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New Oriental Announces Results for the Second Fiscal Quarter Ended November 30, 2023
EDUNEW ORIENTAL(EDU) Prnewswire·2024-01-24 11:42

Core Viewpoint - New Oriental Education & Technology Group Inc. reported strong financial results for the second fiscal quarter of 2024, with significant year-over-year growth in revenues and net income, indicating a robust recovery and expansion in its educational services and related businesses [1][4]. Financial Highlights - Total net revenues for the second fiscal quarter increased by 36.3% year over year to US869.6million[2][6].−OperatingincomewasUS869.6 million [2][6]. - Operating income was US21.3 million, a turnaround from a loss of US2.5millioninthesameperiodofthepriorfiscalyear[2][9].−NetincomeattributabletoNewOrientalsurgedby4,007.42.5 million in the same period of the prior fiscal year [2][9]. - Net income attributable to New Oriental surged by 4,007.4% year over year to US30.1 million [2][10]. - Non-GAAP operating income for the quarter was US50.9million,representinga212.250.9 million, representing a 212.2% increase year over year [2][9]. - The company reported a positive operating cash flow of US300.6 million for the quarter [4][12]. Operational Highlights - The total number of schools and learning centers increased to 843 as of November 30, 2023, up from 793 as of August 31, 2023 [3]. - The overseas test preparation and overseas study consulting businesses grew by approximately 46.5% and 31.7% year over year, respectively [4]. - Domestic test preparation for adults and university students recorded a growth of approximately 42.7% year over year [4]. - New educational business initiatives achieved a revenue growth of 68.3% year over year, with non-academic tutoring courses attracting approximately 786,000 student enrollments [4]. Cost and Expenses - Operating costs and expenses for the quarter were US848.3million,a32.4848.3 million, a 32.4% increase year over year [7]. - Selling and marketing expenses increased by 62.2% year over year to US155.0 million [7]. - General and administrative expenses rose by 29.6% year over year to US270.7million[7].BalanceSheetandCashFlow−AsofNovember30,2023,NewOrientalhadcashandcashequivalentstotalingapproximatelyUS270.7 million [7]. Balance Sheet and Cash Flow - As of November 30, 2023, New Oriental had cash and cash equivalents totaling approximately US1.9 billion, with total cash, cash equivalents, term deposits, and short-term investments amounting to approximately US4.8billion[13].−Deferredrevenueincreasedby44.44.8 billion [13]. - Deferred revenue increased by 44.4% year over year to US1.645 billion [13]. Outlook - New Oriental expects total net revenues for the third quarter of fiscal year 2024 to be in the range of US1,070.9milliontoUS1,070.9 million to US1,093.5 million, reflecting a year-over-year increase of 42% to 45% [18].