On September 22, Gaotu announced its 2021 second quarter results.
The financial report shows that the second quarter revenue was 2.232 billion yuan, the market expected 2.497 billion yuan, and 1.65 billion yuan in the same period last year; the second quarter net loss was 918.8 million yuan, the market expected a net loss of 287 million yuan, and a net profit of 19 million yuan in the same period last year; The loss per share in the second quarter was 3.59 yuan, the market expected a loss of 2.2 yuan, and a profit of 0.07 yuan in the same period last year.
In this quarter, K12 online course revenue was 2.0914 billion yuan, a year-on-year increase of 51.0%; cash income was 2.694.7 billion yuan, a year-on-year increase of 12.2%, of which the cash income of K-12 online courses was 2.574.5 billion yuan, a year-on-year increase of 17.2% .
In addition, as of June 30, 2021, Gaotu’s cash and cash equivalents, restricted funds, short-term investments and long-term investments total RMB 5.486 trillion.
In terms of cost, Gaotu’s sales expenses in this quarter increased from 1.2048 billion yuan in the same period last year to 1.641.1 billion yuan. This increase was mainly due to the increase in marketing expenses for expanding user scale and improving brand awareness, as well as sales and marketing. Increase in staff salaries.
Research and development expenses were 426.5 million yuan, an increase of 204.9% from 139.9 million yuan in the same period last year, mainly due to the increase in the number of teaching and research professionals and technical research and development personnel and the increase in salary levels.
Administrative expenses increased from 105.7 million yuan in the same period last year to 242 million yuan, mainly due to the increase in the number of administrative staff and the increase in salary levels.
Since the double reduction policy, many education companies have explored the path of transformation. Shen Nan, Chief Financial Officer of Gaotu, also said, “In the second quarter, we upgraded and optimized our business structure. Gaotu will further develop adult and vocational education, literacy education, and intelligent digital education.”
According to him,In the exploration of adult education, the ROI of Gaotu’s civil service examination business has continued to be maintained at a relatively high level, the number of paying people for financial business has increased by nearly 4 times year-on-year, and the adult business is rapidly iterating and optimizing.
In addition, Gaotu said that due to the uncertainty of the recent regulatory and operating environment, the company has decided not to issue recent business guidelines to allow management to focus on the company’s operations more flexibly.
In the quarterly earnings report, Gaotu also announced a personnel change. Fan Xin resigned as a director of the company due to personal reasons. Effective September 22, 2021, the company appointed Cui Jin as an independent director of the company. Effective from the same day, Cui Jin will also serve as the chairman of the audit committee of the board of directors, as well as the remuneration committee and Member of the Nominating and Corporate Governance Committee.
Affected by the double cuts, the education stocks in China Probably fell sharply one after another.
In January this year, Gaotu’s stock price hit a new high of US$149, with a market value of nearly US$37.8 billion. As of September 22 this year, Gaotu’s closing price showed only US$2.46, with a market value of US$629 million.
.