New Oriental Announces Results for the Second Fiscal Quarter Ended November 30, 2024

Financial Performance - New Oriental reported net revenues of US$1,038.6 million for the second fiscal quarter of 2025, a 19.4% increase year over year [8][12] - Operating income decreased by 9.8% year over year to US$19.3 million, while non-GAAP operating income fell by 45.8% to US$27.6 million [16][19] - Net income attributable to New Oriental increased by 6.2% year over year to US$31.9 million, with basic and diluted net income per ADS at US$0.20 and US$0.19 respectively [18][19] Revenue Breakdown - Total net revenues, excluding revenues from East Buy private label products and livestreaming business, increased by 31.3% year over year to US$894.2 million [8][12] - The overseas test preparation and overseas study consulting business grew by approximately 21.1% and 31.0% year over year [7] - Domestic test preparation targeting adults and university students recorded a growth of approximately 34.9% year over year [9] Operating Costs and Expenses - Operating costs and expenses for the quarter were US$1,019.4 million, representing a 20.2% increase year over year [14] - Non-GAAP operating costs and expenses, excluding share-based compensation, were US$1,011.1 million, a 23.5% increase year over year [14] - Total share-based compensation expenses decreased by 71.8% to US$8.3 million [15] Cash Flow and Balance Sheet - Net operating cash inflow for the second fiscal quarter was approximately US$313.3 million, with capital expenditures of US$60.6 million [20] - As of November 30, 2024, cash and cash equivalents totaled approximately US$1.4 billion, with total assets amounting to US$7.6 billion [21][44] Shareholder Returns - The board approved a special cash dividend of US$0.06 per common share, totaling approximately US$100 million distributed [10] - A share repurchase program was extended, increasing the authorized repurchase amount from US$400 million to US$700 million [11] Future Outlook - New Oriental expects total net revenues for the third quarter of fiscal year 2025 to be in the range of US$1,007.3 million to US$1,032.5 million, reflecting a year-over-year increase of 18% to 21% [31]