TAL(US:TAL)2021-04-22 17:09Financial Data and Key Metrics Changes - Net revenue growth in Q4 2021 was up by 58.9% year-over-year in U.S. dollar terms to $1,362.7 million and 47.7% in RMB terms [7] - GAAP loss from operations was $297.2 million compared to $41.3 million in the same quarter last year [7] - Non-GAAP operating loss was $216.9 million compared to $8.4 million in the same year-ago period [7] - Full year fiscal 2021 net revenue growth was 37.3% in U.S. dollar terms and 34.1% in RMB terms [7] Business Line Data and Key Metrics Changes - Small class and other business accounted for 61% of total net revenue, down from 68% in the same year-ago period, with a revenue growth rate of 43% in U.S. dollar terms [8] - Xueersi Peiyou small class represented 53% of total net revenue, down from 59% in the same year-ago period, with a revenue growth of 43% in U.S. dollar terms [9] - Zhikang one-on-one business achieved year-over-year revenue growth of 28% in U.S. dollar terms, accounting for approximately 6% of total revenue [10] - Revenue from xueersi.com grew by 115% in U.S. dollar terms year-over-year, contributing 32% of total revenue [13] Market Data and Key Metrics Changes - Revenue from the top five cities increased by 44% year-over-year, accounting for 55% of Xueersi Peiyou small class business [10] - Revenue generated from cities other than the top five grew by 41% in U.S. dollar terms [10] Company Strategy and Development Direction - The company plans to continuously follow government guidelines and invest in product quality, teacher training, and technology to meet changing customer demands [21] - The strategy includes expanding capacity and learning centers, with 110 cities covered and 1,098 learning centers by the end of Q4 [12] Management's Comments on Operating Environment and Future Outlook - Management noted that fiscal year 2021 was unprecedented due to COVID-19, but revenue growth was in line with long-term expectations [20] - The company expects total net revenue for Q1 of fiscal year 2022 to be between $1,302.2 million and $1,320.5 million, representing a year-over-year increase of 43% to 45% [21] Other Important Information - Gross profit increased by 72.9% to $781.2 million, with a gross margin of 57.3% [14] - Selling and marketing expenses increased by 171.6% to $660.5 million, primarily due to increased marketing activities [15] - Deferred revenue balance increased by 81.5% year-over-year to $1,417.5 million [18] Q&A Session Summary Question: Localization and Competitive Edge - Management emphasized the importance of localized content to meet diverse student needs across different regions in China [25][26] - They noted that local teachers can better serve local students, enhancing educational outcomes [28] Question: Peiyou Online Contribution - Management indicated that Peiyou online and offline strategies are integrated, with a focus on overall growth rather than separating the two [36] Question: Growth Drivers and Future Outlook - Management highlighted that the strong performance in Q4 was partly due to recovering from the previous year's COVID-19 impact and effective marketing strategies [41] - They expect continued growth in both online and offline segments, with no specific targets for each [38] Question: Impact of Advertising Limitations - Management stated it is too early to predict the impact of potential advertising restrictions, emphasizing a focus on high-quality services to drive growth [46] Question: Expansion Strategy - Management explained that the strategy to enter new cities is driven by the desire to provide equal access to quality education across regions, leveraging online capabilities for scalability [51]