Financial Data and Key Metrics Changes - Revenue increased by 37.6% year over year to nearly CNY 1,400,000,000 [8] - Gross billings rose by 36.2% to approximately CNY 2,300,000,000 [8] - Net loss narrowed by 50.5% year over year on a non-GAAP basis [8] - Net operating cash inflow was CNY 588,800,000, an increase of CNY 202,600,000 from the same period last year [9] - Deferred revenue increased by 38.9% year over year to about CNY 2,200,000,000 [19] Business Line Data and Key Metrics Changes - Learning services contributed over 95% of net revenues, with academic tutoring services and traditional learning services accounting for over 85% of total revenues, representing a 50% year over year increase [21] - Non-academic tutoring services in both online and offline settings saw gross billings up by over 100% year over year, contributing nearly 40% of total revenues [22] - Educational services for college students and adults contributed over 10% of total revenues, with operating cash flow turning positive [26] Market Data and Key Metrics Changes - The number of students admitted to the top two universities in China from Gaotu's class of 2025 reached 267, marking five consecutive years of growth [25] - Referral rate surged by 75% compared to a year ago [25] Company Strategy and Development Direction - The company is deepening its investment in AI to enhance teaching models and technology infrastructure, aiming for personalized learning at scale [9][10] - A tri-teacher model has been introduced, integrating instructors, tutors, and AI companions to improve educational delivery [10] - The company is focused on building a lifelong learning services platform that is accessible and enjoyable for all [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future trajectory, citing a diverse educational product portfolio and evolving AI technology capabilities [16] - The company aims for a year-over-year revenue growth target of around 30%, with first half growth standing at approximately 47.3% [49] Other Important Information - The company has allocated nearly CNY 557,000,000 for share repurchases, demonstrating a commitment to long-term shareholder value [16] - The company is actively expanding into emerging traffic platforms and optimizing customer acquisition mechanisms [24] Q&A Session Summary Question: Update on offline centers development - Management reported that offline learning center revenue grew by more than 20% year over year, contributing over 5% of gross billings [35] - The offline business is leveraging in-person interaction to build trust and enhance customer loyalty [35][36] Question: Insights on summer enrollment and industry outlook - Management noted that summer enrollment exceeded expectations, with improved teaching quality leading to higher retention rates [44] - The company expects continued positive trends in customer acquisition efficiency and revenue growth for the third quarter [46][50]