GSX Techedu Inc. (NASDAQ: GOTU) stock raised by 4.72% at last close whereas the GOTU stock price declines by 14.44% in the pre-market trading session. GSX Techedu is a prominent online K-12 large-class after-school tutoring services company in China and a technology-driven education firm. GOTU provides Gaotu K12, which covers all primary and secondary grades, as well as Gaotu Professional, which includes foreign language, professional, and entrance courses.
Q1 2021 Highlights
GSX Techedu I has announced its first quarter 2021 financial results, today. Given below is the summary:
- Net revenues increased by 49.5 percent year over year to RMB1,940.3 million. Online K-12 course net sales climbed 62.2 percent year over year to RMB1,816.3 million.
- Gross billings were RMB1,181.3 million, down from RMB1,374.4 million in the same quarter of 2020, a decrease of 14.0 percent. Gross billings for online K-12 courses were RMB 1,002.6 million, down 8.1 percent from RMB 1,090.6 million in the same period of 2020.
- For Q1 2021 paid course enrollments were 767 thousand, down 0.9 percent from 774 thousand in Q1 2020. Paid online K-12 course enrollments were 632 thousand, down 2.3 percent from 647 thousand in the same quarter of 2020.
- For Q1 2021, GOTU made a net loss of RMB 1,425.9 million, relative to a net profit of RMB 148.0 million in Q1 2020.
- For the first quarter 2021, non-GAAP net loss was RMB 1,329.4 million, compared to non-GAAP net gain of RMB190.7 million in the same time frame of 2020.
- Deferred revenue was RMB 1,896.5 million, relative to RMB 2,733.7 million for the previous year.
Total net revenues for the second quarter of 2021 are estimated to be between RMB 2,140 million and RMB 2,158 million, up 30 percent to 31 percent year over year, according to GOTU’s current forecasts. These projections are based on GOTU’s present expectations, which may change.