Sunlands Technology Group Announces Unaudited Third Quarter 2021 Financial Results
Sunlands Technology Group (NYSE: STG) announced its Q3 2021 financial results, with net revenues soaring by 9.9% year-over-year to RMB595.1 million (US$92.4 million). The company achieved a net income of RMB92.8 million (US$14.4 million), a significant turnaround from a net loss of RMB165.8 million in Q3 2020. However, gross billings fell 29.3% year-over-year, impacting new student enrollments which dropped by 33.8%. Despite challenges, Sunlands expects stable revenue growth for Q4 2021, projecting revenues between RMB590 million to RMB610 million.
- Net income increased to RMB92.8 million compared to a net loss of RMB165.8 million in Q3 2020.
- Net revenues grew by 9.9% year-over-year to RMB595.1 million.
- Gross profit rose by 14.1% year-over-year to RMB512.0 million.
- Operating expenses decreased by 35.2% year-over-year to RMB430.6 million.
- Gross billings decreased by 29.3% year-over-year to RMB462.5 million.
- New student enrollments fell by 33.8% year-over-year.
Q3 net revenues increased by
Q3 gross billings (non-GAAP) decreased by
Q3 net income reached RMB92.8 million
BEIJING, Nov. 23, 2021 /PRNewswire/ -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced its unaudited financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial and Operational Snapshots
- Net revenues were RMB595.1 million (US
$92.4 million ), representing a9.9% increase year-over-year. - Gross billings (non-GAAP) were RMB462.5 million (US
$71.8 million ), representing a29.3% decrease year-over-year. - Gross profit was RMB512.0 million (US
$79.5 million ), representing a14.1% increase year-over-year. - Net income was RMB92.8 million (US
$14.4 million ), compared with net loss of RMB165.8 million in the third quarter of 2020. - Net income/loss margin, defined as net income/loss as a percentage of net revenues, increased to
15.6% from -30.6% in the third quarter of 2020. - New student enrollments[1] were 93,265, representing a
33.8% decrease year-over-year. - As of September 30, 2021, the Company's deferred revenue balance was RMB2,540.9 million (US
$394.3 million ).
[1] New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period (including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses). In June 2019, we introduced low-price courses, including "mini courses" and "RMB1 courses," to strengthen our competitiveness and improve customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming. |
"We are pleased with our third quarter financial metrics. Our net revenues grew
"Our professional certification and skills programs continued to excel during the quarter with net revenues up
"With China's national policy of building a lifelong learning society in place, we are optimistic about the growth prospects of occupational education business and will contribute to this great undertaking by providing our users more premium courses with enhanced services," concluded Mr. Liu.
Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, commented, "We are encouraged by our sustained profitability in the third quarter with registered net profit reaching a new high, driven by continued year-over-year top-line growth mainly attributable to professional skills and master's degree-oriented programs. Profits also benefitted from our efficient cost control measures, which led to a
Financial Results for the third quarter of 2021
Net Revenues
In the third quarter of 2021, 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 2021, operating expenses were RMB430.6 million (US
Sales and marketing expenses decreased by
General and administrative expenses decreased by
Product development expenses decreased by
Other Income
Other income was RMB12.9 million (US
Net Income
Net income for the third quarter of 2021 was RMB92.8 million (US
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB14.16 (US
Cash and Cash Equivalents and Short-term Investments
As of September 30, 2021, the Company had RMB661.2 million (US
Deferred Revenue
As of September 30, 2021, the Company had a deferred revenue balance of RMB2,540.9 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 RMB1.8 million (US
Financial Results for the First Nine Months of 2021
Net Revenues
In the first nine months of 2021, net revenues increased by
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit increased by
Operating Expenses
In the first nine months of 2021, operating expenses were RMB1,616.8 million (US
Sales and marketing expenses decreased by
General and administrative expenses decreased by
Product development expenses decreased by
Other Income
Other income for the first nine months of 2021 was RMB42.3 million (US
Net Income
Net income for the first nine months of 2021 was RMB61.6 million (US
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB9.69 (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 RMB11.2 million (US
Outlook
For the fourth quarter of 2021, Sunlands currently expects net revenues to be between RMB590 million to RMB610 million, which would represent an increase of
The above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to substantial uncertainty.
Exchange Rate
The Company's business is primarily conducted in China and all revenues are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("US$") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.4434 to US
Conference Call and Webcast
Sunlands' management team will host a conference call at 7:00 AM U.S. Eastern Time, (8:00 PM Beijing/Hong Kong time) on November 23, 2021, following the quarterly results announcement.
The dial-in details for the live conference call are:
International: | +1-412-902-4272 |
US toll free: | +1-888-346-8982 |
Mainland China toll free: | 400-120-1203 |
Hong Kong toll free: | 800-905-945 |
Hong Kong: | +852-3018-4992 |
Please dial in 10 minutes before the call is scheduled to begin. When prompted, ask to be connected to the call for "Sunlands Technology Group." Participants will be required to state their name and company upon entering the call.
A live webcast and archive of the conference call will be available on the Investor Relations section of Sunlands' website at http://www.sunlands.investorroom.com/.
A replay of the conference call will be available 1 hour after the end of the conference call until November 30, 2021, by dialing the following telephone numbers:
International: | +1-412-317-0088 |
US toll free: | +1-877-344-7529 |
Replay access code: | 10162001 |
About Sunlands
Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), formerly known as Sunlands Online Education Group, is the leader in China's online post-secondary and professional education. With a one to many, live streaming platform, Sunlands offers various degree and diploma-oriented post-secondary courses as well as online professional courses and educational content, to help students prepare for professional certification exams and attain professional skills. Students can access its services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.
About Non-GAAP Financial Measures
We use gross billings, EBITDA, non-GAAP Operating cost and expense, non-GAAP loss from operations and Non-GAAP net loss per share, each a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes.
We define gross billings for a specific period as the total amount of cash received for the sale of course packages, net of the total amount of refunds paid in such period. Our management uses gross billings as a performance measurement because we generally bill our students for the entire course tuition at the time of sale of our course packages and recognize revenue proportionally over a period. EBITDA is defined as net loss excluding depreciation and amortization, interest expense, interest income, and income tax expenses. We believe that gross billings and EBITDA provide valuable insight into the sales of our course packages and the performance of our business.
These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, their most directly comparable financial measure prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP measure has been provided in the tables included below. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to their respective most directly comparable GAAP financial measures. As gross billings, EBITDA, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, sales and marketing expenses excluding share-based compensation expenses, product development expenses excluding share-based compensation expenses, non-GAAP net loss exclude share-based compensation expenses, and basic and diluted net loss per share excluding share-based compensation expenses have material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider gross billings and EBITDA as a substitute for, or superior to, their respective most directly comparable financial measures prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students' learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands' corporate structure, business and industry; and general economic and business condition in China Further information regarding these and other risks, uncertainties or factors is included in the Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.
For investor and media enquiries, please contact:
Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: sunlands@tpg-ir.com
Yang Song
Tel: +86-10-6508-0677
Email: sunlands@tpg-ir.com
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Amounts in thousands, except for share and per share data, or otherwise noted) | ||||||
As of December 31, | As of September 30, | |||||
2020 | 2021 | |||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 760,710 | 661,230 | 102,621 | |||
Short-term investments | 517,815 | 178,765 | 27,744 | |||
Prepaid expenses and other current assets | 117,637 | 164,975 | 25,604 | |||
Deferred costs, current | 158,092 | 103,447 | 16,055 | |||
Total current assets | 1,554,254 | 1,108,417 | 172,024 | |||
Non-current assets | ||||||
Property and equipment, net | 511,092 | 865,929 | 134,390 | |||
Intangible assets, net | 1,211 | 3,091 | 480 | |||
Land use right, net | 13,564 | 13,359 | 2,073 | |||
Right-of-use assets | 488,877 | 368,161 | 57,138 | |||
Deferred costs, non-current | 170,160 | 118,553 | 18,399 | |||
Long-term investments | 64,093 | 64,199 | 9,964 | |||
Deferred tax assets | 13,015 | 6,380 | 990 | |||
Other non-current assets | 444,628 | 40,707 | 6,318 | |||
Total non-current assets | 1,706,640 | 1,480,379 | 229,752 | |||
TOTAL ASSETS | 3,260,894 | 2,588,796 | 401,776 | |||
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 RMB175,900 and RMB167,167 as of | ||||||
December 31, 2020 and September 30, 2021, respectively) | 607,789 | 525,171 | 81,506 | |||
Deferred revenue, current (including deferred revenue, current of the consolidated VIEs | ||||||
without recourse to Sunlands Technology Group of RMB435,254 and | ||||||
RMB317,243 as of December 31, 2020 and September 30, 2021, respectively) | 1,463,165 | 1,372,983 | 213,084 | |||
Lease liabilities, current portion (including lease liabilities, current portion of the | ||||||
consolidated VIEs without recourse to Sunlands Technology Group of RMB15,833 and | ||||||
RMB12,974 as of December 31, 2020 and September 30, 2021, respectively) | 30,702 | 19,649 | 3,049 | |||
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, 2020 and September 30, 2021, respectively) | 61,540 | - | - | |||
Long-term debt, current portion (including long-term debt, current portion of the consolidated VIEs | ||||||
without recourse to Sunlands Technology Group of nil and nil | ||||||
as of December 31, 2020 and September 30, 2021, respectively) | 32,500 | 38,654 | 5,999 | |||
Total current liabilities | 2,195,696 | 1,956,457 | 303,638 |
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, | ||||||||
2020 | 2021 | ||||||||
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 | |||||||||
RMB468,577 and RMB295,146 as of December 31, 2020 and September 30, 2021, | |||||||||
respectively) | 1,561,278 | 1,167,903 | 181,256 | ||||||
Lease liabilities, non-current portion (including lease liabilities, non-current portion | |||||||||
of the consolidated VIEs without recourse to Sunlands Technology Group of | |||||||||
RMB340,763 and RMB325,003 as of December 31, 2020 and September 30, 2021, | |||||||||
respectively) | 532,538 | 412,022 | 63,945 | ||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated | |||||||||
VIEs without recourse to Sunlands Technology Group of RMB3,203 and RMB2,065 | |||||||||
as of December 31, 2020 and September 30, 2021, respectively) | 15,220 | 9,548 | 1,482 | ||||||
Other non-current liabilities (including other non-current liabilities of the consolidated | |||||||||
VIEs without recourse to Sunlands Technology Group of RMB135 and RMB963 | |||||||||
as of December 31, 2020 and September 30, 2021, respectively) | 7,664 | 9,308 | 1,445 | ||||||
Long-term debt, non-current portion(including long-term debt, non-current portion of the | |||||||||
consolidated VIEs without recourse to Sunlands Technology Group of nil and nil | |||||||||
as of December 31, 2020 and September 30, 2021, respectively) | 160,625 | 191,636 | 29,741 | ||||||
Total non-current liabilities | 2,277,325 | 1,790,417 | 277,869 | ||||||
TOTAL LIABILITIES | 4,473,021 | 3,746,874 | 581,507 | ||||||
SHAREHOLDERS' DEFICIT | |||||||||
Class A ordinary shares (par value of US | |||||||||
authorized; 1,978,621 and 2,085,939 shares issued as of December 31, 2020 | |||||||||
and September 30, 2021, respectively; 1,792,560 and 1,899,878 shares | |||||||||
outstanding as of December 31, 2020 and September 30, 2021, 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, 2020 and September 30, 2021, respectively) | - | - | - | ||||||
Class C ordinary shares (par value of US | |||||||||
authorized; 4,110,248 and 4,002,930 shares issued and outstanding | |||||||||
as of December 31, 2020 and September 30, 2021, respectively) | 1 | 1 | - | ||||||
Treasury stock | - | - | - | ||||||
Additional paid-in capital | 2,367,168 | 2,367,464 | 367,425 | ||||||
Accumulated deficit | (3,675,129) | (3,609,949) | (560,255) | ||||||
Accumulated other comprehensive income | 96,490 | 88,649 | 13,758 | ||||||
Total Sunlands Technology Group shareholders' deficit | (1,211,469) | (1,153,834) | (179,072) | ||||||
Noncontrolling interest | (658) | (4,244) | (659) | ||||||
TOTAL SHAREHOLDERS' DEFICIT | (1,212,127) | (1,158,078) | (179,731) | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 3,260,894 | 2,588,796 | 401,776 | ||||||
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, | ||||||||
2020 | 2021 | |||||||
RMB | RMB | US$ | ||||||
Net revenues | 541,631 | 595,128 | 92,362 | |||||
Cost of revenues | (92,928) | (83,103) | (12,897) | |||||
Gross profit | 448,703 | 512,025 | 79,465 | |||||
Operating expenses | ||||||||
Sales and marketing expenses | (569,424) | (353,508) | (54,864) | |||||
Product development expenses | (18,565) | (13,980) | (2,170) | |||||
General and administrative expenses | (76,100) | (63,156) | (9,802) | |||||
Total operating expenses | (664,089) | (430,644) | (66,836) | |||||
(Loss)/income from operations | (215,386) | 81,381 | 12,629 | |||||
Interest income | 5,778 | 3,144 | 488 | |||||
Interest expense | (2,838) | (3,042) | (472) | |||||
Other income, net | 47,253 | 12,853 | 1,995 | |||||
(Loss)/income before income tax expenses | (165,193) | 94,336 | 14,640 | |||||
Income tax expenses | (369) | (1,110) | (172) | |||||
Loss from equity method investments | (202) | (431) | (67) | |||||
Net (loss)/income | (165,764) | 92,795 | 14,401 | |||||
Less: Net loss attributable to noncontrolling interest | (80) | (2,506) | (389) | |||||
Net (loss)/income attributable to Sunlands Technology Group | (165,684) | 95,301 | 14,790 | |||||
Net (loss)/income per share attributable to ordinary shareholders of | ||||||||
Sunlands Technology Group: | ||||||||
Basic and diluted | (24.62) | 14.16 | 2.20 | |||||
Weighted average shares used in calculating net (loss)/income | ||||||||
per ordinary share: | ||||||||
Basic and diluted | 6,729,197 | 6,729,197 | 6,729,197 | |||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
(Amounts in thousands) | |||||||
For the Three Months Ended September 30, | |||||||
2020 | 2021 | ||||||
RMB | RMB | US$ | |||||
Net (loss)/income | (165,764) | 92,795 | 14,401 | ||||
Other comprehensive loss, net of tax effect of nil: | |||||||
Change in cumulative foreign currency translation adjustments | (35,782) | (1,105) | (171) | ||||
Total comprehensive (loss)/income | (201,546) | 91,690 | 14,230 | ||||
Less: comprehensive loss attributable to noncontrolling | |||||||
interest | (80) | (2,506) | (389) | ||||
Comprehensive (loss)/income attributable to Sunlands Technology | |||||||
Group | (201,466) | 94,196 | 14,619 |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||||
For the Three Months Ended September 30, | ||||||
2020 | 2021 | |||||
RMB | RMB | |||||
Net revenues | 541,631 | 595,128 | ||||
Less: other revenues | (5,450) | (26,497) | ||||
Add: tax and surcharges | 57,543 | 41,674 | ||||
Add: ending deferred revenue | 3,090,296 | 2,540,886 | ||||
Add: ending refund liability | 239,526 | 222,266 | ||||
Less: beginning deferred revenue | (3,066,569) | (2,690,221) | ||||
Less: beginning refund liability | (202,651) | (220,745) | ||||
Gross billings (non-GAAP) | 654,326 | 462,491 | ||||
Net (loss)/income | (165,764) | 92,795 | ||||
Add: income tax expenses | 369 | 1,110 | ||||
depreciation and amortization | 10,773 | 9,561 | ||||
interest expense | 2,838 | 3,042 | ||||
Less: interest income | (5,778) | (3,144) | ||||
EBITDA (non-GAAP) | (157,562) | 103,364 |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||
For the Three Months Ended September 30, | ||||
2020 | 2021 | |||
RMB | RMB | |||
Cost of revenues | 92,928 | 83,103 | ||
Less: Share-based compensation expenses in cost of revenues | (17) | (39) | ||
Non-GAAP cost of revenues | 92,911 | 83,064 | ||
Sales and marketing expenses | 569,424 | 353,508 | ||
Less: Share-based compensation expenses in sales and marketing expenses | (14,015) | 13 | ||
Non-GAAP sales and marketing expenses | 555,409 | 353,521 | ||
General and administrative expenses | 76,100 | 63,156 | ||
Less: Share-based compensation expenses in general and administrative expenses | (14,128) | (67) | ||
Non-GAAP general and administrative expenses | 61,972 | 63,089 | ||
Operating costs and expense | 757,017 | 513,747 | ||
Less: Share-based compensation expenses | (28,160) | (93) | ||
Non-GAAP operating costs and expense | 728,857 | 513,654 | ||
Loss/(income) from operations | 215,386 | (81,381) | ||
Less: Share-based compensation expenses | (28,160) | (93) | ||
Non-GAAP loss/(income) from operations | 187,226 | (81,474) | ||
Net loss/(income) attributable to Sunlands Technology Group | 165,684 | (95,301) | ||
Less: Share-based compensation expenses | (28,160) | (93) | ||
Non-GAAP net loss/(income) attributable to Sunlands Technology Group | 137,524 | (95,394) | ||
Net loss/(income) per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 24.62 | (14.16) | ||
Non-GAAP net loss/(income) per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 20.44 | (14.18) | ||
Weighted average shares used in calculating net loss/(income) | ||||
per ordinary share: | ||||
Basic and diluted | 6,729,197 | 6,729,197 | ||
Weighted average shares used in calculating Non-GAAP net loss | ||||
per ordinary share: | ||||
Basic and diluted | 6,729,197 | 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, | |||||||
2020 | 2021 | ||||||
RMB | RMB | US$ | |||||
Net revenues | 1,619,212 | 1,918,934 | 297,814 | ||||
Cost of revenues | (289,431) | (286,811) | (44,512) | ||||
Gross profit | 1,329,781 | 1,632,123 | 253,302 | ||||
Operating expenses | |||||||
Sales and marketing expenses | (1,515,161) | (1,409,068) | (218,684) | ||||
Product development expenses | (55,930) | (50,669) | (7,864) | ||||
General and administrative expenses | (220,738) | (157,103) | (24,382) | ||||
Total operating expenses | (1,791,829) | (1,616,840) | (250,930) | ||||
Loss from operations | (462,048) | 15,283 | 2,372 | ||||
Interest income | 18,915 | 13,157 | 2,042 | ||||
Interest expense | (8,966) | (8,029) | (1,246) | ||||
Other income, net | 93,802 | 42,301 | 6,565 | ||||
Loss before income tax expenses | (358,297) | 62,712 | 9,733 | ||||
Income tax expenses | 1,349 | (963) | (149) | ||||
Loss from equity method investments | (528) | (155) | (24) | ||||
Net (loss)/income | (357,476) | 61,594 | 9,560 | ||||
Less: Net loss attributable to noncontrolling interest | (87) | (3,586) | (557) | ||||
Net (loss)/income attributable to Sunlands Technology Group | (357,389) | 65,180 | 10,117 | ||||
Net (loss)/income per share attributable to ordinary shareholders of | |||||||
Sunlands Technology Group: | |||||||
Basic and diluted | (52.85) | 9.69 | 1.50 | ||||
Weighted average shares used in calculating net (loss)/income | |||||||
per ordinary share: | |||||||
Basic and diluted | 6,762,508 | 6,729,197 | 6,729,197 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
(Amounts in thousands) | |||||||
For the Nine Months Ended September 30, | |||||||
2020 | 2021 | ||||||
RMB | RMB | US$ | |||||
Net (loss)/income | (357,476) | 61,594 | 9,560 | ||||
Other comprehensive loss, net of tax effect of nil: | |||||||
Change in cumulative foreign currency translation adjustments | (18,932) | (7,841) | (1,217) | ||||
Total comprehensive (loss)/income | (376,408) | 53,753 | 8,343 | ||||
Less: comprehensive loss attributable to noncontrolling | |||||||
interest | (87) | (3,586) | (557) | ||||
Comprehensive (loss)/income attributable to Sunlands Technology | |||||||
Group | (376,321) | 57,339 | 8,900 |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | |||||
For the Nine Months Ended September 30, | |||||
2020 | 2021 | ||||
RMB | RMB | ||||
Net revenues | 1,619,212 | 1,918,934 | |||
Less: other revenues | (16,438) | (58,208) | |||
Add: tax and surcharges | 127,300 | 119,873 | |||
Add: ending deferred revenue | 3,090,296 | 2,540,886 | |||
Add: ending refund liability | 239,526 | 222,266 | |||
Less: beginning deferred revenue | (3,228,770) | (3,024,443) | |||
Less: beginning refund liability | (128,478) | (232,859) | |||
Gross billings (non-GAAP) | 1,702,648 | 1,486,449 | |||
Net loss | (357,476) | 61,594 | |||
Add: income tax expenses | (1,349) | 963 | |||
depreciation and amortization | 31,256 | 28,266 | |||
interest expense | 8,966 | 8,029 | |||
Less: interest income | (18,915) | (13,157) | |||
EBITDA (non-GAAP) | (337,518) | 85,695 |
SUNLANDS TECHNOLOGY GROUP RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands) | ||||
For the Nine Months Ended September 30, | ||||
2020 | 2021 | |||
RMB | RMB | |||
Cost of revenues | 289,431 | 286,811 | ||
Less: Share-based compensation expenses in cost of revenues | (33) | (45) | ||
Non-GAAP cost of revenues | 289,398 | 286,766 | ||
Sales and marketing expenses | 1,515,161 | 1,409,068 | ||
Less: Share-based compensation expenses in sales and marketing expenses | (14,273) | 72 | ||
Non-GAAP sales and marketing expenses | 1,500,888 | 1,409,140 | ||
General and administrative expenses | 220,738 | 157,103 | ||
Less: Share-based compensation expenses in general and administrative expenses | (14,915) | (324) | ||
Non-GAAP general and administrative expenses | 205,823 | 156,779 | ||
Operating costs and expense | 2,081,260 | 1,903,651 | ||
Less: Share-based compensation expenses | (29,221) | (297) | ||
Non-GAAP operating costs and expense | 2,052,039 | 1,903,354 | ||
Loss/(income) from operations | 462,048 | (15,283) | ||
Less: Share-based compensation expenses | (29,221) | (297) | ||
Non-GAAP loss/(income) from operations | 432,827 | (15,580) | ||
Net loss/(income) attributable to Sunlands Technology Group | 357,389 | (65,180) | ||
Less: Share-based compensation expenses | (29,221) | (297) | ||
Non-GAAP net loss/(income) attributable to Sunlands Technology Group | 328,168 | (65,477) | ||
Net loss/(income) per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 52.85 | (9.69) | ||
Non-GAAP net loss/(income) per share attributable to ordinary shareholders of | ||||
Sunlands Technology Group: | ||||
Basic and diluted | 48.53 | (9.73) | ||
Weighted average shares used in calculating net loss/(income) | ||||
per ordinary share: | ||||
Basic and diluted | 6,762,508 | 6,729,197 | ||
Weighted average shares used in calculating Non-GAAP net loss/(income) | ||||
per ordinary share: | ||||
Basic and diluted | 6,762,508 | 6,729,197 |
View original content:https://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-third-quarter-2021-financial-results-301430722.html
SOURCE Sunlands Technology Group
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