QuantaSing Announces Unaudited Financial Results for the First Quarter of Fiscal Year 2025

Core Viewpoint - QuantaSing Group Limited reported a strategic pivot towards the silver economy in China, aiming to align its offerings with the needs of the aging population while maintaining profitability and positive cash flow [3][25]. Financial Performance - Revenues for the first quarter of FY 2025 were RMB810.4 million (US$115.5 million), a decrease of 19.0$101.7 million), down 7.8% from the previous quarter and 6.3% year-over-year [2]. - Net income for the first quarter was RMB80.7 million (US$11.5 million), compared to RMB196.6 million in the previous quarter and RMB66.7 million in the same quarter last year [2][11]. - Adjusted net income was RMB88.0 million (US$12.5 million), down from RMB193.6 million in the previous quarter and RMB94.0 million year-over-year [2][11]. User Growth - Total registered users increased by 30.2% to approximately 134.6 million as of September 30, 2024, from 103.3 million a year earlier [2]. - Paying learners increased by 16.8% year-over-year to approximately 0.4 million in the first quarter of FY 2025 [2]. Revenue Breakdown - Revenues from individual online learning services decreased by 6.2% year-over-year to RMB709.0 million (US$101.0 million) [5]. - Revenues from enterprise services were RMB47.8 million (US$6.8 million), down from RMB68.4 million year-over-year [6]. - Revenues from consumer business increased to RMB49.5 million (US$7.1 million), a 10.4$19.2 million), up 13.8% year-over-year, primarily due to higher labor outsourcing and procurement costs [7]. - Sales and marketing expenses decreased by 17.0% to RMB515.0 million (US$73.4 million) [8]. - Research and development expenses decreased by 35.9$4.0 million) [9]. - General and administrative expenses decreased by 28.4% to RMB30.6 million (US$4.4 million) [10]. Cash Position - As of September 30, 2024, the company had cash and cash equivalents of RMB1,193.7 million (US$170.1 million), an increase from RMB1,026.3 million as of June 30, 2024 [13]. Recent Developments - The board declared a special cash dividend of US$0.067 per ordinary share, totaling US$10.9 million paid in November 2024 [15]. - A share repurchase program of up to US$20.0 million was approved, with US$3.5 million spent on repurchasing 1.7 million ADSs as of September 30, 2024 [16].