QuantaSing Announces Unaudited Financial Results for the Second Quarter of Fiscal Year 2024
- Revenue increased by 24.7% year over year to RMB980.5 million in the second quarter of FY 2024.
- Gross billings of individual online learning services rose by 24.0% to RMB944.6 million in the same period.
- Net income for the second quarter of FY 2024 was RMB107.6 million, compared to RMB66.7 million in the first quarter of FY 2024.
- Adjusted net income for the period was RMB103.9 million, showing a positive trend in financial performance.
- Total registered users grew by 44.6% to approximately 112.4 million as of December 31, 2023.
- Paying learners increased by 24.2% year over year to approximately 0.4 million in the second quarter of FY 2024.
- QuantaSing's strategic initiatives in skills upgrading courses drove revenue growth and cost efficiencies.
- The Company's financial outlook for the third quarter of FY 2024 anticipates revenues in the range of RMB900 million to RMB930 million, reflecting a year-over-year increase.
- Recent developments include the introduction of the private label Chinese Baijiu brand 'YUNTING' and the appointment of Mr. Chenyang Wei as an independent director.
- QuantaSing has expanded its E-commerce Business and started exploring AI and Technology Business to diversify revenue streams and leverage technological capabilities.
- Cost of revenues increased by 46.1% due to higher labor outsourcing and procurement costs.
- Sales and marketing expenses rose by 5.5% primarily due to increased labor outsourcing and marketing expenses.
- Research and development expenses decreased by 36.2% mainly due to lower share-based compensation expenses.
- General and administrative expenses decreased by 21.3% driven by lower share-based compensation expenses and office expenses.
- The Company had accumulated a net loss of RMB41.4 million in the second quarter of FY 2023.
- Revenues from financial literacy courses decreased by RMB177.9 million in the second quarter of FY 2024.
- Revenues from enterprise services decreased by 30.0% year over year in the second quarter of FY 2024.
- The Company's balance sheet showed an increase in cash and cash equivalents and short-term investments as of December 31, 2023.
- The Company's Share Repurchase Program aims to repurchase up to US$20.0 million of Class A ordinary shares.
- Listeners can access the conference call discussing financial results on March 7, 2024, using the provided dial-in numbers.
Insights
The reported increase in QuantaSing's revenues and net income indicates a positive trend in the company's financial performance. The growth is attributed to the expansion and diversification of course offerings, particularly in skills upgrading courses. This suggests a successful strategic shift towards areas with higher demand, such as short-video production, which is a burgeoning market due to the rise of content creation as a career. The significant year-over-year growth in paying learners also shows effective user conversion strategies.
However, the decrease in revenues from financial literacy courses may point to market saturation or a strategic pivot away from this segment. It is essential to monitor this trend, as it could indicate a shift in consumer preferences or increased competition. The reduced expenses in sales and marketing, research and development and general and administrative areas reflect an optimization of cost structures, which is crucial for maintaining profitability amid expansion.
QuantaSing's financial results, with a net income shift from a loss in the previous year to a profit, are indicative of a strong turnaround. This is particularly noteworthy in the context of the broader economic challenges faced by the online education sector in China, including regulatory scrutiny. The company's ability to increase its cash reserves, as shown by the growth in cash and cash equivalents, positions it well for future investments or to weather potential market downturns.
The introduction of new business initiatives, such as live e-commerce and AI and technology business, could represent diversification strategies to mitigate risks associated with the core online learning business. However, these ventures also introduce new risk factors and require careful scrutiny of their contribution to the company's overall financial health. The share repurchase program reflects management's confidence in the company's valuation and could be a positive signal to investors regarding the company's future prospects.
The performance of QuantaSing is reflective of broader economic trends, where digital services, particularly in education, continue to gain traction. The company's focus on adult learning and the expansion into e-commerce and AI technologies align with the increasing digitization of the economy and the demand for lifelong learning. The growth in registered users and paying learners implies a robust consumer base, which is essential for sustained revenue growth.
However, the Chinese online education market is highly competitive and subject to regulatory changes. It is important to consider the potential impact of such external factors on QuantaSing's long-term growth trajectory. The company's revenue forecast for the next quarter shows optimism, but it is based on current market conditions, which are volatile. Investors should consider the economic environment, including consumer spending patterns and regulatory policies, when evaluating QuantaSing's financial outlook.
BEIJING, March 07, 2024 (GLOBE NEWSWIRE) -- QuantaSing Group Limited (NASDAQ: QSG) (“QuantaSing” or the “Company”), a leading online learning service provider in China, today announced its unaudited financial results for the second quarter of the fiscal year ending June 30, 2024 (the “second quarter of FY 2024”, which refers to the quarter from October 1, 2023 to December 31, 2023).
Highlights for the Second Quarter of FY 2024
- Revenues for the second quarter of FY 2024 were RMB980.5 million (US
$138.1 million ), representing an increase of12.8% from the first quarter of the fiscal year ending June 30, 2024 (the “first quarter of FY 2024”) and an increase of24.7% from the second quarter of the fiscal year ended June 30, 2023 (the “second quarter of FY 2023”). - Gross billings of individual online learning services1 for the second quarter of FY 2024 were RMB944.6 million (US
$133.0 million ), representing an increase of24.0% from the first quarter of FY 2024 and an increase of15.4% from the second quarter of FY 2023. - Net income for the second quarter of FY 2024 was RMB107.6 million (US
$15.2 million ), compared with RMB66.7 million in the first quarter of FY 2024, and a net loss of RMB41.4 million in the second quarter of FY 2023. - Adjusted net income2 for the second quarter of FY 2024 was RMB103.9 million (US
$14.6 million ), compared with RMB94.0 million in the first quarter of FY 2024, and RMB21.8 million in the second quarter of FY 2023. - Total registered users increased by
44.6% to approximately 112.4 million as of December 31, 2023, from 77.8 million as of December 31, 2022. - Paying learners increased by
24.2% year over year to approximately 0.4 million in the second quarter of FY 2024.
Mr. Peng Li, Chairman and Chief Executive Officer of QuantaSing, commented, “We are pleased to report solid topline growth for the quarter, underscoring the success of our strategic initiatives to expand and diversify our course offerings. Our focus on catering to the growing demand for senior learner courses has been particularly rewarding, and we remain committed to addressing the spiritual and cultural needs of the middle-aged and elderly population, with the goal of empowering everyone to lead fulfilling lives in their golden years. In addition to our ongoing efforts to drive revenue growth and optimize cost efficiencies, we are actively pursuing new initiatives that hold significant potential for expanding and diversifying our business. We remain steadfast in our commitment to sustaining our growth trajectory and delivering sustainable value to our shareholders.”
Mr. Dong Xie, Chief Financial Officer of QuantaSing, added, “We continued to build on our growth trajectory in the second quarter of fiscal year 2024, with total revenues increasing by
Financial Results for the Second Quarter of FY 2024
Revenues
Revenues increased by
- Revenues from individual online learning services increased by
24.1% year over year to RMB873.6 million (US$123.0 million ) in the second quarter of FY 2024, up from RMB704.0 million in the second quarter of FY 2023. This growth was primarily due to 1) skills upgrading courses3 increased to RMB456.4 million (US$64.3 million ) in the second quarter of FY 2024 from RMB192.9 million in the second quarter of FY 2023, and 2) recreation and leisure courses3 increased to RMB96.1 million (US$13.5 million ) in the second quarter of FY 2024 from RMB12.2 million in the second quarter of FY 2023, partially offset by the decrease of RMB177.9 million (US$25.1 million ) in revenues from financial literacy courses. - Revenues from enterprise services were RMB57.6 million (US
$8.1 million ) in the second quarter of FY 2024, compared to RMB82.3 million in the second quarter of FY 2023, representing a year-over-year change of30.0% , primarily due to a change in revenues from related party transactions. - Revenues from others increased to RMB49.3 million (US
$7.0 million ) in the second quarter of FY 2024 from RMB0.1 million in the second quarter of FY 2023, mainly driven by the increase in revenues from the Company's newest business endeavor, live e-commerce, which is aligned with its commitment to diversified revenue streams.
Cost of revenues
Cost of revenues was RMB145.0 million (US
Sales and marketing expenses
Sales and marketing expenses were RMB657.1 million (US
Research and development expenses
Research and development expenses were RMB41.0 million (US
General and administrative expenses
General and administrative expenses were RMB35.1 million (US
Net income and adjusted net income
Net income was RMB107.6 million (US
Earnings per share and adjusted earnings per share4
Basic and diluted net income per share were RMB0.65 (US
Balance Sheet
As of December 31, 2023, the Company had cash and cash equivalents and short-term investments of RMB1,050.8 million (US
Financial Outlook
Based on currently available information, for the third quarter of FY 2024 (which refers to the quarter from January 1, 2024 to March 31, 2024), the Company expects its revenues to be in the range of RMB900 million to RMB930 million, representing a year-over-year increase of
Recent Developments
On June 9, 2023, the Company announced that its board of directors had approved a share repurchase program of up to US
On January 18, 2024, the Company announced the introduction of its first private label Chinese Baijiu brand, YUNTING. YUNTING is crafted in a core production facility located in the town of Maotai in China, a world-renowned Baijiu production site protected by Geographical Indication.
On January 22, 2024, the Company announced that Mr. Chenyang Wei was appointed as an independent director of QuantaSing and as a member of the Audit Committee.
Starting in early 2023, leveraging its cumulative insights into the adult learning sector and profound understanding of individual needs, the Company has started to explore the new e-commerce business (the “E-commerce Business”), primarily focusing on the livestreaming sales of Baijiu. Since the first quarter of FY 2024, the Company has further expanded its E-commerce Business to cover a wide range of merchandise and services catering to the demands of its users.
Since the first quarter of FY 2024, the Company has also started to explore AI and technology related business (the “AI and Technology Business”), leveraging its track record of empowering its online learning business with robust technological capabilities. The AI and Technology Business will primarily focus on the application of AI technology and other AI related area with potential business opportunities and synergies with the Company’s existing technology infrastructure and business. The Company has undertaken and will continue to undertake steps to align its corporate structure and management with the development needs of each business line and achieve management efficiency.
Conference Call Information
The Company's management team will hold a conference call at 07:00 A.M. Eastern Time on Thursday, March 7, 2024 (08:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:
| International: | 1-412-902-4272 |
| United States Toll Free: | 1-888-346-8982 |
| Mainland China Toll Free: | 4001-201203 |
| Hong Kong Toll Free: | 800-905945 |
| Conference ID: | QuantaSing Group Limited |
The replay will be accessible through March 14, 2024 by dialing the following numbers:
| International: | 1-412-317-0088 |
| United States Toll Free: | 1-877-344-7529 |
| Access Code: | 8029802 |
A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.quantasing.com.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, the Company uses gross billings of individual online learning services, adjusted net income/(loss) and basic and diluted adjusted net income/(loss) per share as its non-GAAP financial measures. Gross billings of individual online learning services for a specific period represents revenues of the Company’s individual online learning services net of the changes in deferred revenues in such period, further adjusted by value-added tax and certain cost deduction in such period. Adjusted net income/(loss) represents net (loss)/income excluding share-based compensation expense. Basic and diluted adjusted net income/(loss) per share represents adjusted net income/(loss) attributable to ordinary shareholders of QuantaSing Group Limited divided by weighted average number of ordinary shares outstanding during the periods used in computing adjusted net income/(loss) per share, basic and diluted. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for revenue, net (loss)/income, net (loss)/income per share, basic and diluted or other consolidated statements of operations data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on these non-GAAP financial measures, please see the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release.
Exchange Rate Information
This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.0999 to US
Safe Harbor Statements
This announcement contains forward-looking statements within the meaning of Section 27A of Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1955. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding QuantaSing’s financial outlook, beliefs and expectations. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Among other things, the Financial Outlook in this announcement contains forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new users and learners and to increase the spending and revenues generated from users and learners; its ability to maintain and enhance the recognition and reputation of its brand; its expectations regarding demand for and market acceptance of its services and products; trends and competition in China’s adult learning market; changes in its revenues and certain cost or expense items; the expected growth of China’s adult learning market; PRC governmental policies and regulations relating to the Company’s business and industry, general economic and political conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC, including, without limitation, the final prospectus related to the IPO filed with the SEC dated January 24, 2023. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
About QuantaSing Group Limited
QuantaSing is a leading online service provider in China dedicated to improving people’s quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China’s online adult learning market and China’s adult personal interest learning market in terms of revenue, according to a report by Frost & Sullivan based on data from 2022. By leveraging its proprietary tools and technology, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners, empowering users to pursue personal development. Leveraging its extensive experience in individual online learning services and its robust technology infrastructure, the Company has expanded its services to corporate clients, and diversified its operations into its e-commerce business and its AI and technology business.
For more information, please visit: https://ir.quantasing.com.
Contact
Investor Relations
Leah Guo
QuantaSing Group Limited
Email: ir@quantasing.com
Tel: +86 (10) 6493-7857
Robin Yang, Partner
ICR, LLC
Email: QuantaSing.IR@icrinc.com
Phone: +1 (212) 537-0429
_________________________________
1 Gross billings of individual online learning services is a non-GAAP financial measure. For a reconciliation of revenues of individual online learning services to gross billings of individual online learning services, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
2 Adjusted net income/(loss) is a non-GAAP financial measure. For a reconciliation of net (loss)/income to adjusted net income/(loss), see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
3 The Company has introduced a new presentation of its revenues, which split other personal interest courses into skills upgrading courses and recreation and leisure courses, to better align with its business strategies and provide useful and updated information to investors. Skills upgrading courses mainly include short-video production courses and memory training courses. Recreation and leisure courses mainly include personal well-being courses, electronic keyboard courses and standing meditation courses. The historical revenues presentation has been conformed to the current presentation.
4 Basic and diluted adjusted net income/(loss) per share are non-GAAP financial measures. For a reconciliation of basic and diluted net (loss)/income per share to basic and diluted adjusted net income/(loss) per share, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.
| QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except for share and per share data) | |||||
| As of | |||||
| June 30, 2023 | December 31, 2023 | December 31, 2023 | |||
| RMB | RMB | US$ | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 764,281 | 862,917 | 121,539 | ||
| Short-term investments | 166,303 | 187,864 | 26,460 | ||
| Accounts receivable, net | 12,251 | 19,448 | 2,739 | ||
| Amounts due from related parties | 29,116 | - | - | ||
| Inventory, net | - | 14,699 | 2,070 | ||
| Prepayments and other current assets | 136,681 | 156,964 | 22,109 | ||
| Total current assets | 1,108,632 | 1,241,892 | 174,917 | ||
| Non-current assets: | |||||
| Property and equipment, net | 7,409 | 7,818 | 1,101 | ||
| Intangible assets, net | - | 2,963 | 417 | ||
| Operating lease right-of-use assets | 84,009 | 67,703 | 9,536 | ||
| Deferred tax assets | 2,084 | 1,110 | 156 | ||
| Goodwill | - | 7,389 | 1,041 | ||
| Other non-current assets | 21,296 | 20,516 | 2,890 | ||
| Total non-current assets | 114,798 | 107,499 | 15,141 | ||
| TOTAL ASSETS | 1,223,430 | 1,349,391 | 190,058 | ||
| LIABILITIES | |||||
| Current liabilities: | |||||
| Accounts payables | 62,094 | 67,506 | 9,508 | ||
| Accrued expenses and other current liabilities | 171,160 | 206,076 | 29,025 | ||
| Amounts due to and advance from related parties | - | 4,150 | 585 | ||
| Income tax payable | 8,794 | 2,052 | 289 | ||
| Contract liabilities, current portion | 517,213 | 472,471 | 66,546 | ||
| Advance from customers | 144,397 | 158,439 | 22,316 | ||
| Operating lease liabilities, current portion | 41,092 | 35,983 | 5,068 | ||
| Total current liabilities | 944,750 | 946,677 | 133,337 | ||
| Non-current liabilities: | |||||
| Contract liabilities, non-current portion | 7 | - | - | ||
| Operating lease liabilities, non-current portion | 52,840 | 42,039 | 5,921 | ||
| Total non-current liabilities | 52,847 | 42,039 | 5,921 | ||
| TOTAL LIABILITIES | 997,597 | 988,716 | 139,258 | ||
| QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - continued (Amounts in thousands, except for share and per share data) | ||||||||
| As of | ||||||||
| June 30, 2023 | December 31, 2023 | December 31, 2023 | ||||||
| RMB | RMB | US$ | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A ordinary shares (US | 78 | 81 | 11 | |||||
| Class B ordinary shares (US | 34 | 34 | 5 | |||||
| Treasury stock | - | (54,072 | ) | (7,616 | ) | |||
| Additional paid-in capital | 1,171,092 | 1,193,225 | 168,062 | |||||
| Accumulated other comprehensive income | 22,182 | 16,805 | 2,367 | |||||
| Accumulative deficit | (969,688 | ) | (795,398 | ) | (112,029 | ) | ||
| TOTAL QUANTASING GROUP LIMITED SHAREHOLDERS’ EQUITY | 223,698 | 360,675 | 50,800 | |||||
| Non-controlling interests | 2,135 | - | - | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 225,833 | 360,675 | 50,800 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,223,430 | 1,349,391 | 190,058 | |||||
| QUANTASING GROUP LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Amounts in thousands, except for shares and per share data) | |||||||||||||||||
| For the Three Months Ended December 31, | For the Six Months Ended December 31, | ||||||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues | 786,425 | 980,542 | 138,106 | 1,445,791 | 1,849,678 | 260,522 | |||||||||||
| Cost of revenues | (99,253 | ) | (145,018 | ) | (20,425 | ) | (174,315 | ) | (263,210 | ) | (37,072 | ) | |||||
| Gross Profit | 687,172 | 835,524 | 117,681 | 1,271,476 | 1,586,468 | 223,450 | |||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing expenses | (622,901 | ) | (657,112 | ) | (92,552 | ) | (1,204,059 | ) | (1,277,264 | ) | (179,899 | ) | |||||
| Research and development expenses | (64,269 | ) | (41,015 | ) | (5,777 | ) | (116,570 | ) | (84,815 | ) | (11,946 | ) | |||||
| General and administrative expenses | (44,526 | ) | (35,059 | ) | (4,938 | ) | (88,916 | ) | (77,821 | ) | (10,961 | ) | |||||
| Total operating expenses | (731,696 | ) | (733,186 | ) | (103,267 | ) | (1,409,545 | ) | (1,439,900 | ) | (202,806 | ) | |||||
| (Loss)/Income from operations | (44,524 | ) | 102,338 | 14,414 | (138,069 | ) | 146,568 | 20,644 | |||||||||
| Other income: | |||||||||||||||||
| Interest income | 656 | 2,409 | 339 | 848 | 5,856 | 825 | |||||||||||
| Others, net | 3,502 | 2,221 | 313 | 9,952 | 14,478 | 2,039 | |||||||||||
| (Loss)/Income before income tax | (40,366 | ) | 106,968 | 15,066 | (127,269 | ) | 166,902 | 23,508 | |||||||||
| Income tax expense | (1,035 | ) | 642 | 90 | (11,410 | ) | 7,388 | 1,041 | |||||||||
| Net (loss)/ income | (41,401 | ) | 107,610 | 15,156 | (138,679 | ) | 174,290 | 24,549 | |||||||||
| Other comprehensive (loss)/income | |||||||||||||||||
| Foreign currency translation adjustments, net of nil tax | (789 | ) | (3,372 | ) | (475 | ) | 1,337 | (5,377 | ) | (757 | ) | ||||||
| Total other comprehensive (loss)/income | (789 | ) | (3,372 | ) | (475 | ) | 1,337 | (5,377 | ) | (757 | ) | ||||||
| Total comprehensive (loss)/income | (42,190 | ) | 104,238 | 14,681 | (137,342 | ) | 168,913 | 23,792 | |||||||||
| Net (loss)/Income | (41,401 | ) | 107,610 | 15,156 | (138,679 | ) | 174,290 | 24,549 | |||||||||
| Accretion of the Company’s preferred shares | (10,043 | ) | - | - | (19,512 | ) | - | - | |||||||||
| Net (loss)/income attributable to ordinary shareholders of QuantaSing Group Limited | (51,444 | ) | 107,610 | 15,156 | (158,191 | ) | 174,290 | 24,549 | |||||||||
| Net (loss)/income per ordinary share | |||||||||||||||||
| - Basic | (0.89 | ) | 0.65 | 0.09 | (2.82 | ) | 1.04 | 0.15 | |||||||||
| - Diluted | (0.89 | ) | 0.64 | 0.09 | (2.82 | ) | 1.02 | 0.14 | |||||||||
| Weighted average number of ordinary shares used in computing net loss per share | |||||||||||||||||
| - Basic | 57,839,074 | 165,369,914 | 165,369,914 | 56,139,430 | 167,213,449 | 167,213,449 | |||||||||||
| - Diluted | 57,839,074 | 167,356,510 | 167,356,510 | 56,139,430 | 171,180,058 | 171,180,058 | |||||||||||
| Share-based compensation expenses included in | |||||||||||||||||
| Cost of revenues | (7,311 | ) | (3,289 | ) | (463 | ) | (11,963 | ) | (7,067 | ) | (995 | ) | |||||
| Sales and marketing expenses | (15,097 | ) | 15,946 | 2,246 | (27,616 | ) | 11,457 | 1,614 | |||||||||
| Research and development expenses | (20,439 | ) | (1,402 | ) | (197 | ) | (32,507 | ) | (7,012 | ) | (988 | ) | |||||
| General and administrative expenses | (20,317 | ) | (7,513 | ) | (1,058 | ) | (37,448 | ) | (20,922 | ) | (2,947 | ) | |||||
| QUANTASING GROUP LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands, except for shares and per share data) | |||||||||||||||||
| The following table below sets forth a reconciliation of revenues to gross billings for the periods indicated: | |||||||||||||||||
| For the Three Months Ended December 31, | For the Six Months Ended December 31, | ||||||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Revenues of individual online learning services: | 703,983 | 873,551 | 123,037 | 1,289,068 | 1,629,461 | 229,505 | |||||||||||
| Add: value-added tax | 43,740 | 47,100 | 6,634 | 81,716 | 94,679 | 13,335 | |||||||||||
| Add: ending deferred revenues(1) | 644,586 | 643,929 | 90,696 | 644,586 | 643,929 | 90,696 | |||||||||||
| Less: beginning deferred revenues(1) | (573,528 | ) | (619,954 | ) | (87,319 | ) | (531,662 | ) | (661,360 | ) | (93,151 | ) | |||||
| | |||||||||||||||||
| Gross billings of individual online learning services | 818,781 | 944,626 | 133,048 | 1,483,708 | 1,706,709 | 240,385 | |||||||||||
(1) Deferred revenues include contract liabilities, advance from customers, and refund liability of individual online learning services included in “accrued expenses and other current liabilities.”
| QUANTASING GROUP LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS - continued (Amounts in thousands, except for shares and per share data) | |||||||||||||||||
| The following table below sets forth a reconciliation of net (loss)/income to adjusted net income/(loss) and basic and diluted net (loss)/income per share to basic and diluted adjusted net income/(loss) per share for the periods indicated: | |||||||||||||||||
| For the Three Months Ended December 31, | For Six Months Ended December 31, | ||||||||||||||||
| 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net (loss)/income | (41,401 | ) | 107,610 | 15,156 | (138,679 | ) | 174,290 | 24,549 | |||||||||
| Add: Share-based compensation | 63,164 | (3,742 | ) | (528 | ) | 109,534 | 23,544 | 3,316 | |||||||||
| | |||||||||||||||||
| Adjusted net income/(loss) | 21,763 | 103,868 | 14,628 | (29,145 | ) | 197,834 | 27,865 | ||||||||||
| Accretion of the Company’s preferred shares | (10,043 | ) | - | - | (19,512 | ) | - | - | |||||||||
| Income allocation to participating preferred shares | (7,448 | ) | - | - | - | - | - | ||||||||||
| Adjusted net (loss)/income attributable to ordinary shareholders of QuantaSing Group Limited | 4,272 | 103,868 | 14,628 | (48,657 | ) | 197,834 | 27,865 | ||||||||||
| Weighted average number of ordinary shares used in computing net (loss)/income per share | |||||||||||||||||
| - Basic | 57,839,074 | 165,369,914 | 165,369,914 | 56,139,430 | 167,213,449 | 167,213,449 | |||||||||||
| - Diluted | 57,839,074 | 167,356,510 | 167,356,510 | 56,139,430 | 171,180,058 | 171,180,058 | |||||||||||
| Weighted average number of ordinary shares used in computing adjusted net income/(loss) per share | |||||||||||||||||
| - Basic | 57,839,074 | 165,369,914 | 165,369,914 | 56,139,430 | 167,213,449 | 167,213,449 | |||||||||||
| - Diluted | 64,666,692 | 167,356,510 | 167,356,510 | 56,139,430 | 171,180,058 | 171,180,058 | |||||||||||
| Net (loss)/income per ordinary share | |||||||||||||||||
| - Basic | (0.89 | ) | 0.65 | 0.09 | (2.82 | ) | 1.04 | 0.15 | |||||||||
| - Diluted | (0.89 | ) | 0.64 | 0.09 | (2.82 | ) | 1.02 | 0.14 | |||||||||
| Non-GAAP adjustments to net (loss)/income per ordinary share | |||||||||||||||||
| - Basic | 0.96 | (0.02 | ) | 0.00 | 1.95 | 0.14 | 0.02 | ||||||||||
| - Diluted | 0.96 | (0.02 | ) | 0.00 | 1.95 | 0.14 | 0.02 | ||||||||||
| Adjusted net income/(loss) per ordinary share | |||||||||||||||||
| - Basic | 0.07 | 0.63 | 0.09 | (0.87 | ) | 1.18 | 0.17 | ||||||||||
| - Diluted | 0.07 | 0.62 | 0.09 | (0.87 | ) | 1.16 | 0.16 | ||||||||||
FAQ
What were QuantaSing Group Limited's revenues for the second quarter of FY 2024?
How did the gross billings of individual online learning services change in the second quarter of FY 2024?
What was QuantaSing's net income for the second quarter of FY 2024?
How much did adjusted net income amount to in the second quarter of FY 2024?
What was the percentage increase in total registered users as of December 31, 2023, compared to the previous year?
What is QuantaSing's financial outlook for the third quarter of FY 2024?
What recent developments have occurred at QuantaSing Group Limited?
What is the purpose of QuantaSing Group Limited's Share Repurchase Program?
When will the conference call discussing financial results be held?
