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17 Education & Technology Group Inc. Announces Third Quarter 2024 Unaudited Financial Results

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17 Education & Technology Group (NASDAQ: YQ) reported its Q3 2024 financial results, showing significant improvements. Net revenues increased 32.2% year-over-year to RMB59.6 million (US$8.5 million). The company's gross margin improved to 60.9% from 54.1% in Q3 2023. Net loss narrowed substantially to RMB17.4 million (US$2.5 million) compared to RMB72.9 million in the same period last year.

The company's teaching and learning SaaS business showed consistent growth in school subscriptions, with operating expenses decreasing by 43.7% year-over-year. Cash and cash equivalents stood at RMB339.7 million (US$48.4 million) as of September 30, 2024.

Il 17 Education & Technology Group (NASDAQ: YQ) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando miglioramenti significativi. I ricavi netti sono aumentati del 32,2% rispetto all'anno precedente, raggiungendo 59,6 milioni di RMB (8,5 milioni di dollari USA). Il margine lordo della società è migliorato al 60,9% rispetto al 54,1% del terzo trimestre 2023. La perdita netta si è notevolmente ridotta a 17,4 milioni di RMB (2,5 milioni di dollari USA) rispetto ai 72,9 milioni di RMB nello stesso periodo dell'anno scorso.

Il business SaaS di insegnamento e apprendimento della società ha mostrato una crescita costante nelle sottoscrizioni scolastiche, con le spese operative diminuite del 43,7% rispetto all'anno precedente. La liquidità e i mezzi equivalenti ammontavano a 339,7 milioni di RMB (48,4 milioni di dollari USA) al 30 settembre 2024.

17 Education & Technology Group (NASDAQ: YQ) informó sobre sus resultados financieros del tercer trimestre de 2024, mostrando mejoras significativas. Los ingresos netos aumentaron un 32,2% interanual a 59,6 millones de RMB (8,5 millones de dólares estadounidenses). El margen bruto de la empresa mejoró al 60,9% desde el 54,1% en el tercer trimestre de 2023. La pérdida neta se redujo considerablemente a 17,4 millones de RMB (2,5 millones de dólares estadounidenses) en comparación con los 72,9 millones de RMB en el mismo período del año anterior.

El negocio SaaS de enseñanza y aprendizaje de la compañía mostró un crecimiento constante en las suscripciones escolares, con los gastos operativos disminuyendo en un 43,7% interanual. El efectivo y equivalentes de efectivo se situaron en 339,7 millones de RMB (48,4 millones de dólares estadounidenses) al 30 de septiembre de 2024.

17 Education & Technology Group (NASDAQ: YQ)은 2024년 3분기 재무 결과를 보고하며 상당한 개선 사항을 보여주었습니다. 순수익은 전년 대비 32.2% 증가하여 5960만 RMB (850만 달러)에 이르렀습니다. 회사의 총 마진은 54.1%에서 60.9%로 개선되었습니다. 순손실은 지난해 같은 기간의 7290만 RMB에 비해 1740만 RMB (250만 달러)로 상당히 줄어들었습니다.

회사의 교육 및 학습 SaaS 사업은 학교 구독에서 지속적인 성장을 보였으며, 운영 비용은 전년 대비 43.7% 감소했습니다. 현금 및 현금성 자산은 2024년 9월 30일 기준으로 3억3970만 RMB (4840만 달러)에 달했습니다.

17 Education & Technology Group (NASDAQ: YQ) a annoncé ses résultats financiers pour le troisième trimestre 2024, montrant des améliorations significatives. Les revenus nets ont augmenté de 32,2 % par rapport à l'année précédente, atteignant 59,6 millions de RMB (8,5 millions de dollars américains). La marge brute de l'entreprise s'est améliorée, passant de 54,1 % au troisième trimestre 2023 à 60,9 %. La perte nette s'est nettement réduite à 17,4 millions de RMB (2,5 millions de dollars américains) par rapport aux 72,9 millions de RMB de l'année précédente à la même période.

Le secteur SaaS d'enseignement et d'apprentissage de l'entreprise montre une croissance constante des abonnements scolaires, avec des dépenses opérationnelles ayant diminué de 43,7 % par rapport à l'année précédente. La liquidité et les équivalents de liquidités se sont établis à 339,7 millions de RMB (48,4 millions de dollars américains) au 30 septembre 2024.

Die 17 Education & Technology Group (NASDAQ: YQ) berichtete über ihre Finanzzahlen für das dritte Quartal 2024 und zeigte erhebliche Verbesserungen. Die Nettoerlöse stiegen im Jahresvergleich um 32,2 % auf 59,6 Millionen RMB (8,5 Millionen US-Dollar). Die Bruttomarge des Unternehmens verbesserte sich von 54,1 % im dritten Quartal 2023 auf 60,9 %. Der Nettoverlust verringerte sich erheblich auf 17,4 Millionen RMB (2,5 Millionen US-Dollar) im Vergleich zu 72,9 Millionen RMB im gleichen Zeitraum des Vorjahres.

Das SaaS-Geschäft für Lehren und Lernen des Unternehmens zeigte ein stetiges Wachstum bei den Schulabonnements, während die Betriebskosten im Jahresvergleich um 43,7 % sanken. Die liquiden Mittel beliefen sich am 30. September 2024 auf 339,7 Millionen RMB (48,4 Millionen US-Dollar).

Positive
  • Net revenues increased 32.2% YoY to RMB59.6 million
  • Gross margin improved to 60.9% from 54.1% YoY
  • Net loss narrowed by 76.1% to RMB17.4 million
  • Operating expenses reduced by 43.7% YoY
  • Growth in teaching and learning SaaS subscriptions
Negative
  • Overall net loss of RMB17.4 million in Q3 2024
  • Cash position decreased to RMB339.7 million from RMB476.7 million in December 2023
  • Nine-month gross margin declined to 37.3% from 48.6% YoY

Insights

17EdTech shows notable improvement in Q3 2024 with net revenues up 32.2% to RMB59.6 million. The gross margin expanded to 60.9% from 54.1% YoY, while net loss narrowed significantly to RMB17.4 million from RMB72.9 million. Operating efficiency gains are evident with total operating expenses down 43.7%. The company's SaaS business model is maturing, driving recurring revenue growth. However, cash position declined to RMB339.7 million from RMB476.7 million since December 2023, indicating ongoing cash burn despite improvements. The reduced losses and growing SaaS revenues suggest a path toward profitability, though sustained execution will be crucial.

The strategic pivot to a teaching and learning SaaS subscription model is showing positive results. The outpacing growth rate of SaaS billings compared to overall revenue indicates strong product-market fit and improving monetization. The 72.2% reduction in R&D expenses to RMB12.8 million suggests the core platform has matured, requiring less development investment. The focus on school-based procurement provides a more stable revenue base compared to consumer-focused models. The improved operating metrics and growing subscriber base demonstrate successful adaptation to China's educational technology regulatory environment.

BEIJING, Dec. 12, 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 third quarter of 2024.

Third Quarter 2024 Highlights1

  • Net revenues were RMB59.6 million (US$8.5 million), compared with net revenues of RMB45.1 million in the third quarter of 2023.
  • Gross margin was 60.9%, compared with 54.1% in the third quarter of 2023.
  • Net loss was RMB17.4 million (US$2.5 million), compared with net loss of RMB72.9 million in the third quarter of 2023.
  • Net loss as a percentage of net revenues was negative 29.2% in the third quarter of 2024, compared with negative 161.6% in the third quarter of 2023.
  • Adjusted net loss2 (non-GAAP), which excluded share-based compensation expenses of RMB11.7 million (US$1.7 million), was RMB5.7 million (US$0.8 million), compared with adjusted net loss (non-GAAP) of RMB53.7 million in the third quarter of 2023.
  • Adjusted net loss (non-GAAP) as a percentage of net revenues was negative 9.5% in the third quarter of 2024, compared with negative 119.1% adjusted net loss (non-GAAP) as a percentage of net revenues in the third quarter of 2023.

First Nine Months 2024 Highlights

  • Net revenues were RMB152.6 million (US$21.7 million), compared with net revenues of RMB123.6 million in the first nine months of 2023.
  • Gross margin was 37.3%, compared with 48.6% in the first nine months of 2023.
  • Net loss was RMB129.2 million (US$18.4 million), compared with net loss of RMB213.3 million in the first nine months of 2023.
  • Net loss as a percentage of net revenues was negative 84.6% in the first nine months of 2024, compared with negative 172.6% in the first nine months of 2023.
  • Adjusted net loss (non-GAAP), which excluded share-based compensation expenses of RMB38.2 million (US$5.5 million), was RMB90.9 million (US$13.0 million), compared with adjusted net loss (non-GAAP) of RMB146.3 million in the first nine months of 2023.
  • Adjusted net loss (non-GAAP) as a percentage of net revenues was negative 59.6% in the first nine months of 2024, compared with negative 118.3% of adjusted net loss (non-GAAP) as a percentage of net revenues in the first nine months of 2023.
    
1For 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.
2Adjusted net loss represents net loss excluding share-based compensation expenses.


Mr. Andy Liu, Founder, Chairman and Chief Executive Officer of the Company commented, “In the third quarter of 2024, we have continued our business progress and have seen consistent growth in school subscribing to our teaching and learning SaaS offerings under subscription model. This is a strong testimony in the value of our offerings and creates a clear growth path into the future.”

“We continue to evolve our teaching and learning SaaS solutions and expand customer base to improve efficiency through digital means, ensuring high-quality development and fostering growth in the school-based procurement,” he added.

Mr. Michael Du, Director and Chief Financial Officer of the Company commented, “During the quarter, our teaching and learning SaaS business saw revenue growth compared to the same quarter last year. As we enhance operating efficiency, net loss on a GAAP basis continued to narrow for the past three consecutive quarters. As our SaaS billing model is maturing, we achieved significant progress with a remarkable growth rate that outpaces the overall revenue growth.”

Third Quarter 2024 Unaudited Financial Results

Net Revenues

Net revenues for the third quarter of 2024 were RMB59.6 million (US$8.5 million), representing a year-over-year increase of 32.2% from RMB 45.1 million in the third quarter of 2023. This was mainly due to the increased number of teaching and learning SaaS contracts and the recurring revenue generated from on-going projects.

Cost of Revenues

Cost of revenues for the third quarter of 2024 was RMB23.3 million (US$3.3 million), representing a year-over-year increase of 12.5% from RMB20.7 million in the third quarter of 2023, which was mainly due to the increase in project deliveries for our teaching and learning SaaS offerings during the quarter.

Gross Profit and Gross Margin

Gross profit for the third quarter of 2024 was RMB36.3 million (US$5.2 million), compared with RMB24.4 million in the third quarter of 2023.

Gross margin for the third quarter of 2024 was 60.9%, compared with 54.1% in the third quarter of 2023.

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 September 30, 
  2023  2024     Year- 
  RMB  %  RMB  USD  %  over-year 
Sales and marketing expenses  27,948   62.0%  20,244   2,885   34.0%  -27.6%
Research and development expenses  45,933   101.9%  12,789   1,822   21.4%  -72.2%
General and administrative expenses  29,177   64.7%  24,950   3,555   41.8%  -14.5%
Total operating expenses  103,058   228.6%  57,983   8,262   97.2%  -43.7%


Total operating expenses for the third quarter of 2024 were RMB58.0 million (US$8.3 million), including RMB11.7 million (US$1.7 million) of share-based compensation expenses, representing a year-over-year decrease of 43.7% from RMB103.1 million in the third quarter of 2023.

Sales and marketing expenses for the third quarter of 2024 were RMB20.2 million (US$2.9 million), including RMB1.9 million (US$0.3 million) of share-based compensation expenses, representing a year-over-year decrease of 27.6% from RMB27.9 million in the third quarter of 2023. This was mainly due to the decrease in the share-based compensation and efficiency improvements in marketing and sales work force and expenses compared with the same period last year.

Research and development expenses for the third quarter of 2024 were RMB12.8 million (US$1.8 million), including RMB3.5 million (US$0.5 million) of share-based compensation expenses, representing a year-over-year decrease of 72.2% from RMB45.9 million in the third quarter of 2023. The decrease was primarily due to the decrease in the share-based compensation and efficiency improvements in our research and development work force and expenses.

General and administrative expenses for the third quarter of 2024 were RMB25.0 million (US$3.6 million), including RMB6.4 million (US$0.9 million) of share-based compensation expenses, compared with RMB29.2 million in the third quarter of 2023. This was mainly due to the decrease in the office and professional service fees compared with the same period last year.

Loss from Operations

Loss from operations for the third quarter of 2024 was RMB21.6 million (US$3.1 million), compared with RMB78.7 million in the third quarter of 2023. Loss from operations as a percentage of net revenues for the third quarter of 2024 was negative 36.3%, compared with negative 174.4% in the third quarter of 2023.

Net Loss

Net loss for the third quarter of 2024 was RMB17.4 million (US$2.5 million), compared with net loss of RMB72.9 million in the third quarter of 2023. Net loss as a percentage of net revenues was negative 29.2% in the third quarter of 2024, compared with negative 161.6% in the third quarter of 2023.

Adjusted Net Loss (non-GAAP)

Adjusted net loss (non-GAAP) for the third quarter of 2024 was RMB5.7 million (US$0.8 million), compared with adjusted net loss (non-GAAP) of RMB53.7 million in the third quarter of 2023. Adjusted net loss (non-GAAP) as a percentage of net revenues was negative 9.5% in the third quarter of 2024, compared with negative 119.1% of adjusted net loss (non-GAAP) as a percentage of net revenues in the third quarter of 2023.

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 loss (non-GAAP).

Cash and Cash Equivalents and Term Deposit

Cash and cash equivalents and term deposit were RMB339.7 million (US$48.4 million) as of September 30, 2024, compared with RMB476.7 million as of December 31, 2023.

Conference Call Information

The Company will hold a conference call on Wednesday, December 11, 2024 at 8:00 p.m. U.S. Eastern Time (Thursday, December 12, 2024 at 9:00 a.m. Beijing time) to discuss the financial results for the third quarter of 2024.

Please note that all participants will need to preregister for the conference call participation by navigating to https://register.vevent.com/register/BIcb0cb8cc902d426b9cbd52d075f15685.

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 ended September 30, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0176 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on September 30, 2024. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on September 30, 2024, or at any other rate.

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 September 30, 
  2023  2024  2024 
  RMB  RMB  USD 
ASSETS         
Current assets         
Cash and cash equivalents  306,929   280,180   39,925 
Term deposits  169,756   59,497   8,478 
Accounts receivable  59,206   70,397   10,031 
Prepaid expenses and other current assets  94,835   96,793   13,793 
Total current assets  630,726   506,867   72,227 
Non-current assets         
Property and equipment, net  32,013   28,385   4,045 
Right-of-use assets  20,007   17,656   2,516 
Other non-current assets  1,780   2,803   399 
TOTAL ASSETS  684,526   555,711   79,187 
LIABILITIES         
Current liabilities         
Accrued expenses and other current liabilities  128,001   98,880   14,090 
Deferred revenue and customer advances, current  44,949   38,192   5,442 
Operating lease liabilities, current  7,647   7,579   1,080 
Total current liabilities  180,597   144,651   20,612 


      
  As of
December 31,
  As of September 30,
  2023  2024   2024 
  RMB  RMB  USD
Non-current liabilities        
Operating lease liabilities, non-current  9,660   9,217    1,313 
TOTAL LIABILITIES  190,257   153,868    21,925 
SHAREHOLDERS' EQUITY        
Class A ordinary shares  305   304    43 
Class B ordinary shares  38   38    5 
Treasury stock  (97)  (98)   (14)
Additional paid-in capital  10,987,407   11,025,756    1,571,158 
Accumulated other comprehensive income  77,363   75,769    10,797 
Accumulated deficit  (10,570,747)  (10,699,926)   (1,524,727)
TOTAL SHAREHOLDERS' EQUITY  494,269   401,843    57,262 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  684,526   555,711    79,187 


 
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 September 30,
  2023  2024   2024 
  RMB  RMB  USD
Net revenues  45,097   59,627    8,497 
Cost of revenues  (20,708)  (23,289)   (3,319)
Gross profit  24,389   36,338    5,178 
Operating expenses (Note 1)        
Sales and marketing expenses  (27,948)  (20,244)   (2,885)
Research and development expenses  (45,933)  (12,789)   (1,822)
General and administrative expenses  (29,177)  (24,950)   (3,555)
Total operating expenses  (103,058)  (57,983)   (8,262 )
Loss from operations  (78,669)  (21,645 )   (3,084 )
Interest income  6,163   3,835    546 
Foreign currency exchange loss  (89)  (638)   (91)
Other (loss) income, net  (282)  1,047    149 
Loss before provision for income tax and income from
equity method investments
  (72,877)  (17,401 )   (2,480 )
Income tax expenses          
Loss from equity method investments  (1)       
Net loss  (72,878)  (17,401 )   (2,480 )
Net loss available to ordinary shareholders of 17  (72,878)  (17,401 )   (2,480 )
Education & Technology Group Inc.        
Net loss per ordinary share        
Basic and diluted  (0.17)  (0.04)   (0.01)
Net loss per ADS (Note 2)        
Basic and diluted  (8.50)  (2.00)   (0.50)
Weighted average shares used in calculating net loss per
ordinary share
        
Basic and diluted  435,674,849   387,922,097    387,922,097 
         
Note 1: Share-based compensation expenses were included in the operating expenses as follows:
         
  For the three months ended September 30,
  2023  2024   2024 
  RMB  RMB  USD
Share-based compensation expenses:        
Sales and marketing expenses  4,380   1,868    266 
Research and development expenses  7,086   3,450    492 
General and administrative expenses  7,714   6,430    916 
Total  19,180   11,748    1,674 
         
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 September 30, 
  2023  2024  2024 
  RMB  RMB  USD 
Net Loss  (72,878)  (17,401)  (2,480)
Share-based compensation  19,180   11,748   1,674 
Income tax effect         
Adjusted net loss  (53,698)  (5,653)  (806)


  
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 nine months ended September 30, 
  2023  2024  2024 
  RMB  RMB  USD 
Net revenues  123,616   152,619   21,748 
Cost of revenues  (63,484)  (95,695)  (13,636)
Gross profit  60,132   56,924   8,112 
Operating expenses (Note 1)         
Sales and marketing expenses  (71,357)  (55,905)  (7,966)
Research and development expenses  (127,002)  (55,028)  (7,841)
General and administrative expenses  (102,263)  (90,729)  (12,929)
Total operating expenses  (300,622)  (201,662)  (28,736)
Loss from operations  (240,490)  (144,738)  (20,624)
Interest income  22,006   13,361   1,904 
Foreign currency exchange gain (loss)  72   (394)  (56)
Other income, net  5,069   2,592   369 
Loss before provision for income tax and income from
equity method investments
  (213,343)  (129,179)  (18,407)
Income tax expenses         
Income from equity method investments  2       
Net loss  (213,341)  (129,179)  (18,407)
Net loss available to ordinary shareholders of 17  (213,341)  (129,179)  (18,407)
Education & Technology Group Inc.         
Net loss per ordinary share         
Basic and diluted  (0.46)  (0.33)  (0.05)
Net loss per ADS (Note 2)         
Basic and diluted  (23.00)  (16.50)  (2.50)
Weighted average shares used in calculating net loss per
ordinary share
         
Basic and diluted  466,663,905   387,825,526   387,825,526 
          
Note 1: Share-based compensation expenses were included in the operating expenses as follows: 
          
  For the nine months ended September 30, 
  2023  2024  2024 
  RMB  RMB  USD 
Share-based compensation expenses:         
Sales and marketing expenses  14,337   5,933   845 
Research and development expenses  20,920   10,777   1,536 
General and administrative expenses  31,792   21,538   3,069 
Total  67,049   38,248   5,450 
          
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 nine months ended September 30, 
  2023  2024  2024 
  RMB  RMB  USD 
Net Loss  (213,341)  (129,179)  (18,407)
Share-based compensation  67,049   38,248   5,450 
Income tax effect         
Adjusted net loss  (146,292)  (90,931)  (12,957)

FAQ

What was YQ's revenue growth in Q3 2024?

YQ's revenue grew 32.2% year-over-year to RMB59.6 million (US$8.5 million) in Q3 2024, up from RMB45.1 million in Q3 2023.

How much did YQ reduce its net loss in Q3 2024?

YQ reduced its net loss to RMB17.4 million (US$2.5 million) in Q3 2024, down from RMB72.9 million in Q3 2023, representing a 76.1% improvement.

What was YQ's gross margin in Q3 2024?

YQ's gross margin in Q3 2024 was 60.9%, an improvement from 54.1% in Q3 2023.

How much cash does YQ have as of September 30, 2024?

YQ reported cash and cash equivalents of RMB339.7 million (US$48.4 million) as of September 30, 2024.

What was YQ's operating expense reduction in Q3 2024?

YQ's total operating expenses decreased by 43.7% year-over-year to RMB58.0 million in Q3 2024.

17 Education & Technology Group Inc. American Depositary Shares

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12.59M
7.03M
10.98%
7.83%
0.11%
Education & Training Services
Consumer Defensive
Link
United States of America
Beijing