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

Core Viewpoint - QuantaSing Group Limited is undergoing a strategic transition focusing on high-quality growth, particularly in the silver economy market, while maintaining operational efficiency and exploring new revenue streams [3][4][5]. Financial Performance - Revenues for the second quarter of FY 2025 were RMB726.6 million (US$99.6 million), a decrease of 10.3% from the first quarter of FY 2025 and a decrease of 25.9% from the second quarter of FY 2024 [4][5]. - Gross billings from individual online learning services were RMB546.2 million (US$74.8 million), reflecting a decrease of 23.5% from the first quarter of FY 2025 and a decrease of 42.2% from the second quarter of FY 2024 [5][6]. - Net income for the second quarter of FY 2025 was RMB126.8 million (US$17.4 million), an increase of 57.1% from the first quarter of FY 2025 and an increase of 17.8% from the second quarter of FY 2024 [5][11]. - Adjusted net income for the second quarter of FY 2025 was RMB132.0 million (US$18.1 million), representing an increase of 50.0% from the first quarter of FY 2025 and an increase of 27.1% from the second quarter of FY 2024 [5][11]. User Growth - Total registered users increased by 24.2% to approximately 139.6 million as of December 31, 2024, compared to 112.4 million as of December 31, 2023 [5]. Cost Management - Cost of revenues decreased to RMB122.5 million (US$16.8 million), down 15.5% from RMB145.0 million in the second quarter of FY 2024, primarily due to reduced labor outsourcing costs [7]. - Sales and marketing expenses were RMB407.0 million (US$55.8 million), a decrease of 38.1% from RMB657.1 million in the second quarter of FY 2024 [8]. - Research and development expenses were RMB28.4 million (US$3.9 million), down 30.9% from RMB41.0 million in the second quarter of FY 2024 [9]. Consumer Business Growth - Revenues from the consumer business increased to RMB64.5 million (US$8.8 million) in the second quarter of FY 2025, representing a 39.0% increase from RMB46.4 million in the second quarter of FY 2024 [14]. Investments and Strategic Initiatives - The company has invested in Shenzhen Yiqi Culture Co., Ltd. (Letsvan), focusing on IP incubation and cultural products, which is expected to unlock new business opportunities [16]. - A share repurchase program of up to US$20.0 million was approved, with 1.7 million ADSs repurchased for an aggregate consideration of US$3.6 million as of December 31, 2024 [17].