Financial Data and Key Metrics Changes - The company reported net revenues of RMB 21,700,000 for Q1 2025, representing a 15% decrease from RMB 25,500,000 in Q1 2024, primarily due to reduced revenues from district-level projects as resources were prioritized for school-based projects with longer revenue recognition periods [7][14][17] - Gross margin for Q1 2025 was 36.2%, down from 38.4% in Q1 2024 [16] - Net loss on a GAAP basis for Q1 2025 was RMB 30,900,000, a decrease of 44.8% from RMB 56,100,000 in Q1 2024 [16][19] - Adjusted net loss (non-GAAP) for Q1 2025 was RMB 22,400,000, down 47.5% from RMB 42,700,000 in Q1 2024 [19][20] - Cash reserves as of March 2025 were RMB 3,333,300,000, compared to RMB 359,300,000 as of December 31, 2024 [21] Business Line Data and Key Metrics Changes - The SaaS subscriptions business saw growth as more educational organizations adopted AI-powered solutions, leading to a strong retention rate and increased adoption of value-added offerings [7][11] - The district-level teaching and learning staff business remained steady, contributing significantly to revenue recognition [9] Market Data and Key Metrics Changes - There was heightened demand for offerings in partner schools, reflected in a higher retention rate, with over 90% of renewal customers opting to continue their subscriptions [11] Company Strategy and Development Direction - The company is focusing on AI-powered product upgrades to enhance teaching and learning efficiency, aiming to transform education services from knowledge transmission to competency development [7][10] - The strategic importance of the school-based subscription business is emphasized, with plans to prioritize resource allocation to this segment [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term sustainability of the business and the importance of monitoring financial performance [8] - The company aims to maintain growth momentum through enhanced operational efficiency and a commitment to enriching learning experiences [24] Other Important Information - The company welcomed Mr. Rui Jia as an independent director and appointed Ms. Sishi Zhou as the acting Chief Financial Officer [21][22] - The company is committed to aligning with national strategies for educational digital transformation [24] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries [26][27]

Financial Data and Key Metrics Changes - The company reported net revenues of RMB 21.7 million for Q1 2025, a 15% decrease from RMB 25.5 million in Q1 2024, primarily due to reduced revenues from district-level projects as resources were reallocated to school-based subscription models [7][14][17] - Gross margin for Q1 2025 was 36.2%, down from 38.4% in Q1 2024 [15] - The net loss on a GAAP basis for Q1 2025 was RMB 30.9 million, a significant decrease of 44.8% from RMB 56.1 million in Q1 2024 [15][19] - Adjusted net loss (non-GAAP) for Q1 2025 was RMB 22.4 million, down 47.5% from RMB 42.7 million in Q1 2024 [15][20] Business Line Data and Key Metrics Changes - The SaaS subscriptions business saw growth as more educational organizations adopted AI-powered solutions, leading to a strong retention rate and increased adoption of value-added offerings [7][10] - The district-level teaching and learning staff business remained steady, contributing significantly to revenue recognition [8][10] Market Data and Key Metrics Changes - The company experienced heightened demand for its offerings in partner schools, reflected in a higher retention rate, with over 90% of renewal customers opting to continue their subscriptions [11] Company Strategy and Development Direction - The company is focusing on AI-powered product upgrades to enhance teaching and learning efficiency, aiming to transform education services from knowledge transmission to competency development [7][10] - Strategic market penetration is prioritized through diversified distribution methods and collaborations, aligning product development with emerging educational trends [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term sustainability of the business, emphasizing the importance of operational efficiency and strategic decision-making [8] - The company aims to maintain growth momentum while enhancing operational efficiency and driving long-term stable development [24] Other Important Information - The company welcomed Mr. Rui Jia as an independent director and appointed Ms. Sushu Zhou as the acting Chief Financial Officer, highlighting their extensive experience in fintech and education sectors [21][22] - The company has cash reserves of RMB 333.3 million as of March 31, 2025, down from RMB 359.3 million as of December 31, 2024 [15][21] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from participants [25]

Core Insights - 17 Education & Technology Group Inc. reported a strong performance in Q1 2025, highlighting significant progress and innovation, particularly with AI-powered product upgrades that enhance teaching and learning efficiency [3][4]. Financial Performance - Net revenues for Q1 2025 were RMB 21.7 million (US$ 3.0 million), a year-over-year decrease of 15.0% from RMB 25.5 million in Q1 2024, primarily due to reduced revenues from district-level projects as resources were shifted to school-based projects [4]. - Cost of revenues decreased by 11.9% year-over-year to RMB 13.8 million (US$ 1.9 million), aligning with the decrease in net revenues [5]. - Gross profit for Q1 2025 was RMB 7.8 million (US$ 1.1 million), with a gross margin of 36.2%, down from 38.4% in Q1 2024 [8]. - The net loss for Q1 2025 was RMB 30.9 million (US$ 4.3 million), a significant improvement from a net loss of RMB 56.1 million in Q1 2024, with net loss as a percentage of net revenues improving to negative 142.8% from negative 219.9% [14]. - Adjusted net loss (non-GAAP) for Q1 2025 was RMB 22.4 million (US$ 3.1 million), compared to RMB 42.7 million in Q1 2024, with adjusted net loss as a percentage of net revenues improving to negative 103.4% from negative 167.4% [15]. Operating Expenses - Total operating expenses for Q1 2025 were RMB 41.7 million (US$ 5.7 million), a decrease of 42.6% from RMB 72.7 million in Q1 2024 [9]. - Sales and marketing expenses decreased by 30.7% year-over-year to RMB 13.0 million (US$ 1.8 million) [10]. - Research and development expenses decreased by 34.0% year-over-year to RMB 12.6 million (US$ 1.7 million) [11]. - General and administrative expenses saw a significant decrease of 53.8% year-over-year to RMB 16.1 million (US$ 2.2 million) [12]. Cash Position - As of March 31, 2025, cash and cash equivalents, restricted cash, and term deposits totaled RMB 333.3 million (US$ 45.9 million), down from RMB 359.3 million as of December 31, 2024 [17]. Management Changes - The company announced the retirement of Mr. Jiawei Gan as an independent director and the appointment of Mr. Gui Jia as an independent director [25]. - Mr. Michael Chao Du resigned as Chief Financial Officer, with Ms. Sishi Zhou appointed as the Acting Chief Financial Officer [27].

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 [5] - The company focuses on digital transformation in Chinese schools, offering SaaS solutions aimed at improving the efficiency of core teaching scenarios such as homework assignments 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] Financial Reporting - The company will report its unaudited financial results for the first quarter ended March 31, 2025, on June 10, 2025, after the close of U.S. markets [1] - An earnings conference call is scheduled for June 10, 2025, at 9:00 p.m. U.S. Eastern Time, which will be June 11, 2025, at 9:00 a.m. Beijing time [1] Conference Call Details - Participants must preregister online to receive dial-in details for the conference call [2] - A live and archived webcast of the conference call will be available on the company's investor relations website [4]

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].

Financial Data and Key Metrics Changes - The company achieved year-over-year top-line growth of 11% to RMB 189.2 million for the full year 2024, driven by strategic market expansion and new contract acquisitions [7] - Net revenues for Q4 2024 were RMB 36.6 million, reflecting a 22.7% decrease from RMB 47.3 million in Q4 2023, primarily due to reduced revenues from district-level flagship projects [29] - Net loss on a GAAP basis for Q4 2024 was RMB 63.7 million, a decrease of 35.2% from RMB 98.4 million in Q4 2023 [26][33] - Adjusted net loss (non-GAAP) for Q4 2024 was RMB 40.1 million, down 51.0% from RMB 81.8 million in Q4 2023 [34] - Gross margin for Q4 2024 was 33.6%, compared to 43.4% in Q4 2023, mainly due to a lower-margin legacy project [27] Business Line Data and Key Metrics Changes - The small subscription business model experienced triple-digit growth year-over-year, supported by strong retention rates and multi-year subscription renewals [9][12] - The school-based subscription model has shown rapid growth, with a significant increase in the number of newly subscribed students [12] - More than 90% of customers whose contracts were up for renewal chose to continue their subscriptions, indicating strong customer loyalty [14] Market Data and Key Metrics Changes - The company has focused on strategic market penetration through channel diversification and customer-centric innovations, improving customer acquisition efficiency [23] - Multi-channel marketing initiatives and strategic partnerships have solidified the company's presence in high-growth markets [24] Company Strategy and Development Direction - The company is committed to advancing educational digitalization and enriching learning experiences, with a dual focus on innovation and sustained growth [36] - There is a strong emphasis on AI-driven solutions to redefine personalized education systems and empower educators [36] - The integration of AI into offerings marks a significant step forward in optimizing teaching practices and learning outcomes [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted a strong pipeline of AI-enhanced products and a customer-centric roadmap, positioning the company for sustainable growth and industry-leading innovations [10] - The company aims to enhance its products and services through AI for improved automation and user experiences, receiving positive market feedback [9] Other Important Information - As of December 31, 2024, the company had cash reserves of RMB 359.3 million [28] - Total operating expenses for Q4 2024 were RMB 81.4 million, a decrease of 33.8% from RMB 122.8 million in Q4 2023 [32] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from participants during the Q&A session [38]

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]

Core Insights - 17 Education & Technology Group Inc. reported a year-over-year revenue growth of 11% for the fiscal year 2024, driven by strategic market expansion and new contract acquisitions [4] - The company is focusing on AI-enhanced products and a customer-centric roadmap to ensure sustainable growth and innovation in the education technology sector [4] Fourth Quarter 2024 Highlights - Net revenues for Q4 2024 were RMB 36.6 million (US$ 5.0 million), a decrease of 22.7% from RMB 47.3 million in Q4 2023 [7][8] - Gross margin for Q4 2024 was 33.6%, down from 43.4% in Q4 2023 [10] - Net loss for Q4 2024 was RMB 63.7 million (US$ 8.7 million), an improvement from a net loss of RMB 98.4 million in Q4 2023 [16] - Adjusted net loss (non-GAAP) for Q4 2024 was RMB 40.1 million (US$ 5.5 million), compared to RMB 81.8 million in Q4 2023 [17] Fiscal Year 2024 Highlights - Total net revenues for 2024 were RMB 189.2 million (US$ 25.9 million), representing a year-over-year increase of 10.7% from RMB 171.0 million in 2023 [19] - Gross profit for 2024 was RMB 69.2 million (US$ 9.5 million), a decrease of 14.2% from RMB 80.7 million in 2023 [21] - Total operating expenses for 2024 were RMB 283.0 million (US$ 38.8 million), a decrease of 33.2% from RMB 423.5 million in 2023 [22] Cost and Expense Management - Cost of revenues for Q4 2024 was RMB 24.3 million (US$ 3.3 million), down 9.2% from RMB 26.8 million in Q4 2023 [9] - Total operating expenses for Q4 2024 were RMB 81.4 million (US$ 11.1 million), a decrease of 33.8% from RMB 122.8 million in Q4 2023 [11] - Research and development expenses for Q4 2024 were RMB 17.0 million (US$ 2.3 million), a significant decrease of 58.5% from RMB 40.9 million in Q4 2023 [13] Cash Position - As of December 31, 2024, cash and cash equivalents, restricted cash, and term deposits totaled RMB 359.3 million (US$ 49.2 million), down from RMB 476.7 million as of December 31, 2023 [29] Leadership Changes - Mr. Qin Wen resigned as a director and Chief Operating Officer effective March 21, 2025, with no reported disagreements with the company [30] Shareholder Confidence - The founder, Mr. Andy Liu, entered into a share purchase agreement to subscribe for 101,345,000 ordinary shares, indicating confidence in the company's long-term growth [31]

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]