Tarena International, Inc. Announces the Results for the First Quarter of 2021

Rhea-AI Summary

Tarena International, Inc. (NASDAQ: TEDU) reported a significant increase in net revenues for Q1 2021, soaring by 80.9% year-over-year to RMB533.8 million (US$81.5 million), driven by robust growth in its K-12 education sector, which surged 239.8%.

Despite this growth, the company recorded an operating loss of RMB129.5 million (US$19.8 million), although this was a 65.0% reduction from the same quarter in 2020. The net loss also improved to RMB121.9 million (US$18.6 million). As of March 31, 2021, cash and equivalents totaled RMB312.5 million (US$47.7 million).

Positive

• Net revenues increased by 80.9% to RMB533.8 million (US$81.5 million).
• K-12 education revenue rose by 239.8% to RMB278.3 million (US$42.5 million).
• Gross profit surged by 804.5% year-over-year to RMB249.9 million (US$38.1 million).
• Gross profit margin improved by 37.4 percentage points to 46.8%.
• Operating loss decreased by 65.0% to RMB129.5 million (US$19.8 million).
• Net loss decreased to RMB121.9 million (US$18.6 million).

Negative

• Total enrollments in adult education decreased by 9.1% year-over-year to 31,000.
• Total number of learning centers in adult education decreased to 96 from 114.

BEIJING, May 25, 2021 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education and K-12 education services in China, today announced its unaudited financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights

• Net revenues increased by 80.9% year-over-year to RMB533.8 million (US$81.5 million), from RMB295.0 million in the same period of 2020.
• Net revenue from adult education business, which represented 47.9% of the total net revenues, increased by 19.9% year-over-year to RMB255.5 million (US$39.0 million), from RMB213.1 million in the same period of 2020.
• Net revenue from K-12 education business, which represented 52.1% of the total net revenues, increased by 239.8% year-over-year to RMB278.3 million (US$42.5 million), from RMB81.9 million in the same period of 2020. 
• Gross profit increased by 804.5% year-over-year to RMB249.9 million (US$38.1 million), from RMB27.6 million in the same period of 2020.
• Gross profit margin increased by 37.4% points year-over-year to 46.8%, from 9.4% in the same period of 2020.
• Operating loss decreased by 65.0% to a loss of RMB129.5 million (US$19.8 million), from a loss of RMB369.8 million in the same period of 2020.
• Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB122.6 million (US$18.7 million), compared to non-GAAP operating loss of RMB360.6 million in the same period of 2020.
• Net loss was RMB121.9 million (US$18.6 million), compared to net loss of RMB345.1 million in the same period of 2020.
• Non-GAAP net loss, which excluded share-based compensation expenses, was RMB115.0 million (US$17.5 million), compared to non-GAAP net loss of RMB335.9 million in the same period of 2020.
• Basic and diluted loss per American Depositary Share ("ADS") was RMB2.17 (US$0.33), compared to loss per ADS of RMB6.37 in the first quarter of 2020.
• Cash, cash equivalents and time deposits, including current and non-current, and restricted cash totaled RMB312.5 million (US$47.7 million) as of March 31, 2021, compared to RMB364.8 million as of December 31, 2020.
• Net cash outflow from operating activities in the first quarter of 2021 was RMB38.1 million (US$5.8 million). Capital expenditures in the first quarter of 2021 were RMB11.9 million (US$1.8 million).
• Deferred revenue totaled RMB2,038.3 million (US$311.1 million) as of March 31, 2021, compared to RMB1,998.2 million as of December 31, 2020, representing an increase of 2.0%.
• Total student enrollments in adult education business, defined as the total number of courses enrolled by students during that period, including multiple courses enrolled by the same student, in the first quarter of 2021 decreased by 9.1% year-over-year to 31,000.
• Total number of learning centers in adult education decreased to 96 as of March 31, 2021, from 114 as of Ma

FAQ

What were Tarena International's Q1 2021 revenues?

Tarena reported net revenues of RMB533.8 million (US$81.5 million) for Q1 2021, an 80.9% increase year-over-year.

How did the K-12 education segment perform in Q1 2021?

The K-12 education revenue increased by 239.8% year-over-year, totaling RMB278.3 million (US$42.5 million).

What was Tarena's operating loss in Q1 2021?

The company reported an operating loss of RMB129.5 million (US$19.8 million) for Q1 2021, a 65.0% decrease from the prior year.

What is the net loss reported by Tarena for Q1 2021?

Tarena's net loss for Q1 2021 was RMB121.9 million (US$18.6 million), improved from RMB345.1 million in the same quarter of 2020.

How much cash did Tarena have at the end of Q1 2021?

As of March 31, 2021, Tarena had cash and cash equivalents totaling RMB312.5 million (US$47.7 million).