QuantaSing Announces Unaudited Financial Results for the Fourth Quarter of Fiscal Year 2024 and Full Fiscal Year 2024

Core Viewpoint - QuantaSing Group Limited reported strong financial results for the fourth quarter and full fiscal year 2024, highlighting significant growth in revenues and user base, while also emphasizing a strategic shift towards the silver economy and wellness products [1][4][22]. Financial Highlights for the Fourth Quarter of FY 2024 - Revenues reached RMB1,000.1 million (US$137.6 million), a 5.8% increase from the previous quarter and a 20.7% increase year-over-year [2][6]. - Gross billings from individual online learning services were RMB774.4 million (US$106.6 million), reflecting a 21.1% increase from the previous quarter and a 3.4% increase year-over-year [2][7]. - Net income was RMB196.6 million (US$27.1 million), compared to RMB14.6 million in the previous quarter and RMB52.7 million in the same quarter last year [2][14]. - Adjusted net income was RMB193.6 million (US$26.6 million), up from RMB31.9 million in the previous quarter and RMB90.4 million in the same quarter last year [2][14]. - Total registered users increased by 35.3% to approximately 127.6 million year-over-year [2]. Financial Highlights for FY 2024 - Total revenues for FY 2024 were RMB3,795.3 million (US$522.3 million), a 23.2% increase from the prior fiscal year [3][16]. - Gross billings from individual online learning services were RMB3,462.7 million (US$476.5 million), a 14.1% increase from the prior fiscal year [3][17]. - Net income for FY 2024 was RMB385.5 million (US$53.1 million), a significant recovery from a net loss of RMB108.7 million in FY 2023 [3][22]. - Adjusted net income for FY 2024 was RMB423.3 million (US$58.3 million), compared to RMB83.0 million in the prior fiscal year [3][22]. Cost and Expense Management - Cost of revenues increased by 21.6% year-over-year to RMB141.3 million (US$19.4 million), primarily due to higher labor outsourcing and procurement costs [9]. - Sales and marketing expenses were RMB580.1 million (US$79.8 million), a slight increase of 1.2% year-over-year [10]. - Research and development expenses decreased by 60.4% to RMB21.2 million (US$2.9 million) due to reduced staff costs [11]. - General and administrative expenses decreased by 69.6% to RMB11.6 million (US$1.6 million), primarily due to a decline in share-based compensation expenses [12]. Strategic Focus and Future Outlook - The company is aligning its strategy with the growing silver economy, focusing on adult learning and wellness products to create a comprehensive ecosystem for the senior demographic [4]. - The wellness products business has shown significant quarter-over-quarter growth, indicating strong early traction [4]. - The company maintains a strong balance sheet with RMB1,026.3 million (US$141.2 million) in cash and equivalents as of June 30, 2024, providing flexibility for strategic initiatives [4][24].