Tarena Clocks 0.8% Revenue Growth In Q4

Tarena International Inc TEDU reported fourth-quarter FY21 sales growth of 0.8% year-on-year, to RMB655.3 million ($102.8 million).
Net revenue from Childhood & adolescent quality education business increased 12.8% Y/Y to RMB336.0 million ($52.7 million), constituting 51.3% of total revenue.
Adult professional education business revenue declined 9.4% Y/Y to RMB319.3 million ($50.1 million), representing 48.7% of total revenue.
Gross profit decreased 8.7% Y/Y to RMB327.6 million ($51.4 million) and the profit margin contracted by 520 basis points to 50%.
The operating loss for the quarter narrowed to RMB(60.4) million or $(9.5) million.
The company held $67.5 million in cash and equivalents as of December 31, 2021.
The loss per share for the quarter was RMB (3.22) or $(0.51).
Outlook: Tarena sees Q1 sales of RMB580 million - RMB610 million, representing an increase of 8.6% - 14.2%.
Price Action: TEDU shares closed higher by 20.2% at $2.38 on Tuesday.