Company Overview - 17 Education & Technology Group Inc. is a leading education technology company in China, providing smart in-school classroom solutions that enhance teaching, learning, and assessment through data-driven products [3] - The company focuses on digital transformation in Chinese schools, aiming to improve the efficiency and effectiveness of core teaching scenarios such as homework assignments and in-class teaching [3] - The products leverage technology and data insights to offer personalized learning experiences, thereby enhancing students' learning efficiency [3] Financial Reporting - The company filed its annual report on Form 20-F, including audited financial statements for the fiscal year ended December 31, 2024, with the SEC on April 25, 2025 [1] - The annual report is accessible on the company's investor relations website and the SEC's website [1] Shareholder Information - The company offers a hard copy of its annual report containing audited consolidated financial statements free of charge to shareholders and ADS holders upon request [2]

VIE Structure and Compliance Risks - Revenues contributed by the VIEs and their subsidiaries accounted for 93.9%, 98.3%, and 98.5% of total revenues for 2022, 2023, and 2024, respectively[25]. - The company operates through a VIE structure, which poses unique risks to investors, as they do not purchase equity interest in the VIEs but in a Cayman Islands holding company[25]. - The company has consolidated the VIEs' results of operations, assets, and liabilities in its financial statements for all periods presented[26]. - The VIEs have pledged 100% equity interests to the company's WFOEs to guarantee performance under various agreements[32]. - The company believes there is a remote possibility that accumulated earnings of the VIEs could lead to non-deductible transfers, potentially reducing after-tax income to approximately 50.6% of pre-tax income[49]. - The PCAOB has determined it can inspect audit firms in mainland China and Hong Kong, affecting the company's compliance status under the Holding Foreign Companies Accountable Act[45]. - The company has entered into a series of exclusive management services and business cooperation agreements with the VIEs, granting it operational control[33]. - The company is deemed an "existing issuer" under the Overseas Listing Trial Measures, not requiring filing procedures for historical securities issuance[41]. - The company relies on contractual arrangements with VIEs for its operations in mainland China, which may not be as effective as direct ownership[202]. - The PRC government has broad discretion in determining compliance with laws, which could lead to severe penalties or operational restrictions for the company[201]. - The company may need to unwind contractual arrangements or restructure operations if it fails to complete filings with the CSRC for future capital raising activities[199]. - The company is at risk of losing its ability to consolidate VIEs' financial results if it cannot direct their activities effectively[198]. - The company faces significant risks if the VIEs or their shareholders fail to perform their obligations under contractual arrangements, potentially incurring substantial costs[204]. - The legal system in mainland China is evolving, which may limit the company's ability to enforce contractual arrangements and could lead to significant uncertainties in legal proceedings[205]. - Conflicts of interest may arise between the shareholders of the VIEs and the company, potentially affecting control and economic benefits derived from the VIEs[206]. - The company currently lacks arrangements to address potential conflicts of interest with VIE shareholders, relying on legal proceedings if disputes arise[207]. - The VIEs' contractual arrangements may be scrutinized by mainland China tax authorities, leading to potential additional tax liabilities and penalties that could adversely affect the company's financial condition[208]. - The Foreign Investment Law may impact the company's operations, as it does not clearly classify VIEs and leaves room for future regulations that could affect contractual arrangements[209]. - The company may face uncertainties regarding compliance with future laws or regulations that could affect its corporate structure and business operations[211]. - The VIEs hold material assets essential for the company's operations, and bankruptcy or liquidation of these entities could hinder business activities[213]. - The PRC government's increased oversight over foreign investments and overseas offerings could lead to material adverse changes in the company's operations and the value of its securities[220]. Financial Performance - Total net revenues for the year ended December 31, 2024, were RMB 189,212 thousand, a decrease from RMB 170,962 thousand in 2023, reflecting a decline of approximately 10.7%[51]. - The net loss for the year ended December 31, 2024, was RMB 192,927 thousand, compared to a net loss of RMB 311,782 thousand in 2023, indicating an improvement of approximately 38.1%[53]. - Total costs and expenses for 2024 amounted to RMB 403,024 thousand, down from RMB 513,712 thousand in 2023, representing a reduction of about 21.5%[53]. - Cash and cash equivalents as of December 31, 2024, were RMB 234,144 thousand, a decrease from RMB 306,929 thousand in 2023, reflecting a decline of approximately 23.6%[54]. - Total assets as of December 31, 2024, were RMB 549,517 thousand, down from RMB 684,526 thousand in 2023, indicating a decrease of about 19.7%[54]. - The company reported inter-company net revenues of RMB 0 for 2024, compared to RMB 54,890 thousand in 2023, showing a significant decline[53]. - The share of loss from subsidiaries, VIEs, and VIEs' subsidiaries for 2024 was RMB 247,461 thousand, a decrease from RMB 297,906 thousand in 2023, indicating a reduction of approximately 16.9%[53]. - The company has a total shareholders' equity of RMB 393,639 thousand as of December 31, 2024, compared to RMB 494,269 thousand in 2023, reflecting a decrease of about 20.4%[54]. - The company’s total liabilities as of December 31, 2024, were RMB 155,878 thousand, a decrease from RMB 190,257 thousand in 2023, indicating a reduction of approximately 18.1%[54]. - For the year ended December 31, 2024, the net cash used in operating activities totaled RMB (139,218) thousand, a significant increase from RMB (212,075) thousand in 2023, indicating a decrease in cash outflow[57]. - The net cash used in investing activities for 2024 was RMB (35,594) thousand, compared to RMB (161,141) thousand in 2023, reflecting improved cash generation from investing activities[57]. - The company reported net cash generated from financing activities of RMB 21,333 thousand in 2024, a recovery from a net cash outflow of RMB (51,357) thousand in 2023[57]. - The company recorded share-based compensation expenses of RMB129.6 million, RMB83.7 million, and RMB61.9 million (US$8.5 million) for the years 2022, 2023, and 2024, respectively, and expects these expenses to increase[168]. - The company has experienced net losses and negative cash flows, raising concerns about its ability to achieve profitability in the future[115]. Business Model and Market Challenges - The cessation of K-12 Academic AST Services has materially affected the company's business and financial condition, leading to a shift towards teaching and learning SaaS offerings launched in September 2021[72]. - The company plans to continue investing in technology and infrastructure to enhance its teaching and learning SaaS offerings and other educational products, focusing on recruiting AI specialists and data scientists[73]. - The limited operating history with the current business model makes it challenging to predict future financial performance, as the company transitioned from K-12 tutoring to SaaS offerings[75]. - The company faces risks related to market competition, project delays, and reliance on local government funding for its SaaS offerings, which could impact operating results[76]. - The company aims to expand its customer base and improve its sales and distribution network for its educational products and services, which requires significant capital expenditures[77]. - The management acknowledges the substantial demands on resources due to changes in business operations and the need for improved operational and financial controls[74]. - The company is exploring additional educational products and services to adapt to regulatory changes and market demands, leveraging its technology and data insights[72]. - The PRC private education industry, particularly the after-school tutoring sector, has faced significant regulatory changes, including the prohibition of new academic tutoring institutions and the requirement for existing institutions to register as non-profit entities[78][79][80]. - The company ceased offering K-12 academic tutoring services in mainland China at the end of 2021, which has materially affected its business and financial condition in 2022, 2023, and 2024[81]. - The company has launched new educational product offerings, including teaching and learning SaaS, to adapt to regulatory changes and market demands since September 2021[81][86]. - The company is closely monitoring the evolving regulatory environment and is committed to complying with the New Regulations, although there is substantial uncertainty regarding full compliance[82]. - The success of the company's SaaS offerings depends on attracting new educational authorities and schools, which involves navigating stringent procurement processes and budgetary cycles[90][91]. - The company faces challenges in retaining existing students and attracting new users due to increased user acquisition costs and competition in a highly regulated market[88]. - The company has observed that many regional educational authorities tend to procure sophisticated applications in stages, which may lead to repeat purchases in future budgetary cycles[91]. - The effectiveness of the company's teaching and learning SaaS offerings is contingent upon the acceptance and integration of technology in education, which may take longer than anticipated[94][95]. - The company relies on a dedicated sales and service team to promote its offerings, but the limited operating history of this team poses risks to effective promotion and customer service[96]. - The enforcement of the New Regulations may not only affect the company directly but also impact the overall demand for its services if competitors provide prohibited products or services[84]. - The company emphasizes the importance of brand recognition for attracting educational authorities and students, noting that failure to maintain this could adversely affect operations and financial condition[97]. - The education SaaS market is rapidly growing, and the company's future success relies on its ability to penetrate this market and adapt to changes in educational needs[98]. - The company faces challenges in market adoption of its SaaS offerings, with potential impacts from competition, technological changes, and economic conditions[99]. - Continuous investment in research and development is necessary to keep pace with technological advancements and educational needs, as failure to do so could render products less competitive[101]. - The competitive landscape in the educational SaaS market is intensifying, with competitors potentially having greater resources and brand recognition[102]. - The company is integrating AI into its offerings to improve educational content creation and personalized learning experiences, but faces risks related to data practices and ethical issues[104]. - Changes in examination systems and admission standards in China could impact the attractiveness of the company's products to educational authorities and students[149]. - The company must continually update educational content to respond to changes in assessment processes, or risk adverse effects on marketability[150]. - Regulatory changes limiting the use of examination results for admissions may negatively affect student enrollments[151]. - The company faces challenges in timely and cost-effective development of appealing educational content, which could impair student attraction and retention[152]. Regulatory and Compliance Issues - The company has not been required to obtain permissions from the China Securities Regulatory Commission or go through cybersecurity review as of the date of the report[40]. - Recent legal developments in China may create compliance uncertainty regarding future overseas capital raising activities[41]. - The company is not required to undergo a cybersecurity review by the Cyberspace Administration of China for its past issuance of securities to foreign investors, as confirmed by relevant authorities[130]. - As of the date of the annual report, the company has not been informed that it is a critical information infrastructure operator, and the criteria for such designation remain unclear[130]. - The company must comply with new regulations on the cybersecurity protection of minors, effective January 1, 2024, which include measures to protect minors' personal information[131]. - The company is subject to the Regulations on Network Data Security Management, effective January 1, 2025, which require annual risk assessments for data processing activities[132]. - Compliance with existing and future PRC laws related to data security may incur additional costs and affect the company's operations and reputation[135]. - The company has not experienced significant disruptions to its information technology systems, but any future failures could adversely affect user satisfaction and business operations[144]. - The company relies on third-party mobile application distribution channels, and any unfavorable changes in their policies could impact the distribution of its applications[145]. - The company faces risks related to data security and protection compliance, which could lead to increased costs and potential penalties[127]. - The evolving PRC regulatory environment regarding data security may impose additional compliance challenges and costs on the company[128]. - The company must maintain necessary licenses and permits for its online education services, with potential penalties for non-compliance impacting operations[111]. - Uncertainties in regulatory requirements for online education services may materially affect the company's business and financial condition[109]. - The company faces risks related to the enforcement of foreign judgments in mainland China, which may not recognize U.S. court judgments due to lack of reciprocal agreements[231]. - There are risks associated with the management of non-tangible assets like chops and seals, which could lead to disruptions in business operations if misused[233]. Operational and Strategic Risks - The company faces risks related to leased properties, including potential fines for non-compliance with registration requirements[187]. - The company may need additional capital in the future to pursue business objectives, and failure to obtain it could adversely affect operations and financial condition[180]. - The company may not achieve expected benefits from future investments and acquisitions, which could harm results of operations[181]. - A severe downturn in the Chinese or global economy could materially and adversely affect the company's business and financial condition[182]. - Fluctuations in exchange rates could have a material and adverse effect on the company's results of operations[183]. - The company faces reputational harm due to misconduct or improper activities by third-party service provider employees, which are difficult to control[164]. - The company has limited business insurance coverage, exposing it to significant costs and disruptions[172]. - The company has concluded that its internal control over financial reporting was effective as of December 31, 2024, but acknowledges the risk of future material weaknesses[175]. - The company faces risks related to natural disasters and health epidemics, which could disrupt operations and adversely affect results[170]. - Seasonal fluctuations in revenue are anticipated, with higher net revenues expected in specific quarters aligned with educational budget cycles[165].

17 Education & Technology Group Inc. (YQ) Q4 2024 Earnings Conference Call March 25, 2025 08:00 PM ET Company Participants Operator - Conference Call OperatorLara Zhao - Investor Relations ManagerMichael Du - Director and Chief Financial Officer Operator Good evening and good morning, ladies and gentlemen, and thank you for standing by for the 17 at Tech's fourth quarter 2024 and four-year earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remar ...

Financial Data and Key Metrics Changes - The company achieved a year-over-year top-line growth of 11% to RMB189.2 million for the full year 2024, driven by strategic market expansion and new contract acquisitions [8] - Net revenues for Q4 2024 were RMB36.6 million, reflecting a 23% decrease from the same quarter last year, primarily due to a reduction in revenues from district-level flagship projects [9][30] - Net loss on a GAAP basis for Q4 2024 was RMB63.7 million, a decrease of RMB35.2 million year-on-year from RMB98.4 million in Q4 2023 [27][32] - Adjusted net loss non-GAAP for Q4 2024 was RMB40.1 million, a decrease of RMB51.0 million year-on-year from RMB81.8 million in Q4 2023 [27][33] - Gross margin for Q4 2024 was 33.6%, down from 43.4% in Q4 2023, mainly due to a lower-margin legacy project [28] Business Line Data and Key Metrics Changes - The SaaS subscription business model showed three-digit growth compared to the same quarter last year, supported by strong retention rates and multi-year subscription renewals [9] - The school-based subscription model experienced rapid growth with triple-digit growth in the number of newly subscribed students year-over-year [14] - More than 90% of customers whose contracts were subject to renewal chose to continue their subscriptions, with some expanding their coverage [15] Market Data and Key Metrics Changes - The company has continued to win teaching and learning SaaS projects, demonstrating strong customer stickiness and expanding services to more schools [12][13] - The shift towards a higher proportion of contracts under the SaaS subscription model requires longer periods for revenue recognition, impacting short-term revenue figures [30] Company Strategy and Development Direction - The company is focused on advancing educational digitalization and enhancing learning experiences through AI-driven solutions [35] - There is a commitment to strengthen core business operations while exploring new opportunities through innovation and sustained growth [35] - The integration of AI into product offerings aims to optimize teaching practices and improve learning outcomes [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline of AI-enhanced products and a customer-centric roadmap, positioning the company for sustainable growth [11] - The company is committed to enhancing customer satisfaction through innovative product offerings and operational agility [18][17] Other Important Information - As of December 31, 2024, the company had cash reserves of RMB359.3 million [29] - Total operating expenses for Q4 2024 were RMB81.4 million, a year-over-year decrease of 33.8% [32] Q&A Session Summary Question: No questions were raised during the Q&A session - There were no questions from participants during the Q&A session [36]

BEIJING, March 25, 2025 (GLOBE NEWSWIRE) -- 17 Education & Technology Group Inc. (NASDAQ: YQ) (“17EdTech” or the “Company”), a leading education technology company in China, today announced its unaudited financial results for the fourth quarter and the year ended December 31, 2024. Fourth Quarter 2024 Highlights1 Net revenues were RMB36.6 million (US$5.0 million), compared with net revenues of RMB47.3 million in the fourth quarter of 2023.Gross margin was 33.6%, compared with 43.4% in the fourth quarter of ...

Core Viewpoint - 17 Education & Technology Group Inc. will report its unaudited financial results for Q4 and the fiscal year ended December 31, 2024, on March 25, 2025, before U.S. market opening [1] Financial Reporting - The earnings conference call is scheduled for March 25, 2025, at 8:00 a.m. U.S. Eastern Time, which corresponds to 8:00 p.m. Beijing time [2] - Participants must preregister online to receive dial-in details for the conference call [3] Company Overview - 17 Education & Technology Group Inc. is a leading education technology company in China, providing smart in-school classroom solutions that enhance teaching, learning, and assessment [5] - The company focuses on digital transformation in Chinese schools, offering SaaS products aimed at improving the efficiency of core teaching scenarios such as homework and in-class teaching [5] - Additionally, the company provides personalized self-directed learning products for families, utilizing technology and data insights to enhance students' learning efficiency [5]

Core Viewpoint - 17 Education & Technology Group Inc. will report its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024, on March 25, 2025, prior to the opening of U.S. markets [1] Company Overview - 17 Education & Technology Group Inc. is a leading education technology company in China, providing smart in-school classroom solutions that deliver data-driven teaching, learning, and assessment products to teachers, students, and parents [5] - The company leverages its extensive knowledge and expertise from in-school business over the past decade to offer teaching and learning SaaS solutions aimed at facilitating digital transformation in Chinese schools [5] - The focus of the company is on improving the efficiency and effectiveness of core teaching and learning scenarios, such as homework assignments and in-class teaching [5] - Additionally, the company provides a personalized self-directed learning product for Chinese families, utilizing technology and data insights to enhance students' learning efficiency [5] Conference Call Information - The management will hold an earnings conference call on March 25, 2025, at 8:00 a.m. U.S. Eastern Time, which corresponds to 8:00 p.m. Beijing time [2] - Participants must preregister online to receive dial-in details for the conference call [3] - A live and archived webcast of the conference call will be available on the company's investor relations website [4]

17 Education & Technology Group, Inc. (NASDAQ:YQ)0 Q3 2024 Earnings Conference Call December 11, 2024 8:00 PM ET Company Participants Lara Zhao - IR Manager Michael Chao Du - Director & CFO Conference Call Participants Operator Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question and answer sessio ...

Core Viewpoint - 17 Education & Technology Group Inc. reported significant improvements in its financial performance for the third quarter of 2024, with notable increases in net revenues and a reduction in net loss compared to the same period in 2023 [2][17]. Financial Performance - **Third Quarter 2024 Highlights**: - Net revenues reached RMB 59.6 million (US$ 8.5 million), a year-over-year increase of 32.2% from RMB 45.1 million in Q3 2023 [2][7]. - Gross margin improved to 60.9%, up from 54.1% in Q3 2023 [10]. - Net loss narrowed to RMB 17.4 million (US$ 2.5 million), compared to a net loss of RMB 72.9 million in Q3 2023 [17]. - Adjusted net loss (non-GAAP) was RMB 5.7 million (US$ 0.8 million), significantly better than the adjusted net loss of RMB 53.7 million in Q3 2023 [18]. - **First Nine Months 2024 Highlights**: - Net revenues totaled RMB 152.6 million (US$ 21.7 million), compared to RMB 123.6 million in the same period of 2023 [3]. - Gross margin for the first nine months was 37.3%, down from 48.6% in 2023 [3]. - Net loss for the first nine months was RMB 129.2 million (US$ 18.4 million), an improvement from RMB 213.3 million in 2023 [3]. - Adjusted net loss (non-GAAP) was RMB 90.9 million (US$ 13.0 million), compared to RMB 146.3 million in the first nine months of 2023 [3]. Operational Insights - The company has seen consistent growth in schools subscribing to its teaching and learning SaaS offerings, indicating a strong demand for its products [5]. - The teaching and learning SaaS business experienced revenue growth compared to the same quarter last year, reflecting enhanced operational efficiency [6]. Cost Management - Total operating expenses for Q3 2024 were RMB 58.0 million (US$ 8.3 million), a decrease of 43.7% from RMB 103.1 million in Q3 2023 [11]. - Sales and marketing expenses decreased by 27.6% year-over-year, while research and development expenses saw a significant reduction of 72.2% [12][13]. Cash Position - As of September 30, 2024, cash and cash equivalents and term deposits amounted to RMB 339.7 million (US$ 48.4 million), down from RMB 476.7 million as of December 31, 2023 [20].

Company Overview - 17 Education & Technology Group Inc. is a leading education technology company in China, providing smart in-school classroom solutions that enhance teaching, learning, and assessment through data-driven products [6] - The company focuses on digital transformation in Chinese schools, improving the efficiency of core teaching scenarios such as homework assignments and in-class teaching [6] - It also offers personalized self-directed learning products aimed at enhancing students' learning efficiency through targeted content based on technology and data insights [6] Financial Reporting - The company will report its unaudited financial results for the third quarter ended September 30, 2024, on December 11, 2024, after the close of U.S. markets [1] - An earnings conference call is scheduled for December 11, 2024, at 8:00 p.m. U.S. Eastern Time [2] Conference Call Details - Participants must pre-register online to receive dial-in details for the conference call [3][4] - A live and archived webcast of the conference call will be available on the company's investor relations website [5]