Core Viewpoint - 17 Education & Technology Group Inc. reported a decline in net revenues and gross margin for the second quarter of 2024, alongside an increase in net loss compared to the same period in 2023, despite achieving significant growth in its core SaaS business [1][4][5]. Financial Performance - Second Quarter 2024 Highlights - Net revenues were RMB 67.5 million (US9.3million),aslightdecreasefromRMB69.2millioninQ22023[2][6].−Grossmarginfellto16.0 7.7 million) from RMB 47.9 million in Q2 2023 [2][13]. - Adjusted net loss (non-GAAP) was RMB 42.6 million (US5.9million),comparedtoRMB28.6millioninQ22023[2][14].−∗∗FirstHalf2024Highlights∗∗−NetrevenuesforthefirsthalfwereRMB93.0million(US 12.8 million), up from RMB 78.5 million in the first half of 2023 [3]. - Gross margin was 22.1%, down from 45.5% in the first half of 2023 [3]. - Net loss narrowed to RMB 111.8 million (US15.4million)fromRMB140.5millioninthefirsthalfof2023[3].OperationalInsights−Thecompany’scoreSaaSbusinessexperiencedaquarter−on−quartergrowthof165 7.8 million), a 58.6% increase from RMB 35.8 million in Q2 2023 [7]. - Operating Expenses - Total operating expenses for Q2 2024 were RMB 71.0 million (US9.8million),down22.3 2.3 million) [9][12]. - Research and development expenses decreased by 37.1% to RMB 23.2 million (US3.2million)[10].CashPosition−AsofJune30,2024,cashandcashequivalents,restrictedcash,andtermdepositstotaledRMB410.7million(US 56.5 million), down from RMB 476.7 million as of December 31, 2023 [15]. Share Repurchase Program - The board approved a share repurchase program allowing the company to buy back up to US$ 10 million worth of its ordinary shares over a 12-month period starting September 4, 2024 [16].
