Revenue and Profit Growth - Net revenue for Q4 FY2023 increased by 64.2% YoY to $860.6 million[3] - Operating profit for Q4 FY2023 rose by 145.5% YoY to $48.1 million[3] - Net income attributable to New Oriental for Q4 FY2023 increased by 115.3% YoY to $29.0 million[3] - Non-GAAP operating profit for Q4 FY2023 surged by 202.2% YoY to $78.6 million[4] - Net revenue for FY2023 decreased by 3.5% YoY to $2,997.8 million[5] - Operating profit for FY2023 improved by 119.3% YoY to $190.0 million[5] - Net income attributable to New Oriental for FY2023 increased by 114.9% YoY to $177.3 million[5] - Revenue for Q4 2023 increased by 64.2% YoY to $860.6 million, driven by new education businesses and self-operated products and live e-commerce from Dongfang Zhenxuan[10] - Net revenue for the quarter ending May 31, 2023, was $860.571 million, a significant increase from $524.023 million in the same period last year[24] - Operating profit for the quarter was $48.054 million, compared to an operating loss of $105.649 million in the previous year[24] - Net profit attributable to New Oriental shareholders was $28.959 million, a turnaround from a net loss of $189.302 million in the same period last year[24] - Non-GAAP operating profit for the quarter was $78.592 million, compared to a non-GAAP operating loss of $76.865 million in the previous year[26] - Net revenue for the fiscal year ending May 31, 2023, was $2,997.76 million, a decrease from $3,105.25 million in the previous year[30] - Operating profit for the fiscal year ending May 31, 2023, was $190.05 million, compared to an operating loss of $982.51 million in the previous year[30] - Net profit attributable to New Oriental shareholders was $177.34 million, a significant improvement from a net loss of $1,187.72 million in the previous year[30] Operating Margins and Profitability - GAAP operating margin for Q4 2023 was 5.6%, compared to -20.2% in the same period last year[11] - Non-GAAP operating margin for Q4 2023 was 9.1%, compared to -14.7% in the same period last year[11] - The company's operating profit margin improved to 5.6%, with a non-GAAP operating profit margin of 9.1%[26] - Non-GAAP operating profit margin improved to 9.3% from -27.4% in the previous year[32] Cash Flow and Financial Position - Net operating cash flow for Q4 2023 was approximately $421.6 million[13] - Total cash, cash equivalents, time deposits, and short-term investments amounted to approximately $4.5 billion as of the end of Q4 2023[13] - Deferred revenue balance increased by 43.4% YoY to $1,337.6 million at the end of Q4 2023[13] - Cash and cash equivalents increased to $1,662,982 thousand as of May 31, 2023, compared to $1,148,637 thousand as of May 31, 2022[22] - Restricted cash, current, was reported at $110,892 thousand as of May 31, 2023, compared to none in the previous year[22] - Short-term investments decreased to $1,477,843 thousand as of May 31, 2023, from $1,902,254 thousand as of May 31, 2022[22] - Total current assets slightly decreased to $4,413,887 thousand as of May 31, 2023, from $4,473,959 thousand as of May 31, 2022[22] - Property and equipment, net, decreased to $359,760 thousand as of May 31, 2023, from $402,690 thousand as of May 31, 2022[22] - Goodwill increased to $105,514 thousand as of May 31, 2023, from $70,803 thousand as of May 31, 2022[22] - Long-term investments decreased to $399,585 thousand as of May 31, 2023, from $437,919 thousand as of May 31, 2022[22] - Deferred tax assets, net, increased significantly to $55,933 thousand as of May 31, 2023, from $20,038 thousand as of May 31, 2022[22] - Total assets increased to $6,392,458 thousand as of May 31, 2023, from $6,034,666 thousand as of May 31, 2022[22] - Total liabilities increased to $2.57767 billion as of May 31, 2023, from $2.241142 billion in the previous year[23] - Deferred revenue increased to $1.33763 billion, up from $933.062 million in the previous year[23] - Cash, cash equivalents, and restricted cash at the end of the quarter were $1.805427 billion, up from $1.194527 billion in the previous year[29] - Operating cash flow for the quarter was $421.609 million, a significant increase from $29.347 million in the same period last year[29] - Cash flow from operating activities was $971.01 million, a substantial increase from a negative cash flow of $1,280.45 million in the previous year[35] - Total cash, cash equivalents, and restricted cash at the end of the fiscal year was $1,805.43 million, up from $1,194.53 million at the beginning of the year[35] Business Expansion and Operations - Total number of schools and learning centers increased to 748 as of May 31, 2023, up by 36 from February 28, 2023[7] - Total number of schools reached 85 as of May 31, 2023[7] - Non-academic tutoring business expanded to approximately 60 cities, attracting 629,000 student enrollments in the quarter[8] - Active paying users for the intelligent learning system and devices reached 99,000 in approximately 60 cities[8] Earnings and Shareholder Metrics - Basic earnings per ADS for the fiscal year ending May 31, 2023, were $1.06, compared to a loss of $7.00 per ADS in the previous year[30] - Non-GAAP basic earnings per ADS were $1.54, compared to a loss of $6.17 in the previous year[33] - Non-GAAP net profit attributable to New Oriental shareholders was $62.091 million, compared to a non-GAAP net loss of $160.339 million in the previous year[26] Costs and Expenses - Total operating costs and expenses decreased to $2,807.71 million from $4,087.76 million in the previous year[30] - Share-based compensation expenses decreased to $89.79 million from $132.97 million in the previous year[34] Future Outlook - For Q1 2024, the company expects net revenue to be between $983.2 million and $1,005.5 million, representing a YoY increase of 32% to 35%[16] Corporate Events - The company will hold its earnings conference call for the fourth quarter of fiscal year 2023 on July 26, 2023, at 8:00 AM Eastern Time[17]

Financial Data and Key Metrics Changes - The company reported a GAAP operating margin of 8.8% and a non-GAAP operating margin of 11.7% for the quarter [6] - Operating income increased by 147.1% year-over-year to $66.5 million, while non-GAAP operating income rose by 179% to $87.9 million [17] - Net income attributable to New Oriental was $81.6 million, representing a 166.7% increase year-over-year [17] - Non-GAAP net income for the quarter was $95.4 million, reflecting a 199.9% increase year-over-year [18] - Cash and cash equivalents, term deposits, and short-term investments totaled approximately $4.3 billion [14] Business Line Data and Key Metrics Changes - The overseas test prep business recorded a revenue increase of 13% in dollar terms or 23% in RMB terms year-over-year [8] - The adults and university students' business saw a revenue decrease of 3% in dollar terms or a 5% increase in RMB terms year-over-year [8] - Non-academic tutoring courses had 218,000 student enrollments this quarter, with the top 10 cities in China contributing about 60% of the revenue [9] - The intelligence learning system and device business had 108,000 active paid users this quarter, with revenue contribution from the top 10 cities in China around 60% [9] Market Data and Key Metrics Changes - Deferred revenue balance increased by 19.8% year-over-year to $1.163 billion [19] - The company is seeing strong demand for overseas test prep and consulting business due to reduced competition in the market [25] Company Strategy and Development Direction - The company aims to sustain healthy growth in market share and pursue innovative endeavors as the economy recovers [7] - Plans to moderately increase capacity in learning centers and expand classroom areas in major cities [20] - The company is exploring opportunities in cultural tourism, leveraging its educational resources and teacher expertise [37][38] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of key business lines and the potential for further market share growth as the pandemic subsides [20] - The company expects total net revenue in Q4 FY 2023 to be in the range of $801.8 million to $822.7 million, representing a year-over-year increase of 53% to 57% [20] Other Important Information - The company invested $26.8 million in the OMO teaching platform during the reporting period [12] - The share repurchase program authorized up to $400 million, with approximately $157.6 million repurchased as of April 18, 2023 [14] Q&A Session Summary Question: Key drivers for fourth quarter growth and FY 2024 expectations - Management highlighted strong demand for overseas test prep and consulting, with less competition in the market as key drivers for growth [25][26] Question: Earnings contribution from Tung-Jung Hsieh - Management noted that East Buy has proven to be a successful business model, contributing significantly to overall revenue and profit growth [31] Question: Breakdown of new initiatives revenue and long-term business direction - The largest revenue contributor among new initiatives is non-academic tutoring, with strong demand and retention rates [34] - The intelligent learning device business is also gaining traction and expected to contribute more revenue [35] Question: Cash management and share buyback versus special dividends - Management stated that the decision on share buybacks versus special dividends will depend on the Board's evaluation [41] Question: Retention rates for non-academic tutoring - Retention rates for non-academic children's courses are over 70%, while the renewal rate for the intelligence learning system devices is over 60% [42] Question: Profitability of new businesses - Overall margins for new businesses are over 10%, with expectations for improvement in the upcoming quarters [45] Question: Growth opportunities in non-academic tutoring - Management sees growth opportunities in both top-tier and lower-tier cities, leveraging existing educational infrastructure [50]

Financial Performance - For the third fiscal quarter ended February 28, 2023, net revenue increased by 22.8% year-over-year to $754.2 million[3] - Operating profit for the third fiscal quarter rose by 147.1% year-over-year to $66.5 million[3] - Net profit attributable to New Oriental shareholders increased by 166.7% year-over-year to $81.6 million[3] - Non-GAAP operating profit for the third fiscal quarter was $87.9 million, compared to a loss of $111.2 million in the same quarter last year, representing a 179.0% increase[4] - For the first nine months of fiscal 2023, net revenue was $2.14 billion, a decrease of 17.2% compared to $2.58 billion in the same period of fiscal 2022[5] - Non-GAAP net profit attributable to New Oriental shareholders for the first nine months was $196.8 million, compared to a loss of $885.9 million in the same period last year, reflecting a 122.2% increase[5] - Basic earnings per ADS for the third fiscal quarter was $0.49, compared to a loss of $0.72 in the same quarter last year, marking a 167.8% increase[4] - Non-GAAP net profit attributable to shareholders for the third quarter was $95.4 million, a year-over-year increase of 199.9%[13] - The company reported a net profit attributable to shareholders of $81.648 million for the three months ended February 28, 2023, compared to a net loss of $122.439 million in the same period of 2022[26] - Operating profit for the three months ended February 28, 2023, was $66.491 million, a significant improvement from an operating loss of $141.194 million in the same period of 2022[26] - Basic earnings per American Depositary Share (ADS) for the three months ended February 28, 2023, was $0.49, compared to a loss of $0.72 in the same period of 2022[30] - Net profit attributable to New Oriental for the nine months ended February 28, 2023, was $148,382, a significant improvement from a net loss of $(998,419) in the same period of 2022[33] - Basic earnings per American Depositary Share (ADS) for the nine months ended February 28, 2023, was $0.88, compared to a loss of $(5.89) in the same period of 2022[37] Operational Metrics - The total number of schools and learning centers as of February 28, 2023, was 712, an increase of 4 from 708 as of November 30, 2022, but a decrease of 135 from 847 as of February 28, 2022[7] - The total number of schools as of February 28, 2023, was 91[7] - The total number of schools and learning centers reached 712 by the end of the quarter, with significant investments in maintaining the OMO system to enhance operational efficiency[10] - The company achieved a net operating cash flow of approximately $190.5 million for the quarter, with total cash, cash equivalents, and short-term investments amounting to approximately $4.3 billion[11][13] - The deferred revenue balance increased by 19.8% year-over-year to $1.163 billion, reflecting strong demand for educational services[14] - Deferred revenue increased to $1.163 billion as of February 28, 2023, up from $933.062 million as of May 31, 2022, indicating a growth of approximately 24.6%[25] - The company generated a net cash inflow from operating activities of $190.482 million for the three months ended February 28, 2023, compared to a cash outflow of $234.965 million in the same period of 2022[32] - The company reported a cash flow from operating activities of $549,399 for the nine months ended February 28, 2023, compared to $(1,309,800) in the same period of 2022[39] Financial Position - New Oriental reported cash and cash equivalents of $1,329,453,000 as of February 28, 2023, an increase from $1,148,637,000 in the previous year[24] - Total current assets reached $4,700,797,000, up from $4,473,959,000 year-over-year[24] - The net value of intangible assets increased significantly to $27,534,000 from $2,800,000 in the previous year[24] - Goodwill increased to $107,717,000, compared to $70,803,000 in the previous year, indicating growth in acquisitions or market expansion[24] - Non-current restricted cash decreased to $31,175,000 from $45,890,000, reflecting changes in liquidity management[24] - The company has a total asset value of $6,164,297,000, compared to $6,034,666,000 in the previous year, showing overall growth[24] - New Oriental's net receivables increased to $28,850,000 from $16,430,000, indicating improved collection or sales performance[24] - Total liabilities as of February 28, 2023, amounted to $2.288 billion, slightly up from $2.241 billion as of May 31, 2022, indicating a year-over-year increase of about 2.1%[25] - The company’s total equity as of February 28, 2023, was $3.877 billion, an increase from $3.794 billion as of May 31, 2022, reflecting a growth of about 2.2%[25] Strategic Initiatives - The company plans to repurchase up to $400 million of its American Depositary Shares or common stock under a buyback program authorized by the board[9] - The company continues to focus on improving product competitiveness and developing diverse content, contributing to significant revenue growth in its e-commerce segment[10] - The company is focused on expanding its online education services and enhancing its brand presence in the competitive market[20] - New Oriental is actively investing in new product development and technology to enhance its educational offerings[20] - The management anticipates continued growth in the private education sector in China, despite potential risks and uncertainties[21] - The company aims to continue its market expansion and product development strategies to enhance future growth prospects[33] - The company expects net revenue for the fourth fiscal quarter to be between $801.8 million and $822.7 million, representing a year-over-year growth rate of 53% to 57%[17] Cost Management - The company’s operating expenses for the three months ended February 28, 2023, totaled $687.662 million, down from $755.285 million in the same period of 2022, showing a decrease of approximately 8.9%[29] - Total operating expenses for the nine months ended February 28, 2023, were $1,995,197, down 42.4% from $3,458,087 in the same period of 2022[33] - The company experienced a significant reduction in general and administrative expenses, which were $622,772 for the nine months ended February 28, 2023, down from $1,473,816 in the same period of 2022[36]

Financial Performance - Total net revenues for the third fiscal quarter of 2023 increased by 22.8% year over year to US$754.2 million[2]. - Operating income rose by 147.1% year over year to US$66.5 million, with a non-GAAP operating income increase of 179.0% to US$87.9 million[10]. - Net income attributable to New Oriental increased by 166.7% year over year to US$81.6 million, with non-GAAP net income rising by 199.9% to US$95.4 million[11][12]. - Net revenues for the three months ended February 28, 2023, were USD 754.2 million, an increase from USD 614.1 million in the same period of 2022, representing a growth of approximately 22.8%[29]. - Operating income for the same period was USD 66.5 million, compared to an operating loss of USD 141.2 million in the prior year[29]. - Net income attributable to New Oriental's shareholders for the three months ended February 28, 2023, was USD 81.6 million, a significant recovery from a net loss of USD 122.4 million in the same period of 2022[29]. - Non-GAAP net income for the three months ended February 28, 2023, was $95,362, compared to a non-GAAP net loss of $95,503 in the same period last year[31]. - The company reported a net income per ADS of USD 0.49 for the three months ended February 28, 2023, compared to a net loss per ADS of USD 0.72 in the prior year[29]. - The company achieved a non-GAAP net income per ADS of $0.57 for the three months ended February 28, 2023, compared to a non-GAAP net loss per ADS of $0.56 in the same period last year[31]. Cash Flow and Assets - The company reported a positive operating cash flow of US$190.5 million for the quarter, with cash and cash equivalents totaling approximately US$4.3 billion[5][13]. - Cash provided by operating activities for the three months ended February 28, 2023, was $190,482, a turnaround from cash used of $234,965 in the prior year[35]. - Total current assets as of February 28, 2023, were USD 4.7 billion, an increase from USD 4.5 billion as of May 31, 2022[27]. - The company’s cash and cash equivalents were USD 1.3 billion as of February 28, 2023, up from USD 1.1 billion a year earlier[27]. - The cash, cash equivalents, and restricted cash at the end of the period on February 28, 2023, stood at $1,431,001, compared to $1,511,242 at the end of the same period in 2022[35]. Expenses and Liabilities - Operating costs and expenses decreased by 9.0% year over year to US$687.7 million, with general and administrative expenses down by 25.4% to US$215.5 million[8]. - Total liabilities increased to USD 2.3 billion as of February 28, 2023, compared to USD 2.2 billion as of May 31, 2022[27]. - Total operating costs and expenses for the nine months ended February 28, 2023, were $1,995,197, down from $3,458,087 in the same period of 2022, reflecting a reduction of approximately 42.4%[37]. Deferred Revenue and Equity - The deferred revenue balance increased by 19.8% year over year to US$1,163.2 million as of February 28, 2023[14]. - Deferred revenue as of February 28, 2023, was USD 1.2 billion, compared to USD 933.1 million as of May 31, 2022, indicating a growth of approximately 25%[27]. - New Oriental's total equity increased to USD 3.9 billion as of February 28, 2023, from USD 3.8 billion as of May 31, 2022[27]. Business Operations and Strategy - The total number of schools and learning centers was 712 as of February 28, 2023, a decrease of 135 compared to 847 as of February 28, 2022[4]. - East Buy has achieved significant progress in its private label products and livestreaming e-commerce business, contributing to revenue growth[5]. - The company is focused on expanding its educational services and enhancing its brand presence in the competitive private education sector in China[22]. - The company has repurchased approximately 5.1 million ADSs for approximately US$157.6 million under its share repurchase program[6].

Financial Data and Key Metrics Changes - The company achieved a non-GAAP operating margin of 2.6% for the second quarter, a significant improvement from a negative 112.0% in the same period of the prior fiscal year [5][20] - Operating costs and expenses decreased by 55.1% year-over-year to $640.7 million, with non-GAAP operating costs down 55.4% to $621.9 million [18][19] - Net income attributable to New Oriental was $0.7 million compared to a loss of $936.5 million in the same period of the prior fiscal year [20] Business Line Data and Key Metrics Changes - The overseas test prep business recorded a revenue increase of 17% in dollar terms, or 30% in RMB terms year-over-year [7] - The overseas study consulting business saw a revenue increase of about 14% in dollar terms or 27% in RMB terms year-over-year [7] - The adults and university students business recorded a revenue decrease of 9% in dollar terms, but a 2% increase in RMB terms year-over-year [7] Market Data and Key Metrics Changes - The company reported a deferred revenue balance of $1,139.1 million, an increase of 6.9% compared to $1,065.8 million at the end of the second quarter of the prior fiscal year [21] - Koolearn recorded revenue of nearly RMB 2,080.1 million, representing a 590.2% increase from RMB 301.4 million in the same period of the prior fiscal year [14] Company Strategy and Development Direction - The company is focusing on innovative business opportunities and has successfully generated profits from new ventures alongside existing businesses [4][6] - The company plans to continue investing in new initiatives while promoting key remaining businesses to accelerate recovery and pursue profitable growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the overall impact of the pandemic will be temporary and manageable, with expectations for total net revenue in Q3 to be between $702.8 million to $719.8 million, representing a year-over-year increase of 14% to 17% [23] - The company anticipates sustainable profitability across its key businesses and expects new initiatives to maintain an upward growth trajectory [22] Other Important Information - The company has cash and cash equivalents totaling approximately $4.2 billion, indicating a healthy financial position [17] - The company authorized a share repurchase of up to $400 million, with approximately $79 million repurchased as of January 16, 2023 [17] Q&A Session Summary Question: Impact of COVID on February quarter and business expectations - Management indicated that the net impact of COVID is small and remains confident that the overall impact will be temporary and manageable [28][30] Question: Growth rates of new business lines post-COVID - Management expects upward growth in new business lines for Q3 and Q4, with significant revenue growth anticipated [33] Question: Revenue breakdown and margin profile for different business lines - The overseas related business contributed roughly 21% of total revenue, with margins expected to be around 10% to 15% for the year [38][39] Question: Third-quarter revenue guidance and profitability - The overseas related business is expected to contribute 24% to 25% of total revenue in Q3, with the school business contributing 43% to 44% [43] Question: Non-academic tutoring enrollment increase drivers - Management noted that the market is strong, and the profitability of new business lines is better than expected, with revenue growth anticipated to accelerate [59]

Financial Performance - For the second quarter of fiscal year 2023, net revenue decreased by 3.1% year-over-year to $638.2 million[3]. - The operating loss for the second quarter was $2.5 million, a significant improvement from an operating loss of $768.1 million in the same period last year[3]. - Net profit attributable to New Oriental shareholders was $0.7 million, compared to a net loss of $936.5 million in the previous year[3]. - For the first half of fiscal year 2023, net revenue was $1.38 billion, down 29.7% from $1.97 billion in the first half of fiscal year 2022[5]. - The operating profit for the first half was $75.5 million, a turnaround from an operating loss of $735.7 million in the same period last year[5]. - Non-GAAP operating profit for the second quarter was $16.3 million, compared to a loss of $737.1 million in the same period last year, representing a 102.2% improvement[4]. - Non-GAAP net profit attributable to New Oriental was $17.8 million for the second quarter, a significant recovery from a loss of $901.6 million in the previous year[4]. - Basic earnings per ADS for the second quarter was $0.00, a recovery from a loss of $5.52 in the same period last year[4]. - For the first six months of FY2023, New Oriental's net revenue was $1,383.0 million, a year-over-year decrease of 29.7%, but the operating profit was $75.5 million compared to a loss of $735.7 million in the same period last year[14]. - The company reported a net profit of $16.6 million for the three months ended November 30, 2022, compared to a net loss of $(950.6) million in the same period last year[26]. - The company reported a net profit of $101,167 for the three months ended November 30, 2022, compared to a net loss of $907,960 in the same period of 2021[33]. Operational Metrics - The total number of schools and learning centers as of November 30, 2022, was 708, an increase of 2 from 706 as of August 31, 2022, but a decrease of 585 from 1,293 as of November 30, 2021[7]. - The total number of schools and learning centers reached 708 by the end of the quarter, with a strategic focus on opportunities in major domestic cities[10]. - The company continues to focus on improving operational efficiency and expanding its educational offerings despite the challenges faced in the market[2]. - The company is actively involved in the online education sector, providing a diverse range of courses and services for students of all ages in China[19]. Cash Flow and Assets - New Oriental's net operating cash flow for Q2 was approximately $173.7 million, with capital expenditures of $11.4 million[13]. - Total current assets increased to $4.6 billion as of November 30, 2022, up from $4.5 billion as of May 31, 2022[24]. - Cash and cash equivalents decreased to $1.03 billion from $1.15 billion over the same period[24]. - New Oriental's cash and cash equivalents totaled approximately $1,029.9 million, with total short-term investments amounting to $2,145.7 million[13]. - Operating cash flow for the six months ended November 30, 2022, was $358,917, compared to a negative cash flow of $(1,074,835) in the prior year[38]. Liabilities and Equity - Total liabilities increased to $2.28 billion as of November 30, 2022, compared to $2.24 billion as of May 31, 2022[25]. - The company’s total equity was $3.74 billion as of November 30, 2022, down from $3.79 billion as of May 31, 2022[25]. Future Outlook - For the third quarter of fiscal year 2023, New Oriental expects net revenue to be between USD 702.8 million and USD 719.8 million, representing a year-over-year growth rate of 14% to 17%[18]. - The anticipated net revenue growth in RMB for the third quarter is projected to be between 24% and 27%[18]. - New Oriental plans to change its name to "East Buy Holding Limited" to align with its current and future business direction[17]. - New Oriental's management will hold an earnings conference call on January 17, 2023, to discuss the financial results and future outlook[18]. Shareholder Actions - New Oriental's share repurchase program authorized up to $400 million, with approximately 3.1 million shares repurchased for a total value of about $79.0 million as of January 16, 2023[9]. Financial Metrics - The company emphasizes the importance of Non-GAAP financial metrics to provide additional insights into its performance and liquidity[21]. - The company’s operating profit margin under non-GAAP was 5.5% for the three months ended November 30, 2022, compared to -37.4% in the same period of 2021[35]. - The company experienced a foreign exchange impact of $(35,997) on cash flow for the three months ended November 30, 2022[32]. - General and administrative expenses were reduced to $465,003 for the three months ended November 30, 2022, down from $1,291,682 in the same period of 2021[33].

Financial Performance - Total net revenues for the second fiscal quarter of 2023 decreased by 3.1% year-over-year to US$638.2 million[2] - Operating loss was US$2.5 million, a significant improvement from the loss of US$768.1 million in the same period of the prior fiscal year[10] - Net income attributable to New Oriental was US$0.7 million, compared to a loss of US$936.5 million in the same period of the prior fiscal year[11] - Non-GAAP operating income for the quarter was US$16.3 million, compared to a loss of US$737.1 million in the same period of the prior fiscal year, marking a 102.2% improvement[3] - The company reported a significant reduction in general and administrative expenses, which decreased from US$822.4 million in the previous year to US$209.0 million[33] - For the three months ended November 30, 2022, New Oriental reported a net income attributable to the company of $732, compared to a net loss of $936,510 for the same period in 2021[35] - Non-GAAP net income attributable to New Oriental for the three months ended November 30, 2022, was $17,750, a significant improvement from a loss of $901,625 in the prior year[35] - The total operating costs and expenses for the three months ended November 30, 2022, were $640,702, down from $1,426,424 in the same period of 2021, reflecting a reduction of approximately 55.1%[35] - The operating margin improved to -0.4% for the three months ended November 30, 2022, compared to -116.7% in the same period of 2021[35] - For the six months ended November 30, 2022, net revenues were $1,383,036, down from $1,967,132 in the same period of 2021, representing a decrease of approximately 29.7%[41] - The company reported an operating income of $75,501 for the six months ended November 30, 2022, compared to an operating loss of $735,670 in the same period of 2021[41] - Non-GAAP operating income for the six months ended November 30, 2022, was $113,347, a significant improvement from a loss of $661,448 in the prior year[43] Cash Flow and Assets - Cash and cash equivalents, term deposits, and short-term investments totaled approximately US$4.2 billion by the end of the fiscal quarter[5] - Net cash flow generated from operations for the second fiscal quarter was approximately US$173.7 million[13] - Deferred revenue balance increased by 6.9% year-over-year to US$1,139.1 million[14] - As of November 30, 2022, New Oriental's total current assets amounted to US$4,617.4 million, an increase from US$4,473.9 million as of May 31, 2022[31] - New Oriental's cash and cash equivalents as of November 30, 2022, were US$1,029.9 million, down from US$1,148.6 million as of May 31, 2022[31] - Cash, cash equivalents, and restricted cash at the end of the period on November 30, 2022, were $1,122,824, compared to $1,050,130 at the end of the same period in 2021[39] - Net cash provided by operating activities for the three months ended November 30, 2022, was $173,670, a turnaround from a cash outflow of $628,322 in the prior year[39] Business Operations - The total number of schools and learning centers was 708 as of November 30, 2022, a decrease of 585 compared to 1,293 as of November 30, 2021[4] - The overseas test preparation and overseas study consulting businesses increased by approximately 17% and 14% year-over-year, respectively[5] - Koolearn recorded revenues of RMB 2,080.1 million (US$293.5 million), a 590.2% increase year-over-year[18] - New Oriental expects total net revenues for Q3 FY2023 to be between US$702.8 million and US$719.8 million, reflecting a year-over-year increase of 14% to 17%[21] - The projected revenue increase in Renminbi for Q3 FY2023 is expected to be in the range of 24% to 27%[22] - The company anticipates ongoing growth in the Chinese private education market, which may impact its future performance positively[26] Corporate Changes - The company plans to change its name from "Koolearn Technology Holding Limited" to "East Buy Holding Limited" to better reflect its business direction[20]

Financial Data and Key Metrics Changes - The non-GAAP operating margin for Q1 2023 was 13%, and the non-GAAP net margin was 11.2%, both higher than the same period last year [7] - Operating income increased by 140.5% year-over-year to $78 million, while non-GAAP income from operations rose by 28.3% year-over-year to $97 million [26] - Net income attributable to New Oriental for the quarter was $66 million, representing a 9% increase year-over-year [26] - Cash and cash equivalents, term deposits, and short-term investments totaled approximately $4.3 billion [23] Business Line Data and Key Metrics Changes - The overseas test prep business recorded a revenue increase of 2% year-over-year [8] - The adults and university students business also saw a revenue growth of about 2% year-over-year [8] - The overseas study consulting business experienced a revenue increase of about 21% year-over-year [8] - New business initiatives contributed approximately 16% of total revenue, with non-academic tutoring being the largest contributor [55] Market Data and Key Metrics Changes - The deferred revenue balance decreased by 30.3% year-over-year, primarily due to the cessation of K-9 academic after-school tutoring services [28] - The top 10 cities in China contributed about 60% of the revenue from the non-academic tutoring business [10] - The revenue contribution from the top 10 cities in China for the intelligence learning system and device business was over 60% [11] Company Strategy and Development Direction - The restructuring process has largely been completed, leading to a new business model that combines existing and innovative business opportunities [6] - The company aims to encourage the all-around development of students while generating profits for shareholders [7] - New Oriental is focusing on expanding its OMO (Online-Merge-Offline) teaching platform and investing in new initiatives to drive growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable profitability across key businesses and the growth prospects of new initiatives [30] - The company anticipates lower revenue in Q2 due to seasonality in certain business lines, with a projected revenue range of $601.4 million to $619.2 million [32] - Management is cautiously optimistic about the impact of the ongoing pandemic on business operations, thanks to the OMO system [31] Other Important Information - The company invested $31 million in the OMO teaching platform during the quarter to enhance service quality [14] - A share repurchase plan of up to $400 million was authorized by the Board of Directors [23] Q&A Session Summary Question: What was the enrollment number for non-academic courses last quarter or last financial year? - Management indicated that the non-academic courses were newly launched, and last year's numbers were very small, but this quarter saw 297,000 enrollments [35] Question: Is there seasonality for the full year regarding non-academic enrollment? - Management noted that seasonality should not be very apparent for non-academic courses, unlike other businesses [36][37] Question: What drove the strong gross margin this quarter? - The increase in gross margin was attributed to downsizing of learning centers, lower fixed costs, and growth in revenue from Koolearn [40] Question: What is the growth outlook for each line of business? - Management expects strong growth in overseas-related businesses and new initiatives, with significant contributions from the non-academic tutoring and learning device businesses [45] Question: What is the revenue contribution from non-academic tutoring for Q1? - Non-academic tutoring contributed the largest share among new businesses, with overall new businesses contributing roughly 16% of total revenue [55] Question: What is the revenue breakdown for Q1? - The overseas-related business contributed approximately 24-25% of total revenue, while new businesses contributed about 16% [57]

Financial Performance - For the first quarter of fiscal year 2023, New Oriental's net revenue was $744.8 million, a decrease of 43.1% year-over-year[4] - Operating profit for the first quarter increased by 140.5% year-over-year to $78.0 million[4] - Net profit attributable to New Oriental shareholders rose by 9.0% year-over-year to $66.0 million[4] - Operating costs and expenses for the quarter were $666.8 million, a year-over-year decrease of 47.8%[11] - Non-GAAP operating profit for the quarter was $97.0 million, up 28.3% year-over-year, with a Non-GAAP operating margin of 13.0%[12] - Net profit attributable to shareholders for the quarter was $66.0 million, a 9.0% increase year-over-year, with basic and diluted earnings per ADS of $0.39 and $0.38 respectively[13] - Non-GAAP net profit attributable to shareholders was $83.7 million, a decrease of 24.7% year-over-year, with Non-GAAP earnings per ADS of $0.49 and $0.48[14] - Net revenue for the quarter ended August 31, 2022, was $744.82 million, a decrease of 43% compared to $1.31 billion for the same period in 2021[29] - Operating profit for the quarter was $77.99 million, significantly up from $32.43 million in the same quarter of the previous year[29] - The company reported a net profit of $84.58 million for the quarter, compared to $42.64 million in the same quarter of the previous year[29] - Basic earnings per share for the quarter was $0.04, consistent with the same period in 2021[29] - Non-GAAP operating profit was $97.04 million, reflecting a margin of 10.5% for the quarter ended August 31, 2022[30] Cash Flow and Financial Position - The company recorded operating cash flow of $185.2 million for the quarter[8] - As of the end of the fiscal quarter, total cash, cash equivalents, and short-term investments amounted to approximately $4.3 billion[8] - Net operating cash flow for the first quarter of fiscal year 2023 was approximately $185.2 million, with capital expenditures of $14.0 million[15] - As of August 31, 2022, cash and cash equivalents totaled $1,103.9 million, with deferred revenue decreasing by 30.3% year-over-year to $1,012.5 million[16] - Cash and cash equivalents totaled $1.10 billion as of August 31, 2022, down from $1.15 billion as of May 31, 2022[26] - The ending cash, cash equivalents, and restricted cash balance for the three months ended August 31, 2022, was $1,137,112,000, compared to $1,349,340,000 at the end of the same period in 2021[33] - The net cash provided by operating activities for the three months ended August 31, 2022, was $185,247,000, a significant improvement from a net cash used of $(446,513,000) in the same period of 2021[33] - The total assets as of August 31, 2022, amounted to $6.02 billion, slightly down from $6.03 billion as of May 31, 2022[26] - Total liabilities were $2.20 billion as of August 31, 2022, compared to $2.24 billion as of May 31, 2022[28] - The company’s total equity was $3.82 billion as of August 31, 2022, compared to $3.79 billion as of May 31, 2022[28] Business Operations and Initiatives - The total number of schools and learning centers decreased to 706, down from 744 as of May 31, 2022, and down from 1,556 as of August 31, 2021[7] - The decline in net revenue was primarily due to the termination of K-9 subject after-school tutoring services in compliance with government policies[10] - New business initiatives, including non-academic tutoring, have shown positive results with approximately 297,000 registrations in the first quarter[7] - The significant decrease in deferred revenue was primarily due to the termination of K-9 after-school tutoring services in compliance with government policies[16] Future Outlook - For the second quarter of fiscal year 2023, the company expects net revenue to be between $601.4 million and $619.2 million, representing a year-over-year decline of 6% to 9%[17] - The company anticipates a revenue increase of 1% to 4% in RMB for the second quarter[17] Shareholder Actions - The company initiated a share repurchase program with a maximum amount of $400 million, and as of October 25, 2022, approximately 1.6 million ADS had been repurchased for about $39.6 million[9] Earnings Announcement - The company will hold an earnings announcement conference call on October 26, 2022, at 8 AM ET[18]

Financial Performance - Total net revenues for the first fiscal quarter of 2023 decreased by 43.1% year over year to US$744.8 million[2] - Operating income increased by 140.5% year over year to US$78.0 million, with a non-GAAP operating margin of 13.0%[10] - Net income attributable to New Oriental increased by 9.0% year over year to US$66.0 million, with basic and diluted net income per ADS at US$0.39 and US$0.38, respectively[11] - Non-GAAP net income attributable to New Oriental for the quarter was US$83.7 million, representing a 24.7% decrease year over year[12] - Operating costs and expenses for the quarter decreased by 47.8% year over year to US$666.8 million[8] - Net revenues for the three months ended August 31, 2022, were USD 744.8 million, a decrease of 43% compared to USD 1.3 billion for the same period in 2021[28] - Operating income for the same period was USD 78.0 million, significantly up from USD 32.4 million in the prior year, indicating improved operational efficiency[28] - Net income attributable to New Oriental's shareholders was USD 66.0 million, compared to USD 60.5 million in the same quarter of the previous year, reflecting a year-over-year increase of 9%[28] - Non-GAAP operating income for the three months ended August 31, 2022, was USD 97.0 million, with a non-GAAP operating margin of 13.0%, up from 5.8% in the prior year[29] Cash and Assets - Cash and cash equivalents, term deposits, and short-term investments totaled approximately US$4.3 billion by the end of the quarter[5] - Cash and cash equivalents as of August 31, 2022, totaled USD 1.1 billion, a slight decrease from USD 1.15 billion as of May 31, 2022[27] - Total current assets increased to USD 4.6 billion as of August 31, 2022, compared to USD 4.5 billion as of May 31, 2022[27] - Total liabilities decreased to USD 2.2 billion as of August 31, 2022, from USD 2.24 billion as of May 31, 2022[27] - The company’s total equity increased to USD 3.8 billion as of August 31, 2022, compared to USD 3.79 billion as of May 31, 2022[27] Future Outlook - New Oriental expects total net revenues for the second quarter of fiscal year 2023 to be in the range of US$601.4 million to US$619.2 million, reflecting a year-over-year decline of 9% to 6%[16] - The deferred revenue balance at the end of the first quarter of fiscal year 2023 was US$1,012.5 million, a decrease of 30.3% compared to the previous year[15] Operational Focus - The total number of schools and learning centers decreased to 706, down from 744 in May 2022 and 1,556 in August 2021[4] - The overseas test preparation and overseas study consulting businesses increased by approximately 2% and 21% year over year, respectively[5] - New Oriental continues to focus on enhancing its operational performance and liquidity through non-GAAP financial measures, which exclude share-based compensation expenses and fair value changes of long-term investments[26]