17 Education & Technology Group Inc. Announces First Quarter 2025 Unaudited Financial Results

Core Insights - 17 Education & Technology Group Inc. reported a strong performance in Q1 2025, highlighting significant progress and innovation, particularly with AI-powered product upgrades that enhance teaching and learning efficiency [3][4]. Financial Performance - Net revenues for Q1 2025 were RMB 21.7 million (US$ 3.0 million), a year-over-year decrease of 15.0% from RMB 25.5 million in Q1 2024, primarily due to reduced revenues from district-level projects as resources were shifted to school-based projects [4]. - Cost of revenues decreased by 11.9% year-over-year to RMB 13.8 million (US$ 1.9 million), aligning with the decrease in net revenues [5]. - Gross profit for Q1 2025 was RMB 7.8 million (US$ 1.1 million), with a gross margin of 36.2%, down from 38.4% in Q1 2024 [8]. - The net loss for Q1 2025 was RMB 30.9 million (US$ 4.3 million), a significant improvement from a net loss of RMB 56.1 million in Q1 2024, with net loss as a percentage of net revenues improving to negative 142.8% from negative 219.9% [14]. - Adjusted net loss (non-GAAP) for Q1 2025 was RMB 22.4 million (US$ 3.1 million), compared to RMB 42.7 million in Q1 2024, with adjusted net loss as a percentage of net revenues improving to negative 103.4% from negative 167.4% [15]. Operating Expenses - Total operating expenses for Q1 2025 were RMB 41.7 million (US$ 5.7 million), a decrease of 42.6% from RMB 72.7 million in Q1 2024 [9]. - Sales and marketing expenses decreased by 30.7% year-over-year to RMB 13.0 million (US$ 1.8 million) [10]. - Research and development expenses decreased by 34.0% year-over-year to RMB 12.6 million (US$ 1.7 million) [11]. - General and administrative expenses saw a significant decrease of 53.8% year-over-year to RMB 16.1 million (US$ 2.2 million) [12]. Cash Position - As of March 31, 2025, cash and cash equivalents, restricted cash, and term deposits totaled RMB 333.3 million (US$ 45.9 million), down from RMB 359.3 million as of December 31, 2024 [17]. Management Changes - The company announced the retirement of Mr. Jiawei Gan as an independent director and the appointment of Mr. Gui Jia as an independent director [25]. - Mr. Michael Chao Du resigned as Chief Financial Officer, with Ms. Sishi Zhou appointed as the Acting Chief Financial Officer [27].