17 Education & Technology Group Inc. Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

Core Insights - 17 Education & Technology Group Inc. reported a year-over-year revenue growth of 11% for the fiscal year 2024, driven by strategic market expansion and new contract acquisitions [4] - The company is focusing on AI-enhanced products and a customer-centric roadmap to ensure sustainable growth and innovation in the education technology sector [4] Fourth Quarter 2024 Highlights - Net revenues for Q4 2024 were RMB 36.6 million (US$5.0 million), a decrease of 22.7$ 8.7 million), an improvement from a net loss of RMB 98.4 million in Q4 2023 [16] - Adjusted net loss (non-GAAP) for Q4 2024 was RMB 40.1 million (US$5.5 million), compared to RMB 81.8 million in Q4 2023 [17] Fiscal Year 2024 Highlights - Total net revenues for 2024 were RMB 189.2 million (US$ 25.9 million), representing a year-over-year increase of 10.7% from RMB 171.0 million in 2023 [19] - Gross profit for 2024 was RMB 69.2 million (US$9.5 million), a decrease of 14.2$ 38.8 million), a decrease of 33.2% from RMB 423.5 million in 2023 [22] Cost and Expense Management - Cost of revenues for Q4 2024 was RMB 24.3 million (US$3.3 million), down 9.2$ 11.1 million), a decrease of 33.8% from RMB 122.8 million in Q4 2023 [11] - Research and development expenses for Q4 2024 were RMB 17.0 million (US$2.3 million), a significant decrease of 58.5$ 49.2 million), down from RMB 476.7 million as of December 31, 2023 [29] Leadership Changes - Mr. Qin Wen resigned as a director and Chief Operating Officer effective March 21, 2025, with no reported disagreements with the company [30] Shareholder Confidence - The founder, Mr. Andy Liu, entered into a share purchase agreement to subscribe for 101,345,000 ordinary shares, indicating confidence in the company's long-term growth [31]