TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2024
TAL Education Group (NYSE: TAL), a smart learning solutions provider in China, announced its unaudited financial results for the first fiscal quarter ended May 31, 2024. Key highlights include:
Net revenues of US$414.2 million, up 50.4% from the prior year's US$275.4 million. Loss from operations was US$17.3 million, a significant improvement from the US$57.8 million loss in the prior year. On a Non-GAAP basis, income from operations was US$0.9 million, compared to a US$32.3 million loss previously. Net income attributable to TAL was US$11.4 million, shifting from a net loss of US$45.0 million. Non-GAAP net income was US$29.6 million, compared to a US$19.5 million loss. Basic and diluted net income per ADS was US$0.02, while non-GAAP basic and diluted net income per ADS was US$0.05.
Cash, cash equivalents, and short-term investments totaled US$3,418.6 million, up from US$3,303.3 million as of February 29, 2024. Deferred revenue was US$641.9 million, an increase from US$428.3 million.
TAL Education Group (NYSE: TAL), un fornitore di soluzioni di apprendimento intelligente in Cina, ha annunciato i suoi risultati finanziari non auditati per il primo trimestre fiscale chiuso il 31 maggio 2024. I punti salienti includono:
Ricavi netti di 414,2 milioni di dollari USA, in aumento del 50,4% rispetto ai 275,4 milioni di dollari dell'anno precedente. Perdita operativa di 17,3 milioni di dollari USA, con un significativo miglioramento rispetto alla perdita di 57,8 milioni di dollari dell'anno precedente. Su base Non-GAAP, il reddito operativo è stato di 0,9 milioni di dollari USA, rispetto a una perdita di 32,3 milioni di dollari in precedenza. Utile netto attribuibile a TAL è stato di 11,4 milioni di dollari USA, passando da una perdita netta di 45,0 milioni di dollari. L'utile netto Non-GAAP è stato di 29,6 milioni di dollari, rispetto a una perdita di 19,5 milioni di dollari. L'utile netto per ADS di base e diluito è stato di 0,02 dollari USA, mentre l'utile netto di base e diluito Non-GAAP per ADS è stato di 0,05 dollari USA.
Liquidità, equivalenti di liquidità e investimenti a breve termine hanno totalizzato 3.418,6 milioni di dollari USA, in aumento rispetto ai 3.303,3 milioni di dollari al 29 febbraio 2024. I ricavi differiti ammontavano a 641,9 milioni di dollari USA, in aumento rispetto ai 428,3 milioni di dollari.
TAL Education Group (NYSE: TAL), un proveedor de soluciones de aprendizaje inteligente en China, anunció sus resultados financieros no auditados para el primer trimestre fiscal que terminó el 31 de mayo de 2024. Los aspectos destacados incluyen:
Ingresos netos de 414,2 millones de dólares estadounidenses, un aumento del 50,4% con respecto a los 275,4 millones de dólares del año anterior. Pérdida de operaciones de 17,3 millones de dólares estadounidenses, una mejora significativa respecto a la pérdida de 57,8 millones de dólares del año anterior. En una base Non-GAAP, el ingreso de operaciones fue de 0,9 millones de dólares estadounidenses, comparado con una pérdida de 32,3 millones de dólares previamente. Ingreso neto atribuible a TAL fue de 11,4 millones de dólares estadounidenses, cambiando de una pérdida neta de 45,0 millones de dólares. El ingreso neto Non-GAAP fue de 29,6 millones de dólares, en comparación con una pérdida de 19,5 millones de dólares. El ingreso neto básico y diluido por ADS fue de 0,02 dólares estadounidenses, mientras que el ingreso neto básico y diluido Non-GAAP por ADS fue de 0,05 dólares estadounidenses.
Efectivo, equivalentes de efectivo e inversiones a corto plazo totalizaron 3.418,6 millones de dólares estadounidenses, un aumento desde los 3.303,3 millones de dólares al 29 de febrero de 2024. Los ingresos diferidos fueron de 641,9 millones de dólares, un incremento desde los 428,3 millones de dólares.
TAL Education Group (NYSE: TAL), 중국의 스마트 학습 솔루션 제공업체, 2024년 5월 31일 마감된 첫 분기 미감사 재무결과를 발표했습니다. 주요 사항은 다음과 같습니다:
순수익은 4억 1,420만 달러로, 지난해의 2억 7,540만 달러에서 50.4% 증가했습니다. 영업 손실은 1,730만 달러로, 지난해의 5,780만 달러 손실에서 상당한 개선을 보였습니다. 비GAAP 기준으로, 영업 수익은 90만 달러였으며, 이전의 3,230만 달러 손실에서 개선되었습니다. TAL에 귀속된 순이익은 1,140만 달러로, 4,500만 달러의 순손실에서 전환되었습니다. 비GAAP 순이익은 2,960만 달러로, 1,950만 달러의 손실에서 변화했습니다. 기본 및 희석된 ADS당 순이익은 0.02달러였고, 비GAAP 기본 및 희석된 ADS당 순이익은 0.05달러였습니다.
현금, 현금성 자산 및 단기 투자 총액은 34억 1,860만 달러로, 2024년 2월 29일의 33억 3,030만 달러에서 증가했습니다. 이연 수익은 6억 4,190만 달러로, 4억 2,830만 달러에서 증가했습니다.
TAL Education Group (NYSE: TAL), un fournisseur de solutions d'apprentissage intelligentes en Chine, a annoncé ses résultats financiers non audités pour le premier trimestre fiscal clos le 31 mai 2024. Les points clés comprennent :
Chiffre d'affaires net de 414,2 millions de dollars, en hausse de 50,4 % par rapport à 275,4 millions de dollars l'année précédente. Perte d'exploitation de 17,3 millions de dollars, une amélioration significative par rapport à la perte de 57,8 millions de dollars de l'année précédente. Sur une base Non-GAAP, le résultat d'exploitation était de 0,9 million de dollars, contre une perte de 32,3 millions de dollars précédemment. Résultat net attribuable à TAL de 11,4 millions de dollars, passant d'une perte nette de 45,0 millions de dollars. Le résultat net Non-GAAP était de 29,6 millions de dollars, contre une perte de 19,5 millions de dollars. Le résultat net de base et dilué par ADS était de 0,02 dollar, tandis que le résultat net de base et dilué Non-GAAP par ADS s'élevait à 0,05 dollar.
Les liquidités, équivalents de liquidités et investissements à court terme ont totalisé 3 418,6 millions de dollars, en hausse par rapport à 3 303,3 millions de dollars au 29 février 2024. Les revenus différés s'élevaient à 641,9 millions de dollars, contre 428,3 millions de dollars précédemment.
TAL Education Group (NYSE: TAL), ein Anbieter von intelligenten Lernlösungen in China, hat seine unauditierten finanziellen Ergebnisse für das erste Fiskalquartal zum 31. Mai 2024 bekannt gegeben. Die wichtigsten Punkte sind:
Nettoumsätze in Höhe von 414,2 Millionen US-Dollar, was einer Steigerung von 50,4 % im Vergleich zu 275,4 Millionen US-Dollar im Vorjahr entspricht. Betriebsverlust betrug 17,3 Millionen US-Dollar, eine deutliche Verbesserung im Vergleich zu einem Verlust von 57,8 Millionen US-Dollar im Vorjahr. Auf Non-GAAP-Basis betrug das Betriebsergebnis 0,9 Millionen US-Dollar, verglichen mit einem Verlust von 32,3 Millionen US-Dollar zuvor. Jahresüberschuss von TAL betrug 11,4 Millionen US-Dollar, im Vergleich zu einem Nettoverlust von 45,0 Millionen US-Dollar. Der Non-GAAP Nettogewinn betrug 29,6 Millionen US-Dollar, im Vergleich zu einem Verlust von 19,5 Millionen US-Dollar. Der Grund- und verwässerte Nettogewinn pro ADS betrug 0,02 US-Dollar, während der Non-GAAP Grund- und verwässerte Nettogewinn pro ADS 0,05 US-Dollar betrug.
Flüssige Mittel, flüssige Mitteläquivalente und kurzfristige Investitionen totalisierten 3.418,6 Millionen US-Dollar, ein Anstieg von 3.303,3 Millionen US-Dollar am 29. Februar 2024. Die aufgeschobenen Einnahmen betrugen 641,9 Millionen US-Dollar, ein Anstieg von 428,3 Millionen US-Dollar.
- Net revenues increased by 50.4% to US$414.2 million.
- Loss from operations reduced to US$17.3 million from US$57.8 million.
- Net income attributable to TAL was US$11.4 million, compared to a net loss of US$45.0 million.
- Non-GAAP net income attributable to TAL was US$29.6 million, compared to a US$19.5 million loss.
- Cash, cash equivalents, and short-term investments increased to US$3,418.6 million.
- Operating costs and expenses increased by 26.3% to US$432.1 million.
- Cost of revenues increased by 43.4% to US$200.0 million.
- Selling and marketing expenses increased by 25.4% to US$122.4 million.
Insights
TAL Education Group's Q1 FY2025 results show significant improvement, with a 50.4% year-over-year increase in net revenues to
Key positives include:
- Gross margin improvement from
49.3% to51.7% , suggesting better pricing power or cost control - Reduction in operating loss by
70% year-over-year - Strong cash position with
$3.4 billion in cash and short-term investments - Significant increase in deferred revenue, up
49.9% from the previous quarter, indicating strong future revenue potential
However, investors should note the
TAL Education's strong Q1 performance signals a potential turnaround in China's education sector following regulatory challenges. The
Key market insights:
- The
49.9% quarter-over-quarter increase in deferred revenue indicates strong forward bookings and customer confidence - The
25.4% increase in selling and marketing expenses suggests aggressive customer acquisition efforts - The modest
4.5% increase in general and administrative expenses shows good cost discipline
The company's ability to grow revenue while improving profitability is particularly impressive given the challenging regulatory environment for education companies in China. This performance may indicate that TAL has successfully pivoted its business model to align with new regulations while meeting market demands.
Investors should monitor the sustainability of this growth trajectory and any potential regulatory developments that could impact the sector. The company's focus on product quality and operational efficiency appears well-aligned with current market trends favoring high-quality, technology-driven educational solutions.
Highlights for the First Quarter of Fiscal Year 2025
- Net revenues were
US , compared to net revenues of$414.2 million US in the same period of the prior year.$275.4 million - Loss from operations was
US , compared to loss from operations of$17.3 million US in the same period of the prior year.$57.8 million - Non-GAAP income from operations, which excluded share-based compensation expenses, was
US , compared to non-GAAP loss from operations of$0.9 million US in the same period of the prior year.$32.3 million - Net income attributable to TAL was
US , compared to net loss attributable to TAL of$11.4 million US in the same period of the prior year.$45.0 million - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US , compared to non-GAAP net loss attributable to TAL of$29.6 million US in the same period of the prior year.$19.5 million - Basic and diluted net income per American Depositary Share ("ADS") were both
US . Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both$0.02 US . Three ADSs represent one Class A common share.$0.05 - Cash, cash equivalents and short-term investments totaled
US as of May 31, 2024, compared to$3,418.6 million US as of February 29, 2024.$3,303.3 million
Financial Data——First Quarter of Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)
Three Months Ended | |||
2023 | 2024 | Pct. Change | |
Net revenues | 275,440 | 414,187 | 50.4 % |
Loss from operations | (57,773) | (17,330) | (70.0 %) |
Non-GAAP (loss)/income from operations | (32,260) | 876 | (102.7 %) |
Net (loss)/income attributable to TAL | (45,037) | 11,402 | (125.3 %) |
Non-GAAP net (loss)/income attributable to | (19,524) | 29,608 | (251.6 %) |
Net (loss)/income per ADS attributable to | (0.07) | 0.02 | (126.5 %) |
Net (loss)/income per ADS attributable to | (0.07) | 0.02 | (126.0 %) |
Non-GAAP net (loss)/income per ADS | (0.03) | 0.05 | (259.0 %) |
Non-GAAP net (loss)/income per ADS | (0.03) | 0.05 | (256.0 %) |
"In this quarter, our core focus remains on delivering quality products and managing our online and offline operational efficiency to serve learners effectively," said Alex Peng, TAL's President and Chief Financial Officer.
Mr. Peng added, "Looking forward, we will make ongoing investments to provide our users with quality learning experiences. Our product capabilities, combined with our operational efficiency, positions us to capitalize on market opportunities and deliver long-term value to our customers."
Financial Results for the First Quarter of Fiscal Year 2025
Net Revenues
In the first quarter of fiscal year 2025, TAL reported net revenues of
Operating Costs and Expenses
In the first quarter of fiscal year 2025, operating costs and expenses were
Cost of revenues increased by
Selling and marketing expenses increased by
General and administrative expenses increased by
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by
Gross Profit
Gross profit increased by
Loss from Operations
Loss from operations was
Other (Expense)/Income
Other income was
Impairment Loss on Long-term Investments
Impairment loss on long-term investment was
Income Tax Expense
Income tax expense was
Net (Loss)/Income Attributable to TAL Education Group
Net income attributable to TAL was
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net income per ADS were both
Cash Flow
Net cash provided by operating activities for the first quarter of fiscal year 2025 was
Cash, Cash Equivalents, and Short-Term Investments
As of May 31, 2024, the Company had
Deferred Revenue
As of May 31, 2024, the Company's deferred revenue balance was
Conference Call
The Company will host a conference call and live webcast to discuss its financial results for the first fiscal quarter of fiscal year 2025 ended May 31, 2024 at 8:00 a.m. Eastern Time on August 1, 2024 (8:00 p.m.
Please note that you will need to pre-register for conference call participation at https://register.vevent.com/register/BI0948a7548cbb4383b037c2d80666f8ec.
Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.100tal.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About TAL Education Group
TAL Education Group is a smart learning solutions provider in
About Non-GAAP Financial Measures
In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP (loss)/income from operations, non-GAAP net (loss)/income attributable to TAL, non-GAAP basic and non-GAAP diluted net (loss)/income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
For further information, please contact:
Jackson Ding
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars) | |||
As of February 29, | As of May 31, | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | |||
Restricted cash-current | 167,656 | 275,966 | |
Short-term investments | 1,094,593 | 1,195,981 | |
Inventory | 68,328 | 80,984 | |
Amounts due from related parties-current | 343 | 376 | |
Income tax receivables | - | 1,543 | |
Prepaid expenses and other current assets | 159,498 | 153,159 | |
Total current assets | 3,699,174 | 3,930,600 | |
Restricted cash-non-current | 81,064 | 79,865 | |
Property and equipment, net | 405,319 | 438,670 | |
Deferred tax assets | 4,620 | 4,938 | |
Rental deposits | 16,947 | 18,523 | |
Intangible assets, net | 1,988 | 1,637 | |
Land use right, net | 189,049 | 186,862 | |
Amounts due from related parties-non-current | 59 | 59 | |
Long-term investments | 284,266 | 279,852 | |
Long-term prepayments and other non-current assets | 14,359 | 21,600 | |
Operating lease right-of-use assets | 231,104 | 340,231 | |
Total assets | |||
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Accounts payable | |||
Deferred revenue-current | 400,286 | 613,470 | |
Amounts due to related parties-current | 96 | 95 | |
Accrued expenses and other current liabilities | 491,911 | 519,899 | |
Operating lease liabilities, current portion | 62,604 | 72,269 | |
Total current liabilities | 1,082,218 | 1,338,000 | |
Deferred revenue-non-current | 27,993 | 28,438 | |
Deferred tax liabilities | 2,360 | 2,254 | |
Operating lease liabilities, non-current portion | 176,614 | 273,461 | |
Total liabilities | 1,289,185 | 1,642,153 | |
Equity | |||
Class A common shares | 152 | 153 | |
Class B common shares | 49 | 49 | |
Additional paid-in capital | 4,256,957 | 4,275,160 | |
Statutory reserve | 165,138 | 165,033 | |
Accumulated deficit | (694,270) | (682,763) | |
Accumulated other comprehensive loss | (65,928) | (73,659) | |
Total TAL Education Group's equity | 3,662,098 | 3,683,973 | |
Noncontrolling interests | (23,334) | (23,289) | |
Total equity | 3,638,764 | 3,660,684 | |
Total liabilities and equity |
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share, ADS, per share and per ADS data) | ||||
For the Three Months Ended May 31, | ||||
2023 | 2024 | |||
Net revenues |
|
| ||
Cost of revenues (note 1) | 139,513 | 200,008 | ||
Gross profit | 135,927 | 214,179 | ||
Operating expenses (note 1) | ||||
Selling and marketing | 97,657 | 122,428 | ||
General and administrative | 104,923 | 109,682 | ||
Total operating expenses | 202,580 | 232,110 | ||
Government subsidies | 8,880 | 601 | ||
Loss from operations | (57,773) | (17,330) | ||
Interest income | 22,981 | 22,522 | ||
Other (expense)/income | (6,845) | 13,151 | ||
Impairment loss on long-term investments | - | (3,767) | ||
(Loss)/Income before income tax expense and loss from equity method investments | (41,637) | 14,576 | ||
Income tax expense | (3,519) | (2,295) | ||
Loss from equity method investments | (71) | (985) | ||
Net (loss)/income | ||||
Add: Net loss attributable to noncontrolling interests | 190 | 106 | ||
Total net (loss)/income attributable to TAL | ||||
Net (loss)/income per common share | ||||
Basic | ||||
Diluted | (0.21) | 0.06 | ||
Net (loss)/income per ADS (note 2) | ||||
Basic | ||||
Diluted | (0.07) | 0.02 | ||
Weighted average shares used in calculating net | ||||
Basic | 211,319,973 | 201,567,132 | ||
Diluted | 211,319,973 | 205,382,443 | ||
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: | ||||
For the Three Months | ||||
Ended May 31, | ||||
2023 | 2024 | |||
Cost of revenues | ||||
Selling and marketing expenses | 7,428 | 4,375 | ||
General and administrative expenses | 15,676 | 11,469 | ||
Total | ||||
Note 2: Three ADSs represent one Class A common Share. |
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (In thousands of | ||||
For the Three Months Ended May 31, | ||||
2023 | 2024 | |||
Net (loss)/income | ||||
Other comprehensive loss, net of tax | (23,813) | (7,580) | ||
Comprehensive (loss)/income | (69,040) | 3,716 | ||
Add: Comprehensive income attributable to | (461) | (45) | ||
Comprehensive (loss)/income attributable to TAL Education Group |
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) | |||
For the Three Months May 31, | |||
2023 | 2024 | ||
Net cash provided by operating activities | |||
Net cash provided by/(used in) investing activities | 160,915 | (124,635) | |
Net cash (used in)/provided by financing activities | (151,237) | 5 | |
Effect of exchange rate changes | (4,510) | (1,217) | |
Net increase in cash, cash equivalents and restricted cash | 130,684 | 120,946 | |
Cash, cash equivalents and restricted cash at the beginning of | 2,294,907 | 2,457,476 | |
Cash, cash equivalents and restricted cash at the end of period |
TAL EDUCATION GROUP Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures (In thousands of | ||||
For the Three Months Ended May 31, | ||||
2023 | 2024 | |||
Cost of revenues | ||||
Share-based compensation expenses in cost of revenues | 2,409 | 2,362 | ||
Non-GAAP cost of revenues | 137,104 | 197,646 | ||
Selling and marketing expenses | 97,657 | 122,428 | ||
Share-based compensation expenses in selling and marketing expenses | 7,428 | 4,375 | ||
Non-GAAP selling and marketing expenses | 90,229 | 118,053 | ||
General and administrative expenses |
104,923 |
109,682 | ||
Share-based compensation expenses in general and administrative expenses | 15,676 | 11,469 | ||
Non-GAAP general and administrative expenses | 89,247 | 98,213 | ||
Operating costs and expenses | 342,093 | 432,118 | ||
Share-based compensation expenses in operating costs and expenses | 25,513 | 18,206 | ||
Non-GAAP operating costs and expenses | 316,580 | 413,912 | ||
Loss from operations | (57,773) | (17,330) | ||
Share based compensation expenses | 25,513 | 18,206 | ||
Non-GAAP (loss)/income from operations (note 3) | (32,260) | 876 | ||
Net (loss)/income attributable to TAL Education | (45,037) | 11,402 | ||
Share based compensation expenses | 25,513 | 18,206 | ||
Non-GAAP net (loss)/income attributable to | ||||
Net (loss)/income per ADS | ||||
Basic | ||||
Diluted | (0.07) | 0.02 | ||
Non-GAAP Net (loss)/income per ADS | ||||
Basic | ||||
Diluted | (0.03) | 0.05 | ||
ADSs used in calculating net (loss)/income per | ||||
Basic | 633,959,919 | 604,701,396 | ||
Diluted | 633,959,919 | 616,147,329 | ||
ADSs used in calculating Non-GAAP net | ||||
Basic | 633,959,919 | 604,701,396 | ||
Diluted | 633,959,919 | 616,147,329 | ||
Note 3: The tax effect of share-based compensation expenses was immaterial in the first quarter of fiscal year 2025. |
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SOURCE TAL Education Group
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