Financial Data and Key Metrics - The company released its financial results for the second fiscal quarter of 2025, which are available on the company's website and Newswire services [3] Business Updates and Strategy - The company's Executive President and Chief Financial Officer, Stephen Yang, along with Investor Relations Director, Sisi Zhao, will provide detailed updates on the latest earnings results and business developments [3] Forward-Looking Statements - The discussion during the conference call will include forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995 [4] - These statements involve inherent risks and uncertainties, and actual results may differ materially from those expressed [4] - The company has outlined potential risks and uncertainties in its public filings with the SEC and does not undertake any obligation to update any forward-looking statements [4] Q&A Session - The management will be available to answer questions after the prepared remarks [3]

Core Insights - New Oriental Education & Technology Group reported strong revenue growth of 19.4% year-over-year, reaching $1.04 billion, surpassing analyst expectations of $1.01 billion [2][4] - The company faced challenges in adjusted earnings per share (EPS), reporting $0.22, which was below the forecasted $0.30, indicating a 24% decline from the previous year [4][8] - The operating margin decreased from 2.5% to 1.9%, attributed to increased operational costs related to business expansion and regulatory adaptations [4][8] Financial Performance - Revenue for Q2 FY2025 was $1.04 billion, a 19.4% increase from $869.6 million in Q2 FY2024 [4] - Adjusted EPS was $0.22, down from $0.29 in the same quarter last year [4] - Net income rose to $31.9 million, a 6.2% increase from $30.1 million in Q2 FY2024 [4] Operational Developments - The revenue growth was primarily driven by the expansion of non-academic tutoring services and intelligent learning systems, with a notable 31.3% growth when excluding contributions from East Buy [7] - Key segments such as overseas test preparation and study consulting saw growth rates of 21% and 31%, respectively, demonstrating the company's adaptability to regulatory changes [8] Regulatory Environment - The company continues to navigate challenges from China's "double reduction" policy, which aims to reduce student workloads and private tutoring hours, necessitating a pivot towards diversification and strategic cost management [9] - Operational costs increased by 20% year-over-year, reflecting the impact of regulatory adaptations [9] Strategic Outlook - Looking ahead, New Oriental projects a revenue increase of 18% to 21% for Q3 FY2025, excluding East Buy contributions, with a focus on expanding private label products and enhancing digital outreach [12] - Management is committed to strategic growth and profitability, emphasizing diversification and leveraging technology to capture new revenue opportunities [10][12]

Group 1 - U.S. stock futures are higher, with Dow futures gaining over 200 points [1] - New Oriental Education & Technology Group Inc. reported weak quarterly earnings, with adjusted earnings of 22 cents per share, missing the analyst consensus estimate of 30 cents per share [1] - The company's quarterly sales were $1.04 billion, slightly beating the analyst consensus estimate of $1.03 billion [1] Group 2 - New Oriental Education & Technology Group shares fell 16.2% to $50.98 in pre-market trading [2] - TechTarget, Inc. shares tumbled 19.5% to $14.00 in pre-market trading [3] - Baird Medical Investment Holdings Limited shares fell 18.2% to $7.24 after a previous jump of 63% [3] - Ranpak Holdings Corp. shares dipped 18.2% to $5.21 in pre-market trading [3] - Rayonier Advanced Materials Inc. shares declined 17.1% to $6.24 in pre-market trading [3] - SWK Holdings Corporation shares dipped 14.3% to $14.00 in pre-market trading [3] - Walgreens Boots Alliance, Inc. shares fell 6.8% to $11.66 following a lawsuit from the U.S. Justice Department [3] - Contineum Therapeutics, Inc. shares fell 6.8% to $11.60 in pre-market trading [3] - Tile Shop Holdings, Inc. shares fell 3.6% to $6.78 in pre-market trading [3]

Exhibit 99.1 New Oriental Announces Results for the Second Fiscal Quarter Ended November 30, 2024 BEIJING, Jan. 21, 2025 /PRNewswire/ – New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the second fiscal quarter ended November 30, 2024, which is the second quarter of New Oriental's fiscal year 2025. Financial Highlights for the Second Fiscal Quarter ...

Financial Performance - New Oriental reported net revenues of US$1,038.6 million for the second fiscal quarter of 2025, a 19.4% increase year over year [8][12] - Operating income decreased by 9.8% year over year to US$19.3 million, while non-GAAP operating income fell by 45.8% to US$27.6 million [16][19] - Net income attributable to New Oriental increased by 6.2% year over year to US$31.9 million, with basic and diluted net income per ADS at US$0.20 and US$0.19 respectively [18][19] Revenue Breakdown - Total net revenues, excluding revenues from East Buy private label products and livestreaming business, increased by 31.3% year over year to US$894.2 million [8][12] - The overseas test preparation and overseas study consulting business grew by approximately 21.1% and 31.0% year over year [7] - Domestic test preparation targeting adults and university students recorded a growth of approximately 34.9% year over year [9] Operating Costs and Expenses - Operating costs and expenses for the quarter were US$1,019.4 million, representing a 20.2% increase year over year [14] - Non-GAAP operating costs and expenses, excluding share-based compensation, were US$1,011.1 million, a 23.5% increase year over year [14] - Total share-based compensation expenses decreased by 71.8% to US$8.3 million [15] Cash Flow and Balance Sheet - Net operating cash inflow for the second fiscal quarter was approximately US$313.3 million, with capital expenditures of US$60.6 million [20] - As of November 30, 2024, cash and cash equivalents totaled approximately US$1.4 billion, with total assets amounting to US$7.6 billion [21][44] Shareholder Returns - The board approved a special cash dividend of US$0.06 per common share, totaling approximately US$100 million distributed [10] - A share repurchase program was extended, increasing the authorized repurchase amount from US$400 million to US$700 million [11] Future Outlook - New Oriental expects total net revenues for the third quarter of fiscal year 2025 to be in the range of US$1,007.3 million to US$1,032.5 million, reflecting a year-over-year increase of 18% to 21% [31]

Investment Rating - The report maintains an "Overweight" rating for New Oriental (EDU N) [2] Core Views - New Oriental's FY25Q1 revenue reached $1 44 billion, a year-over-year increase of 30 5%, with Non-GAAP net income attributable to shareholders at $265 million, up 39 8% year-over-year [1] - The company's core education business operating margin improved to 23 7%, a 370bps increase year-over-year, while the Non-GAAP operating margin stood at 24 4%, up 220bps [2] - New Oriental's education new business revenue grew by 49 8% year-over-year, with non-academic class enrollments reaching 484,000, a 10 5% increase [3] - The company's overseas test preparation and study abroad consulting businesses saw revenue growth of 18 8% and 20 7% respectively, while adult and college domestic test preparation business revenue increased by 30 4% [3] Business Performance - New Oriental's total number of schools and learning centers increased to 1,089, with 64 new learning centers added in the quarter [2] - The company's active paying users for its intelligent learning system reached 323,000, a 78 5% year-over-year increase [2] - New Oriental's cash and cash equivalents balance stood at $1 15 billion, supporting the company's expansion in the education business [2] Financial Projections - The report forecasts adjusted net income attributable to shareholders for 2025-2027 at $502 million, $642 million, and $740 million, representing year-over-year growth rates of 31 8%, 27 9%, and 15 3% respectively [3] - Revenue projections for 2025-2027 are $5 33 billion, $6 49 billion, and $7 40 billion, with year-over-year growth rates of 23 6%, 21 7%, and 14 1% [4] - The company's PE ratios for 2025-2027 are projected at 20x, 16x, and 14x respectively [3] Industry Analysis - The education industry continues to show strong demand, particularly in the non-academic and test preparation segments [3] - New Oriental's multi-line strategy post the "Double Reduction" policy has entered a new growth cycle, with stable market share and continuous growth in new store openings [3]

Investment Rating - The report maintains a "BUY" rating for New Oriental, with a target price of US$87.00, down from the previous target of US$95.00, indicating a potential upside of 29.6% from the current price of US$67.13 [4][2]. Core Insights - New Oriental reported a net revenue growth of 30.5% YoY to US$1,435 million in 1QFY25, aligning with estimates. Non-GAAP net income increased by 39.8% YoY to US$265 million, driven by improved operating margins in core educational services [2]. - The company anticipates a revenue growth of 25-28% YoY for 2QFY25, with expectations of reaccelerated growth in 3Q and 4Q, maintaining a full-year growth outlook of approximately 30% YoY for FY25 [2]. - The report highlights strong performance in core educational businesses, with overseas-related revenue up 19% YoY and new educational initiatives growing by 50% YoY in 1QFY25 [2]. - The tourism business showed significant growth, with a 221% YoY increase in revenue from study tours and research camps for K12 and university students [2]. Financial Summary - For FY25E, total revenue is projected at US$5,216 million, with adjusted net profit expected to reach US$516.9 million. The adjusted EPS is forecasted at US$3.12 [3][11]. - The report indicates a gross margin of 54.3% and an operating margin of 9.7% for FY25E, with expectations for gradual improvement in profitability metrics over the following years [6][14]. - The company’s total assets are projected to grow from US$7,532 million in FY24 to US$10,634 million by FY27, reflecting a strong balance sheet position [12]. Valuation Methodology - The valuation employs a sum-of-the-parts (SOTP) approach, attributing US$83.4 million to the educational and consulting business, US$1.0 million to East Buy, and US$2.6 million to tourism and other ventures [8][9]. - The educational and consulting segment is valued at a premium PE of 27x FY25E, reflecting New Oriental's leadership in the educational services market in China [8].

Financial Data and Key Metrics - Total net revenues increased by 30.5% YoY, with core educational business revenues (excluding East Buy) growing by 33.5% YoY [3] - Operating margin and non-GAAP operating margin reached 23.7% and 24.4%, respectively, representing YoY improvements of 370 basis points and 220 basis points [4] - Net income attributable to New Oriental increased by 48.4% YoY to $245.4 million, with non-GAAP net income up 39.8% YoY to $264.7 million [12] - Net cash flow from operations was $183.2 million, with capital expenditures of $80.2 million [12] - Cash and cash equivalents, term deposits, and short-term investments totaled approximately $4.9 billion [9] Business Line Performance - Overseas test prep business revenue increased by 19% YoY, while overseas study consulting business revenue grew by 21% YoY [5] - Adults and university students business revenue increased by 30% YoY [5] - Non-academic tutoring courses recorded approximately 484,000 student enrollments, with the top 10 cities contributing over 60% of revenue [6] - Intelligent learning system and device business reported 323,000 active paid users, with the top 10 cities contributing around 55% of revenue [6] - New educational business initiatives grew by 50% YoY [6] - Tourism-related business, including study tours and research camps, saw revenue growth of 221% YoY, with operations in over 55 cities [7] Market and Strategic Direction - The company invested $24.6 million in its OMO teaching platform to enhance service flexibility [8] - East Buy expanded its product offerings to 488 SKUs and diversified its sales channels, including Tmall, JD, Pinduoduo, and Xiaohongshu [8][9] - The company plans to increase capacity by 20% to 25% in FY2025, focusing on cities with strong financial performance [14] - New Oriental is committed to integrating AI and ChatGPT into its educational offerings to improve efficiency and growth [16] Management Commentary - Management expressed confidence in maintaining healthy growth for the core educational business, supported by solid educational resources [14] - The company is cautiously managing capacity expansion and hiring to balance revenue and profitability growth [14] - Management expects steady growth and satisfactory operating profit for the full fiscal year, despite Q2 being a slower season [15] Q&A Session Question: Second quarter guidance and capacity expansion [18] - Management explained that Q2 is typically a slower quarter due to seasonality but expects revenue growth to accelerate in Q3 and Q4, with full-year growth around 30% YoY [19] Question: Capacity expansion and margin improvement [21] - The company plans to increase capacity by 20% to 25% for FY2025, with margin expansion expected for the full year despite minor pressure in Q2 [22] Question: Margin improvement drivers [24] - Margin improvement was driven by positive top-line growth across business lines, increased utilization rates from learning center expansion, and cost control measures [25] Question: Cultural tourism revenue and profitability [27] - Tourism-related business contributed approximately $90 million in Q1, with profitability expected to be loss-making for the full year [29] Question: K-12 new initiatives revenue breakdown [32] - Non-academic tutoring and intelligent learning device businesses grew by over 50% YoY, with similar growth rates for both segments [33] Question: Growth breakdown for Q2 [35] - Overseas-related business is expected to grow over 20%, domestic test prep and university students business over 30%, and new businesses over 50% [35] Question: New business growth clarification [37] - Non-academic tutoring and intelligent learning device businesses grew over 55% YoY, with non-academic tutoring contributing more than half of new educational business revenue [38][39] Question: Second quarter margin pressure [45] - Q2 margin pressure is attributed to seasonality, tourism business losses, and conservative guidance, with expectations of better performance in Q3 and Q4 [46] Question: East Buy revenue and guidance [51] - East Buy's financial results will be detailed in the next quarter, with Q2 guidance excluding East Buy's revenue [52] Question: New business growth and high school business performance [55] - New educational initiatives are expected to grow around 45% to 46% in Q2, with non-academic tutoring and intelligent learning devices growing over 50% [56]

New Oriental Announces Results for the First Fiscal Quarter Ended August 31, 2024 BEIJING, Oct. 23, 2024 /PRNewswire/ – New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the first fiscal quarter ended August 31, 2024, which is the first quarter of New Oriental's fiscal year 2025. Financial Highlights for the First Fiscal Quarter Ended August 31, 2024 ...

Company Performance - New Oriental (EDU) shares dropped by 1.87% in pre-market trading, priced at $74.36 [1] - Macquarie revised its forecast for New Oriental's non-GAAP net profit for fiscal years 2025 to 2027, reducing it by 11.6% to 13.3% [1] - The revision is based on a lowered revenue prediction and non-GAAP operating profit forecast for the company [1] Business Segments - New Oriental's non-academic K-9 business remains robust [1] - An anticipated slowdown in the growth of its overseas test preparation business during the first quarter of fiscal year 2025 [1]