenues of RMB5,287.5 million in the same period of
2021.
- Gross billings were RMB1,536.8
million, compared with gross billings of RMB4,177.7 million in the same period of
2021.
- Net loss was RMB57.4
million, compared with net loss of RMB3,389.3 million in the same period of
2021.
- Non-GAAP net income was RMB48.4
million, compared with non-GAAP net loss of RMB3,082.6 million in the same period of
2021.
[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 gross profit, non-GAAP income (loss) from operations,
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.
|
First Nine Months 2022 Key Financial and Operating
Data
(In thousands of RMB, except for percentages)
|
For the nine months
ended September 30,
|
|
2021
|
|
|
2022
|
|
|
Pct. Change
|
Net revenues
|
|
5,287,480
|
|
|
|
1,868,583
|
|
|
(64.7) %
|
Gross
billings
|
|
4,177,706
|
|
|
|
1,536,805
|
|
|
(63.2) %
|
Net loss
|
|
(3,389,323)
|
|
|
|
(57,441)
|
|
|
(98.3) %
|
Non-GAAP net (loss)
income
|
|
(3,082,593)
|
|
|
|
48,434
|
|
|
NM
|
Larry Xiangdong Chen, the
Company's founder, Chairman and CEO, commented, "The
gradual and stable increase of our net revenues is solid evidence
that our new businesses are growing continuously and sustainably,
which boosts our confidence in our future, and indicates that our
organization is resilient and our operations are efficient. Guided
by the strategy of profitable growth, we expect the growth momentum
of our businesses to continue, and to see a sizable positive
net operating cashflow next quarter.
Further, to demonstrate our management's unwavering confidence
in our company's future development, our board of directors today
authorized an up to US$30 million
share repurchase program. I also intend to personally purchase up
to US$20 million of our shares. Going
forward, we will continue to stay true to our original aspiration
to educate, continue to create value for our shareholders, continue
to nurture talents for our society and continue to contribute to
the educational development of China."
Shannon Shen, CFO of the
Company, added, "As we continued to explore new businesses post
restructuring against the backdrop of external challenges and
uncertainties, we are pleased to report that our business sustained
its continuous and healthy growth as we expected, driven by our
deepening understanding of the vertical markets, relentless efforts
to improve our operational efficiency and constant investment in
teaching quality. Our net revenues in the third quarter recorded a
12.7% quarter-over-quarter increase to RMB606.2 million, and our gross billings
increased 101.3% year-over-year to RMB607.0
million. Our businesses exhibit certain seasonality, with
the third quarter's increase in gross billings largely contributed
by new customers.
Further, our capital position remains strong. As of September 30, 2022, we had a total of
approximately RMB3.3 billion in terms
of cash, cash equivalents, restricted cash, and short-term
investments on our balance sheet, providing ample resources for
continued business development."
Financial Results for the Third Quarter of 2022
Net Revenues
Net revenues decreased by 45.6% to RMB606.2 million from RMB1,114.9 million in the third quarter of 2021.
The decrease was mainly due to the organizational adjustments and
business restructuring the Company performed to comply with
government regulations, including the cessation of compulsory
education academic subject tutoring services to students ("Business
Restructuring").
Cost of Revenues
Cost of revenues decreased by 76.4% to RMB168.8 million from RMB715.2 million in the third quarter of 2021.
The decline was mainly due to the reduction of employees and
offices as a result of the Business Restructuring, which resulted
in decreases in staff related cost, rental expenses, as well as
teaching materials and bandwidth cost.
Gross Profit and Gross Margin
Gross profit was RMB437.4 million,
compared with RMB399.7 million in the
third quarter of 2021. Gross profit margin increased to 72.2% from
35.9% in the same period of 2021.
Non-GAAP gross profit was RMB439.3
million, compared with RMB436.9
million in the same period of 2021. Non-GAAP gross profit
margin increased to 72.5% from 39.2% in the same period of
2021.
Operating Expenses
Operating expenses decreased by 65.8% to RMB506.9 million from RMB1,481.1 million in the third quarter of 2021.
The decline was primarily due to the reduction of employees as a
result of the Business Restructuring, as well as the losses
incurred during the impairment assessment of long-lived assets and
disposal of assets the Company performed in the third quarter of
2021. Moreover, the expenditure on branding and marketing
activities on academic subject tutoring services also showed a
large decline as a result of the changes of regulatory
environment.
- Selling expenses decreased to RMB336.8
million from RMB826.4 million
in the third quarter of 2021.
- Research and development expenses decreased to RMB106.5 million from RMB336.3 million in the third quarter of
2021.
- General and administrative expenses decreased to RMB63.6 million from RMB164.7 million in the third quarter of
2021.
- Impairment loss on long-lived assets decreased to nil from
RMB28.6 million in the third quarter
of 2021.
- Disposal loss on assets decreased to nil from RMB125.0 million in the third quarter of
2021.
Loss from Operations
Loss from operations was RMB69.6
million, compared with loss from operations of RMB1,081.3 million in the third quarter of 2021,
which was primarily due to a large decrease in operation related
cost and expenses as a result of the Business Restructuring, as
well as no impairment loss or disposal loss on assets related to
Business Restructuring incurred in the third quarter.
Non-GAAP loss from operations was RMB53.0
million, compared with non-GAAP loss from operations of
RMB1,026.0 million in the third
quarter of 2021.
Interest Income and Realized Gains from
Investments
Interest income and realized gains from investments, on
aggregate, was RMB12.1 million,
compared with a total of RMB35.0
million in the third quarter of 2021.
Other Income (Expenses)
Other expenses were RMB3.4
million, compared with other income of RMB1.3 million in the third quarter of 2021.
Net Loss
Net loss was RMB61.4 million,
compared with net loss of RMB1,044.6
million in the third quarter of 2021.
Non-GAAP net loss was RMB44.8
million, compared with non-GAAP net loss of RMB989.3 million in the third quarter of
2021.
Cash Flow
Net operating cash outflow for the third quarter of 2022 was
RMB34.7 million. The operating cash
outflow in the third quarter was mainly due to staff compensation
and marketing expenditure paid to enhance our market share.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both RMB0.24 in the third quarter of 2022.
Non-GAAP basic and diluted net loss per ADS were both
RMB0.17 in the third quarter of
2022.
Share Outstanding
As of September 30, 2022, the
Company had 172,679,700 ordinary shares outstanding.
Cash, Cash Equivalents, Restricted Cash and Short-term
Investments
As of September 30, 2022, the
Company had cash and cash equivalents, restricted cash and
short-term investments of RMB3,342.9
million in aggregate, compared with a total of RMB3,671.1 million as of December 31, 2021.
Other Payables
As of September 30, 2022, other
payables in non-current liabilities totaled RMB26.6 million, which were payables related to
the purchase of the Zhengzhou
properties.
Share Repurchase Program
The Company's board of directors today authorized a share
repurchase program under which the Company may repurchase up to
US$30 million of its common shares,
including shares represented by American depositary shares,
effective until November 22, 2025.
Additionally, Mr. Larry Xiangdong
Chen, the Company's founder, Chairman and CEO, intends to
personally purchase up to US$20
million of the Company's shares.
The Company's proposed repurchases may be made from time to time
on the open market at prevailing market prices, in privately
negotiated transactions, in block trades and/or through other
legally permissible means, depending on market conditions and in
accordance with applicable rules and regulations. The Company's
board of directors will review the share repurchase program
periodically, and may authorize adjustment of its terms and size.
The Company plans to fund repurchases from its cash balance.
Concluded SEC Investigation
Regarding the SEC investigation that followed the publication of
various short sellers' reports about the Company in early- to mid-
2020, and which the Company previously disclosed in its 2021 Form
20-F, the SEC notified the Company, by releasing a closing letter
dated October 19, 2022, that the SEC
had concluded its investigation into the Company and that, based on
the information that the SEC had as of the date of its letter, the
SEC did not intend to recommend an enforcement action against the
Company.
Business Outlook
Based on the Company's current estimates, total net revenues for
the fourth quarter of 2022 are expected to be between RMB608 million and RMB628
million, representing a decrease of 50.7% to 52.3% on a
year-over-year basis. These estimates reflect the Company's current
expectations, which are subject to change.
Conference Call
The Company will hold an earnings conference call at
8:00 AM U.S. Eastern Time on
Tuesday, November 22, 2022 (9:00 PM
on Tuesday, November 22, 2022,
Beijing/Hong Kong Time). Dial-in
details for the earnings conference call are as follows:
International:
|
1-412-317-6061
|
United
States:
|
1-888-317-6003
|
Hong Kong:
|
800-963-976
|
Mainland
China:
|
400-120-6115
|
Passcode:
|
7874828
|
A telephone replay will be available two hours after the
conclusion of the conference call through November 29, 2022. The dial-in details are:
International:
|
1-412-317-0088
|
United
States:
|
1-877-344-7529
|
Passcode:
|
1333222
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.gaotu.cn/home.
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,
the business outlook, as well as the Company'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 attract students to enroll in its
courses; the Company's ability to continue to recruit, train and
retain qualified teachers; the Company's ability to improve the
content of its existing course offerings and to 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 the Company undertakes
no duty to update such information or any forward-looking
statement, except as required under applicable law.
About Gaotu Techedu Inc.
Gaotu is a technology-driven education company and online
large-class tutoring service provider in China. The Company offers learning services
and educational contents & digitalized learning products. Gaotu
adopts an online live large-class format to deliver its courses,
which the Company believes is the most effective and scalable model
to disseminate scarce high-quality teaching resources to aspiring
students in China. Big data
analytics permeates every aspect of the Company's business and
facilitates the application of the latest technology to improve
teaching delivery, student learning experience, and operational
efficiency.
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, and such adjustment excludes the impact on income tax.
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 China and a significant majority of revenues
generated are denominated in Renminbi ("RMB"). This announcement
contains currency conversions of RMB amounts into U.S. dollars
("USD") solely for the convenience of the reader. Unless otherwise
noted, all translations from RMB to USD are made at a rate of
RMB7.1135 to USD1.0000, the effective noon buying rate for
September 30, 2022 as set forth in
the H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into USD at that rate on
September 30, 2022, or at any other
rate.
For further information, please contact:
Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
E-mail: gotu@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.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 September
30,
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
728,934
|
|
|
|
908,736
|
|
|
|
127,748
|
|
Restricted cash
|
|
168,189
|
|
|
|
717
|
|
|
|
101
|
|
Short-term investments
|
|
2,774,000
|
|
|
|
2,433,428
|
|
|
|
342,086
|
|
Inventory
|
|
15,595
|
|
|
|
19,010
|
|
|
|
2,672
|
|
Prepaid expenses and other current assets
|
|
250,068
|
|
|
|
339,930
|
|
|
|
47,787
|
|
Total current
assets
|
|
3,936,786
|
|
|
|
3,701,821
|
|
|
|
520,394
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Operating lease right-of-use assets
|
|
353,877
|
|
|
|
105,367
|
|
|
|
14,812
|
|
Property, equipment and software, net
|
|
680,009
|
|
|
|
567,019
|
|
|
|
79,710
|
|
Land
use rights, net
|
|
28,178
|
|
|
|
27,574
|
|
|
|
3,876
|
|
Rental deposit
|
|
22,544
|
|
|
|
9,290
|
|
|
|
1,306
|
|
Other non-current assets
|
|
3,272
|
|
|
|
17,395
|
|
|
|
2,446
|
|
TOTAL
ASSETS
|
|
5,024,666
|
|
|
|
4,428,466
|
|
|
|
622,544
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accrued expenses and other current liabilities
(including accrued expenses and
other
current liabilities of the
consolidated VIE
without recourse to the Group of
RMB417,032 and RMB296,771 as
of December 31, 2021 and September
30,
2022, respectively)
|
|
693,265
|
|
|
|
546,741
|
|
|
|
76,860
|
|
Deferred revenue, current portion of the
consolidated VIE without recourse to
the
Group
|
|
986,993
|
|
|
|
604,600
|
|
|
|
84,993
|
|
Operating
lease liabilities, current portion
(including current portion of
operating lease
liabilities of the consolidated VIE
without
recourse to the Group of RMB41,479
and
RMB12,916 as of December 31, 2021
and
September 30, 2022,
respectively)
|
|
80,010
|
|
|
|
29,446
|
|
|
|
4,139
|
|
Income tax payable
(including income tax
payable of the consolidated VIE without
recourse to the Group of nil and nil as of
December 31, 2021 and September 30, 2022,
respectively)
|
|
-
|
|
|
|
876
|
|
|
|
123
|
|
Total current
liabilities
|
|
1,760,268
|
|
|
|
1,181,663
|
|
|
|
166,115
|
|
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 September
30,
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Deferred revenue, non-current portion of
the consolidated VIE without
recourse
to the Group
|
|
9,225
|
|
|
|
33,826
|
|
|
|
4,755
|
|
Operating lease liabilities, non-current
portion (including non-current
portion
of operating lease liabilities of
the
consolidated VIE without
recourse
to the Group of RMB158,824 and
RMB45,091 as of December 31,
2021
and September 30, 2022,
respectively)
|
|
276,035
|
|
|
|
75,824
|
|
|
|
10,659
|
|
Deferred tax liabilities of the consolidated
VIE without recourse to the
Group
|
|
71,616
|
|
|
|
70,912
|
|
|
|
9,969
|
|
Other payables of the consolidated VIE
without recourse to the
Group
|
|
26,580
|
|
|
|
26,580
|
|
|
|
3,737
|
|
TOTAL
LIABILITIES
|
|
2,143,724
|
|
|
|
1,388,805
|
|
|
|
195,235
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
114
|
|
|
|
115
|
|
|
|
16
|
|
Additional paid-in capital
|
|
7,793,234
|
|
|
|
7,898,852
|
|
|
|
1,110,403
|
|
Accumulated other comprehensive loss
|
|
(143,111)
|
|
|
|
(32,570)
|
|
|
|
(4,579)
|
|
Statutory reserve
|
|
40,380
|
|
|
|
40,380
|
|
|
|
5,677
|
|
Accumulated deficit
|
|
(4,809,675)
|
|
|
|
(4,867,116)
|
|
|
|
(684,208)
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
2,880,942
|
|
|
|
3,039,661
|
|
|
|
427,309
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND TOTAL
SHAREHOLDERS' EQUITY
|
|
5,024,666
|
|
|
|
4,428,466
|
|
|
|
622,544
|
|
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 September 30,
|
|
|
For the nine months
ended September 30,
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Net
revenues
|
|
1,114,883
|
|
|
|
606,169
|
|
|
|
85,214
|
|
|
|
5,287,480
|
|
|
|
1,868,583
|
|
|
|
262,681
|
|
Cost of
revenues
|
|
(715,172)
|
|
|
|
(168,799)
|
|
|
|
(23,729)
|
|
|
|
(2,010,952)
|
|
|
|
(541,748)
|
|
|
|
(76,158)
|
|
Gross
profit
|
|
399,711
|
|
|
|
437,370
|
|
|
|
61,485
|
|
|
|
3,276,528
|
|
|
|
1,326,835
|
|
|
|
186,523
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(826,439)
|
|
|
|
(336,799)
|
|
|
|
(47,346)
|
|
|
|
(4,756,232)
|
|
|
|
(889,948)
|
|
|
|
(125,107)
|
|
Research and
development
expenses
|
|
(336,288)
|
|
|
|
(106,537)
|
|
|
|
(14,977)
|
|
|
|
(1,127,900)
|
|
|
|
(333,716)
|
|
|
|
(46,913)
|
|
General and
administrative
expenses
|
|
(164,743)
|
|
|
|
(63,598)
|
|
|
|
(8,940)
|
|
|
|
(624,340)
|
|
|
|
(207,975)
|
|
|
|
(29,237)
|
|
Impairment loss on
long-
lived assets
|
|
(28,609)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(81,740)
|
|
|
|
-
|
|
|
|
-
|
|
Disposal loss on
assets
|
|
(124,975)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(124,975)
|
|
|
|
-
|
|
|
|
-
|
|
Total operating
expenses
|
|
(1,481,054)
|
|
|
|
(506,934)
|
|
|
|
(71,263)
|
|
|
|
(6,715,187)
|
|
|
|
(1,431,639)
|
|
|
|
(201,257)
|
|
Loss from
operations
|
|
(1,081,343)
|
|
|
|
(69,564)
|
|
|
|
(9,778)
|
|
|
|
(3,438,659)
|
|
|
|
(104,804)
|
|
|
|
(14,734)
|
|
Interest
income
|
|
5,412
|
|
|
|
4,325
|
|
|
|
608
|
|
|
|
27,164
|
|
|
|
13,770
|
|
|
|
1,936
|
|
Realized gains from
investments
|
|
29,545
|
|
|
|
7,753
|
|
|
|
1,090
|
|
|
|
54,181
|
|
|
|
27,486
|
|
|
|
3,864
|
|
Other income
(expenses)
|
|
1,323
|
|
|
|
(3,438)
|
|
|
|
(483)
|
|
|
|
9,691
|
|
|
|
24,963
|
|
|
|
3,509
|
|
Loss before
provision for
income tax and share of
results of equity investees
|
|
(1,045,063)
|
|
|
|
(60,924)
|
|
|
|
(8,563)
|
|
|
|
(3,347,623)
|
|
|
|
(38,585)
|
|
|
|
(5,425)
|
|
Income tax benefits
(expenses)
|
|
450
|
|
|
|
(426)
|
|
|
|
(60)
|
|
|
|
(41,398)
|
|
|
|
(18,856)
|
|
|
|
(2,651)
|
|
Share of results of
equity
investees
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(302)
|
|
|
|
-
|
|
|
|
-
|
|
Net
loss
|
|
(1,044,613)
|
|
|
|
(61,350)
|
|
|
|
(8,623)
|
|
|
|
(3,389,323)
|
|
|
|
(57,441)
|
|
|
|
(8,076)
|
|
Net loss
attributable to
Gaotu Techedu Inc.'s
ordinary shareholders
|
|
(1,044,613)
|
|
|
|
(61,350)
|
|
|
|
(8,623)
|
|
|
|
(3,389,323)
|
|
|
|
(57,441)
|
|
|
|
(8,076)
|
|
Net loss per
ordinary
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(6.11)
|
|
|
|
(0.36)
|
|
|
|
(0.05)
|
|
|
|
(19.86)
|
|
|
|
(0.33)
|
|
|
|
(0.05)
|
|
Diluted
|
|
(6.11)
|
|
|
|
(0.36)
|
|
|
|
(0.05)
|
|
|
|
(19.86)
|
|
|
|
(0.33)
|
|
|
|
(0.05)
|
|
Net loss per
ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(4.07)
|
|
|
|
(0.24)
|
|
|
|
(0.03)
|
|
|
|
(13.24)
|
|
|
|
(0.22)
|
|
|
|
(0.03)
|
|
Diluted
|
|
(4.07)
|
|
|
|
(0.24)
|
|
|
|
(0.03)
|
|
|
|
(13.24)
|
|
|
|
(0.22)
|
|
|
|
(0.03)
|
|
Weighted average
shares
used in net (loss) income
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
170,964,073
|
|
|
|
172,515,359
|
|
|
|
172,515,359
|
|
|
|
170,645,019
|
|
|
|
172,085,108
|
|
|
|
172,085,108
|
|
Diluted
|
|
170,964,073
|
|
|
|
172,515,359
|
|
|
|
172,515,359
|
|
|
|
170,645,019
|
|
|
|
172,085,108
|
|
|
|
172,085,108
|
|
|
|
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 September 30,
|
|
|
For the nine months
ended September 30,
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Net
revenues
|
|
1,114,883
|
|
|
|
606,169
|
|
|
|
85,214
|
|
|
|
5,287,480
|
|
|
|
1,868,583
|
|
|
|
262,681
|
|
Less: other
revenues(1)
|
|
134
|
|
|
|
24,088
|
|
|
|
3,386
|
|
|
|
605
|
|
|
|
50,504
|
|
|
|
7,100
|
|
Add: VAT and
surcharges
|
|
68,772
|
|
|
|
36,029
|
|
|
|
5,065
|
|
|
|
326,295
|
|
|
|
114,336
|
|
|
|
16,073
|
|
Add: ending deferred
revenue
|
|
1,360,329
|
|
|
|
638,426
|
|
|
|
89,748
|
|
|
|
1,360,329
|
|
|
|
638,426
|
|
|
|
89,748
|
|
Add: ending refund
liability
|
|
58,655
|
|
|
|
40,812
|
|
|
|
5,737
|
|
|
|
58,655
|
|
|
|
40,812
|
|
|
|
5,737
|
|
Less: beginning
deferred revenue
|
|
1,976,369
|
|
|
|
647,867
|
|
|
|
91,076
|
|
|
|
2,733,739
|
|
|
|
996,218
|
|
|
|
140,046
|
|
Less: beginning refund
liability
|
|
324,504
|
|
|
|
42,439
|
|
|
|
5,966
|
|
|
|
120,709
|
|
|
|
78,630
|
|
|
|
11,054
|
|
Gross
billings
|
|
301,632
|
|
|
|
607,042
|
|
|
|
85,336
|
|
|
|
4,177,706
|
|
|
|
1,536,805
|
|
|
|
216,039
|
|
|
|
Note (1): Include
miscellaneous revenues generated from services other than
courses.
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months
ended September 30,
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2022
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Gross
profit
|
|
399,711
|
|
|
|
437,370
|
|
|
|
61,485
|
|
|
|
3,276,528
|
|
|
|
1,326,835
|
|
|
|
186,523
|
|
Share-based
compensation expenses in
cost of revenues
|
|
37,212
|
|
|
|
1,939
|
|
|
|
273
|
|
|
|
97,554
|
|
|
|
38,918
|
|
|
|
5,471
|
|
Non-GAAP gross
profit
|
|
436,923
|
|
|
|
439,309
|
|
|
|
61,758
|
|
|
|
3,374,082
|
|
|
|
1,365,753
|
|
|
|
191,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(1,081,343)
|
|
|
|
(69,564)
|
|
|
|
(9,778)
|
|
|
|
(3,438,659)
|
|
|
|
(104,804)
|
|
|
|
(14,734)
|
|
Share-based
compensation expenses
|
|
55,330
|
|
|
|
16,596
|
|
|
|
2,333
|
|
|
|
306,730
|
|
|
|
105,875
|
|
|
|
14,884
|
|
Non-GAAP (loss)
income from
operations
|
|
(1,026,013)
|
|
|
|
(52,968)
|
|
|
|
(7,445)
|
|
|
|
(3,131,929)
|
|
|
|
1,071
|
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(1,044,613)
|
|
|
|
(61,350)
|
|
|
|
(8,623)
|
|
|
|
(3,389,323)
|
|
|
|
(57,441)
|
|
|
|
(8,076)
|
|
Share-based
compensation expenses
|
|
55,330
|
|
|
|
16,596
|
|
|
|
2,333
|
|
|
|
306,730
|
|
|
|
105,875
|
|
|
|
14,884
|
|
Non-GAAP net (loss)
income
|
|
(989,283)
|
|
|
|
(44,754)
|
|
|
|
(6,290)
|
|
|
|
(3,082,593)
|
|
|
|
48,434
|
|
|
|
6,808
|
|
View original
content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-third-quarter-of-2022-unaudited-financial-results-and-a-share-repurchase-program-301684706.html
SOURCE Gaotu Techedu Inc.