NEW ORIENTAL-New Oriental Announces Results for the Third Fiscal Quarter Ended February 29, 2024

Core Viewpoint - New Oriental Education & Technology Group Inc. reported strong financial results for the third fiscal quarter of 2024, with significant year-over-year growth in revenues and operating income, driven by its educational initiatives and e-commerce business [1][2][10]. Financial Highlights - Total net revenues for the third fiscal quarter reached US $1,207.3 million, a 60.1% increase year over year [2][10]. - Operating income increased by 70.6% year over year to US$ 113.4 million [2][13]. - Net income attributable to New Oriental rose by 6.8% year over year to US $87.2 million [2][14]. Key Financial Results - Non-GAAP operating income for the quarter was US$ 140.9 million, reflecting a 60.3% increase year over year [3][13]. - Non-GAAP net income attributable to New Oriental was US $104.7 million, a 9.8% increase year over year [15]. - Basic and diluted net income per ADS were US$ 0.53 and US $0.52, respectively, marking increases of 7.7% and 8.6% year over year [14][15]. Operating Highlights - The total number of schools and learning centers increased to 911, up from 843 in the previous quarter and 712 a year ago [6]. - New educational business initiatives achieved 72.7% revenue growth year over year, with non-academic tutoring courses attracting approximately 355,000 student enrollments [7]. Business Growth - The overseas test preparation and study consulting businesses grew by approximately 52.6% and 25.7% year over year, respectively [7]. - The domestic test preparation business targeting adults and university students recorded a growth of approximately 53.2% year over year [7]. Cash Flow and Balance Sheet - The company reported a positive operating cash flow of US$ 109.4 million for the quarter, with cash and cash equivalents totaling approximately US $4.8 billion by the end of the quarter [7][16]. - Deferred revenue increased by 30.8% year over year to US$ 1,521.7 million, indicating strong demand for future services [18]. Share Repurchase Program - As of April 23, 2024, the company repurchased approximately 6.0 million ADSs for about US $195.3 million under its share repurchase program [8][9]. Outlook - New Oriental expects total net revenues for the fourth quarter of fiscal year 2024 to be in the range of US$ 1,101.5 million to US$1,127.3 million, representing a year-over-year increase of 28% to 31% [21].