Bright Scholar Announces Unaudited Financial Results for the Third Quarter of Fiscal 2024

Core Insights - Bright Scholar Education Holdings Limited reported a revenue of RMB 554.0 million for the third quarter of fiscal 2024, reflecting a quarter-over-quarter increase of 6.2% but a year-over-year decrease of 5.5% compared to RMB 586.4 million in the same quarter last fiscal year [2][5] - The company experienced a gross profit increase of 5.0% year-over-year, reaching RMB 202.7 million, with a gross margin improvement to 36.6% from 32.9% in the same quarter last fiscal year [2][7] - Despite the revenue growth, the company reported a net loss of RMB 90.3 million, primarily due to an impairment loss on goodwill of RMB 133 million, compared to a net loss of RMB 37.7 million in the same quarter last fiscal year [2][8] Financial Performance - Revenue from Overseas Schools was RMB 264.9 million, marking a significant year-over-year increase of 19.4% from RMB 221.8 million [3][6] - Revenue from Complementary Education Services decreased by 18.3% year-over-year to RMB 169.5 million, while revenue from Domestic Kindergartens & K-12 Operation Services fell by 23.9% to RMB 119.6 million [3][6] - The cost of revenue decreased to RMB 351.2 million, representing 63.4% of total revenue, down from 67.1% in the same quarter last fiscal year, indicating improved cost management [7] Management Commentary - The CEO highlighted the resilience of the business and the successful execution of strategic initiatives, with a focus on the growth of the Overseas Schools segment, which saw an 8% increase in student enrollment year-over-year [4] - The CFO noted the strengthening of the company's cash position, closing the quarter with RMB 537.2 million in cash and cash equivalents, supporting organic growth initiatives [4][10] Adjusted Financial Metrics - Adjusted net income for the quarter was RMB 48.5 million, a significant improvement from an adjusted net loss of RMB 34.8 million in the same quarter last fiscal year [2][8] - Adjusted EBITDA was reported at RMB 76.6 million, down from RMB 96.0 million in the same quarter last fiscal year [8][29] - The company reported an adjusted operating income of RMB 55.1 million, compared to RMB 77.6 million in the same quarter last fiscal year [8]