On December 4th, Gaotu Education Technology Group Co., Ltd. (NYSE: GOTU) released its unaudited financial results for the third quarter ended September 30, 2024.
In the third quarter of 2024, Gaotu Education's net revenue was 1.2083 billion yuan, a year-on-year increase of 53.1%; The net loss was 471.3 million yuan, a decrease of 18.3% compared to the same period in 2023. The net operating cash outflow was 714.4 million yuan, and the net operating cash outflow for the same period in 2023 was 209.9 million yuan.
In the first three quarters of this year, Gaotu Education's net revenue was 3.1649 trillion yuan, a year-on-year increase of 43.9%; The net loss was 913.1 million yuan, while the net profit for the same period in 2023 was 112.4 million yuan. In the first three quarters of this year, Gaotu received a total of 3.452 billion yuan in cash from the sale of course products. As of September 30th, Gaotu Education's total cash and cash equivalents, restricted cash, short-term and long-term investments amounted to 3.31 billion yuan.
Chen Xiangdong, founder, chairman, and CEO of Gaotu Education, said, "In the last quarter, with the rapid expansion of our business and the gradual expansion of our product matrix, we increased our investment, particularly focusing on upgrading our education system, enhancing organizational capabilities, and improving management practices. We also strengthened our efforts in talent development and professional training, providing our team with the skills needed to navigate dynamic business environments and improve operational efficiency
Gaotu Education has suffered losses for five consecutive quarters. The company's Chief Financial Officer, Shen Nan, said, "In the last quarter, we utilized strong market demand during the summer vacation to generate a total cash flow of 1.069 billion yuan from the sale of course products amidst rapid business growth, which drove significant growth in student enrollment rates and market share. In the third quarter, our revenue increased by 53.1% year-on-year and continued to grow by approximately 10 percentage points. As of September 30, 2024, our deferred income balance increased by 89.0% year-on-year, exceeding 1.4 billion yuan. Looking ahead, we expect revenue growth to peak in the fourth quarter, further consolidating our leading position in the market and laying a solid foundation for future growth
Gaotu Education expects its net revenue for the fourth quarter of 2024 to be between 1.288 billion yuan and 1.308 billion yuan, a year-on-year increase of 69.2% to 71.9%.