Sunlands Technology Group Announces Unaudited First Quarter 2022 Financial Results

Rhea-AI Summary

Sunlands Technology Group (NYSE: STG) reported Q1 2022 financial results, revealing a 11.7% year-over-year decrease in net revenues to RMB613.3 million (US$96.7 million), largely driven by a 34.2% drop in gross billings. However, net income reached RMB179.4 million (US$28.3 million), a significant turnaround from a net loss of RMB53.3 million in Q1 2021. The company noted a 19.5% decrease in new student enrollments and a 51.4% reduction in sales and marketing expenses, highlighting a focus on cost management while striving for sustainable growth.

Positive

• Net income increased to RMB179.4 million, up from a net loss of RMB53.3 million in Q1 2021.
• Net income margin improved to 29.3%, a significant increase of 37.0 percentage points year-over-year.
• Operating expenses decreased by 48.1% year-over-year, indicating effective cost management.
• Continued positive operating cash flow at RMB10.1 million.

Negative

• Net revenues decreased by 11.7% year-over-year.
• Gross billings dropped by 34.2% year-over-year.
• New student enrollments fell by 19.5% year-over-year.

Q1 net revenues decreased by 11.7% year-over-year
Q1 gross billings (non-GAAP) decreased by 34.2% year-over-year
Q1 net income reached RMB179.4 million

BEIJING, May 31, 2022 /PRNewswire/ -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced its unaudited financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Financial and Operational Snapshots

• Net revenues were RMB613.3 million (US$96.7 million), representing an 11.7% decrease year-over-year.
• Gross billings (non-GAAP) were RMB390.6 million (US$61.6 million), representing a 34.2% decrease year-over-year.
• Gross profit was RMB516.6 million (US$81.5 million), representing a 12.1% decrease year-over-year.
• Net income was RMB179.4 million (US$28.3 million), compared with net loss of RMB53.3 million in the first quarter of 2021.
• Net income/loss margin, defined as net income/loss as a percentage of net revenues, increased to 29.3% from -7.7% in the first quarter of 2021.
• New student enrollments^[1] were 117,182, representing a 19.5% decrease year-over-year.
• As of March 31, 2022, the Company's deferred revenue balance was RMB2,170.9 million (US$ 342.5 million).

[1] New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period (including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses). In June 2019, we introduced low-price courses, including "mini courses" and "RMB1 courses," to strengthen our competitiveness and improve customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming.

"We are pleased to have carried our momentum into 2022, with our first quarter net profit hitting a new high of RMB179.4 million, a significant improvement compared to a net loss of RMB53.3 million in the prior year period and 19.0% higher quarter-over-quarter. This was driven by the ongoing strong execution of our balanced growth and profitability strategy as well as our extensive course resources, which continue to effectively fulfill our users' learning demands," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands.

"As we focused on healthy and sustainable growth with an emphasis on student acquisition efficiency, we strategically scaled back on our marketing activities, as evidenced by a 51.4% year-over-year decrease in sales and marketing expenses. This led to 19.5% and 34.2% year-over-year decreases in new student enrollments and gross billings, respectively. Despite that, we continued to forge ahead, optimizing our product mix and expanding our course catalogs for our master's degree-oriented and professional skills programs while striving to provide our students with an optimal learning experience. In light of the increasingly tough job market in the first quarter, we concentrated more on designing and developing new courses to provide a diverse range of skills training for our students to enhance their overall competitiveness and thereby increase their employment opportunities. Going forward, we will remain dedicated to empowering each of our students' individual success by constantly evolving and enriching our product offerings to satisfy their needs, which we believe will benefit our long-term growth and contribute to China's economic development against macro headwinds," concluded Mr. Liu.

Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, commented, "We are excited to start the year with encouraging first quarter results. Our net revenues reached RMB613.3 million during the quarter, above the top end of our guidance range despite an 11.7% year-over-year decrease, as we remain unwavering regarding meaningful and sustainable growth instead of blind pursuit of scale expansion amid the existing complex macroeconomic environment. Meanwhile, we continued to manage our costs responsibly, thanks to which our operating expenses in the first quarter declined by 48.1% year-over-year. As a result, we sustained our profitability in this quarter, with net profit margin reaching 29.3%, representing a substantial 37.0 percentage point increase year-over-year. Notably, we also maintained positive operating cash flow in the first quarter at RMB10.1 million. We are confident that our improved operational efficiency and profitability, combined with our unremitting efforts to diversify course offerings and enhance service quality, will drive our future growth while creating additional value for our students, employees and shareholders."

Financial Results for the first quarter of 2022

Net Revenues

In the first quarter of 2022, net revenues decreased by 11.7% to RMB613.3 million (US$96.7 million) from RMB694.3 million in the first quarter of 2021. The decrease was mainly driven by the year-over-year decline in gross billings.

Cost of Revenues

Cost of revenues decreased by 9.1% to RMB96.7 million (US$15.3 million) in the first quarter of 2022 from RMB106.4 million in the first quarter of 2021. The decrease was primarily due to: (i) declined compensation expenses related to our cost of revenues personnel; and (ii) reduced insurance-related costs incurred for our integrated online education service package purchased by students.

Gross Profit

Gross profit decreased by 12.1% to RMB516.6 million (US$81.5 million) in the first quarter of 2022 from RMB587.9 million in the first quarter of 2021.

Operating Expenses

In the first quarter of 2022, operating expenses were RMB345.8 million (US$54.6 million), representing a 48.1% decrease from RMB666.6 million in the first quarter of 2021.

Sales and marketing expenses decreased by 51.4% to RMB295.0 million (US$46.5 million) in the first quarter of 2022 from RMB606.4 million in the first quarter of 2021. The decrease was mainly due to: (i) lower spending on branding and marketing activities; and (ii) declined compensation expenses related to our sales and marketing personnel.

General and administrative expenses decreased by 9.1% to RMB38.5 million (US$6.1 million) in the first quarter of 2022 from RMB42.3 million in the first quarter of 2021. The decrease was mainly due to: (i) a decrease in rental expenses; and (ii) declined compensation expenses related to general and administrative personnel.

Product development expenses decreased by 31.0% to RMB12.4 million (US$1.9 million) in the first quarter of 2022 from RMB17.9 million in the first quarter of 2021. Product development expenses were mainly comprised of compensation expenses.

Other Income

Other income decreased by 54.9% to RMB9.6 million (US$1.5 million) in the first quarter of 2022 from RMB21.3 million in the first quarter of 2021. The decrease was primarily because value-added tax exemption offered by the relevant authorities as part of the national COVID-19 relief effort came to an end in April 2021.

Net Income

Net income for the first quarter of 2022 was RMB179.4 million (US$28.3 million), compared with net loss of RMB53.3 million in the first quarter of 2021.

Basic and Diluted Net Income Per Share

Basic and diluted net income per share was RMB27.16 (US$4.28) in the first quarter of 2022.

Cash, Cash Equivalents and Short-term Investments

As of March 31, 2022, the Company had RMB637.7 million (US$100.6 million) of cash and cash equivalents and RMB219.9 million (US$34.7 million) of short-term investments, compared with RMB676.7 million of cash, cash equivalents and restricted cash and RMB184.2 million of short-term investments as of December 31, 2021.

Deferred Revenue

As of March 31, 2022, the Company had a deferred revenue balance of RMB2,170.9 million (US$342.5 million), compared with RMB2,348.2 million as of December 31, 2021.

Capital Expenditures

Capital expenditures were incurred primarily in connection with information technology infrastructure equipment and leasehold improvements necessary to support the Company's operations. Capital expenditures were RMB0.9 million (US$0.1 million) in the first quarter of 2022, compared with RMB1.7 million in the first quarter of 2021.

Outlook

For the second quarter of 2022, Sunlands currently expects net revenues to be between RMB520 million to RMB540 million, which would represent a decrease of 14.2% to 17.4% year-over-year.

The above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.

Exchange Rate

The Company's business is primarily conducted in China and all revenues are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.3393 to US$1.00, the effective noon buying rate for March 31, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on March 31, 2022, or at any other rate.

Conference Call and Webcast

Sunlands' management team will host a conference call at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong Kong time) on May 31, 2022, following the quarterly results announcement.

The dial-in details for the live conference call are:

International:	+1-412-902-4272
US toll free:	+1-888-346-8982
Mainland China toll free:	400-120-1203
Hong Kong toll free:	800-905-945
Hong Kong:	+852-3018-4992

Please dial in 10 minutes before the call is scheduled to begin. When prompted, ask to be connected to the call for "Sunlands Technology Group." Participants will be required to state their name and company upon entering the call.

A live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at http://www.sunlands.investorroom.com/.

A replay of the conference call will be available 1 hour after the end of the conference call until June 07, 2022, by dialing the following telephone numbers:

International:	+1-412-317-0088
US Toll Free:	+1-877-344-7529
Replay Access Code:	7410658

About Sunlands

Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), formerly known as Sunlands Online Education Group, is the leader in China's online post-secondary and professional education. With a one to many, live streaming platform, Sunlands offers various degree and diploma-oriented post-secondary courses as well as online professional courses and educational content, to help students prepare for professional certification exams and attain professional skills. Students can access its services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.

About Non-GAAP Financial Measures

We use gross billings, EBITDA, non-GAAP operating cost and expense, non-GAAP loss/income from operations and Non-GAAP net loss/income per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.

We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net loss/income excluding depreciation and amortization, interest expense, interest income, and income tax expenses. We believe that gross billings and EBITDA provide valuable insight into the sales of our course packages and the performance of our business.

These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measure prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, non-GAAP net loss/income exclude share-based compensation expenses, and basic and diluted net loss/income per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings and EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students' learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands' corporate structure, business and industry; and general economic and business condition in China Further information regarding these and other risks, uncertainties or factors is included in the Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.

For investor and media enquiries, please contact:

Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com

The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
Email: sunlands@tpg-ir.com

Yang Song
Tel: +86-10-6508-0677
Email: sunlands@tpg-ir.com

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share data, or otherwise noted)
		As of December 31,		As of March 31,
		2021		2022
		RMB		RMB		US$
ASSETS
Current assets
Cash and cash equivalents		626,715		637,700		100,595
Restricted cash		50,008		-		-
Short-term investments		184,159		219,897		34,688
Prepaid expenses and other current assets		176,349		128,322		20,242
Deferred costs, current		89,353		74,632		11,773
Total current assets		1,126,584		1,060,551		167,298
Non-current assets
Property and equipment, net		857,648		848,379		133,828
Intangible assets, net		2,761		2,531		399
Right-of-use assets		362,335		356,752		56,276
Deferred costs, non-current		109,020		98,692		15,568
Long-term investments		54,844		53,690		8,469
Deferred tax assets		39,265		34,706		5,475
Other non-current assets		40,163		43,426		6,850
Total non-current assets		1,466,036		1,438,176		226,865
TOTAL ASSETS		2,592,620		2,498,727		394,163
LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities (including accrued expenses
and other current liabilities of the consolidated VIEs without recourse to
Sunlands Technology Group of RMB197,467 and RMB197,459 as of
December 31, 2021 and March 31, 2022, respectively)		586,043		508,757		80,254
Deferred revenue, current (including deferred revenue, current of the consolidated VIEs
without recourse to Sunlands Technology Group of RMB295,958 and
RMB286,579 as of December 31, 2021 and March 31, 2022, respectively)		1,266,948		1,136,859		179,335
Lease liabilities, current portion (including lease liabilities, current portion of the
consolidated VIEs without recourse to Sunlands Technology Group of RMB8,366
and RMB13,168 as of December 31, 2021 and March 31, 2022, respectively)		14,310		19,589		3,090
Long-term debt, current portion (including long-term debt, current portion of the
consolidated VIEs without recourse to Sunlands Technology Group of nil and nil
as of December 31, 2021 and March 31, 2022, respectively)		38,654		38,654		6,098
Total current liabilities		1,905,955		1,703,859		268,777

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-continued
(Amounts in thousands, except for share and per share data, or otherwise noted)
		As of December 31,		As of March 31,
		2021		2022
		RMB		RMB		US$
Non-current liabilities
Deferred revenue, non-current (including deferred revenue, non-current
of the consolidated VIEs without recourse to Sunlands Technology Group of
RMB257,071 and RMB255,618 as of December 31, 2021 and March 31, 2022,
respectively)		1,081,231		1,034,089		163,124
Lease liabilities, non-current portion (including lease liabilities, non-current portion
of the consolidated VIEs without recourse to Sunlands Technology Group of
RMB318,598 and RMB318,184 as of December 31, 2021 and March 31, 2022,
respectively)		404,133		401,986		63,412
Deferred tax liabilities (including deferred tax liabilities of the consolidated
VIEs without recourse to Sunlands Technology Group of RMB2,312 and RMB2,223
as of December 31, 2021 and March 31, 2022, respectively)		21,782		13,037		2,057
Other non-current liabilities (including other non-current liabilities of the consolidated
VIEs without recourse to Sunlands Technology Group of RMB963 and RMB963
as of December 31, 2021 and March 31, 2022, respectively)		11,698		11,667		1,840
Long-term debt, non-current portion (including long-term debt, non-current portion of the
consolidated VIEs without recourse to Sunlands Technology Group of nil and nil
as of December 31, 2021 and March 31, 2022, respectively)		181,973		172,309		27,181
Total non-current liabilities		1,700,817		1,633,088		257,614
TOTAL LIABILITIES		3,606,772		3,336,947		526,391
SHAREHOLDERS' DEFICIT
Class A ordinary shares (par value of US$0.00005, 796,062,195 shares
authorized; 2,085,939 and 2,085,939 shares issued as of December 31, 2021
and March 31, 2022, respectively; 1,839,553 and 1,818,126 shares
outstanding as of December 31, 2021 and March 31, 2022, respectively)		1		1		-
Class B ordinary shares (par value of US$0.00005, 826,389 shares
authorized; 826,389 and 826,389 shares issued and outstanding
as of December 31, 2021 and March 31, 2022, respectively)		-		-		-
Class C ordinary shares (par value of US$0.00005, 203,111,416 shares
authorized; 4,002,930 and 4,002,930 shares issued and outstanding
as of December 31, 2021 and March 31, 2022, respectively)		1		1		-
Treasury stock		-		-		-
Accumulated deficit		(3,456,073)		(3,275,435)		(516,687)
Additional paid-in capital		2,364,313		2,363,014		372,756
Accumulated other comprehensive income		82,532		79,913		12,604
Total Sunlands Technology Group shareholders' deficit		(1,009,226)		(832,506)		(131,327)
Non-controlling interest		(4,926)		(5,714)		(901)
TOTAL SHAREHOLDERS' DEFICIT		(1,014,152)		(838,220)		(132,228)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT		2,592,620		2,498,727		394,163

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for share and per share data, or otherwise noted)
		For the Three Months Ended March 31,
		2021		2022
		RMB		RMB		US$
Net revenues		694,298		613,314		96,748
Cost of revenues		(106,422)		(96,720)		(15,257)
Gross profit		587,876		516,594		81,491
Operating expenses
Sales and marketing expenses		(606,429)		(294,997)		(46,535)
Product development expenses		(17,916)		(12,355)		(1,949)
General and administrative expenses		(42,298)		(38,460)		(6,067)
Total operating expenses		(666,643)		(345,812)		(54,551)
(Loss)/income from operations		(78,767)		170,782		26,940
Interest income		5,861		3,166		499
Interest expense		(2,557)		(2,725)		(430)
Other income/(expense), net		21,283		9,592		1,513
Impairment loss on long-term investments		-		(500)		(79)
(Loss)/income before income tax (expenses)/benefit		(54,180)		180,315		28,443
Income tax benefit/(expenses)		348		(691)		(109)
Gain/(loss) from equity method investments		553		(213)		(34)
Net (loss)/income		(53,279)		179,411		28,300
Less: Net loss attributable to non-controlling interest		(350)		(1,227)		(194)
Net (loss)/income attributable to Sunlands Technology Group		(52,929)		180,638		28,494
Net (loss)/income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		(7.87)		27.16		4.28
Weighted average shares used in calculating net (loss)/income
per ordinary share:
Basic and diluted		6,729,197		6,650,244		6,650,244

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(Amounts in thousands)
		For the Three Months Ended March 31,
		2021		2022
		RMB		RMB		US$
Net (loss)/income		(53,279)		179,411		28,300
Other comprehensive loss/(income), net of tax effect of nil:
Change in cumulative foreign currency translation adjustments		2,422		(2,619)		(413)
Total comprehensive (loss)/income		(50,857)		176,792		27,887
Less: comprehensive loss attributable to non-controlling      interest		(350)		(1,227)		(194)
Comprehensive (loss)/income attributable to Sunlands Technology Group		(50,507)		178,019		28,081

 

 

SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands)
		For the Three Months Ended March 31,
		2021		2022
		RMB		RMB
Net revenues		694,298		613,314
Less: other revenues		(15,422)		(26,907)
Add: tax and surcharges		37,494		27,212
Add: ending deferred revenue		2,902,451		2,170,948
Add: ending refund liability		232,207		197,494
Less: beginning deferred revenue		(3,024,443)		(2,348,179)
Less: beginning refund liability		(232,859)		(243,236)
Gross billings (non-GAAP)		593,726		390,646
Net (loss)/income		(53,279)		179,411
Add: income tax (benefit)/expenses		(348)		691
depreciation and amortization		8,479		9,887
interest expense		2,557		2,725
Less: interest income		(5,861)		(3,166)
EBITDA (non-GAAP)		(48,452)		189,548

 

 

SUNLANDS TECHNOLOGY GROUP
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands)
		For the Three Months Ended March 31,
		2021		2022
		RMB		RMB
Cost of revenues		(106,422)		(96,720)
Less: Share-based compensation expenses in cost of revenues		(51)		(33)
Non-GAAP cost of revenues		(106,371)		(96,687)
Sales and marketing expenses		(606,429)		(294,997)
Less: Share-based compensation expenses in sales and marketing expenses		(155)		(78)
Non-GAAP sales and marketing expenses		(606,274)		(294,919)
General and administrative expenses		(42,298)		(38,460)
Less: Share-based compensation expenses in general and administrative expenses		95		(257)
Non-GAAP general and administrative expenses		(42,393)		(38,203)
Operating costs and expense		(773,065)		(442,532)
Less: Share-based compensation expenses		(111)		(368)
Non-GAAP operating costs and expense		(772,954)		(442,164)
(Loss)/income from operations		(78,767)		170,782
Less: Share-based compensation expenses		(111)		(368)
Non-GAAP (loss)/income from operations		(78,656)		171,150
Net (loss)/income attributable to Sunlands Technology Group		(52,929)		180,638
Less: Share-based compensation expenses		(111)		(368)
Non-GAAP net (loss)/income attributable to Sunlands Technology Group		(52,818)		181,006
Net (loss)/income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		(7.87)		27.16
Non-GAAP net (loss)/income per share attributable to ordinary shareholders of
Sunlands Technology Group:
Basic and diluted		(7.85)		27.22
Weighted average shares used in calculating net (loss)/income
per ordinary share:
Basic and diluted		6,729,197		6,650,244
Weighted average shares used in calculating Non-GAAP net (loss)/income
per ordinary share:
Basic and diluted		6,729,197		6,650,244

 

 

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SOURCE Sunlands Technology Group

FAQ

What were Sunlands Technology Group's Q1 2022 net revenues?

Sunlands reported Q1 2022 net revenues of RMB613.3 million (US$96.7 million), an 11.7% decrease year-over-year.

How much net income did Sunlands Technology Group achieve in Q1 2022?

The net income for Q1 2022 was RMB179.4 million (US$28.3 million), compared to a net loss of RMB53.3 million in Q1 2021.

What is the outlook for Sunlands Technology Group's Q2 2022 revenues?

Sunlands expects Q2 2022 net revenues to be between RMB520 million to RMB540 million, representing a year-over-year decrease of 14.2% to 17.4%.

What was the change in student enrollments for Sunlands Technology Group in Q1 2022?

New student enrollments decreased by 19.5% year-over-year in Q1 2022.

How did Sunlands manage its costs in Q1 2022?

Sunlands reduced its sales and marketing expenses by 51.4% year-over-year, reflecting a strategic focus on cost management.