17 Education & Technology Group Inc. Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results
17 Education & Technology Group (NASDAQ: YQ) reported its Q4 and FY2024 financial results. For Q4 2024, net revenues decreased 22.7% YoY to RMB36.6M (US$5.0M), with gross margin declining to 33.6% from 43.4%. Q4 net loss improved to RMB63.7M from RMB98.4M YoY.
For FY2024, net revenues grew 10.7% to RMB189.2M (US$25.9M), while gross margin decreased to 36.6% from 47.2%. Annual net loss improved 38.1% to RMB192.9M. The company's SaaS subscription model showed triple-digit growth in Q4, with operating expenses decreasing 34% YoY.
Notable developments include the resignation of COO Qin Wen and Founder/CEO Andy Liu's agreement to subscribe for approximately 101.3M shares, which will increase his ownership to about 40% of the company.
17 Education & Technology Group (NASDAQ: YQ) ha riportato i risultati finanziari del Q4 e dell'anno fiscale 2024. Per il Q4 2024, i ricavi netti sono diminuiti del 22,7% rispetto all'anno precedente, raggiungendo RMB36,6 milioni (US$5,0 milioni), con un margine lordo in calo al 33,6% rispetto al 43,4%. La perdita netta del Q4 è migliorata a RMB63,7 milioni, rispetto a RMB98,4 milioni dell'anno precedente.
Per l'anno fiscale 2024, i ricavi netti sono cresciuti del 10,7% a RMB189,2 milioni (US$25,9 milioni), mentre il margine lordo è diminuito al 36,6% rispetto al 47,2%. La perdita netta annuale è migliorata del 38,1% a RMB192,9 milioni. Il modello di abbonamento SaaS dell'azienda ha mostrato una crescita a tre cifre nel Q4, con le spese operative in calo del 34% rispetto all'anno precedente.
Sviluppi notevoli includono le dimissioni del COO Qin Wen e l'accordo del Fondatore/CEO Andy Liu per sottoscrivere circa 101,3 milioni di azioni, il che aumenterà la sua partecipazione a circa il 40% dell'azienda.
17 Education & Technology Group (NASDAQ: YQ) reportó sus resultados financieros del Q4 y del año fiscal 2024. Para el Q4 2024, los ingresos netos disminuyeron un 22,7% interanual a RMB36,6 millones (US$5,0 millones), con un margen bruto que cayó al 33,6% desde el 43,4%. La pérdida neta del Q4 mejoró a RMB63,7 millones desde RMB98,4 millones interanual.
Para el año fiscal 2024, los ingresos netos crecieron un 10,7% a RMB189,2 millones (US$25,9 millones), mientras que el margen bruto disminuyó al 36,6% desde el 47,2%. La pérdida neta anual mejoró un 38,1% a RMB192,9 millones. El modelo de suscripción SaaS de la compañía mostró un crecimiento de tres cifras en el Q4, con los gastos operativos disminuyendo un 34% interanual.
Desarrollos notables incluyen la renuncia del COO Qin Wen y el acuerdo del Fundador/CEO Andy Liu para suscribir aproximadamente 101,3 millones de acciones, lo que aumentará su propiedad a aproximadamente el 40% de la empresa.
17 Education & Technology Group (NASDAQ: YQ)는 2024년 4분기 및 회계연도 재무 결과를 발표했습니다. 2024년 4분기 동안 순수익은 전년 대비 22.7% 감소하여 RMB36.6백만(미화 5.0백만 달러)에 이르렀으며, 총 마진은 43.4%에서 33.6%로 감소했습니다. 4분기 순손실은 전년 대비 RMB98.4백만에서 RMB63.7백만으로 개선되었습니다.
2024 회계연도 동안 순수익은 RMB189.2백만(미화 25.9백만 달러)로 10.7% 증가했으며, 총 마진은 47.2%에서 36.6%로 감소했습니다. 연간 순손실은 38.1% 개선되어 RMB192.9백만에 달했습니다. 회사의 SaaS 구독 모델은 4분기 동안 세 자리 수 성장률을 기록했으며, 운영비용은 전년 대비 34% 감소했습니다.
주요 발전 사항으로는 COO Qin Wen의 사임과 창립자/CEO Andy Liu가 약 1억 1,300만 주를 구독하기로 합의한 것이 있으며, 이는 그의 소유 지분을 약 40%로 증가시킬 것입니다.
17 Education & Technology Group (NASDAQ: YQ) a publié ses résultats financiers pour le 4ème trimestre et l'exercice 2024. Pour le 4ème trimestre 2024, les revenus nets ont diminué de 22,7 % par rapport à l'année précédente, atteignant 36,6 millions RMB (5,0 millions USD), avec une marge brute en baisse à 33,6 % contre 43,4 %. La perte nette du 4ème trimestre s'est améliorée à 63,7 millions RMB contre 98,4 millions RMB l'année précédente.
Pour l'exercice 2024, les revenus nets ont augmenté de 10,7 % pour atteindre 189,2 millions RMB (25,9 millions USD), tandis que la marge brute a diminué à 36,6 % contre 47,2 %. La perte nette annuelle a été améliorée de 38,1 % pour atteindre 192,9 millions RMB. Le modèle d'abonnement SaaS de l'entreprise a montré une croissance à trois chiffres au 4ème trimestre, avec des dépenses d'exploitation en baisse de 34 % par rapport à l'année précédente.
Parmi les développements notables, on trouve la démission du COO Qin Wen et l'accord du fondateur/PDG Andy Liu pour souscrire environ 101,3 millions d'actions, ce qui augmentera sa participation à environ 40 % de l'entreprise.
17 Education & Technology Group (NASDAQ: YQ) hat seine finanziellen Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 veröffentlicht. Für das 4. Quartal 2024 sanken die Nettoumsätze im Vergleich zum Vorjahr um 22,7% auf RMB36,6 Millionen (US$5,0 Millionen), während die Bruttomarge von 43,4% auf 33,6% fiel. Der Nettoverlust im 4. Quartal verbesserte sich auf RMB63,7 Millionen von RMB98,4 Millionen im Vorjahr.
Für das Geschäftsjahr 2024 stiegen die Nettoumsätze um 10,7% auf RMB189,2 Millionen (US$25,9 Millionen), während die Bruttomarge von 47,2% auf 36,6% sank. Der jährliche Nettoverlust verbesserte sich um 38,1% auf RMB192,9 Millionen. Das SaaS-Abonnementmodell des Unternehmens zeigte im 4. Quartal ein Wachstum im dreistelligen Bereich, während die Betriebskosten im Vergleich zum Vorjahr um 34% sanken.
Bemerkenswerte Entwicklungen sind der Rücktritt von COO Qin Wen und die Vereinbarung des Gründers/CEOs Andy Liu, etwa 101,3 Millionen Aktien zu zeichnen, was seinen Anteil auf etwa 40% des Unternehmens erhöhen wird.
- Annual revenue grew 10.7% YoY to RMB189.2M
- Net loss improved 38.1% YoY to RMB192.9M in FY2024
- SaaS subscription model achieved triple-digit growth in Q4
- Operating expenses decreased by 34% YoY in Q4
- CEO demonstrates confidence through significant share subscription
- Q4 revenue declined 22.7% YoY to RMB36.6M
- Q4 gross margin decreased to 33.6% from 43.4% YoY
- FY2024 gross margin declined to 36.6% from 47.2%
- Resignation of Chief Operating Officer
Insights
17 Education & Technology Group's Q4 and FY2024 results present a mixed but improving financial picture. While Q4 revenues declined 22.7% YoY to
The company's loss position is improving substantially - Q4 net loss narrowed to
Gross margin compression is concerning - Q4 margin fell to
The founder/CEO's share subscription acquiring approximately
BEIJING, March 25, 2025 (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, 2024.
Fourth Quarter 2024 Highlights1
- Net revenues were RMB36.6 million (US
$5.0 million ), compared with net revenues of RMB47.3 million in the fourth quarter of 2023. - Gross margin was
33.6% , compared with43.4% in the fourth quarter of 2023. - Net loss was RMB63.7 million (US
$8.7 million ), compared with net loss of RMB98.4 million in the fourth quarter of 2023. - Net loss as a percentage of net revenues was negative
174.2% in the fourth quarter of 2024, compared with negative207.9% in the fourth quarter of 2023. - Adjusted net loss2 (non-GAAP), which excluded share-based compensation expenses of RMB23.7 million (US
$3.2 million ), was RMB40.1 million (US$5.5 million ), compared with adjusted net loss (non-GAAP) of RMB81.8 million in the fourth quarter of 2023. - Adjusted net loss (non-GAAP) as a percentage of net revenues was negative
109.5% in the fourth quarter of 2024, compared with negative172.8% adjusted net loss (non-GAAP) as a percentage of net revenues in the fourth quarter of 2023.
Fiscal Year 2024 Highlights
- Net revenues were RMB189.2 million (US
$25.9 million ), compared with net revenues of RMB171.0 million in 2023. - Gross margin was
36.6% , compared with47.2% in 2023. - Net loss was RMB192.9 million (US
$26.4 million ), compared with net loss of RMB311.8 million in 2023. - Net loss as a percentage of net revenues was negative
102.0% in 2024, compared with negative182.4% in 2023. - Adjusted net loss (non-GAAP), which excluded share-based compensation expenses of RMB61.9 million (US
$8.5 million ), was RMB131.0 million (US$17.9 million ), compared with adjusted net loss (non-GAAP) of RMB228.1 million in 2023. - Adjusted net loss (non-GAAP) as a percentage of net revenues was negative
69.2% in 2024, compared with negative133.4% of adjusted net loss as a percentage of net revenues in 2023.
| 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, “We managed to deliver strong results with healthy top-line growth of
“As we continue to evolve our products and services, leveraging AI for enhanced automation and user experience, we received encouraging feedback and market recognition from users. Looking ahead, with a strong pipeline of AI-enhanced products and a customer-centric roadmap, we are poised to deliver sustainable growth and industry-leading innovations in the future,” he concluded.
Mr. Michael Du, Director and Chief Financial Officer of the Company commented, “In the fourth quarter, our teaching and learning SaaS offering under subscription model experienced three-digit growth compared to the same quarter last year, bolstered by strong retention rates and multi-year subscription renewals. As we enhance operating efficiency, operating expenses decreased by
Fourth Quarter 2024 Unaudited Financial Results
Net Revenues
Net revenues for the fourth quarter of 2024 were RMB36.6 million (US
Cost of Revenues
Cost of revenues for the fourth quarter of 2024 was RMB24.3 million (US
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2024 was RMB12.3 million (US
Gross margin for the fourth quarter of 2024 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, | ||||||||||||||||||||||||
| 2023 | 2024 | Year- | ||||||||||||||||||||||
| RMB | % | RMB | USD | % | over-year | |||||||||||||||||||
| Sales and marketing expenses | 29,903 | 63.2 | % | 20,183 | 2,765 | 55.2 | % | -32.5 | % | |||||||||||||||
| Research and development expenses | 40,930 | 86.4 | % | 16,969 | 2,325 | 46.4 | % | -58.5 | % | |||||||||||||||
| General and administrative expenses | 52,000 | 109.8 | % | 44,206 | 6,056 | 120.8 | % | -15.0 | % | |||||||||||||||
| Total operating expenses | 122,833 | 259.4 | % | 81,358 | 11,146 | 222.4 | % | -33.8 | % | |||||||||||||||
Total operating expenses for the fourth quarter of 2024 were RMB81.4 million (US
Sales and marketing expenses for the fourth quarter of 2024 were RMB20.2 million (US
Research and development expenses for the fourth quarter of 2024 were RMB17.0 million (US
General and administrative expenses for the fourth quarter of 2024 were RMB44.2 million (US
Loss from Operations
Loss from operations for the fourth quarter of 2024 was RMB69.1 million (US
Net Loss
Net loss for the fourth quarter of 2024 was RMB63.7 million (US
Adjusted Net Loss (non-GAAP)
Adjusted net loss (non-GAAP) for the fourth quarter of 2024 was RMB40.1 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 2024 Unaudited Financial Results
Net Revenues
Net revenues in 2024 were RMB189.2 million (US
Cost of Revenues
Cost of revenues in 2024 was RMB120.0 million (US
Gross Profit and Gross Margin
Gross profit in 2024 was RMB69.2 million (US
Gross margin in 2024 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, | ||||||||||||||||||||||||
| 2023 | 2024 | Year- | ||||||||||||||||||||||
| RMB | % | RMB | USD | % | over-year | |||||||||||||||||||
| Sales and marketing expenses | 101,260 | 59.2 | % | 76,088 | 10,424 | 40.2 | % | -24.9 | % | |||||||||||||||
| Research and development expenses | 167,932 | 98.2 | % | 71,997 | 9,864 | 38.1 | % | -57.1 | % | |||||||||||||||
| General and administrative expenses | 154,261 | 90.2 | % | 134,935 | 18,486 | 71.3 | % | -12.5 | % | |||||||||||||||
| Total operating expenses | 423,453 | 247.6 | % | 283,020 | 38,774 | 149.6 | % | -33.2 | % | |||||||||||||||
Total operating expenses in 2024 were RMB283.0 million (US
Sales and marketing expenses in 2024 were RMB76.1 million (US
Research and development expenses in 2024 were RMB72.0 million (US
General and administrative expenses in 2024 were RMB134.9 million (US
Loss from Operations
Loss from operations in 2024 was RMB213.8 million (US
Net Loss
Net loss in 2024 was RMB192.9 million (US
Adjusted Net Loss (non-GAAP)
Adjusted net loss (non-GAAP) in 2024 was RMB131.0 million (US
Cash and Cash Equivalents, Restricted Cash and Term Deposit
Cash and cash equivalents, restricted cash and term deposit were RMB359.3 million (US
Resignation of Director
Mr. Qin Wen has resigned as a director and Chief Operating Officer of the Company due to personal reasons, effective March 21, 2025. Mr. Wen’s resignation did not result from any disagreement with the Company. Following Mr. Wen’s departure, the remaining six (6) directors, including three (3) independent directors, will continue their services to the board of directors of the Company.
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 on March 25, 2025, pursuant to which the Company proposed to issue, and Mr. Andy Chang Liu proposed to subscribe for 83,093,664 Class B ordinary shares and 18,252,336 Class A 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 Tuesday, March 25, 2025 at 8:00 a.m. U.S. Eastern Time (Tuesday, March 25, 2025 at 8:00 p.m. Beijing time) to discuss the financial results for the fourth quarter of 2024.
Please note that all participants will need to preregister for the conference call participation by navigating to https://register-conf.media-server.com/register/BI45159210a51645e393c476d916c740ca.
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, 2024 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, | |||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 306,929 | 234,144 | 32,078 | |||||||||
| Restricted cash | — | 49 | 7 | |||||||||
| Term deposits | 169,756 | 125,108 | 17,140 | |||||||||
| Accounts receivable | 59,206 | 67,097 | 9,192 | |||||||||
| Prepaid expenses and other current assets | 94,835 | 82,513 | 11,304 | |||||||||
| Total current assets | 630,726 | 508,911 | 69,721 | |||||||||
| Non-current assets | ||||||||||||
| Property and equipment, net | 32,013 | 26,410 | 3,618 | |||||||||
| Right-of-use assets | 20,007 | 11,768 | 1,612 | |||||||||
| Other non-current assets | 1,780 | 2,428 | 333 | |||||||||
| TOTAL ASSETS | 684,526 | 549,517 | 75,284 | |||||||||
| LIABILITIES | ||||||||||||
| Current liabilities | ||||||||||||
| Accrued expenses and other current liabilities | 128,001 | 104,422 | 14,307 | |||||||||
| Deferred revenue and customer advances, current | 44,949 | 40,397 | 5,534 | |||||||||
| Operating lease liabilities, current | 7,647 | 6,798 | 931 | |||||||||
| Total current liabilities | 180,597 | 151,617 | 20,772 | |||||||||
| As of December 31, | As of December 31, | |||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Non-current liabilities | ||||||||||||
| Operating lease liabilities, non-current | 9,660 | 4,261 | 584 | |||||||||
| TOTAL LIABILITIES | 190,257 | 155,878 | 21,356 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Class A ordinary shares | 305 | 241 | 33 | |||||||||
| Class B ordinary shares | 38 | 81 | 11 | |||||||||
| Treasury stock | (97 | ) | (34 | ) | (5 | ) | ||||||
| Additional paid-in capital | 10,987,407 | 11,070,615 | 1,516,668 | |||||||||
| Accumulated other comprehensive income | 77,363 | 86,410 | 11,838 | |||||||||
| Accumulated deficit | (10,570,747 | ) | (10,763,674 | ) | (1,474,617 | ) | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 494,269 | 393,639 | 53,928 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 684,526 | 549,517 | 75,284 | |||||||||
| 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, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net revenues | 47,346 | 36,593 | 5,013 | |||||||||
| Cost of revenues | (26,775 | ) | (24,309 | ) | (3,330 | ) | ||||||
| Gross profit | 20,571 | 12,284 | 1,683 | |||||||||
| Operating expenses (Note 1) | ||||||||||||
| Sales and marketing expenses | (29,903 | ) | (20,183 | ) | (2,765 | ) | ||||||
| Research and development expenses | (40,930 | ) | (16,969 | ) | (2,325 | ) | ||||||
| General and administrative expenses | (52,000 | ) | (44,206 | ) | (6,056 | ) | ||||||
| Total operating expenses | (122,833 | ) | (81,358 | ) | (11,146 | ) | ||||||
| Loss from operations | (102,262 | ) | (69,074 | ) | (9,463 | ) | ||||||
| Interest income | 5,805 | 2,899 | 397 | |||||||||
| Foreign currency exchange (loss) gain | (873 | ) | 620 | 85 | ||||||||
| Other (expenses) income, net | (1,111 | ) | 1,807 | 248 | ||||||||
| Loss before provision for income tax and income from equity method investments | (98,441 | ) | (63,748 | ) | (8,733 | ) | ||||||
| Income tax expenses | — | — | — | |||||||||
| Net loss | (98,441 | ) | (63,748 | ) | (8,733 | ) | ||||||
| Net loss available to ordinary shareholders of 17 | ||||||||||||
| Education & Technology Group Inc. | (98,441 | ) | (63,748 | ) | (8,733 | ) | ||||||
| Net loss per ordinary share | ||||||||||||
| Basic and diluted | (0.23 | ) | (0.15 | ) | (0.02 | ) | ||||||
| Net loss per ADS (Note 2) | ||||||||||||
| Basic and diluted | (11.50 | ) | (7.50 | ) | (1.00 | ) | ||||||
| Weighted average shares used in calculating net loss per ordinary share | ||||||||||||
| Basic and diluted | 434,815,360 | 433,337,710 | 433,337,710 | |||||||||
| Note 1: Share-based compensation expenses were included in the operating expenses as follows: | ||||||||||||
| For the three months ended December 31, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Share-based compensation expenses: | ||||||||||||
| Sales and marketing expenses | 2,906 | 4,271 | 585 | |||||||||
| Research and development expenses | 6,034 | 3,879 | 531 | |||||||||
| General and administrative expenses | 7,706 | 15,519 | 2,126 | |||||||||
| Total | 16,646 | 23,669 | 3,242 | |||||||||
| 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, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net Loss | (98,441 | ) | (63,748 | ) | (8,733 | ) | ||||||
| Share-based compensation | 16,646 | 23,669 | 3,242 | |||||||||
| Income tax effect | — | — | — | |||||||||
| Adjusted net loss | (81,795 | ) | (40,079 | ) | (5,491 | ) | ||||||
| 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, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net revenues | 170,962 | 189,212 | 25,922 | |||||||||
| Cost of revenues | (90,259 | ) | (120,004 | ) | (16,440 | ) | ||||||
| Gross profit | 80,703 | 69,208 | 9,482 | |||||||||
| Operating expenses (Note 1) | ||||||||||||
| Sales and marketing expenses | (101,260 | ) | (76,088 | ) | (10,424 | ) | ||||||
| Research and development expenses | (167,932 | ) | (71,997 | ) | (9,864 | ) | ||||||
| General and administrative expenses | (154,261 | ) | (134,935 | ) | (18,486 | ) | ||||||
| Total operating expenses | (423,453 | ) | (283,020 | ) | (38,774 | ) | ||||||
| Loss from operations | (342,750 | ) | (213,812 | ) | (29,292 | ) | ||||||
| Interest income | 27,811 | 16,260 | 2,228 | |||||||||
| Foreign currency exchange (loss) gain | (801 | ) | 226 | 31 | ||||||||
| Other income, net | 3,958 | 4,399 | 603 | |||||||||
| Loss before provision for income tax and income from equity method investments | (311,782 | ) | (192,927 | ) | (26,430 | ) | ||||||
| Income tax expenses | — | — | — | |||||||||
| Net loss | (311,782 | ) | (192,927 | ) | (26,430 | ) | ||||||
| Net loss available to ordinary shareholders of 17 | ||||||||||||
| Education & Technology Group Inc. | (311,782 | ) | (192,927 | ) | (26,430 | ) | ||||||
| Net loss per ordinary share | ||||||||||||
| Basic and diluted | (0.68 | ) | (0.48 | ) | (0.07 | ) | ||||||
| Net loss per ADS (Note 2) | ||||||||||||
| Basic and diluted | (34.00 | ) | (24.00 | ) | (3.50 | ) | ||||||
| Weighted average shares used in calculating net loss per ordinary share | ||||||||||||
| Basic and diluted | 458,636,327 | 401,923,200 | 401,923,200 | |||||||||
| Note 1: Share-based compensation expenses were included in the operating expenses as follows: | ||||||||||||
| For the year ended December 31, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Share-based compensation expenses: | ||||||||||||
| Sales and marketing expenses | 17,243 | 10,204 | 1,398 | |||||||||
| Research and development expenses | 26,954 | 14,656 | 2,008 | |||||||||
| General and administrative expenses | 39,498 | 37,057 | 5,077 | |||||||||
| Total | 83,695 | 61,917 | 8,483 | |||||||||
| 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, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Net Loss | (311,782 | ) | (192,927 | ) | (26,430 | ) | ||||||
| Share-based compensation | 83,695 | 61,917 | 8,483 | |||||||||
| Income tax effect | — | — | — | |||||||||
| Adjusted net loss | (228,087 | ) | (131,010 | ) | (17,947 | ) | ||||||
FAQ
What were YQ's Q4 2024 revenue and net loss figures?
How did YQ's full-year 2024 performance compare to 2023?
What is the significance of CEO Andy Liu's share subscription in YQ?
How did YQ's SaaS subscription model perform in Q4 2024?
