Gaotu(US:GOTU) Prnewswireยท2024-08-27 06:00Core Viewpoint - Gaotu Techedu Inc. reported significant growth in net revenues and gross billings for the second quarter of 2024, despite incurring substantial operational losses, indicating a strong market demand for its educational services [1][2][6]. Financial Performance - Net revenues for Q2 2024 reached RMB1,009.8 million, a 43.6% increase from RMB703.1 million in Q2 2023 [2][3]. - Gross billings for Q2 2024 were RMB1,653.7 million, up 87.4% from RMB882.3 million in the same period last year [2][3]. - The company reported a loss from operations of RMB464.8 million, compared to an income of RMB43.3 million in Q2 2023 [2][3]. - Net loss for Q2 2024 was RMB429.6 million, a significant decline from a net income of RMB56.2 million in Q2 2023 [2][3]. - Non-GAAP net loss was RMB418.0 million, compared to a non-GAAP net income of RMB63.2 million in the same period last year [2][3]. - Net operating cash inflow increased by 33.8% to RMB386.2 million from RMB288.5 million in Q2 2023 [2][3]. Operational Insights - The cost of revenues increased by 70.0% to RMB313.4 million, primarily due to the expansion of the instructor workforce and higher costs of learning materials [9]. - Operating expenses surged by 144.2% to RMB1,161.1 million, driven by increased employee headcount and marketing expenditures [11]. - Gross profit rose by 34.3% to RMB696.4 million, but the gross profit margin decreased to 69.0% from 73.8% in Q2 2023 [10]. Business Outlook - For Q3 2024, total net revenues are expected to be between RMB1,188 million and RMB1,208 million, reflecting a year-over-year increase of 50.5% to 53.0% [17]. - Deferred revenue as of June 30, 2024, reached RMB1.6 billion, a 71.5% increase from the previous year, indicating strong future revenue support [6]. Shareholder Actions - The company has a share repurchase program authorized for up to US$80 million, with approximately 7.9 million ADSs repurchased for about US$27.0 million as of August 26, 2024 [16].