Sunlands Technology Group Announces Unaudited Second Quarter 2024 Financial Results
Sunlands Technology Group (NYSE: STG) announced its unaudited financial results for Q2 2024, reporting net revenues of RMB492.2 million ($67.7 million), a 6.5% decrease YoY. Gross billings rose to RMB383.9 million ($52.8 million), a 8.4% increase YoY. Gross profit fell by 11% to RMB415.6 million ($57.2 million), while net income dropped by 52.7% to RMB82.3 million ($11.3 million).
New student enrollments increased to 168,296, compared to 154,209 in Q2 2023. Operating expenses grew by 9% to RMB338.9 million ($46.6 million), with sales and marketing expenses rising by 10.2% to RMB297.4 million ($40.9 million).
For the first six months of 2024, net revenues decreased by 7.1% to RMB1,015.5 million ($139.7 million), and net income fell by 44.9% to RMB195.0 million ($26.8 million). The company expects Q3 2024 net revenues to be between RMB490 million and RMB510 million.
Sunlands Technology Group (NYSE: STG) ha annunciato i risultati finanziari non verificati per il secondo trimestre del 2024, riportando entrate nette pari a 492,2 milioni di RMB (67,7 milioni di dollari), una diminuzione del 6,5% rispetto all'anno precedente. Le fatturazioni lorde sono aumentate a 383,9 milioni di RMB (52,8 milioni di dollari), con un incremento dell'8,4% rispetto all'anno precedente. Il profitto lordo è sceso dell'11% a 415,6 milioni di RMB (57,2 milioni di dollari), mentre l'utile netto è diminuito del 52,7% a 82,3 milioni di RMB (11,3 milioni di dollari).
Le nuove iscrizioni studentesche sono aumentate a 168.296, rispetto a 154.209 nel secondo trimestre del 2023. Le spese operative sono cresciute del 9% a 338,9 milioni di RMB (46,6 milioni di dollari), con le spese per vendite e marketing che sono aumentate del 10,2% a 297,4 milioni di RMB (40,9 milioni di dollari).
Per i primi sei mesi del 2024, le entrate nette sono diminuite del 7,1% a 1.015,5 milioni di RMB (139,7 milioni di dollari), e l'utile netto è sceso del 44,9% a 195,0 milioni di RMB (26,8 milioni di dollari). L'azienda prevede che le entrate nette del terzo trimestre del 2024 saranno comprese tra 490 milioni e 510 milioni di RMB.
Sunlands Technology Group (NYSE: STG) anunció sus resultados financieros no auditados para el segundo trimestre de 2024, reportando ingresos netos de 492.2 millones de RMB (67.7 millones de dólares), una disminución del 6.5% interanual. Las facturaciones brutas aumentaron a 383.9 millones de RMB (52.8 millones de dólares), un incremento del 8.4% interanual. El beneficio bruto cayó un 11% a 415.6 millones de RMB (57.2 millones de dólares), mientras que el ingreso neto se redujo en un 52.7% a 82.3 millones de RMB (11.3 millones de dólares).
Las nuevas inscripciones de estudiantes aumentaron a 168,296, en comparación con 154,209 en el segundo trimestre de 2023. Los gastos operativos crecieron un 9% a 338.9 millones de RMB (46.6 millones de dólares), con los gastos de ventas y marketing aumentando un 10.2% a 297.4 millones de RMB (40.9 millones de dólares).
Para los primeros seis meses de 2024, los ingresos netos disminuyeron un 7.1% a 1,015.5 millones de RMB (139.7 millones de dólares), y el ingreso neto cayó un 44.9% a 195.0 millones de RMB (26.8 millones de dólares). La compañía espera que los ingresos netos del tercer trimestre de 2024 estén entre 490 millones y 510 millones de RMB.
선랜즈 기술 그룹 (NYSE: STG)은 2024년 2분기 감사되지 않은 재무 결과를 발표하며 순매출이 4억 9,220만 RMB (6,770만 달러)로 작년 대비 6.5% 감소했다고 보고했습니다. 총 청구액은 3억 8,390만 RMB (5,280만 달러)로 8.4% 증가했습니다. 총 이익은 11% 감소하여 4억 1,560만 RMB (5,720만 달러)로, 순이익은 52.7% 감소하여 8,230만 RMB (1,130만 달러)에 달했습니다.
신규 학생 등록 수는 168,296명으로 증가했으며, 이는 2023년 2분기 154,209명과 비교됩니다. 운영 비용은 9% 증가하여 3억 3,890만 RMB (4,660만 달러)가 되었으며, 판매 및 마케팅 비용은 10.2% 증가하여 2억 9,740만 RMB (4,090만 달러)로 늘어났습니다.
2024년 첫 6개월 동안 순매출은 7.1% 감소하여 1,015.5백만 RMB (1억 3,970만 달러), 순이익은 44.9% 감소하여 1억 9,500만 RMB (2,680만 달러)로 떨어졌습니다. 회사는 2024년 3분기 순매출이 4억 9,000만에서 5억 1,000만 RMB 사이일 것으로 예상하고 있습니다.
Le Sunlands Technology Group (NYSE: STG) a annoncé ses résultats financiers non audités pour le deuxième trimestre 2024, rapportant des revenus nets de 492,2 millions de RMB (67,7 millions de dollars), soit une baisse de 6,5 % par rapport à l'année précédente. Les facturations brutes ont augmenté à 383,9 millions de RMB (52,8 millions de dollars), soit une augmentation de 8,4 % par rapport à l'année précédente. Le bénéfice brut a chuté de 11 % à 415,6 millions de RMB (57,2 millions de dollars), tandis que le revenu net a diminué de 52,7 % pour s'établir à 82,3 millions de RMB (11,3 millions de dollars).
Les nouvelles inscriptions d'étudiants ont augmenté à 168 296, contre 154 209 au deuxième trimestre 2023. Les dépenses d'exploitation ont augmenté de 9 % pour atteindre 338,9 millions de RMB (46,6 millions de dollars), tandis que les dépenses de vente et de marketing ont augmenté de 10,2 % pour atteindre 297,4 millions de RMB (40,9 millions de dollars).
Pour les six premiers mois de 2024, les revenus nets ont diminué de 7,1 % pour atteindre 1 015,5 millions de RMB (139,7 millions de dollars), et le revenu net a chuté de 44,9 % pour se chiffrer à 195,0 millions de RMB (26,8 millions de dollars). La société prévoit que les revenus nets du troisième trimestre 2024 se situeront entre 490 millions et 510 millions de RMB.
Die Sunlands Technology Group (NYSE: STG) hat ihre ungeprüften finanziellen Ergebnisse für das 2. Quartal 2024 bekannt gegeben und verzeichnete Nettoumsätze von 492,2 Millionen RMB (67,7 Millionen US-Dollar), was einem Rückgang von 6,5 % im Vergleich zum Vorjahr entspricht. Die Bruttorechnungen stiegen auf 383,9 Millionen RMB (52,8 Millionen US-Dollar), was einer Zunahme von 8,4 % im Vergleich zum Vorjahr entspricht. Der Bruttogewinn fiel um 11 % auf 415,6 Millionen RMB (57,2 Millionen US-Dollar), während der Nettogewinn um 52,7 % auf 82,3 Millionen RMB (11,3 Millionen US-Dollar) sank.
Die neuen Studenteneinschreibungen stiegen auf 168.296 im Vergleich zu 154.209 im 2. Quartal 2023. Die Betriebskosten wuchsen um 9 % auf 338,9 Millionen RMB (46,6 Millionen US-Dollar), wobei die Vertriebs- und Marketingkosten um 10,2 % auf 297,4 Millionen RMB (40,9 Millionen US-Dollar) zunahmen.
In den ersten sechs Monaten des Jahres 2024 sanken die Nettoumsätze um 7,1 % auf 1.015,5 Millionen RMB (139,7 Millionen US-Dollar), und der Nettogewinn fiel um 44,9 % auf 195,0 Millionen RMB (26,8 Millionen US-Dollar). Das Unternehmen erwartet, dass die Nettoumsätze im 3. Quartal 2024 zwischen 490 Millionen und 510 Millionen RMB liegen werden.
- Gross billings increased by 8.4% YoY to RMB383.9 million ($52.8 million).
- New student enrollments rose to 168,296, compared to 154,209 in Q2 2023.
- Net revenues decreased by 6.5% YoY to RMB492.2 million ($67.7 million).
- Gross profit fell by 11% to RMB415.6 million ($57.2 million).
- Net income dropped by 52.7% YoY to RMB82.3 million ($11.3 million).
- Operating expenses increased by 9% YoY to RMB338.9 million ($46.6 million).
- Cost of revenues increased by 28.8% YoY to RMB76.6 million ($10.5 million).
- Deferred revenue decreased to RMB986.9 million ($135.8 million) from RMB1,113.9 million.
Insights
Sunlands Technology Group's Q2 2024 results show a mixed performance. While net revenues decreased by
The company's net income margin dropped significantly from
The shift towards interest courses and sale of learning materials appears to be offsetting declines in post-secondary courses, demonstrating adaptability in a challenging market. However, the declining deferred revenue balance (
Sunlands' strategic pivot towards interest courses and learning materials is a savvy move in China's evolving edtech landscape. The
The company's focus on enhancing brand awareness and product quality aligns well with the competitive dynamics in China's online education sector. However, the significant increase in sales and marketing expenses (
The maintained positive operating cash flow despite decreased revenues is commendable, indicating effective cost management. Yet, the company must balance growth investments with profitability to ensure long-term sustainability in a sector facing regulatory scrutiny and changing consumer preferences.
Sunlands' performance reflects broader trends in China's online education market. The shift from post-secondary courses to interest-based learning aligns with changing consumer preferences and regulatory landscapes. This pivot could position Sunlands well in the growing adult personal interest learning market.
The company's ability to grow gross billings amidst challenging macroeconomic conditions demonstrates resilience. However, the declining net income (
The outlook for Q3 2024, projecting a potential revenue decline of
BEIJING, Aug. 16, 2024 (GLOBE NEWSWIRE) -- Sunlands Technology Group (NYSE: STG) (“Sunlands” or the “Company”), a leader in China’s adult online education market and China’s adult personal interest learning market, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial and Operational Snapshots
- Net revenues were RMB492.2 million (US
$67.7 million ), compared to RMB526.4 million in the second quarter of 2023. - Gross billings (non-GAAP) were RMB383.9 million (US
$52.8 million ), compared to RMB354.1 million in the second quarter of 2023. - Gross profit was RMB415.6 million (US
$57.2 million ), compared to RMB466.9 million in the second quarter of 2023. - Net income was RMB82.3 million (US
$11.3 million ), compared to RMB173.9 million in the second quarter of 2023. - Net income margin1 was
16.7% in the second quarter of 2024, compared to33.0% in the second quarter of 2023. - New student enrollments2 were 168,296, compared to 154,209 in the second quarter of 2023.
- As of June 30, 2024, the Company’s deferred revenue balance was RMB986.9 million (US
$135.8 million ), compared to RMB1,113.9 million as of December 31, 2023.
_______________
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, such as “mini courses” and “RMB1 courses”, which we offer in the form of recorded videos or short live streaming, to strengthen our competitiveness and improve customer experience.
“In the face of challenging macroeconomic conditions, our company demonstrated enough strategic flexibility to deliver solid results in the second quarter. We achieved net revenues of RMB492.2 million and net income of RMB82.3 million. This underscored our resilience and ability to adapt in the face of adversity and demonstrates our strong commitment to cost optimization and sustainable growth. This solid financial position not only enables us to respond effectively to unpredictable circumstances, but also creates opportunities for our business to grow.
Looking ahead to the second half of the year, our top priorities are to enhance brand awareness and improve the quality of our existing products and services. We're taking a prudent but proactive approach to expanding and refining the offerings. Our commitment to these key growth initiatives remains unwavering as we continue to focus on improving operational efficiency and profitability.” said Mr. Tongbo Liu, Chief Executive Officer of Sunlands.
Mr. Hangyu Li, Finance Director of Sunlands, commented, “We had another excellent quarter in our core business. Although business of post-secondary courses has been rather slow in recent quarters, we achieved year-over-year growth in gross billings for the fourth consecutive quarter due to new enrollments in our interest courses offerings. In addition, we realised net income of RMB82.3 million and positive operating cash flows for the quarter. This gives us the confidence to face the challenge in a dynamic environment. Looking ahead, we will continue to optimize our courses offerings while maintaining efficient operations. These strategic initiatives will enable us to capitalize on emerging opportunities, strengthen our leadership position in the industry and continue to create value for our shareholders.”
Financial Results for the Second Quarter of 2024
Net Revenues
In the second quarter of 2024, net revenues decreased by
Cost of Revenues
Cost of revenues increased by
Gross Profit
Gross profit decreased by
Operating Expenses
In the second quarter of 2024, operating expenses were RMB338.9 million (US
Sales and marketing expenses increased by
General and administrative expenses increased by
Product development expenses decreased by
Net Income
Net income for the second quarter of 2024 was RMB82.3 million (US
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB12.00 (US
Cash, Cash Equivalents, Restricted Cash and Short-term Investments
As of June 30, 2024, the Company had RMB758.6 million (US
Deferred Revenue
As of June 30, 2024, the Company had a deferred revenue balance of RMB986.9 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 First Six Months of 2024
Net Revenues
In the first six months of 2024, net revenues decreased by
Cost of Revenues
Cost of revenues increased by
Gross Profit
Gross profit decreased by
Operating Expenses
In the first six months of 2023, operating expenses were RMB680.1 million (US
Sales and marketing expenses increased by
General and administrative expenses decreased by
Product development expenses decreased by
Net Income
Net income for the first six months of 2024 was RMB195.0 million (US
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB28.44 (US
Outlook
For the third quarter of 2024, Sunlands currently expects net revenues to be between RMB490 million to RMB510 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 RMB7.2672 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 August 16, 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/BI825ca1738fae48d2807c6faff61460db
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 a leader in China’s adult online education market and China’s adult personal interest learning market. With a one to many live streaming platform, Sunlands offers various interest, professional skills and professional certification preparation courses as well as degree- or diploma-oriented post-secondary 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 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
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 June 30, | |||||
| 2023 | 2024 | 2024 | ||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 763,800 | 753,559 | 103,693 | |||
| Restricted cash | 2,578 | 5,013 | 690 | |||
| Short-term investments | 142,084 | 243,858 | 33,556 | |||
| Prepaid expenses and other current assets | 109,018 | 120,156 | 16,534 | |||
| Deferred costs, current | 14,274 | 6,708 | 923 | |||
| Total current assets | 1,031,754 | 1,129,294 | 155,396 | |||
| Non-current assets | ||||||
| Property and equipment, net | 786,670 | 772,389 | 106,284 | |||
| Intangible assets, net | 975 | 1,011 | 139 | |||
| Right-of-use assets | 135,820 | 128,418 | 17,671 | |||
| Deferred costs, non-current | 68,773 | 59,582 | 8,199 | |||
| Long-term investments | 61,354 | 49,179 | 6,767 | |||
| Deferred tax assets | - | 14,713 | 2,025 | |||
| Other non-current assets | 33,160 | 34,190 | 4,705 | |||
| Total non-current assets | 1,086,752 | 1,059,482 | 145,790 | |||
| TOTAL ASSETS | 2,118,506 | 2,188,776 | 301,186 | |||
| 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 June 30, | ||||||||
| 2023 | 2024 | 2024 | |||||||
| RMB | RMB | US$ | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| LIABILITIES | |||||||||
| Current liabilities | |||||||||
| Accrued expenses and other current liabilities | 409,691 | 424,117 | 58,362 | ||||||
| Deferred revenue, current | 553,812 | 426,030 | 58,624 | ||||||
| Lease liabilities, current portion | 8,019 | 8,673 | 1,193 | ||||||
| Long-term debt, current portion | 38,654 | 38,654 | 5,319 | ||||||
| Total current liabilities | 1,010,176 | 897,474 | 123,498 | ||||||
| Non-current liabilities | |||||||||
| Deferred revenue, non-current | 560,111 | 560,908 | 77,184 | ||||||
| Lease liabilities, non-current portion | 157,269 | 152,944 | 21,046 | ||||||
| Deferred tax liabilities | 3,742 | 2,841 | 391 | ||||||
| Other non-current liabilities | 6,994 | 7,256 | 998 | ||||||
| Long-term debt | 104,665 | 85,338 | 11,743 | ||||||
| Total non-current liabilities | 832,781 | 809,287 | 111,362 | ||||||
| TOTAL LIABILITIES | 1,842,957 | 1,706,761 | 234,860 | ||||||
| SHAREHOLDERS’ EQUITY | |||||||||
| Class A ordinary shares (par value of US | |||||||||
| authorized; 3,131,807 and 3,131,807 shares issued as of December 31, 2023 | |||||||||
| and June 30, 2024, respectively; 2,702,523 and 2,687,391 shares | |||||||||
| outstanding as of December 31, 2023 and June 30, 2024, 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, 2023 and June 30, 2024, respectively) | - | - | - | ||||||
| Class C ordinary shares (par value of US | |||||||||
| authorized; 3,332,062 and 3,332,062 shares issued and outstanding | |||||||||
| as of December 31, 2023 and June 30, 2024, respectively) | 1 | 1 | - | ||||||
| Treasury stock | - | - | - | ||||||
| Accumulated deficit | (2,171,284 | ) | (1,976,297 | ) | (271,948 | ) | |||
| Additional paid-in capital | 2,305,042 | 2,303,270 | 316,940 | ||||||
| Accumulated other comprehensive income | 143,276 | 156,527 | 21,539 | ||||||
| Total Sunlands Technology Group shareholders’ equity | 277,036 | 483,502 | 66,531 | ||||||
| Non-controlling interest | (1,487 | ) | (1,487 | ) | (205 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 275,549 | 482,015 | 66,326 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,118,506 | 2,188,776 | 301,186 | ||||||
| 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 June 30, | |||||||||
| 2023 | 2024 | 2024 | |||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 526,353 | 492,223 | 67,732 | ||||||
| Cost of revenues | (59,491 | ) | (76,627 | ) | (10,544 | ) | |||
| Gross profit | 466,862 | 415,596 | 57,188 | ||||||
| Operating expenses | |||||||||
| Sales and marketing expenses | (269,969 | ) | (297,443 | ) | (40,930 | ) | |||
| Product development expenses | (7,992 | ) | (7,657 | ) | (1,054 | ) | |||
| General and administrative expenses | (33,085 | ) | (33,829 | ) | (4,655 | ) | |||
| Total operating expenses | (311,046 | ) | (338,929 | ) | (46,639 | ) | |||
| Income from operations | 155,816 | 76,667 | 10,549 | ||||||
| Interest income | 7,561 | 10,576 | 1,455 | ||||||
| Interest expense | (2,046 | ) | (1,516 | ) | (209 | ) | |||
| Other income, net | 8,171 | 3,015 | 415 | ||||||
| Gain/(loss) on disposal of subsidiaries | 247 | (250 | ) | (34 | ) | ||||
| Income before income tax benefit | |||||||||
| and gain/(loss) from equity method investments | 169,749 | 88,492 | 12,176 | ||||||
| Income tax benefit | 1,404 | 78 | 11 | ||||||
| Gain/(loss) from equity method investments | 2,730 | (6,318 | ) | (869 | ) | ||||
| Net income | 173,883 | 82,252 | 11,318 | ||||||
| Less: net income attributable to non-controlling interest | - | - | - | ||||||
| Net income attributable to Sunlands Technology Group | 173,883 | 82,252 | 11,318 | ||||||
| Net income per share attributable to ordinary shareholders of | |||||||||
| Sunlands Technology Group: | |||||||||
| Basic and diluted | 25.12 | 12.00 | 1.65 | ||||||
| Weighted average shares used in calculating net income | |||||||||
| per ordinary share: | |||||||||
| Basic and diluted | 6,921,304 | 6,852,828 | 6,852,828 | ||||||
| SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) | ||||||
| For the Three Months Ended June 30, | ||||||
| 2023 | 2024 | 2024 | ||||
| RMB | RMB | US$ | ||||
| Net income | 173,883 | 82,252 | 11,318 | |||
| Other comprehensive income, net of tax effect of nil: | ||||||
| Change in cumulative foreign currency translation adjustments | 29,603 | 3,715 | 511 | |||
| Total comprehensive income | 203,486 | 85,967 | 11,829 | |||
| Less: comprehensive income attributable to non-controlling interest | - | - | - | |||
| Comprehensive income attributable to Sunlands Technology Group | 203,486 | 85,967 | 11,829 | |||
| SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||||
| For the Three Months Ended June 30, | ||||||
| 2023 | 2024 | |||||
| RMB | RMB | |||||
| Net revenues | 526,353 | 492,223 | ||||
| Less: other revenues | (42,377 | ) | (62,094 | ) | ||
| Add: tax and surcharges | 9,779 | 15,740 | ||||
| Add: ending deferred revenue | 1,379,073 | 986,938 | ||||
| Add: ending refund liability | 107,319 | 126,797 | ||||
| Less: beginning deferred revenue | (1,513,896 | ) | (1,044,866 | ) | ||
| Less: beginning refund liability | (112,188 | ) | (130,840 | ) | ||
| Gross billings (non-GAAP) | 354,063 | 383,898 | ||||
| Net income | 173,883 | 82,252 | ||||
| Add: income tax benefit | (1,404 | ) | (78 | ) | ||
| Add: depreciation and amortization | 7,677 | 7,362 | ||||
| Add: interest expense | 2,046 | 1,516 | ||||
| Less: interest income | (7,561 | ) | (10,576 | ) | ||
| EBITDA (non-GAAP) | 174,641 | 80,476 | ||||
| SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data, or otherwise noted) | |||||||||
| For the Six Months Ended June 30, | |||||||||
| 2023 | 2024 | 2024 | |||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 1,093,229 | 1,015,463 | 139,732 | ||||||
| Cost of revenues | (127,646 | ) | (153,790 | ) | (21,162 | ) | |||
| Gross profit | 965,583 | 861,673 | 118,570 | ||||||
| Operating expenses | |||||||||
| Sales and marketing expenses | (541,383 | ) | (599,018 | ) | (82,428 | ) | |||
| Product development expenses | (17,672 | ) | (14,667 | ) | (2,018 | ) | |||
| General and administrative expenses | (72,725 | ) | (66,381 | ) | (9,134 | ) | |||
| Total operating expenses | (631,780 | ) | (680,066 | ) | (93,580 | ) | |||
| Income from operations | 333,803 | 181,607 | 24,990 | ||||||
| Interest income | 14,122 | 19,865 | 2,734 | ||||||
| Interest expense | (4,170 | ) | (3,120 | ) | (429 | ) | |||
| Other income, net | 16,969 | 8,795 | 1,210 | ||||||
| Gain/(loss) on disposal of subsidiaries | 247 | (250 | ) | (34 | ) | ||||
| Income before income tax (expenses)/benefit | |||||||||
| and loss from equity method investments | 360,971 | 206,897 | 28,471 | ||||||
| Income tax (expenses)/benefit | (6,327 | ) | 469 | 65 | |||||
| Loss from equity method investments | (654 | ) | (12,379 | ) | (1,703 | ) | |||
| Net income | 353,990 | 194,987 | 26,833 | ||||||
| Less: net income attributable to non-controlling interest | 1 | - | - | ||||||
| Net income attributable to Sunlands Technology Group | 353,989 | 194,987 | 26,833 | ||||||
| Net income per share attributable to ordinary shareholders of | |||||||||
| Sunlands Technology Group: | |||||||||
| Basic and diluted | 51.13 | 28.44 | 3.91 | ||||||
| Weighted average shares used in calculating net income | |||||||||
| per ordinary share: | |||||||||
| Basic and diluted | 6,923,858 | 6,854,922 | 6,854,922 | ||||||
| SUNLANDS TECHNOLOGY GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) | ||||||
| For the Six Months Ended June 30, | ||||||
| 2023 | 2024 | 2024 | ||||
| RMB | RMB | US$ | ||||
| Net income | 353,990 | 194,987 | 26,833 | |||
| Other comprehensive income, net of tax effect of nil: | ||||||
| Change in cumulative foreign currency translation adjustments | 27,276 | 13,251 | 1,823 | |||
| Total comprehensive income | 381,266 | 208,238 | 28,656 | |||
| Less: comprehensive income attributable to non-controlling interest | 1 | - | - | |||
| Comprehensive income attributable to Sunlands Technology Group | 381,265 | 208,238 | 28,656 | |||
| SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||||
| For the Six Months Ended June 30, | ||||||
| 2023 | 2024 | |||||
| RMB | RMB | |||||
| Net revenues | 1,093,229 | 1,015,463 | ||||
| Less: other revenues | (84,224 | ) | (120,968 | ) | ||
| Add: tax and surcharges | 27,774 | 32,109 | ||||
| Add: ending deferred revenue | 1,379,073 | 986,938 | ||||
| Add: ending refund liability | 107,319 | 126,797 | ||||
| Less: beginning deferred revenue | (1,690,946 | ) | (1,113,923 | ) | ||
| Less: beginning refund liability | (133,066 | ) | (143,744 | ) | ||
| Gross billings (non-GAAP) | 699,159 | 782,672 | ||||
| Net income | 353,990 | 194,987 | ||||
| Add: income tax expenses/(benefit) | 6,327 | (469 | ) | |||
| Add: depreciation and amortization | 15,267 | 14,793 | ||||
| Add: interest expense | 4,170 | 3,120 | ||||
| Less: interest income | (14,122 | ) | (19,865 | ) | ||
| EBITDA (non-GAAP) | 365,632 | 192,566 | ||||
FAQ
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