- Gaotu Techedu Inc GOTU reported a Q1 2023 sales decline of 2.4% Y/Y to RMB707.3 million.
- Gross billings rose 69.4% Y/Y to RMB539.0 million, led by an increase in customer acquisition efficiency by 73.8% Y/Y.
- Adjusted gross profit rose 4.0% Y/Y to RMB551.3 million, with margins increasing to 77.9% from 73.1%.
- Adjusted income from operations increased 79.3% Y/Y to RMB114.9 million.
- Adjusted net income per ADS stood at RMB0.49 in the quarter.
- Adjusted net income rose 44.4% Y/Y to RMB133.6 million.
- Operating cash outflow stood at RMB(216.4) million in the quarter. As of March 31, 2023, cash and equivalents came in at RMB3.42 billion.
- Q2 2023 Outlook: The company expects net revenues to be RMB648 million-RMB668 million (+20.5% to +24.2% Y/Y).
- "During the first quarter of 2023, we maintained the healthy and stable sequential growth in net revenues and drove a significant year-over-year increase in gross billings with lower selling expenses. The improvement in operational efficiency strengthened our profitability, which was demonstrated by the triple-digit year-over-year increases in both income from operations and net income, providing a strong start to 2023 that was in part positively affected by seasonality, but more importantly driven by our exceptional organizational capabilities and unwavering commitment to our strategy of long-term sustainable growth. Accordingly, we expect to achieve annual effective growth and generate a meaningful positive net operating cashflow for the full year 2023," stated Larry Xiangdong Chen, founder, Chairman and CEO.
- Price Action: GOTU shares are trading higher by 13.7% at $2.83 premarket on the last check Tuesday.
- Photo Via Company
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