NEW ORIENTAL(EDU) - 2024 Q3 - Quarterly Report

Financial Performance - Total net revenues for the third fiscal quarter of 2024 increased by 60.1% year over year to US $1,207.3 million[2] - Operating income rose by 70.6% year over year to US$ 113.4 million, with a GAAP operating margin of 9.4%[10] - Net income attributable to New Oriental increased by 6.8% year over year to US $87.2 million, with diluted net income per ADS of US$ 0.52[11] - New Oriental reported net revenues of $1,207,286 for the three months ended February 29, 2024, representing an increase of 60% compared to$ 754,153 for the same period in 2023[29] - Operating income for the same period was $113,432, up from$ 66,491, indicating a significant improvement in operational efficiency[29] - The company’s net income attributable to shareholders was $87,167, compared to$ 81,648 in the prior year, reflecting a year-over-year increase of 6.2%[29] - For the three months ended February 29, 2024, net income attributable to New Oriental was $87,167, an increase of 6.3% from$ 81,648 for the same period in 2023[31] - Non-GAAP net income attributable to New Oriental for the three months ended February 29, 2024, was $104,716, compared to$ 95,362 for the same period in 2023, reflecting a growth of 9.8%[31] - For the nine months ended February 29, 2024, net revenues were $3,176,907, a significant increase of 48.7% from$ 2,137,189 in the same period of 2023[37] - Operating income for the nine months ended February 29, 2024, was $339,898, compared to$ 141,992 for the same period in 2023, marking an increase of 139.5%[37] - Non-GAAP operating income for the nine months ended February 29, 2024, was $436,559, up from$ 201,242 in the same period of 2023, reflecting a growth of 116.7%[39] Cash and Assets - Cash and cash equivalents, term deposits, and short-term investments totaled approximately US $4.8 billion by the end of the quarter[5] - Cash and cash equivalents increased to$ 2,013,627 as of February 29, 2024, from $1,662,982 as of May 31, 2023, showing a growth of 21%[27] - Total current assets rose to$ 5,127,095, up from $4,413,887, marking an increase of 16%[27] - Cash, cash equivalents, and restricted cash at the end of the period on February 29, 2024, were$ 2,189,074, compared to $1,431,001 at the end of the same period in 2023[35] - The company’s total assets reached$ 7,189,543, an increase from $6,392,458, representing a growth of 12.5%[27] Liabilities and Expenses - Operating costs and expenses increased by 59.1% year over year to US$ 1,093.9 million, driven by growth in East Buy private label products[8] - The company’s operating cost and expenses totaled $1,093,854, compared to$ 687,662 in the previous year, reflecting a 59% increase[29] - Total liabilities increased to $3,039,460 from$ 2,577,670, which is a rise of 17.9%[27] - Total operating costs and expenses for the three months ended February 29, 2024, were $1,093,854, up 59% from$ 687,662 in the same period of 2023[31] Deferred Revenue and Enrollment - Deferred revenue increased by 30.8% year over year to US $1,521.7 million, reflecting cash collected upfront from customers[14] - New educational business initiatives achieved 72.7% revenue growth year over year, with approximately 355,000 student enrollments in non-academic tutoring courses[5] - The total number of schools and learning centers reached 911, an increase of 199 compared to the previous year[4] Future Outlook - The company expects total net revenues for the fourth quarter of fiscal year 2024 to be in the range of US$ 1,101.5 million to US$1,127.3 million, representing a year-over-year increase of 28% to 31%[17]