Sunlands Technology Group Announces Unaudited Fourth Quarter and Full Year 2023 Financial Results
- Positive: The company achieved solid financial performance in Q4 2023 with net income of RMB155.2 million and a net income margin of 28.6%. Revenue growth of 3.3% quarter-on-quarter was reported, exceeding projections.
- Positive: Sunlands demonstrated strong financial management, with a focus on sustainable growth and operational efficiencies. Net income margin for the year 2023 was 29.7%.
- Negative: Operating expenses in Q4 2023 increased by 3.8%, driven by a rise in sales and marketing expenses. General and administrative expenses decreased due to cost-cutting measures.
- Negative: Net income decreased to RMB155.2 million in Q4 2023 from RMB181.0 million in Q4 2022, reflecting a 14.2% decline.
- Negative: For the full year 2023, net revenues decreased by 7.0% compared to 2022, with a 23.7% decrease in cost of revenues. Gross profit decreased by 4.1%.
- Negative: Operating expenses increased in Q4 2023, impacting net income. Sales and marketing expenses rose by 12.2%, leading to higher overall operating costs.
- Negative: Net income declined in Q4 2023, signaling a decrease in profitability compared to the same period in 2022.
- Negative: For the full year 2023, net revenues decreased by 7.0%, and gross profit decreased by 4.1%, indicating challenges in revenue generation and profit margins.
Insights
The reported decrease in Sunlands Technology Group's net revenues by 6.4% for Q4 and 7.0% for the full year, alongside a reduced net income compared to the previous year, indicates a contraction in the company's financial performance. This contraction could stem from various factors, including increased competition, market saturation, or shifts in consumer preferences within China's online education sector.
Additionally, the increase in sales and marketing expenses by 12.2% in Q4 suggests an aggressive strategy to capture market share or to counteract declining revenues. While this may lead to future revenue growth, it also poses a risk of margin compression if the additional expenses do not translate into proportional revenue increases.
The deferred revenue decline might imply that the company is facing challenges in securing future sales, which could be concerning for long-term growth prospects. Investors may need to monitor subsequent quarters to determine if this is an emerging trend or a temporary fluctuation.
From a financial perspective, the reported net income margin of 28.6% for Q4 and 29.7% for the full year, despite reduced net revenues, reflects the company's ability to maintain profitability through operational efficiencies and cost optimizations, such as headcount reductions. This is a positive signal for investors concerned about the company's cost management and profit retention abilities.
The share repurchase program extension indicates management's confidence in the intrinsic value of the company and a commitment to returning value to shareholders. However, it's essential to consider the balance between share repurchases and the need for cash to fund operations and growth initiatives, especially in a context of declining revenues.
Investors should also consider the company's outlook for Q1 of 2024, which forecasts a further decline in net revenues. This projection could suggest that the company anticipates continued headwinds in the market or its business operations.
The education industry, particularly online post-secondary and professional education, is highly sensitive to regulatory changes, technological advancements and competitive dynamics. Sunlands' focus on professional certification preparation and professional skills programs, which reportedly grew by approximately 30.3%, aligns with a global trend towards upskilling and reskilling due to automation and changing job requirements.
However, the overall decline in Sunlands' revenues and new student enrollments could reflect broader market challenges, such as the increasing availability of free or low-cost educational resources online, or potential regulatory pressures in the Chinese education sector. The company's ability to innovate and adapt to these challenges will be critical for its future success.
BEIJING, March 22, 2024 (GLOBE NEWSWIRE) -- 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 and full year ended December 31, 2023.
Fourth Quarter 2023 Financial and Operational Snapshots
- Net revenues were RMB541.7 million (US
$76.3 million ), compared to RMB578.6 million in the fourth quarter of 2022. - Gross billings (non-GAAP) were RMB415.5 million (US
$58.5 million ), compared to RMB370.8 million in the fourth quarter of 2022. - Gross profit was RMB468.0 million (US
$65.9 million ), compared to RMB503.3 million in the fourth quarter of 2022. - Net income was RMB155.2 million (US
$21.9 million ), compared to RMB181.0 million in the fourth quarter of 2022. - Net income margin1 was
28.6% in the fourth quarter of 2023, compared to31.3% in the fourth quarter of 2022. - New student enrollments2 were 164,654, compared to 161,348 in the fourth quarter of 2022.
- As of December 31, 2023, the Company’s deferred revenue balance was RMB1,113.9 million (US
$156.9 million ), compared to RMB1,690.9 million as of December 31, 2022.
_____________________________
1 Net income margin is defined as net income as a percentage of net revenues.
2 New student enrollments for a given period refer 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 September 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 2023 Financial and Operational Snapshots
- Net revenues were RMB2,159.6 million (US
$304.2 million ), compared to RMB2,323.1 million in 2022. - Gross billings (non-GAAP) were RMB1,504.6 million (US
$211.9 million ), compared to RMB1,496.7 million in 2022. - Gross profit was RMB1,894.1 million (US
$266.8 million ), compared to RMB1,975.0 million in 2022. - Net income was RMB640.8 million (US
$90.3 million ), compared to RMB643.0 million in 2022. - Net income margin was
29.7% , compared to27.7% in 2022. - New student enrollments were 616,341, compared to 534,280 in 2022.
Mr. Tongbo Liu, Chief Executive Officer of Sunlands, commented, “We are proud to announce a successful conclusion to the fourth quarter of 2023, marked by a net income of RMB155.2 million and a net income margin of
Over the past year, grounded in profound insights into the adult education industry and the agile execution capabilities of our organization, we consistently innovated our product and service portfolio to adapt to shifting market dynamics and evolving customer demands. This approach resulted in positive outcome, while we achieved RMB2,159.6 million in revenue and RMB640.8 million in net income in the year of 2023. Additionally, the sector encompassing professional certification preparation, professional skills and interest programs continues to serve as our key growth engine, showcasing a year-over-year revenue growth of approximate
Looking ahead, our commitment to robust financial management remains resolute, ensuring the sustained and prudent growth of the Company. Furthermore, we pledge to fortify shareholder value through ongoing share repurchases, underscoring our steadfast commitment to shareholder interests. ”
Mr. Hangyu Li, Financial Controller of Sunlands, added, “Over the past year, the Company remained focused on achieving sustainable growth, placing a high priority on improving operational efficiencies and optimizing our cost structures. We continued our impressive level of profitability with a net income margin of
Financial Results for the Fourth Quarter of 2023
Net Revenues
In the fourth quarter of 2023, net revenues decreased by
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit decreased by
Operating Expenses
In the fourth quarter of 2023, operating expenses were RMB348.9 million (US
Sales and marketing expenses increased by
General and administrative expenses decreased by
Product development expenses increased by
Net Income
Net income for the fourth quarter of 2023 was RMB155.2 million (US
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB22.59 (US
Cash, Cash Equivalents, Restricted Cash and Short-term Investments
As of December 31, 2023, the Company had RMB766.4 million (US
Deferred Revenue
As of December 31, 2023, the Company had a deferred revenue balance of RMB1,113.9 million (US
Capital Expenditures
Capital expenditures were incurred primarily in connection with information technology (“IT”) infrastructure equipment and leasehold improvements necessary to support the Company’s operations. Capital expenditures were RMB0.2 million (US
Share Repurchase
On December 6, 2021, the Company’s board of directors authorized a share repurchase program, under which the Company may repurchase up to US
Financial Results for the Year 2023
Net Revenues
In the year of 2023, net revenues decreased by
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit decreased by
Operating Expenses
In the year of 2023, operating expenses were RMB1,319.2 million (US
Sales and marketing expenses increased by
General and administrative expenses decreased by
Product development expenses decreased by
Net Income
Net income for 2023 was RMB640.8 million (US
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB92.88 (US
Capital Expenditures
Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvements necessary to support the Company’s operations. Capital expenditures were RMB6.4 million (US
Outlook
For the first quarter of 2024, Sunlands currently expects net revenues to be between RMB500 million to RMB520 million, which would represent a decrease of
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 RMB7.0999 to US
Conference Call and Webcast
Sunlands’ management team will host a conference call at 7:00 AM U.S. Eastern Time, (7:00 PM Beijing/Hong Kong time) on March 22, 2024, following the quarterly results announcement.
For participants who wish to join the call, please access the link provided below to complete online registration 15 minutes prior to the scheduled call start time. Upon registration, participants will receive details for the conference call, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Registration Link:
https://register.vevent.com/register/BIea2c6efad4464eb493adf342e43b1600
Additionally, a live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at https://ir.sunlands.com/.
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- or diploma-oriented post-secondary courses as well as professional certification preparation, professional skills and interest courses. Students can access the Company's 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 expenses, non-GAAP income from operations and Non-GAAP net 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 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 income exclude share-based compensation expenses, and basic and diluted net 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 fourth 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
SOURCE: Sunlands Technology Group
| SUNLANDS TECHNOLOGY GROUP 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, | ||||||
| 2022 | 2023 | ||||||
| RMB | RMB | US$ | |||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 753,642 | 763,800 | 107,579 | ||||
| Restricted cash | 3,762 | 2,578 | 363 | ||||
| Short-term investments | 70,542 | 142,084 | 20,012 | ||||
| Prepaid expenses and other current assets | 98,272 | 109,018 | 15,355 | ||||
| Deferred costs, current | 42,886 | 14,274 | 2,010 | ||||
| Total current assets | 969,104 | 1,031,754 | 145,319 | ||||
| Non-current assets | |||||||
| Property and equipment, net | 813,783 | 786,670 | 110,800 | ||||
| Intangible assets, net | 1,509 | 975 | 137 | ||||
| Right-of-use assets | 274,643 | 135,820 | 19,130 | ||||
| Deferred costs, non-current | 78,839 | 68,773 | 9,686 | ||||
| Long-term investments | 73,513 | 61,354 | 8,642 | ||||
| Deferred tax assets | 26,799 | - | - | ||||
| Other non-current assets | 37,880 | 33,160 | 4,670 | ||||
| Total non-current assets | 1,306,966 | 1,086,752 | 153,065 | ||||
| TOTAL ASSETS | 2,276,070 | 2,118,506 | 298,384 | ||||
| LIABILITIES AND SHAREHOLDERS’ (DEFICIT)/EQUITY | |||||||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Accrued expenses and other current liabilities | 436,339 | 409,691 | 57,703 | ||||
| Deferred revenue, current | 986,086 | 553,812 | 78,003 | ||||
| Lease liabilities, current portion | 17,065 | 8,019 | 1,129 | ||||
| Long-term debt, current portion | 38,654 | 38,654 | 5,444 | ||||
| Total current liabilities | 1,478,144 | 1,010,176 | 142,279 | ||||
| SUNLANDS TECHNOLOGY GROUP 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, | ||||||
| 2022 | 2023 | ||||||
| RMB | RMB | US$ | |||||
| Non-current liabilities | |||||||
| Deferred revenue, non-current | 704,860 | 560,111 | 78,890 | ||||
| Lease liabilities, non-current portion | 316,844 | 157,269 | 22,151 | ||||
| Deferred tax liabilities | 5,984 | 3,742 | 527 | ||||
| Other non-current liabilities | 6,770 | 6,994 | 985 | ||||
| Long-term debt, non-current portion | 143,319 | 104,665 | 14,742 | ||||
| Total non-current liabilities | 1,177,777 | 832,781 | 117,295 | ||||
| TOTAL LIABILITIES | 2,655,921 | 1,842,957 | 259,574 | ||||
| SHAREHOLDERS’ (DEFICIT)/EQUITY | |||||||
| Class A ordinary shares (par value of US | |||||||
| authorized; 2,982,516 and 3,131,807 shares issued as of December 31, 2022 | |||||||
| and 2023, respectively; 2,618,698 and 2,702,523 shares | |||||||
| outstanding as of December 31, 2022 and 2023, 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, 2022 and 2023, respectively) | - | - | - | ||||
| Class C ordinary shares (par value of US | |||||||
| authorized; 3,481,353 and 3,332,062 shares issued and outstanding | |||||||
| as of December 31, 2022 and 2023, respectively) | 1 | 1 | - | ||||
| Treasury stock | - | - | - | ||||
| Accumulated deficit | (2,812,114) | (2,171,284) | (305,819) | ||||
| Additional paid-in capital | 2,309,740 | 2,305,042 | 324,658 | ||||
| Accumulated other comprehensive income | 127,885 | 143,276 | 20,180 | ||||
| Total Sunlands Technology Group shareholders’ (deficit)/equity | (374,487) | 277,036 | 39,019 | ||||
| Non-controlling interest | (5,364) | (1,487) | (209) | ||||
| TOTAL SHAREHOLDERS’ (DEFICIT)/EQUITY | (379,851) | 275,549 | 38,810 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT)/EQUITY | 2,276,070 | 2,118,506 | 298,384 | ||||
| SUNLANDS TECHNOLOGY GROUP 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, | ||||||||
| 2022 | 2023 | |||||||
| RMB | RMB | US$ | ||||||
| Net revenues | 578,588 | 541,724 | 76,300 | |||||
| Cost of revenues | (75,291) | (73,751) | (10,388) | |||||
| Gross profit | 503,297 | 467,973 | 65,912 | |||||
| Operating expenses | ||||||||
| Sales and marketing expenses | (272,477) | (305,802) | (43,071) | |||||
| Product development expenses | (7,369) | (7,636) | (1,076) | |||||
| General and administrative expenses | (56,129) | (35,469) | (4,996) | |||||
| Total operating expenses | (335,975) | (348,907) | (49,143) | |||||
| Income from operations | 167,322 | 119,066 | 16,769 | |||||
| Interest income | 7,040 | 9,347 | 1,316 | |||||
| Interest expense | (2,295) | (1,610) | (227) | |||||
| Other income, net | 4,860 | 8,527 | 1,201 | |||||
| (Loss)/gain on disposal of subsidiaries | (319) | 43,468 | 6,122 | |||||
| Income before income tax expenses | ||||||||
| and gain/(loss) from equity method investments | 176,608 | 178,798 | 25,181 | |||||
| Income tax expenses | (3,424) | (19,958) | (2,811) | |||||
| Gain/(loss) from equity method investments | 7,770 | (3,639) | (513) | |||||
| Net income | 180,954 | 155,201 | 21,857 | |||||
| Less: Net loss attributable to non-controlling interest | 330 | - | - | |||||
| Net income attributable to Sunlands Technology Group | 180,624 | 155,201 | 21,857 | |||||
| Net income per share attributable to ordinary shareholders of | ||||||||
| Sunlands Technology Group: | ||||||||
| Basic and diluted | 26.03 | 22.59 | 3.18 | |||||
| Weighted average shares used in calculating net income | ||||||||
| per ordinary share: | ||||||||
| Basic and diluted | 6,939,213 | 6,870,714 | 6,870,714 | |||||
| SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) | |||||||
| For the Three Months Ended December 31, | |||||||
| 2022 | 2023 | ||||||
| RMB | RMB | US$ | |||||
| Net income | 180,954 | 155,201 | 21,857 | ||||
| Other comprehensive loss, net of tax effect of nil: | |||||||
| Change in cumulative foreign currency translation adjustments | (15,938) | (15,243) | (2,147) | ||||
| Total comprehensive income | 165,016 | 139,958 | 19,710 | ||||
| Less: comprehensive income attributable to non-controlling | |||||||
| interest | 330 | - | - | ||||
| Comprehensive income attributable to | |||||||
| Sunlands Technology Group | 164,686 | 139,958 | 19,710 | ||||
| SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||||
| For the Three Months Ended December 31, | ||||||
| 2022 | 2023 | |||||
| RMB | RMB | |||||
| Net revenues | 578,588 | 541,724 | ||||
| Less: other revenues | (39,344) | (47,982) | ||||
| Add: tax and surcharges | 10,823 | 17,657 | ||||
| Add: ending deferred revenue | 1,690,946 | 1,113,923 | ||||
| Add: deferred revenue in connection with disposal of subsidiaries | 259 | 23,220 | ||||
| Add: ending refund liability | 133,066 | 143,744 | ||||
| Less: beginning deferred revenue | (1,798,558) | (1,277,040) | ||||
| Less: beginning refund liability | (204,961) | (101,591) | ||||
| Less: beginning refund liability in connection with disposal of subsidiaries | - | 1,820 | ||||
| Gross billings (non-GAAP) | 370,819 | 415,475 | ||||
| Net income | 180,954 | 155,201 | ||||
| Add: income tax expenses | 3,424 | 19,958 | ||||
| depreciation and amortization | 18,584 | 7,717 | ||||
| interest expense | 2,295 | 1,610 | ||||
| Less: interest income | (7,040) | (9,347) | ||||
| EBITDA (non-GAAP) | 198,217 | 175,139 | ||||
| SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
| For the Three Months Ended December 31, | ||||||
| 2022 | 2023 | |||||
| RMB | RMB | |||||
| Cost of revenues | (75,291 | ) | (73,751 | ) | ||
| Less: Share-based compensation expenses in cost of revenues | - | - | ||||
| Non-GAAP cost of revenues | (75,291 | ) | (73,751 | ) | ||
| Sales and marketing expenses | (272,477 | ) | (305,802 | ) | ||
| Less: Share-based compensation expenses in sales and marketing expenses | - | - | ||||
| Non-GAAP sales and marketing expenses | (272,477 | ) | (305,802 | ) | ||
| General and administrative expenses | (56,129 | ) | (35,469 | ) | ||
| Less: Share-based compensation expenses in general and administrative expenses | - | - | ||||
| Non-GAAP general and administrative expenses | (56,129 | ) | (35,469 | ) | ||
| Operating cost and expenses | (411,266 | ) | (422,658 | ) | ||
| Less: Share-based compensation expenses | - | - | ||||
| Non-GAAP operating cost and expenses | (411,266 | ) | (422,658 | ) | ||
| Income from operations | 167,322 | 119,066 | ||||
| Less: Share-based compensation expenses | - | - | ||||
| Non-GAAP income from operations | 167,322 | 119,066 | ||||
| Net income attributable to Sunlands Technology Group | 180,624 | 155,201 | ||||
| Less: Share-based compensation expenses | - | - | ||||
| Non-GAAP net income attributable to Sunlands Technology Group | 180,624 | 155,201 | ||||
| Net income per share attributable to ordinary shareholders of | ||||||
| Sunlands Technology Group: | ||||||
| Basic and diluted | 26.03 | 22.59 | ||||
| Non-GAAP net income per share attributable to ordinary shareholders of | ||||||
| Sunlands Technology Group: | ||||||
| Basic and diluted | 26.03 | 22.59 | ||||
| Weighted average shares used in calculating net income | ||||||
| per ordinary share: | ||||||
| Basic and diluted | 6,939,213 | 6,870,714 | ||||
| Weighted average shares used in calculating Non-GAAP net income | ||||||
| per ordinary share: | ||||||
| Basic and diluted | 6,939,213 | 6,870,714 | ||||
| SUNLANDS TECHNOLOGY GROUP 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, | |||||||
| 2022 | 2023 | ||||||
| RMB | RMB | US$ | |||||
| Net revenues | 2,323,101 | 2,159,584 | 304,171 | ||||
| Cost of revenues | (348,150) | (265,528) | (37,399) | ||||
| Gross profit | 1,974,951 | 1,894,056 | 266,772 | ||||
| Operating expenses | |||||||
| Sales and marketing expenses | (1,129,508) | (1,142,154) | (160,869) | ||||
| Product development expenses | (42,834) | (33,723) | (4,750) | ||||
| General and administrative expenses | (185,667) | (143,286) | (20,181) | ||||
| Total operating expenses | (1,358,009) | (1,319,163) | (185,800) | ||||
| Income from operations | 616,942 | 574,893 | 80,972 | ||||
| Interest income | 16,248 | 31,094 | 4,379 | ||||
| Interest expense | (10,059) | (7,657) | (1,078) | ||||
| Other income, net | 24,527 | 34,097 | 4,802 | ||||
| Impairment loss on long-term investments | (500) | (61) | (9) | ||||
| Gain on disposal of subsidiaries | 1,390 | 43,715 | 6,157 | ||||
| Income before income tax expenses | |||||||
| and gain/(loss) from equity method investments | 648,548 | 676,081 | 95,223 | ||||
| Income tax expenses | (11,992) | (25,166) | (3,545) | ||||
| Gain/(loss) from equity method investments | 6,453 | (10,084) | (1,420) | ||||
| Net income | 643,009 | 640,831 | 90,258 | ||||
| Less: Net (loss)/income attributable to non-controlling interest | (950) | 1 | - | ||||
| Net income attributable to Sunlands Technology Group | 643,959 | 640,830 | 90,258 | ||||
| Net income per share attributable to ordinary shareholders of | |||||||
| Sunlands Technology Group: | |||||||
| Basic and diluted | 94.14 | 92.88 | 13.08 | ||||
| Weighted average shares used in calculating net income | |||||||
| per ordinary share: | |||||||
| Basic and diluted | 6,840,079 | 6,899,456 | 6,899,456 | ||||
| SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) | |||||||
| For the Years Ended December 31, | |||||||
| 2022 | 2023 | ||||||
| RMB | RMB | US$ | |||||
| Net income | 643,009 | 640,831 | 90,258 | ||||
| Other comprehensive income, net of tax effect of nil: | |||||||
| Change in cumulative foreign currency translation adjustments | 45,353 | 15,391 | 2,168 | ||||
| Total comprehensive income | 688,362 | 656,222 | 92,426 | ||||
| Less: comprehensive (loss)/income attributable to non-controlling | |||||||
| interest | (950) | 1 | - | ||||
| Comprehensive income attributable to | |||||||
| Sunlands Technology Group | 689,312 | 656,221 | 92,426 | ||||
| SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | |||||
| For the Years Ended December 31, | |||||
| 2022 | 2023 | ||||
| RMB | RMB | ||||
| Net revenues | 2,323,101 | 2,159,584 | |||
| Less: other revenues | (125,864) | (176,014) | |||
| Add: tax and surcharges | 66,638 | 62,352 | |||
| Add: ending deferred revenue | 1,690,946 | 1,113,923 | |||
| Add: deferred revenue in connection with disposal of subsidiaries | 259 | 23,220 | |||
| Add: ending refund liability | 133,066 | 143,744 | |||
| Less: beginning deferred revenue | (2,348,179) | (1,690,946) | |||
| Less: beginning refund liability | (243,236) | (133,066) | |||
| Less: beginning refund liability in connection with disposal of subsidiaries | - | 1,820 | |||
| Gross billings (non-GAAP) | 1,496,731 | 1,504,617 | |||
| Net income | 643,009 | 640,831 | |||
| Add: income tax expenses | 11,992 | 25,166 | |||
| depreciation and amortization | 46,684 | 30,648 | |||
| interest expense | 10,059 | 7,657 | |||
| Less: interest income | (16,248) | (31,094) | |||
| EBITDA (non-GAAP) | 695,496 | 673,208 | |||
| SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
| For the Years Ended December 31, | ||||||
| 2022 | 2023 | |||||
| RMB | RMB | |||||
| Cost of revenues | (348,150 | ) | (265,528 | ) | ||
| Less: Share-based compensation expenses in cost of revenues | (33 | ) | - | |||
| Non-GAAP cost of revenues | (348,117 | ) | (265,528 | ) | ||
| Sales and marketing expenses | (1,129,508 | ) | (1,142,154 | ) | ||
| Less: Share-based compensation expenses in sales and marketing expenses | (4,166 | ) | - | |||
| Non-GAAP sales and marketing expenses | (1,125,342 | ) | (1,142,154 | ) | ||
| General and administrative expenses | (185,667 | ) | (143,286 | ) | ||
| Less: Share-based compensation expenses in general and administrative expenses | (2,982 | ) | - | |||
| Non-GAAP general and administrative expenses | (182,685 | ) | (143,286 | ) | ||
| Operating cost and expenses | (1,706,159 | ) | (1,584,691 | ) | ||
| Less: Share-based compensation expenses | (7,181 | ) | - | |||
| Non-GAAP operating cost and expenses | (1,698,978 | ) | (1,584,691 | ) | ||
| Income from operations | 616,942 | 574,893 | ||||
| Less: Share-based compensation expenses | (7,181 | ) | - | |||
| Non-GAAP income from operations | 624,123 | 574,893 | ||||
| Net income attributable to Sunlands Technology Group | 643,959 | 640,830 | ||||
| Less: Share-based compensation expenses | (7,181 | ) | - | |||
| Non-GAAP net income attributable to Sunlands Technology Group | 651,140 | 640,830 | ||||
| Net income per share attributable to ordinary shareholders of | ||||||
| Sunlands Technology Group: | ||||||
| Basic and diluted | 94.14 | 92.88 | ||||
| Non-GAAP net income per share attributable to ordinary shareholders of | ||||||
| Sunlands Technology Group: | ||||||
| Basic and diluted | 95.19 | 92.88 | ||||
| Weighted average shares used in calculating net income | ||||||
| per ordinary share: | ||||||
| Basic and diluted | 6,840,079 | 6,899,456 | ||||
| Weighted average shares used in calculating Non-GAAP net income | ||||||
| per ordinary share: | ||||||
| Basic and diluted | 6,840,079 | 6,899,456 | ||||
FAQ
What were Sunlands Technology Group's net revenues for the fourth quarter of 2023?
How did Sunlands' gross profit in Q4 2023 compare to the same period in 2022?
What was the net income margin for Sunlands in Q4 2023?
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What was Sunlands' net income for the full year 2023?
