1. GOTU's Q4 2024 revenues increased by 82.5% year-over-year. 2. The company's cash inflow improved by 59.4%, providing a solid growth foundation. 3. While losses narrowed, standalone losses grew 13.5% compared to Q4 2023. 4. AI technology integration aligns with future growth strategies and education impact. 5. Guidance for Q1 2025 shows 48.7% to 50.8% expected revenue increase.
Strong revenue growth and cash flow improvements indicate positive business momentum. However, increased operational losses may raise concerns among investors.
The financial results and outlook are critical in assessing GOTU's current standing and potential market reaction post-report.
The upcoming earnings report guidance suggests immediate positive effects on share prices from anticipated revenue growth.
BEIJING, Feb. 26, 2025 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) ("Gaotu" or the "Company"), a technology-driven education company and online large-class tutoring service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.
| Item | 2023 | 2024 | Pct. Change |
|---|---|---|---|
| Net revenues | 761,014 | 1,388,621 | 82.5 % |
| Gross billings | 1,278,132 | 2,160,179 | 69.0 % |
| Loss from operations | (187,915) | (149,274) | (20.6) % |
| Net loss | (119,649) | (135,834) | 13.5 % |
| Non-GAAP net loss | (103,970) | (123,541) | 18.8 % |
| Net operating cash inflow | 491,493 | 783,643 | 59.4 % |
| Item | 2023 | 2024 | Pct. Change |
|---|---|---|---|
| Net revenues | 2,960,813 | 4,553,556 | 53.8 % |
| Gross billings | 3,338,750 | 5,612,390 | 68.1 % |
| Loss from operations | (149,006) | (1,181,833) | 693.1 % |
| Net loss | (7,298) | (1,048,954) | 14,273.2 % |
| Non-GAAP net income/(loss) | 51,055 | (995,737) | (2,050.3) % |
| Net operating cash inflow | 353,697 | 258,007 | (27.1) % |
Larry Xiangdong Chen, the Company's founder, Chairman and CEO, commented, "Driven by our dual pillars of strategic focus and organizational capability enhancement, we have significantly elevated the value delivered to our customers. In the fourth quarter, net revenues increased by 82.5% year-over-year to nearly RMB1.4 billion, while gross billings surged 69.0% to over RMB2.1 billion. Loss from operations narrowed by 20.6%, with operating margin improving by 13.9 percentage points, demonstrating our continued progress in profitability and tangible impact of our efficiency-driven initiatives. Our ample cash reserves, with net operating cash inflow of RMB783.6 million this quarter, provide a solid foundation for future strategic plans and long-term sustainable growth.
Notably, the evolution of AI technologies, represented by DeepSeek and other large-scale models, strongly aligns with our AI strategy and has significantly accelerated our advancements in learning effectiveness and organizational performance. We firmly believe that AI will have a profound and far-reaching impact on the education industry, reshaping the future learning experience. We will also spare no effort in actively promoting the deep integration of AI technologies with education, steadfastly advancing toward the essence of education—personalized, adaptive learning and tailored educational agent for every individual."
Shannon Shen, CFO of the Company, added, "In 2024, our company achieved key strategic milestones. For the full year, net revenues increased by 53.8% year-over-year to approximately RMB4.6 billion, while gross billings grew by 68.1% year-over-year to over RMB5.6 billion. As of December 31st, 2024, our total cash position—including cash and cash equivalents, restricted cash, and short and long-term investments—stood at RMB4.1 billion. Excluding the impact of share repurchases, our cash reserves increased by RMB183.9 million compared to the end of 2023. As our business scales rapidly, we have implemented flexible and dynamic resource allocation mechanisms to steer the Company towards sustainable growth, and further strengthening the competitive edge of our core operations.
Based on the Company's current estimates, total net revenues for the first quarter of 2025 are expected to be between RMB1,408 million and RMB1,428 million, representing an increase of 48.7% to 50.8% on a year-over-year basis. These estimates reflect the Company's current expectations, which are subject to change.
The Company will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, February 26, 2025 (9:00 PM Beijing/Hong Kong Time on Wednesday, February 26, 2025). Dial-in details for the earnings conference call are as follows:
Gaotu is a technology-driven education company and online large-class tutoring service provider in China. The Company offers learning services and educational content & digitalized learning products. Gaotu adopts an online live large-class format to deliver its courses, which the Company believes is the most effective and scalable model to disseminate scarce high-quality teaching resources to aspiring students in China.
The Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss), each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.
For further information, please contact:
Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn