Sunlands Technology Group Announces Unaudited Fourth Quarter 2020 Financial Results
Sunlands Technology Group (NYSE: STG) reported its fourth-quarter 2020 financial results, reflecting a 6.3% increase in net revenues to RMB584.6 million (US$89.6 million). Gross profit rose 8.6% year-over-year to RMB486.7 million (US$74.6 million), while net loss decreased 47.3% to RMB73.5 million (US$11.3 million), resulting in a net loss margin of 12.6%. New student enrollments surged by 51.8% to 140,726. For full-year 2020, net revenues reached RMB2,203.8 million (US$337.7 million), marking a 0.5% growth. Looking ahead, the company expects first-quarter 2021 revenues between RMB670 million and RMB690 million.
- Fourth-quarter net revenues increased by 6.3% to RMB584.6 million.
- Gross profit rose 8.6% year-over-year to RMB486.7 million.
- Net loss decreased 47.3% to RMB73.5 million from RMB139.5 million.
- New student enrollments increased by 51.8% to 140,726.
- Full-year net loss increased by 9.1% to RMB431.0 million from RMB395.2 million.
- Net loss margin for 2020 grew to 19.6% from 18.0% in 2019.
BEIJING, March 18, 2021 /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 fourth quarter ended December 31, 2020.
Fourth Quarter 2020 Financial and Operational Snapshots
- Net revenues were RMB584.6 million (US
$89.6 million ), representing a6.3% increase year-over-year. - Gross billings (non-GAAP) were RMB647.8 million (US
$99.3 million ), compared with RMB642.0 million in the fourth quarter of 2019. - Gross profit was RMB486.7 million (US
$74.6 million ), representing an8.6% increase year-over-year. - Net loss was RMB73.5 million (US
$11.3 million ), representing a47.3% decrease year-over-year. - Net loss margin, defined as net loss as a percentage of net revenues, decreased to
12.6% from25.4% in the fourth quarter of 2019. - New student enrollments were 140,726, representing a
51.8% increase year-over-year. - As of December 31, 2020, the Company's deferred revenue balance was RMB3,024.4 million (US
$463.5 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. |
Full Year 2020 Financial and Operational Snapshots
- Net revenues were RMB2,203.8 million (US
$337.7 million ), compared with RMB2,193.9 million in 2019. - Gross billings (non-GAAP) were RMB2,350.4 million (US
$360.2 million ), compared with RMB2,358.5 million in 2019. - Gross profit was RMB1,816.5 million (US
$278.4 million ), compared with RMB1,797.6 million in 2019. - Net loss was RMB431.0 million (US
$66.1 million ), representing a9.1% increase year-over-year. - Net loss margin, defined as net loss as a percentage of net revenues, increased to
19.6% from18.0% in the year 2019. - New student enrollments were 434,240, representing a
19.6% increase year-over-year.
"While methodically navigating a year of both unprecedented challenges and changes, we concluded 2020 with steady and solid growth in the fourth quarter. With our strategic focus on developing diverse product offerings, improving student acquisition efficiency and enhancing curriculum effectiveness, we pursued the opportunities presenting themselves in the market as overall demand grows for higher education and professional skills programs," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. "With enhanced operational efficiency and an expanded course portfolio, fourth quarter net revenues reached RMB584.6 million, growing
"As the post-graduate entrance exams for 2021 concluded in December with registered applicants reaching a record high of almost 3.8 million, we are well-prepared to handle the growing volume and demand. Our master's degree-oriented programs demonstrated robust growth momentum in 2020 and recorded RMB632.9 million in gross billings, with an increase of
Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, said, "In the fourth quarter we deepened our strategy to balance business growth and profitability in a challenging environment. Our net revenues continued to grow at a healthy rate, exceeding the high end of our guidance by
Financial Results for the fourth quarter of 2020
Net Revenues
In the fourth quarter of 2020, net revenues increased by
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit increased by
Operating Expenses
In the fourth quarter of 2020, operating expenses were RMB673.7 million (US
Sales and marketing expenses increased by
General and administrative expenses decreased by
Product development expenses decreased by
Other income
Other income increased to RMB109.4 million (US
Net Loss
Net loss for the fourth quarter of 2020 was RMB73.5 million (US
Basic and Diluted Net Loss Per Share
Basic and diluted net loss per share was RMB10.87 (US
Cash and Cash Equivalents and Short-term Investments
As of December 31, 2020, the Company had RMB760.7 million (US
Deferred Revenue
As of December 31, 2020, the Company had a deferred revenue balance of RMB3,024.4 million (US
Capital Expenditures
Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvement necessary to support the Company' operations. Capital expenditures were RMB4.7 million (US
Financial Results for the Year 2020
Net Revenues
In 2020, net revenues increased by
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit increased by
Operating Expenses
In the year of 2020, operating expenses were RMB2,465.5 million (US
Sales and marketing expenses increased by
General and administrative expenses decreased by
Product development expenses decreased by
Other income
Other income for 2020 was RMB203.2 million (US
Net Loss
Net loss for 2020 was RMB431.0 million (US
Basic and Diluted Net Loss Per Share
Basic and diluted net loss per share was RMB63.74 (US
Capital Expenditures
Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvement necessary to support the Company's operations. Capital expenditures were RMB27.0 million (US
Outlook
For the first quarter of 2021, Sunlands currently expects net revenues to be between RMB670 million to RMB690 million, which would represent an increase of
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 RMB6.5250 to US
Conference Call and Webcast
Sunlands' management team will host a conference call at 8:00 AM U.S. Eastern Time, (8:00 PM Beijing/Hong Kong time) on March 18, 2021, 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 March 25, 2021, by dialing the following telephone numbers:
International: | +1-412-317-0088 |
US toll free: | +1-877-344-7529 |
Replay access code: | 10152998 |
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 from operations and Non-GAAP net loss 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 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 exclude share-based compensation expenses, and basic and diluted net loss 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
Ross Warner
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 December 31, | ||||||
2019 | 2020 | ||||||
RMB | RMB | US$ | |||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,402,226 | 760,710 | 116,584 | ||||
Short-term investments | 217,640 | 517,815 | 79,359 | ||||
Prepaid expenses and other current assets | 180,881 | 117,637 | 18,028 | ||||
Deferred costs, current | 243,447 | 158,092 | 24,229 | ||||
Total current assets | 2,044,194 | 1,554,254 | 238,200 | ||||
Non-current assets | |||||||
Property and equipment, net | 545,675 | 511,092 | 78,328 | ||||
Intangible assets, net | 1,176 | 1,211 | 186 | ||||
Land use right, net | - | 13,564 | 2,079 | ||||
Right-of-use assets | 598,991 | 488,877 | 74,924 | ||||
Deferred costs, non-current | 205,488 | 170,160 | 26,078 | ||||
Long-term investments | 40,026 | 64,093 | 9,823 | ||||
Deferred tax assets | 85,513 | 13,015 | 1,995 | ||||
Other non-current assets | 447,639 | 444,628 | 68,142 | ||||
Total non-current assets | 1,924,508 | 1,706,640 | 261,555 | ||||
TOTAL ASSETS | 3,968,702 | 3,260,894 | 499,755 | ||||
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 RMB209,727 and RMB175,900 as of | |||||||
December 31, 2019 and December 31, 2020, respectively) | 435,225 | 607,789 | 93,149 | ||||
Deferred revenue, current (including deferred revenue, current of the consolidated VIEs | |||||||
without recourse to Sunlands Technology Group of RMB1,162,938 and | |||||||
RMB435,254 as of December 31, 2019 and December 31, 2020, respectively) | 1,670,076 | 1,463,165 | 224,240 | ||||
Lease liabilities, current portion (including lease liabilities, current portion of the consolidated VIEs | |||||||
without recourse to Sunlands Technology Group of 22,659 and | |||||||
RMB15,833 as of December 31, 2019 and December 31, 2020, respectively) | 40,236 | 30,702 | 4,705 | ||||
Payables to acquire buildings (including payables to acquire buildings of the | |||||||
consolidated VIEs without recourse to Sunlands Technology Group of nil and nil | |||||||
as of December 31, 2019, and December 31, 2020, respectively) | 61,540 | 61,540 | 9,431 | ||||
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, 2019 and December 31, 2020, respectively) | 32,500 | 32,500 | 4,981 | ||||
Total current liabilities | 2,239,577 | 2,195,696 | 336,506 | ||||
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 December 31, | ||||||
2019 | 2020 | ||||||
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 | |||||||
RMB1,096,482 and RMB468,577 as of December 31, 2019 and December 31, | |||||||
2020, respectively) | 1,558,694 | 1,561,278 | 239,276 | ||||
Lease liabilities, non-current portion (including lease liabilities, non-current portion of the | |||||||
consolidated VIEs without recourse to Sunlands Technology Group of | |||||||
358,467 and RMB340,763 as of December 31, 2019 and December 31, | |||||||
2020, respectively) | 616,246 | 532,538 | 81,615 | ||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated | |||||||
VIEs without recourse to Sunlands Technology Group of 4,415 and RMB3,203 as of | |||||||
December 31, 2019 and December 31, 2020, respectively) | 87,954 | 15,220 | 2,333 | ||||
Other non-current liabilities (including other non-current liabilities of the consolidated | |||||||
VIEs without recourse to Sunlands Technology Group of RMB135 and RMB135 as of | |||||||
December 31, 2019 and December 31, 2020, respectively) | 11,469 | 7,664 | 1,175 | ||||
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, 2019 and December 31, 2020, respectively) | 193,125 | 160,625 | 24,617 | ||||
Total non-current liabilities | 2,467,488 | 2,277,325 | 349,016 | ||||
TOTAL LIABILITIES | 4,707,065 | 4,473,021 | 685,522 | ||||
SHAREHOLDERS' DEFICIT | |||||||
Class A ordinary shares (par value of US | |||||||
authorized; 1,830,183 and 1,978,621 shares issued as of December 31, 2019 | |||||||
and December 31, 2020, respectively; 1,728,006 and 1,792,560 shares | |||||||
outstanding as of December 31, 2019 and December 31, 2020, respectively) | 1 | 1 | - | ||||
Class B ordinary shares (par value of US | |||||||
authorized; 826,389 and 826,389 shares issued and outstanding | |||||||
as of December 31,2019 and December 31, 2020, respectively) | - | - | - | ||||
Class C ordinary shares (par value of US | |||||||
authorized; 4,258,686 and 4,110,248 shares issued and outstanding | |||||||
as of December 31,2019 and December 31, 2020, respectively) | 1 | 1 | - | ||||
Treasury stock | - | - | - | ||||
Additional paid-in capital | 2,363,999 | 2,367,168 | 362,784 | ||||
Accumulated other comprehensive income | 142,435 | 96,490 | 14,788 | ||||
Accumulated deficit | (3,244,587) | (3,675,129) | (563,238) | ||||
Total Sunlands Technology Group shareholders' deficit | (738,151) | (1,211,469) | (185,666) | ||||
Noncontrolling interest | (212) | (658) | (101) | ||||
TOTAL SHAREHOLDERS' DEFICIT | (738,363) | (1,212,127) | (185,767) | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 3,968,702 | 3,260,894 | 499,755 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||||
For the Three Months Ended December 31, | ||||||||
2019 | 2020 | |||||||
RMB | RMB | US$ | ||||||
Net revenues | 549,722 | 584,579 | 89,591 | |||||
Cost of revenues | (101,512) | (97,841) | (14,995) | |||||
Gross profit | 448,210 | 486,738 | 74,596 | |||||
Operating expenses | ||||||||
Sales and marketing expenses | (476,090) | (608,457) | (93,250) | |||||
Product development expenses | (24,295) | (10,598) | (1,624) | |||||
General and administrative expenses | (98,603) | (54,653) | (8,376) | |||||
Total operating expenses | (598,988) | (673,708) | (103,250) | |||||
Loss from operations | (150,778) | (186,970) | (28,654) | |||||
Interest income | 9,203 | 6,894 | 1,056 | |||||
Interest expense | (3,365) | (2,726) | (418) | |||||
Other income, net | 6,894 | 109,408 | 16,768 | |||||
Impairment loss on long-term investments | - | (882) | (135) | |||||
Loss before income tax expenses | (138,046) | (74,276) | (11,383) | |||||
Income tax expenses | (2,440) | (1,113) | (171) | |||||
Gain from equity method investments | 949 | 1,877 | 288 | |||||
Net loss | (139,537) | (73,512) | (11,266) | |||||
Less: Net loss attributable to noncontrolling interest | (74) | (359) | (55) | |||||
Net loss attributable to Sunlands Technology Group | (139,463) | (73,153) | (11,211) | |||||
Net loss per share attributable to ordinary shareholders of | ||||||||
Sunlands Technology Group: | ||||||||
Basic and diluted | (20.46) | (10.87) | (1.67) | |||||
Weighted average shares used in calculating net loss | ||||||||
per ordinary share: | ||||||||
Basic and diluted | 6,815,041 | 6,729,197 | 6,729,197 | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
(Amounts in thousands) | |||||||
For the Three Months Ended December 31, | |||||||
2019 | 2020 | ||||||
RMB | RMB | US$ | |||||
Net loss | (139,537) | (73,512) | (11,266) | ||||
Other comprehensive loss, net of tax effect of nil: | |||||||
Change in cumulative foreign currency translation adjustments | (33,578) | (27,013) | (4,140) | ||||
Total comprehensive loss | (173,115) | (100,525) | (15,406) | ||||
Less: comprehensive loss attributable to noncontrolling interest | (74) | (359) | (55) | ||||
Comprehensive loss attributable to Sunlands Technology Group | (173,041) | (100,166) | (15,351) |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | |||||
For the Three Months Ended December 31, | |||||
2019 | 2020 | ||||
RMB | RMB | ||||
Net revenues | 549,722 | 584,579 | |||
Less: other revenues | (11,137) | (14,834) | |||
Add: tax and surcharges | 35,746 | 150,531 | |||
Add: ending deferred revenue | 3,228,770 | 3,024,443 | |||
Add: ending refund liability | 128,478 | 232,859 | |||
Less: beginning deferred revenue | (3,214,564) | (3,090,296) | |||
Less: beginning refund liability | (75,046) | (239,526) | |||
Gross billings (non-GAAP) | 641,969 | 647,756 | |||
Net loss | (139,537) | (73,512) | |||
Add: income tax expenses | 2,440 | 1,113 | |||
depreciation and amortization | 9,343 | 9,011 | |||
interest expense | 3,365 | 2,726 | |||
Less: interest income | (9,203) | (6,894) | |||
EBITDA (non-GAAP) | (133,592) | (67,556) |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||
For the Three Months Ended December 31, | ||||
2019 | 2020 | |||
RMB | RMB | |||
Cost of revenues | 101,512 | 97,841 | ||
Less: Share-based compensation expenses in cost of revenues | (53) | (113) | ||
Non-GAAP cost of revenues | 101,459 | 97,728 | ||
Sales and marketing expenses | 476,090 | 608,457 | ||
Less: Share-based compensation expenses in sales and marketing expenses | (131) | (5) | ||
Non-GAAP sales and marketing expenses | 475,959 | 608,452 | ||
General and administrative expenses | 98,603 | 54,653 | ||
Less: Share-based compensation expenses in general and administrative expenses | (512) | (409) | ||
Non-GAAP general and administrative expenses | 98,091 | 54,244 | ||
Operating costs and expense | 700,500 | 771,549 | ||
Less: Share-based compensation expenses | (696) | (527) | ||
Non-GAAP operating costs and expense | 699,804 | 771,022 | ||
Loss from operations | 150,778 | 186,970 | ||
Less: Share-based compensation expenses | (696) | (527) | ||
Non-GAAP loss from operations | 150,082 | 186,443 | ||
Net loss attributable to Sunlands Technology Group | 139,463 | 73,153 | ||
Less: Share-based compensation expenses | (696) | (527) | ||
Non-GAAP net loss attributable to Sunlands Technology Group | 138,767 | 72,626 | ||
Net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 20.46 | 10.87 | ||
Non-GAAP net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 20.36 | 10.79 | ||
Weighted average shares used in calculating net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,815,041 | 6,729,197 | ||
Weighted average shares used in calculating Non-GAAP net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,815,041 | 6,729,197 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
For the Years Ended December 31, | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net revenues | 2,193,902 | 2,203,791 | 337,746 | |||
Cost of revenues | (396,316) | (387,272) | (59,352) | |||
Gross profit | 1,797,586 | 1,816,519 | 278,394 | |||
Operating expenses | ||||||
Sales and marketing expenses | (1,792,285) | (2,123,618) | (325,459) | |||
Product development expenses | (101,717) | (66,528) | (10,196) | |||
General and administrative expenses | (363,307) | (275,391) | (42,206) | |||
Total operating expenses | (2,257,309) | (2,465,537) | (377,861) | |||
Loss from operations | (459,723) | (649,018) | (99,467) | |||
Interest income | 60,166 | 25,809 | 3,957 | |||
Interest expense | (14,312) | (11,692) | (1,792) | |||
Other income, net | 21,280 | 203,210 | 31,143 | |||
Impairment loss on long-term investments | - | (882) | (135) | |||
Loss before income tax expenses | (392,589) | (432,573) | (66,294) | |||
Income tax expenses | (2,440) | 236 | 36 | |||
(Loss)/gain from equity method investments | (136) | 1,349 | 207 | |||
Net loss | (395,165) | (430,988) | (66,051) | |||
Less: Net loss attributable to noncontrolling interest | (348) | (446) | (68) | |||
Net loss attributable to Sunlands Technology Group | (394,817) | (430,542) | (65,983) | |||
Net loss per share attributable to ordinary shareholders of | ||||||
Sunlands Technology Group: | ||||||
Basic and diluted | (57.81) | (63.74) | (9.77) | |||
Weighted average shares used in calculating net loss | ||||||
per ordinary share: | ||||||
Basic and diluted | 6,830,058 | 6,754,134 | 6,754,134 | |||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
(Amounts in thousands) | ||||||
For the Years Ended December 31, | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net loss | (395,165) | (430,988) | (66,051) | |||
Other comprehensive income/(loss), net of tax effect of nil: | ||||||
Change in cumulative foreign currency translation adjustments | 23,608 | (45,945) | (7,041) | |||
Total comprehensive loss | (371,557) | (476,933) | (73,092) | |||
Less: comprehensive loss attributable to noncontrolling interest | (348) | (446) | (68) | |||
Comprehensive loss attributable to Sunlands Technology Group | (371,209) | (476,487) | (73,024) |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | |||||
For the Years Ended December 31, | |||||
2019 | 2020 | ||||
RMB | RMB | ||||
Net revenues | 2,193,902 | 2,203,791 | |||
Less: other revenues | (23,481) | (31,272) | |||
Add: tax and surcharges | 123,472 | 277,831 | |||
Add: ending deferred revenue | 3,228,770 | 3,024,443 | |||
Add: ending refund liability | 128,478 | 232,859 | |||
Less: beginning deferred revenue | (3,286,025) | (3,228,770) | |||
Less: beginning refund liability | (6,625) | (128,478) | |||
Gross billings (non-GAAP) | 2,358,491 | 2,350,404 | |||
Net loss | (395,165) | (430,988) | |||
Add: income tax expenses | 2,440 | (236) | |||
depreciation and amortization | 37,223 | 40,267 | |||
interest expense | 14,312 | 11,692 | |||
Less: interest income | (60,166) | (25,809) | |||
EBITDA (non-GAAP) | (401,356) | (405,074) |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||
For the Years Ended December 31, | ||||
2019 | 2020 | |||
RMB | RMB | |||
Cost of revenues | 396,316 | 387,272 | ||
Less: Share-based compensation expenses in cost of revenues | (317) | (146) | ||
Non-GAAP cost of revenues | 395,999 | 387,126 | ||
Sales and marketing expenses | 1,792,285 | 2,123,618 | ||
Less: Share-based compensation expenses in sales and marketing expenses | (674) | (14,278) | ||
Non-GAAP sales and marketing expenses | 1,791,611 | 2,109,340 | ||
General and administrative expenses | 363,307 | 275,391 | ||
Less: Share-based compensation expenses in general and administrative expenses | (1,979) | (15,324) | ||
Non-GAAP general and administrative expenses | 361,328 | 260,067 | ||
Operating costs and expense | 2,653,625 | 2,852,809 | ||
Less: Share-based compensation expenses | (2,970) | (29,748) | ||
Non-GAAP operating costs and expense | 2,650,655 | 2,823,061 | ||
Loss from operations | 459,723 | 649,018 | ||
Less: Share-based compensation expenses | (2,970) | (29,748) | ||
Non-GAAP loss from operations | 456,753 | 619,270 | ||
Net loss attributable to Sunlands Technology Group | 394,817 | 430,542 | ||
Less: Share-based compensation expenses | (2,970) | (29,748) | ||
Non-GAAP net loss attributable to Sunlands Technology Group | 391,847 | 400,794 | ||
Net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 57.81 | 63.74 | ||
Non-GAAP net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 57.37 | 59.34 | ||
Weighted average shares used in calculating net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,830,058 | 6,754,134 | ||
Weighted average shares used in calculating Non-GAAP net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,830,058 | 6,754,134 |
View original content:http://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-fourth-quarter-2020-financial-results-301250026.html
SOURCE Sunlands Technology Group
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