Sunlands Technology Group Announces Unaudited Third Quarter 2020 Financial Results
Sunlands Technology Group (NYSE: STG) reported its Q3 2020 financial results, highlighting net revenues of RMB541.6 million (US$79.8 million), a 2.7% YoY increase. Gross billings also grew by 6.6% YoY to RMB654.3 million (US$96.4 million), with new student enrollments surging 47.8% to 140,819. Despite these gains, the company posted a net loss of RMB165.8 million (US$24.4 million), up from RMB129.8 million in Q3 2019, resulting in a net loss margin of 30.6%. The deferred revenue balance stood at RMB3,090.3 million (US$455.2 million) as of September 30, 2020.
- Net revenues increased by 2.7% YoY to RMB541.6 million.
- Gross billings grew 6.6% YoY to RMB654.3 million.
- New student enrollments rose 47.8% YoY to 140,819.
- Gross profit increased by 8.5% YoY to RMB448.7 million.
- Deferred revenue balance was RMB3,090.3 million, indicating strong future revenue.
- Net loss increased to RMB165.8 million from RMB129.8 million YoY.
- Net loss margin rose to 30.6% from 24.6% YoY.
- Operating expenses rose by 21.4% YoY to RMB664.1 million.
BEIJING, Nov. 18, 2020 /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 third quarter ended September 30, 2020.
Third Quarter 2020 Financial and Operational Snapshots
- Net revenues were RMB541.6 million (US
$79.8 million ), representing a2.7% increase year-over-year. - Gross billings (non-GAAP) were RMB654.3 million (US
$96.4 million ), representing a6.6% increase year-over-year. - Gross profit was RMB448.7 million (US
$66.1 million ), representing an8.5% increase year-over-year. - Net loss was RMB165.8 million (US
$24.4 million ), compared with RMB129.8 million in the third quarter of 2019. - Net loss margin, defined as net loss as a percentage of net revenues, increased to
30.6% from24.6% in the third quarter of 2019. - New student enrollments were 140,819, representing a
47.8% increase year-over-year. - As of September 30, 2020, the Company's deferred revenue balance was RMB3,090.3 million (US
$455.2 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. |
"Despite the short-term impact on our operations of the COVID-19 pandemic in the first half of 2020, Sunlands achieved steady year-over-year increases in both gross billings and net revenues in the third quarter. Our results were fueled by a combination of the recovering macroeconomic conditions in China as well as the implementation of optimization initiatives within our business," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. "In the third quarter, our gross billings reached RMB654.3 million, increasing by
"While maintaining a leading market share in STE programs, we continue to explore growth opportunities in master's degree-oriented programs to address the broad demand for academics. The growth of master's degree-oriented programs in terms of gross billings was phenomenal, registering
Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, commented, "Our third quarter financial results were a reflection of our balanced expansion strategy. Net revenues increased by
Financial Results for the third quarter of 2020
Net Revenues
In the third 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 third quarter of 2020, operating expenses were RMB664.1 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 RMB47.3 million (US
Net Loss
Net loss for the third quarter of 2020 was RMB165.8 million (US
Basic and Diluted Net Loss Per Share
Basic and diluted net loss per share was RMB24.62 (US
Cash and Cash Equivalents and Short-term Investments
As of September 30, 2020, the Company had RMB1,054.6 million (US
Deferred Revenue
As of September 30, 2020, the Company had a deferred revenue balance of RMB3,090.3 million (US
Capital Expenditures
Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvement necessary to support Sunlands' operations. Capital expenditures were RMB14.3 million (US
Financial Results for the First Nine Months of 2020
Net Revenues
In the first nine months of 2020, net revenues decreased by
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit decreased by
Operating Expenses
In the first nine months of 2020, operating expenses were RMB1,791.8 million (US
Sales and marketing expenses increased by
General and administrative expenses decreased by
Product development expenses decreased by
Other income
Other income for the first nine months of 2020 was RMB93.8 million (US
Net Loss
Net loss for the first nine months of 2020 was RMB357.5 million (US
Basic and Diluted Net Loss Per Share
Basic and diluted net loss per share was RMB52.85 (US
Capital Expenditures
Capital expenditures were incurred primarily in connection with IT infrastructure equipment and leasehold improvement necessary to support Sunlands' operations. Capital expenditures were RMB22.3 million (US
Outlook
For the fourth quarter of 2020, Sunlands currently expects net revenues to be between RMB540 million to RMB560 million, which would represent a decrease 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 RMB6.7896 to US
Conference Call and Webcast
Sunlands' management team will host a conference call at 7:30 AM U.S. Eastern Time, (8:30 PM Beijing/Hong Kong time) on November 18, 2020, 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 November 25, 2020, by dialing the following telephone numbers:
International: | +1-412-317-0088 |
US toll free: | +1-877-344-7529 |
Replay access code: | 10149518 |
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 and EBITDA, 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 and EBITDA 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 September 30, | ||||||
2019 | 2020 | ||||||
RMB | RMB | US$ | |||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,402,226 | 1,054,641 | 155,332 | ||||
Short-term investments | 217,640 | 234,417 | 34,526 | ||||
Prepaid expenses and other current assets | 180,881 | 206,403 | 30,399 | ||||
Deferred costs, current | 243,447 | 195,777 | 28,835 | ||||
Total current assets | 2,044,194 | 1,691,238 | 249,092 | ||||
Non-current assets | |||||||
Property and equipment, net | 545,675 | 525,531 | 77,402 | ||||
Intangible assets, net | 1,176 | 1,365 | 201 | ||||
Right-of-use assets | 598,991 | 538,921 | 79,374 | ||||
Deferred costs, non-current | 205,488 | 184,175 | 27,126 | ||||
Long-term investments | 40,026 | 63,098 | 9,293 | ||||
Deferred tax assets | 85,513 | 20,820 | 3,066 | ||||
Other non-current assets | 447,639 | 458,812 | 67,576 | ||||
Total non-current assets | 1,924,508 | 1,792,722 | 264,038 | ||||
TOTAL ASSETS | 3,968,702 | 3,483,960 | 513,130 | ||||
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 RMB166,190 as of | |||||||
December 31, 2019 and September 30, 2020, respectively) | 435,225 | 607,231 | 89,435 | ||||
Deferred revenue, current (including deferred revenue, current of the consolidated VIEs | |||||||
without recourse to Sunlands Technology Group of RMB1,162,938 and | |||||||
RMB497,649 as of December 31, 2019 and September 30, 2020, respectively) | 1,670,076 | 1,500,006 | 220,927 | ||||
Lease liabilities, current (including lease liabilities, current of the consolidated VIEs | |||||||
without recourse to Sunlands Technology Group of RMB22,659 and | |||||||
RMB16,328 as of December 31, 2019 and September 30, 2020, respectively) | 40,236 | 34,004 | 5,008 | ||||
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 September 30, 2020, respectively) | 61,540 | 61,540 | 9,064 | ||||
Long-term debt, current (including long-term debt, current of the consolidated VIEs | |||||||
without recourse to Sunlands Technology Group of nil and nil as of December | |||||||
31, 2019 and September 30, 2020, respectively) | 32,500 | 32,500 | 4,787 | ||||
Total current liabilities | 2,239,577 | 2,235,281 | 329,221 |
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 September 30, | |||||
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 RMB546,283 as of December 31, 2019 and September 30, | ||||||
2020, respectively) | 1,558,694 | 1,590,290 | 234,224 | |||
Lease liabilities, non-current (including lease liabilities, non-current of the | ||||||
consolidated VIEs without recourse to Sunlands Technology Group of | ||||||
RMB358,467 and RMB336,382 as of December 31, 2019 and September 30, | ||||||
2020, respectively) | 616,246 | 571,162 | 84,123 | |||
Deferred tax liabilities (including deferred tax liabilities of the consolidated | ||||||
VIEs without recourse to Sunlands Technology Group of RMB4,415 and RMB3,730 as of | ||||||
December 31, 2019 and September 30, 2020, respectively) | 87,954 | 21,912 | 3,227 | |||
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 September 30, 2020, respectively) | 11,469 | 8,694 | 1,280 | |||
Long-term debt, non-current (including long-term debt, non-current of the consolidated | ||||||
VIEs without recourse to Sunlands Technology Group of nil and nil as of | ||||||
December 31, 2019 and September 30, 2020, respectively) | 193,125 | 168,750 | 24,854 | |||
Total non-current liabilities | 2,467,488 | 2,360,808 | 347,708 | |||
TOTAL LIABILITIES | 4,707,065 | 4,596,089 | 676,929 | |||
SHAREHOLDERS' DEFICIT | ||||||
Class A ordinary shares (par value of US | ||||||
authorized; 1,830,183 and 1,914,702 shares issued as of December 31, 2019 | ||||||
and September 30, 2020, respectively; 1,728,006 and 1,728,641 shares | ||||||
outstanding as of December 31, 2019 and September 30, 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 September 30, 2020, respectively) | - | - | - | |||
Class C ordinary shares (par value of US | ||||||
authorized; 4,258,686 and 4,174,167 shares issued and outstanding | ||||||
as of December 31, 2019 and September 30, 2020, respectively) | 1 | 1 | - | |||
Treasury stock | - | - | - | |||
Additional paid-in capital | 2,363,999 | 2,366,641 | 348,569 | |||
Accumulated deficit | (3,244,587) | (3,601,976) | (530,514) | |||
Accumulated other comprehensive income | 142,435 | 123,503 | 18,190 | |||
Total Sunlands Technology Group shareholders' deficit | (738,151) | (1,111,830) | (163,755) | |||
Noncontrolling interest | (212) | (299) | (44) | |||
TOTAL SHAREHOLDERS' DEFICIT | (738,363) | (1,112,129) | (163,799) | |||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 3,968,702 | 3,483,960 | 513,130 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
For the Three Months Ended September 30, | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net revenues | 527,275 | 541,631 | 79,774 | |||
Cost of revenues | (113,654) | (92,928) | (13,687) | |||
Gross profit | 413,621 | 448,703 | 66,087 | |||
Operating expenses | ||||||
Sales and marketing expenses | (429,183) | (569,424) | (83,867) | |||
Product development expenses | (26,420) | (18,565) | (2,734) | |||
General and administrative expenses | (91,320) | (76,100) | (11,208) | |||
Total operating expenses | (546,923) | (664,089) | (97,809) | |||
Loss from operations | (133,302) | (215,386) | (31,722) | |||
Interest income | 2,019 | 5,778 | 849 | |||
Interest expense | (3,562) | (2,838) | (418) | |||
Other income, net | 5,107 | 47,253 | 6,960 | |||
Loss before income tax expenses | (129,738) | (165,193) | (24,331) | |||
Income tax expenses | - | (369) | (54) | |||
Loss from equity method investments | (75) | (202) | (30) | |||
Net loss | (129,813) | (165,764) | (24,415) | |||
Less: Net loss attributable to noncontrolling interest | (192) | (80) | (12) | |||
Net loss attributable to Sunlands Technology Group | (129,621) | (165,684) | (24,403) | |||
Net loss per share attributable to ordinary shareholders of | ||||||
Sunlands Technology Group: | ||||||
Basic and diluted | (19.00) | (24.62) | (3.63) | |||
Weighted average shares used in calculating net loss | ||||||
per ordinary share: | ||||||
Basic and diluted | 6,820,752 | 6,729,197 | 6,729,197 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
(Amounts in thousands) | ||||||
For the Three Months Ended September 30, | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net loss | (129,813) | (165,764) | (24,415) | |||
Other comprehensive income/(loss), net of tax effect of nil: | ||||||
Change in cumulative foreign currency translation adjustments | 59,723 | (35,782) | (5,270) | |||
Total comprehensive loss | (70,090) | (201,546) | (29,685) | |||
Less: comprehensive loss attributable to noncontrolling | ||||||
interest | (192) | (80) | (12) | |||
Comprehensive loss attributable to Sunlands Technology | ||||||
Group | (69,898) | (201,466) | (29,673) |
SUNLANDS TECHNOLOGY GROUP | ||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||
(Amounts in thousands) | ||||
For the Three Months Ended September 30, | ||||
2019 | 2020 | |||
RMB | RMB | |||
Net revenues | 527,275 | 541,631 | ||
Less: other revenues | (2,730) | (5,450) | ||
Add: tax and surcharges | 34,907 | 57,543 | ||
Add: ending deferred revenue | 3,214,564 | 3,090,296 | ||
Add: ending refund liability | 75,046 | 239,526 | ||
Less: beginning deferred revenue | (3,227,949) | (3,066,569) | ||
Less: beginning refund liability | (7,522) | (202,651) | ||
Gross billings (non-GAAP) | 613,591 | 654,326 | ||
Net loss | (129,813) | (165,764) | ||
Add: income tax expenses | - | 369 | ||
depreciation and amortization | 9,442 | 10,773 | ||
interest expense | 3,562 | 2,838 | ||
Less: interest income | (2,019) | (5,778) | ||
EBITDA (non-GAAP) | (118,828) | (157,562) |
SUNLANDS TECHNOLOGY GROUP | ||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||
(Amounts in thousands) | ||||
For the Three Months Ended September 30, | ||||
2019 | 2020 | |||
RMB | RMB | |||
Cost of revenues | 113,654 | 92,928 | ||
Less: Share-based compensation expenses in cost of revenues | (91) | (17) | ||
Non-GAAP cost of revenues | 113,563 | 92,911 | ||
Sales and marketing expenses | 429,183 | 569,424 | ||
Less: Share-based compensation expenses in sales and marketing expenses | (156) | (14,015) | ||
Non-GAAP sales and marketing expenses | 429,027 | 555,409 | ||
General and administrative expenses | 91,320 | 76,100 | ||
Less: Share-based compensation expenses in general and administrative expenses | (759) | (14,128) | ||
Non-GAAP general and administrative expenses | 90,561 | 61,972 | ||
Operating costs and expense | 660,577 | 757,017 | ||
Less: Share-based compensation expenses | (1,006) | (28,160) | ||
Non-GAAP operating costs and expense | 659,571 | 728,857 | ||
Loss from operations | 133,302 | 215,386 | ||
Less: Share-based compensation expenses | (1,006) | (28,160) | ||
Non-GAAP loss from operations | 132,296 | 187,226 | ||
Net loss attributable to Sunlands Technology Group | 129,621 | 165,684 | ||
Less: Share-based compensation expenses | (1,006) | (28,160) | ||
Non-GAAP net loss attributable to Sunlands Technology Group | 128,615 | 137,524 | ||
Net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 19.00 | 24.62 | ||
Non-GAAP net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 18.86 | 20.44 | ||
Weighted average shares used in calculating net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,820,752 | 6,729,197 | ||
Weighted average shares used in calculating Non-GAAP net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,820,752 | 6,729,197 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
For the Nine Months Ended September 30, | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net revenues | 1,644,180 | 1,619,212 | 238,484 | |||
Cost of revenues | (294,804) | (289,431) | (42,629) | |||
Gross profit | 1,349,376 | 1,329,781 | 195,855 | |||
Operating expenses | ||||||
Sales and marketing expenses | (1,316,195) | (1,515,161) | (223,159) | |||
Product development expenses | (77,422) | (55,930) | (8,238) | |||
General and administrative expenses | (264,704) | (220,738) | (32,511) | |||
Total operating expenses | (1,658,321) | (1,791,829) | (263,908) | |||
Loss from operations | (308,945) | (462,048) | (68,053) | |||
Interest income | 50,963 | 18,915 | 2,786 | |||
Interest expense | (10,947) | (8,966) | (1,321) | |||
Other income, net | 14,386 | 93,802 | 13,816 | |||
Loss before income tax expenses | (254,543) | (358,297) | (52,772) | |||
Income tax expenses | - | 1,349 | 199 | |||
Loss from equity method investments | (1,085) | (528) | (78) | |||
Net loss | (255,628) | (357,476) | (52,651) | |||
Less: Net loss attributable to noncontrolling interest | (274) | (87) | (13) | |||
Net loss attributable to Sunlands Technology Group | (255,354) | (357,389) | (52,638) | |||
Net loss per share attributable to ordinary shareholders of | ||||||
Sunlands Technology Group: | ||||||
Basic and diluted | (37.36) | (52.85) | (7.78) | |||
Weighted average shares used in calculating net loss | ||||||
per ordinary share: | ||||||
Basic and diluted | 6,835,118 | 6,762,508 | 6,762,508 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||
(Amounts in thousands) | ||||||
For the Nine Months Ended September 30, | ||||||
2019 | 2020 | |||||
RMB | RMB | US$ | ||||
Net loss | (255,628) | (357,476) | (52,651) | |||
Other comprehensive (loss)/income, net of tax effect of nil: | ||||||
Change in cumulative foreign currency translation adjustments | 57,186 | (18,932) | (2,788) | |||
Total comprehensive loss | (198,442) | (376,408) | (55,439) | |||
Less: comprehensive loss attributable to noncontrolling | ||||||
interest | (274) | (87) | (13) | |||
Comprehensive loss attributable to Sunlands Technology | ||||||
Group | (198,168) | (376,321) | (55,426) |
SUNLANDS TECHNOLOGY GROUP | ||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||
(Amounts in thousands) | ||||
For the Nine Months Ended September 30, | ||||
2019 | 2020 | |||
RMB | RMB | |||
Net revenues | 1,644,180 | 1,619,212 | ||
Less: other revenues | (12,344) | (16,438) | ||
Add: tax and surcharges | 87,726 | 127,300 | ||
Add: ending deferred revenue | 3,214,564 | 3,090,296 | ||
Add: ending refund liability | 75,046 | 239,526 | ||
Less: beginning deferred revenue | (3,286,025) | (3,228,770) | ||
Less: beginning refund liability | (6,625) | (128,478) | ||
Gross billings (non-GAAP) | 1,716,522 | 1,702,648 | ||
Net loss | (255,628) | (357,476) | ||
Add: income tax expenses | - | (1,349) | ||
depreciation and amortization | 27,880 | 31,256 | ||
interest expense | 10,947 | 8,966 | ||
Less: interest income | (50,963) | (18,915) | ||
EBITDA (non-GAAP) | (267,764) | (337,518) |
SUNLANDS TECHNOLOGY GROUP | ||||
RECONCILIATION OF GAAP AND NON-GAAP RESULTS | ||||
(Amounts in thousands) | ||||
For the Nine Months Ended September 30, | ||||
2019 | 2020 | |||
RMB | RMB | |||
Cost of revenues | 294,804 | 289,431 | ||
Less: Share-based compensation expenses in cost of revenues | (264) | (33) | ||
Non-GAAP cost of revenues | 294,540 | 289,398 | ||
Sales and marketing expenses | 1,316,195 | 1,515,161 | ||
Less: Share-based compensation expenses in sales and marketing expenses | (542) | (14,273) | ||
Non-GAAP sales and marketing expenses | 1,315,653 | 1,500,888 | ||
General and administrative expenses | 264,704 | 220,738 | ||
Less: Share-based compensation expenses in general and administrative expenses | (2,062) | (14,915) | ||
Non-GAAP general and administrative expenses | 262,642 | 205,823 | ||
Operating costs and expense | 1,953,125 | 2,081,260 | ||
Less: Share-based compensation expenses | (2,868) | (29,221) | ||
Non-GAAP operating costs and expense | 1,950,257 | 2,052,039 | ||
Loss from operations | 308,945 | 462,048 | ||
Less: Share-based compensation expenses | (2,868) | (29,221) | ||
Non-GAAP loss from operations | 306,077 | 432,827 | ||
Net loss attributable to Sunlands Technology Group | 255,354 | 357,389 | ||
Less: Share-based compensation expenses | (2,868) | (29,221) | ||
Non-GAAP net loss attributable to Sunlands Technology Group | 252,486 | 328,168 | ||
Net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 37.36 | 52.85 | ||
Non-GAAP net loss per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 36.94 | 48.53 | ||
Weighted average shares used in calculating net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,835,118 | 6,762,508 | ||
Weighted average shares used in calculating Non-GAAP net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,835,118 | 6,762,508 |
View original content:http://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-third-quarter-2020-financial-results-301175690.html
SOURCE Sunlands Technology Group
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