Financial Data and Key Metrics Changes - In Q2 2023, the company achieved a 42% quarter-over-quarter increase in revenue, with total net revenues amounting to RMB 545 million, a year-over-year decline of 16% from RMB 649 million in Q2 2022 [4][6][17] - The operating loss narrowed substantially by 88% quarter-over-quarter, measuring RMB 6.8 million compared to RMB 58.8 million in Q1 2023 [5][17] - The company reported a net profit of RMB 8.34 million in Q2 2023, aided by disposal gains from the carve-out of the college collaboration-related business [5][23] Business Line Data and Key Metrics Changes - Revenue from the IT-focused supplementary STEAM education business remained stable at RMB 647.7 million, recovering to the same level as Q2 2022 [6][8] - The IT professional education business saw a 34.8% year-over-year decline in revenue due to a longer recovery period, despite a 47% quarter-over-quarter increase [10][17] - The number of centers providing IT-focused supplementary STEAM education services decreased from 227 to 215 year-over-year, while the number of students enrolled increased from 767 to 822 [9] Market Data and Key Metrics Changes - The overall business environment showed signs of improvement, leading to increased customer acquisition and stable demand for STEAM education [4][18] - The company noted a decline in the number of centers for IT professional education services from 98 to 52 year-over-year, impacting revenue generation [11][19] Company Strategy and Development Direction - The company has focused on enhancing operational capability and management efficiency while adapting to market demands in digital transformation and artificial intelligence [14] - The carve-out of the college collaboration-related business is aimed at improving financial health and focusing on core competencies in To-C IT professional and STEAM education services [12][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the business environment, with expectations for continued growth in market demand for IT talent driven by digital transformation and AI [14][15] - The company aims to leverage favorable professional education policies to enhance student employability and market penetration [15] Other Important Information - The total balance of cash, cash equivalents, and restricted cash was RMB 368.1 million as of June 30, 2023, a decrease of RMB 5.9 million from December 31, 2022 [25] - Capital expenditures in Q2 2023 were RMB 11.6 million, reflecting ongoing investments despite a challenging recovery period [25] Q&A Session Summary Question: What are the major driving factors behind the improvement quarter-to-quarter? - Management identified three key factors: improvement in the general business environment leading to better customer acquisition costs, a range of social events enhancing brand awareness, and favorable policies promoting STEAM education [27][28][29]
Tarena(TEDU) - 2023 Q2 - Earnings Call Transcript