17 Education & Technology Group Inc. Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
- Net revenues for Q4 2023 were RMB47.3 million, up 19.7% YoY, with a net loss of RMB98.4 million.
- For FY 2023, net revenues were RMB171.0 million, down 67.8% YoY, with a net loss of RMB311.8 million.
- Adjusted net loss (non-GAAP) was RMB81.8 million in Q4 and RMB228.1 million for FY 2023.
- Net loss as a percentage of net revenues was negative 207.9% in Q4 2023.
- Net loss as a percentage of net revenues was negative 182.4% for FY 2023.
Insights
The financial results of 17 Education & Technology Group Inc. indicate a complex scenario where revenue growth is overshadowed by a significant net loss, which has grown year-over-year. The company's gross margin has also declined, suggesting a cost pressure that is not being offset by the revenue generated. The increase in sales and marketing expenses, which is substantial, points towards aggressive customer acquisition strategies. However, this has not translated into profitability, as evidenced by the net loss figures.
Investors might view the increase in sales and marketing expenses as a potential for future revenue growth, but the current financial health raises concerns about the sustainability of this strategy. The decrease in research and development expenses could be interpreted as a positive sign of cost control, but it also raises questions about the company's long-term innovation capabilities. The financial results suggest that while the company is attempting to streamline operations and grow its SaaS segment, it has yet to reach a stable and profitable business model.
The unaudited financial results of 17EdTech show a company in transition, with a clear pivot towards its teaching and learning SaaS business. The net loss as a percentage of net revenues has improved slightly when comparing Q4 2023 to Q4 2022, but the overall annual figures present a troubling picture with a significant increase in net loss year-over-year. The adjusted net loss, while a non-GAAP measure that provides a view excluding share-based compensation expenses, still shows a company operating at a substantial loss.
Investors should note the company's liquidity position, with a decrease in cash and cash equivalents from the previous year-end. This could impact the company's ability to fund operations and invest in growth without seeking additional capital. The founder's subscription of ordinary shares could be seen as a vote of confidence, but it also dilutes existing shareholders. In the context of the broader edtech industry, which has faced regulatory challenges and competitive pressures, particularly in China, the company's performance and strategic adjustments will be critical in determining its future trajectory and investment potential.
17EdTech's financial performance reflects the broader challenges facing the edtech sector in China, including regulatory changes and intense competition. The company's shift away from personalized self-directed learning products to focus on SaaS offerings aligns with industry trends towards digital transformation in education. However, the reported financials raise questions about the efficacy of this strategy in the short term.
The year-over-year decrease in net revenues and gross margin, coupled with the substantial net loss, suggest that the company's pivot has yet to gain the financial traction expected. The emphasis on cost control is evident in the reduced operating expenses, but it's essential to balance this with continued investment in product innovation and market expansion to stay competitive. The company's efforts to enhance its SaaS offerings and customer satisfaction are crucial, but the financial results indicate that achieving a return on these investments is still a work in progress.
BEIJING, March 21, 2024 (GLOBE NEWSWIRE) -- 17 Education & Technology Group Inc. (NASDAQ: YQ) (“17EdTech” or the “Company”), a leading education technology company in China, today announced its unaudited financial results for the fourth quarter and the year ended December 31, 2023.
Fourth Quarter 2023 Highlights1
- Net revenues were RMB47.3 million (US
$6.7 million ), compared with net revenues of RMB39.6 million in the fourth quarter of 2022. - Gross margin was
43.4% , compared with52.1% in the fourth quarter of 2022. - Net loss was RMB98.4 million (US
$13.9 million ), compared with net loss of RMB103.1 million in the fourth quarter of 2022. - Net loss as a percentage of net revenues was negative
207.9% in the fourth quarter of 2023, compared with negative260.7% in the fourth quarter of 2022. - Adjusted net loss2 (non-GAAP), which excluded share-based compensation expenses of RMB16.6 million (US
$2.3 million ), was RMB81.8 million (US$11.5 million ), compared with adjusted net loss (non-GAAP) of RMB70.1 million in the fourth quarter of 2022. - Adjusted net loss (non-GAAP) as a percentage of net revenues was negative
172.8% in the fourth quarter of 2023, compared with negative177.3% adjusted net loss (non-GAAP) as a percentage of net revenues in the fourth quarter of 2022.
Fiscal Year 2023 Highlights
- Net revenues were RMB171.0 million (US
$24.1 million ), compared with net revenues of RMB531.1 million in 2022. - Gross margin was
47.2% , compared with61.2% in 2022. - Net loss was RMB311.8 million (US
$43.9 million ), compared with net loss of RMB177.9 million in 2022. - Net loss as a percentage of net revenues was negative
182.4% in 2023, compared with negative33.5% in 2022. - Adjusted net loss (non-GAAP), which excluded share-based compensation expenses of RMB83.7 million (US
$11.8 million ), was RMB228.1 million (US$32.1 million ), compared with adjusted net loss (non-GAAP) of RMB48.3 million in 2022. - Adjusted net loss (non-GAAP) as a percentage of net revenues was negative
133.4% in 2023, compared with negative9.1% of adjusted net loss as a percentage of net revenues in 2022.
| 1 | For a reconciliation of non-GAAP numbers, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” at the end of this press release. | ||
| 2 | Adjusted net income (loss) represents net income (loss) excluding share-based compensation expenses. | ||
Mr. Andy Liu, Founder, Chairman and Chief Executive Officer of the Company commented, “In this quarter, our teaching and learning SaaS business continued to make solid progress and achieved revenue growth compared to the previous quarter and year-on-year growth in quarterly revenues. We also managed to win orders from additional groups of clients to expand our potential client base.”
“As we continue to refine our business structure, the synergistic collaboration across our business segments has ushered in a more streamlined operation. We consistently enhance the user experience and efficacy of our platform, delivering competitive digital products and comprehensive solutions to our customers,” he concluded.
Mr. Michael Du, Director and Chief Financial Officer of the Company commented, “In this quarter, our teaching and learning SaaS business generated increasing revenue compared to the same quarter last year, signifying consistent client satisfaction and further development. We are also meticulously managing our expenses to further improve operational efficiency. We are confident that our SaaS billing model is gaining recognition from our clients, helping us build a healthier and recurrent business as we enhance our service offerings and customer satisfaction.”
Fourth Quarter 2023 Unaudited Financial Results
Net Revenues
Net revenues for the fourth quarter of 2023 were RMB47.3 million (US
Cost of Revenues
Cost of revenues for the fourth quarter of 2023 was RMB26.8 million (US
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2023 was RMB20.6 million (US
Gross margin for the fourth quarter of 2023 was
Total Operating Expenses
The following table sets forth a breakdown of operating expenses by amounts and percentages of revenue during the periods indicated (in thousands, except for percentages):
| For the three months ended December 31, | ||||||||||||||||||||||||
| 2022 | 2023 | Year- | ||||||||||||||||||||||
| RMB | % | RMB | USD | % | over- year | |||||||||||||||||||
| Sales and marketing expenses | 17,562 | 44.4 | % | 29,903 | 4,212 | 63.2 | % | 70.3 | % | |||||||||||||||
| Research and development expenses | 51,792 | 130.9 | % | 40,930 | 5,765 | 86.4 | % | -21.0 | % | |||||||||||||||
| General and administrative expenses | 71,607 | 181.0 | % | 52,000 | 7,324 | 109.8 | % | -27.4 | % | |||||||||||||||
| Total operating expenses | 140,961 | 356.3 | % | 122,833 | 17,301 | 259.4 | % | -12.9 | % | |||||||||||||||
Total operating expenses for the fourth quarter of 2023 were RMB122.8 million (US
Sales and marketing expenses for the fourth quarter of 2023 were RMB29.9 million (US
Research and development expenses for the fourth quarter of 2023 were RMB40.9 million (US
General and administrative expenses for the fourth quarter of 2023 were RMB52.0 million (US
Loss from Operations
Loss from operations for the fourth quarter of 2023 was RMB102.3 million (US
Net Loss
Net loss for the fourth quarter of 2023 was RMB98.4 million (US
Adjusted Net Loss (non-GAAP)
Adjusted net loss (non-GAAP) for the fourth quarter of 2023 was RMB81.8 million (US
Please refer to the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” at the end of this press release for a reconciliation of net loss under U.S. GAAP to adjusted net income (loss) (non-GAAP).
Fiscal Year 2023 Unaudited Financial Results
Net Revenues
Net revenues in 2023 were RMB171.0 million (US
Cost of Revenues
Cost of revenues in 2023 was RMB90.3 million (US
Gross Profit and Gross Margin
Gross profit in 2023 was RMB80.7 million (US
Gross margin in 2023 was
Total Operating Expenses
The following table sets forth a breakdown of operating expenses by amounts and percentages of revenue during the years indicated (in thousands, except for percentages):
| For the year ended December 31, | ||||||||||||||||||||||||
| 2022 | 2023 | Year- | ||||||||||||||||||||||
| RMB | % | RMB | USD | % | over- year | |||||||||||||||||||
| Sales and marketing expenses | 79,129 | 14.9 | % | 101,260 | 14,262 | 59.2 | % | 28.0 | % | |||||||||||||||
| Research and development expenses | 235,846 | 44.4 | % | 167,932 | 23,653 | 98.2 | % | -28.8 | % | |||||||||||||||
| General and administrative expenses | 221,029 | 41.6 | % | 154,261 | 21,727 | 90.2 | % | -30.2 | % | |||||||||||||||
| Total operating expenses | 536,004 | 100.9 | % | 423,453 | 59,642 | 247.6 | % | -21.0 | % | |||||||||||||||
Total operating expenses in 2023 were RMB423.5 million (US
Sales and marketing expenses in 2023 were RMB101.3 million (US
Research and development expenses in 2023 were RMB167.9 million (US
General and administrative expenses in 2023 were RMB154.3 million (US
Loss from Operations
Loss from operations in 2023 was RMB342.8 million (US
Net Loss
Net loss in 2023 was RMB311.8 million (US
Adjusted Net Loss (non-GAAP)
Adjusted net loss (non-GAAP) in 2023 was RMB228.1 million (US
Cash and Cash Equivalents, Restricted Cash, Short-term Investments, and Term Deposit
Cash and cash equivalents, restricted cash, short-term investments and term deposit were RMB476.7 million (US
Founder’s Subscription of Ordinary Shares
The Company and Mr. Andy Chang Liu, Founder, Chairman and Chief Executive Officer of the Company, entered into a share purchase agreement, pursuant to which the Company proposed to issue, and Mr. Andy Chang Liu proposed to subscribe for 58,453,168 Class B ordinary shares of the Company at a subscription price of the average closing price per ordinary share for the 30 trading days preceding the date of the share purchase agreement, pursuant and subject to, and consistent with, applicable laws, the Nasdaq rules and the Company’s securities trading policies. Following the share subscription, Mr. Liu will beneficially own approximately
Conference Call Information
The Company will hold a conference call on Wednesday, March 20, 2024 at 9:00 p.m. U.S. Eastern Time (Thursday, March 21, 2023 at 9:00 a.m. Beijing time) to discuss the financial results for the fourth quarter of 2023.
Please note that all participants will need to preregister for the conference call participation by navigating to https://edge.media-server.com/mmc/p/pkh26d77.
Upon registration, you will receive an email containing participant dial-in numbers, and PIN number. To join the conference call, please dial the number you receive, enter the PIN number, and you will be joined to the conference call instantly.
Additionally, a live and archived webcast of this conference call will be available at https://ir.17zuoye.com/.
Non-GAAP Financial Measures
17EdTech’s management uses adjusted net income (loss) as a non-GAAP financial measure to gain an understanding of 17EdTech’s comparative operating performance and future prospects.
Adjusted net income (loss) represents net loss excluding share-based compensation expenses and such adjustment has no impact on income tax.
Adjusted net income (loss) is used by 17EdTech’s management in their financial and operating decision-making as a non-GAAP financial measure; because management believes it reflects 17EdTech’s ongoing business and operating performance in a manner that allows meaningful period-to-period comparisons. 17EdTech’s management believes that such non-GAAP measure provides useful information to investors and others in understanding and evaluating 17EdTech’s operating performance in the same manner as management does, if they so choose. Specifically, 17EdTech believes the non-GAAP measure provides useful information to both management and investors by excluding certain charges that the Company believes are not indicative of its core operating results.
The non-GAAP financial measure has limitations. It does not include all items of income and expense that affect 17EdTech’s income from operations. Specifically, the non-GAAP financial measure is not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and, with respect to the non-GAAP financial measure that excludes certain items under GAAP, does not reflect any benefit that such items may confer to 17EdTech. Management compensates for these limitations by also considering 17EdTech’s financial results as determined in accordance with GAAP. The presentation of this additional information is not meant to be considered superior to, in isolation from or as a substitute for results prepared in accordance with US GAAP.
Exchange Rate Information
The Company’s business is primarily conducted in China and all of the revenues are denominated in Renminbi (“RMB”). However, periodic reports made to shareholders will include current period amounts translated into U.S. dollars (“USD” or “US$”) using the exchange rate as of balance sheet date, for the convenience of the readers. Translations of balances in the consolidated balance sheets and the related consolidated statements of operations, comprehensive loss, change in shareholders’ deficit and cash flows from RMB into USD as of and for the three months and the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US
About 17 Education & Technology Group Inc.
17 Education & Technology Group Inc. is a leading education technology company in China, offering smart in-school classroom solution that delivers data-driven teaching, learning and assessment products to teachers, students and parents. Leveraging its extensive knowledge and expertise obtained from in-school business over the past decade, the Company provides teaching and learning SaaS offerings to facilitate the digital transformation and upgrade at Chinese schools, with a focus on improving the efficiency and effectiveness of core teaching and learning scenarios such as homework assignments and in-class teaching. The product utilizes the Company’s technology and data insights to provide personalized and targeted learning and exercise content that is aimed at improving students’ learning efficiency.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States 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” and similar statements. Statements that are not historical facts, including statements about 17EdTech’s beliefs and expectations, are forward-looking statements. 17EdTech may also make written or oral forward-looking statements in its periodic reports to the SEC, 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. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 17EdTech’s growth strategies; its future business development, financial condition and results of operations; its ability to continue to attract and retain users; its ability to carry out its business and organization transformation, its ability to implement and grow its new business initiatives; the trends in, and size of, China’s online education market; competition in and relevant government policies and regulations relating to China's online education market; its expectations regarding demand for, and market acceptance of, its products and services; its expectations regarding its relationships with business partners; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 17EdTech’s filings with the SEC. All information provided in this press release is as of the date of this press release, and 17EdTech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
17 Education & Technology Group Inc.
Ms Lara Zhao
Investor Relations Manager
E-mail: ir@17zuoye.com
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (In thousands of RMB and USD, except for share and per ADS data, or otherwise noted) | ||||||||||||
| As of December 31, | As of December 31, | |||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 707,895 | 306,929 | 43,230 | |||||||||
| Restricted cash | 10,231 | — | — | |||||||||
| Short-term investments | 19,531 | — | — | |||||||||
| Term deposit | — | 169,756 | 23,910 | |||||||||
| Accounts receivable | 34,824 | 59,206 | 8,339 | |||||||||
| Prepaid expenses and other current assets | 140,894 | 94,835 | 13,357 | |||||||||
| Total current assets | 913,375 | 630,726 | 88,836 | |||||||||
| Non-current assets | ||||||||||||
| Property and equipment, net | 32,295 | 32,013 | 4,509 | |||||||||
| Right-of-use assets | 30,052 | 20,007 | 2,818 | |||||||||
| Other non-current assets | 4,802 | 1,780 | 251 | |||||||||
| TOTAL ASSETS | 980,524 | 684,526 | 96,414 | |||||||||
| LIABILITIES | ||||||||||||
| Current liabilities | ||||||||||||
| Accrued expenses and other current liabilities | 153,023 | 128,001 | 18,029 | |||||||||
| Deferred revenue and customer advances, current | 42,385 | 44,949 | 6,331 | |||||||||
| Operating lease liabilities, current | 18,719 | 7,647 | 1,077 | |||||||||
| Total current liabilities | 214,127 | 180,597 | 25,437 | |||||||||
| As of December 31, | As of December 31, | |||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Non-current liabilities | ||||||||||||
| Operating lease liabilities, non-current | 7,534 | 9,660 | 1,361 | |||||||||
| TOTAL LIABILITIES | 221,661 | 190,257 | 26,798 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Class A ordinary shares | 300 | 305 | 43 | |||||||||
| Class B ordinary shares | 38 | 38 | 5 | |||||||||
| Treasury stock | (21 | ) | (97 | ) | (14 | ) | ||||||
| Additional paid-in capital | 10,954,822 | 10,987,407 | 1,547,544 | |||||||||
| Accumulated other comprehensive income | 62,689 | 77,363 | 10,896 | |||||||||
| Accumulated deficit | (10,258,965 | ) | (10,570,747 | ) | (1,488,858 | ) | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 758,863 | 494,269 | 69,616 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 980,524 | 684,526 | 96,414 | |||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (In thousands of RMB and USD, except for share and per ADS data, or otherwise noted) | ||||||||||||
| For the three months ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net revenues | 39,556 | 47,346 | 6,669 | |||||||||
| Cost of revenues | (18,938 | ) | (26,775 | ) | (3,771 | ) | ||||||
| Gross profit | 20,618 | 20,571 | 2,898 | |||||||||
| Operating expenses (Note 1) | ||||||||||||
| Sales and marketing expenses | (17,562 | ) | (29,903 | ) | (4,212 | ) | ||||||
| Research and development expenses | (51,792 | ) | (40,930 | ) | (5,765 | ) | ||||||
| General and administrative expenses | (71,607 | ) | (52,000 | ) | (7,324 | ) | ||||||
| Total operating expenses | (140,961 | ) | (122,833 | ) | (17,301 | ) | ||||||
| Loss from operations | (120,343 | ) | (102,262 | ) | (14,403 | ) | ||||||
| Interest income | 4,705 | 5,805 | 818 | |||||||||
| Foreign currency exchange loss | — | (873 | ) | (123 | ) | |||||||
| Other income (loss), net | 12,500 | (1,111 | ) | (156 | ) | |||||||
| Loss before provision for income tax | (103,138 | ) | (98,441 | ) | (13,864 | ) | ||||||
| Income tax expenses | — | — | — | |||||||||
| Net loss | (103,138 | ) | (98,441 | ) | (13,864 | ) | ||||||
| Net loss available to ordinary shareholders of 17 | (103,138 | ) | (98,441 | ) | (13,864 | ) | ||||||
| Education & Technology Group Inc. | ||||||||||||
| Net loss per ordinary share | ||||||||||||
| Basic and diluted | (0.21 | ) | (0.23 | ) | (0.03 | ) | ||||||
| Net loss per ADS (Note 2) | ||||||||||||
| Basic and diluted | (10.50 | ) | (11.50 | ) | (1.50 | ) | ||||||
| Weighted average shares used in calculating net loss per ordinary share | ||||||||||||
| Basic and diluted | 492,323,728 | 434,815,360 | 434,815,360 | |||||||||
| Note 1: Share-based compensation expenses were included in the operating expenses as follows: | ||||||||||||
| For the three months ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Share-based compensation expenses: | ||||||||||||
| Sales and marketing expenses | 5,268 | 2,906 | 409 | |||||||||
| Research and development expenses | 7,352 | 6,034 | 850 | |||||||||
| General and administrative expenses | 20,385 | 7,706 | 1,085 | |||||||||
| Total | 33,005 | 16,646 | 2,344 | |||||||||
| Note 2: Each one ADS represents fifty Class A ordinary shares. Effective on December 18, 2023, the Company changed the ratio of its ADS to its Class A ordinary shares from one ADSs representing ten Class A ordinary shares to one ADS representing fifty Class A ordinary shares. All earnings per ADS figures in this report give effect to the foregoing ADS to share ratio change. | ||||||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| Reconciliations of non-GAAP measures to the most comparable GAAP measures | ||||||||||||
| (In thousands of RMB and USD, except for share, per share and per ADS data) | ||||||||||||
| For the three months ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net Loss | (103,138 | ) | (98,441 | ) | (13,864 | ) | ||||||
| Share-based compensation | 33,005 | 16,646 | 2,344 | |||||||||
| Income tax effect | — | — | — | |||||||||
| Adjusted net loss | (70,133 | ) | (81,795 | ) | (11,520 | ) | ||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (In thousands of RMB and USD, except for share and per ADS data, or otherwise noted) | ||||||||||||
| For the year ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net revenues | 531,064 | 170,962 | 24,079 | |||||||||
| Cost of revenues | (206,208 | ) | (90,259 | ) | (12,713 | ) | ||||||
| Gross profit | 324,856 | 80,703 | 11,366 | |||||||||
| Operating expenses (Note 1) | ||||||||||||
| Sales and marketing expenses | (79,129 | ) | (101,260 | ) | (14,262 | ) | ||||||
| Research and development expenses | (235,846 | ) | (167,932 | ) | (23,653 | ) | ||||||
| General and administrative expenses | (221,029 | ) | (154,261 | ) | (21,727 | ) | ||||||
| Total operating expenses | (536,004 | ) | (423,453 | ) | (59,642 | ) | ||||||
| Loss from operations | (211,148 | ) | (342,750 | ) | (48,276 | ) | ||||||
| Interest income | 11,352 | 27,811 | 3,917 | |||||||||
| Foreign currency exchange gain | 159 | (801 | ) | (113 | ) | |||||||
| Other income, net | 21,765 | 3,958 | 557 | |||||||||
| Loss before provision for income tax | (177,872 | ) | (311,782 | ) | (43,915 | ) | ||||||
| Income tax expenses | — | — | — | |||||||||
| Net loss | (177,872 | ) | (311,782 | ) | (43,915 | ) | ||||||
| Net loss available to ordinary shareholders of 17 | (177,872 | ) | (311,782 | ) | (43,915 | ) | ||||||
| Education & Technology Group Inc. | ||||||||||||
| Net loss per ordinary share | ||||||||||||
| Basic and diluted | (0.35 | ) | (0.68 | ) | (0.10 | ) | ||||||
| Net loss per ADS (Note 2) | ||||||||||||
| Basic and diluted | (17.50 | ) | (34.00 | ) | (5.00 | ) | ||||||
| Weighted average shares used in calculating net loss per ordinary share | ||||||||||||
| Basic and diluted | 502,801,926 | 458,636,327 | 458,636,327 | |||||||||
| Note 1: Share-based compensation expenses were included in the operating expenses as follows: | ||||||||||||
| For the year ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Share-based compensation expenses: | ||||||||||||
| Sales and marketing expenses | 17,305 | 17,243 | 2,429 | |||||||||
| Research and development expenses | 28,624 | 26,954 | 3,796 | |||||||||
| General and administrative expenses | 83,629 | 39,498 | 5,563 | |||||||||
| Total | 129,558 | 83,695 | 11,788 | |||||||||
| Note 2: Each one ADS represents fifty Class A ordinary shares. Effective on December 18, 2023, the Company changed the ratio of its ADS to its Class A ordinary shares from one ADSs representing ten Class A ordinary shares to one ADS representing fifty Class A ordinary shares. All earnings per ADS figures in this report give effect to the foregoing ADS to share ratio change. | ||||||||||||
| 17 EDUCATION & TECHNOLOGY GROUP INC. | ||||||||||||
| Reconciliations of non-GAAP measures to the most comparable GAAP measures | ||||||||||||
| (In thousands of RMB and USD, except for share, per share and per ADS data) | ||||||||||||
| For the year ended December 31, | ||||||||||||
| 2022 | 2023 | 2023 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net Loss | (177,872 | ) | (311,782 | ) | (43,915 | ) | ||||||
| Share-based compensation | 129,558 | 83,695 | 11,788 | |||||||||
| Income tax effect | — | — | — | |||||||||
| Adjusted net loss | (48,314 | ) | (228,087 | ) | (32,127 | ) | ||||||
FAQ
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