On December 13th, Quantum Song (NASDAQ: QSG) released its unaudited financial results for the first quarter of the 2024 fiscal year ("Q1 2024" covers the period from July 1, 2023 to September 30, 2023). Data shows that Quantum Song's quarterly revenue and adjusted net profit both reached historic highs, with a cumulative registered user count exceeding 100 million, entering a long-term growth period.
The cumulative number of registered users has exceeded 100 million
According to financial report data, Quantum Song's operating revenue in the first quarter of fiscal year 2024 reached 869 million yuan, a year-on-year increase of 31.8%. The adjusted net profit in the first quarter was 93.966 million yuan, with both quarterly revenue and adjusted net profit reaching historical highs.
Industry insiders analyze that this is due to the rapid development of the personal interest learning market, and the Chinese adult learning market has entered a long-term growth period. Frost&Sullivan's previously released "China Adult Learning Market Industry Report" showed that the size of China's adult learning market is showing a continuous upward trend. In 2022, the market size has reached 576 billion yuan, and it is expected to reach 1.04 trillion yuan by 2027, with a compound growth rate of 12.6%.
According to the financial report data of Quantum Song, the revenue of personal online learning services in the first quarter of fiscal year 2024 increased by 29.2% year-on-year, reaching 756 million yuan. Among them, the revenue from personal online interest learning services increased by 293 million yuan year-on-year.
In the future, in the process of accelerating the construction of a learning society, policy orientation is to support the acceleration of building a networked, digital, personalized, and lifelong education system, which will accelerate the release of the huge potential of the personal interest learning market. This will be beneficial for online learning and training enterprises with a first mover advantage and brand effect to grow and strengthen.
It is worth noting that the cumulative registered users of the entire brand of Quantum Song have exceeded 100 million. According to financial report data, as of September 30, 2023, the cumulative number of registered users reached 103 million, a year-on-year increase of 51.9%. This will help to solidify the foundation of performance growth.
Continuously optimizing business structure
The market space is large, and competition is becoming increasingly fierce. Behind the strong growth of Quantum Song's performance is the continuous improvement of its diversified curriculum system layout and the upgrading of its service experience. By continuously optimizing the business structure and reducing dependence on single channel revenue, the group's business distribution is more balanced and reasonable, and its systematic collaborative combat capabilities are reflected.
Li Peng, founder, chairman, and CEO of Quantum Song Group, stated that Quantum Song focuses on further improving course quality and service experience, and organizes influential offline activities, effectively enhancing user engagement and increasing registered and paying users.
In today's rapidly changing artificial intelligence technology, "AI+education" has also become a major trend in the industry's development. Many online education and training institutions are investing in technology research and development to strengthen the application of AI technology. Quantum Song has taken the lead in updating and upgrading internal infrastructure such as AI and big data, and has increased deployment in data security systems, intelligent compliance and internal control systems, and intelligent chemical worker service platforms. With efficient market response and execution capabilities, it maintains a good competitive position in the market.
Li Peng stated that Quantum Song will continue to improve operational efficiency through artificial intelligence technology, firmly adhere to the mission of improving quality of life through lifelong learning, and create value for shareholders and users.
Continuously focusing on "interest based learning"
Deepening personal interests through online learning is the strategic layout of Quantum Song, as well as its core area of consolidating fundamentals and building a "moat". Quantum Song stated that in the future, it will continue to focus on the development of personal interests in the field of online learning. By continuously deepening the underlying technology, improving the digital and intelligent construction of the platform, expanding the service scope of diversified curriculum systems, providing industry-leading high-quality online learning services for users, and helping to promote the high-quality development of China's adult online learning market.
It is worth mentioning that with the acceleration of the aging society, the demand for interest in learning among middle-aged and elderly people has surged, expanding the incremental market space. According to an organic report, in the digital age, middle-aged and elderly people actively embrace the Internet and choose to learn and purchase interest courses through online channels. At present, online interest education for middle-aged and elderly people is still in its early stages of development, showing characteristics such as high demand and low supply, low market competition, large market space, and broad prospects. It is a blue ocean market with broad opportunities.
In response to this, the brand "Qianchi School" under the Quantum Song actively understands the interests, needs, and learning abilities of middle-aged and elderly people, and provides refined, professional, and diversified teaching services for them through live streaming, community, and online and offline integration (OMO) teaching methods to cater to their personal interests.
Industry insiders believe that relevant online learning institutions need to focus on the practical needs of the middle-aged and elderly population, provide high-quality course categories that match them, and build teaching scenarios and service systems with strong social attributes and emotional value in order to achieve strong business growth.