On December 11, 2024 Eastern Time, Education and Technology Group Corporation (Nasdaq: YQ), which provides K-12 on campus classroom solutions, released unaudited financial results for the third quarter of 2024.
In the third quarter of this year, the net income from educational technology was 59.6 million yuan (8.5 million US dollars), a year-on-year increase of 32.2%; The gross profit is 36.3 million RMB (5.2 million USD), with a gross profit margin of 60.9%; The net loss was RMB 17.4 million (USD 2.5 million), a significant decrease of RMB 55.5 million compared to the same period last year,
In the first nine months of this year, the net income from educational technology was 152.6 million yuan (21.7 million US dollars), a year-on-year increase of 23.4%; The gross profit margin was 37.3%, with a net loss of RMB 129.2 million (USD 18.4 million), narrowing for three consecutive quarters. The net loss for the same period last year was RMB 213.3 million. As of September 30, 2024, cash and cash equivalents, as well as term deposits, amounted to 339.7 million RMB (48.4 million USD).
On September 4, 2024, the company's board of directors approved a stock repurchase plan, under which the company is authorized to repurchase up to $10 million worth of common stock (including in the form of American Depositary Shares) within 12 months starting from September 4, 2024.
The proposed repurchase by the company may be conducted from time to time on the public market at current market prices, private negotiated transactions, lump sum transactions, and/or through other legally permitted means, depending on market conditions and applicable rules and regulations. The board of directors will regularly review the stock repurchase plan and may authorize adjustments to its terms and size. The company hopes to provide funding for the repurchase from its existing cash balance.
In the third quarter of 2024, the total operating expenses of educational technology decreased by 43.7% year-on-year. Among them, the company's research and development expenses amounted to 12.8 million yuan (1.8 million US dollars), including 3.5 million yuan (500000 US dollars) of stock based compensation expenses, a year-on-year decrease of 72.2%. The decrease is mainly due to a reduction in stock based compensation and an increase in the efficiency of research and development labor and expenses. The sales and marketing expenses amounted to RMB 20.2 million (USD 2.9 million), including RMB 1.9 million (USD 300000) in stock compensation expenses, a year-on-year decrease of 27.6%. This is mainly due to a decrease in equity based compensation compared to the same period last year, as well as an increase in the efficiency of marketing and sales labor and expenses. In 2023, the company optimized its employees based on business adjustments.
According to the official website, 17 Education&Technology Group Inc. was founded in 2011 and its main product is the K12 online homework platform. 31 provinces, municipalities, 365 cities, and over 70000 public schools across the country have used its teaching SaaS (Software-as-a-Service) products.
On December 11, 2024 Eastern Time, Yike Education Technology closed at $1.61, a decrease of 6.94%.