The "Little Essay" incident of Dongfang Zhenxuan continues to ferment. Following the release of apology videos by New Oriental founder Yu Minhong and Dongfang Zhenxuan CEO Sun Dongxu on December 14th, competitor Gaotu Group unexpectedly ushered in a shining moment.
On December 15th, Chen Xiangdong, founder, chairman, and CEO of Gaotu, announced on Weibo that on December 14th, Gaotu Jiapin's daily live streaming sales exceeded 11.8 million yuan, with over 1 million followers. The highest online number in a single day's live streaming room was nearly 180000, and the number of viewers in a single day's live streaming room exceeded 13.55 million.
Overnight (December 14th), the stock price of Gaotu Group in the United States surged, closing up 29.27% at $4.77 per share, with a closing market value of $1.243 billion. From December 11th to December 14th, the cumulative increase in stock price of Gaotu Group reached 72.83%.
CEO celebrates on Weibo
On December 15th, Chen Xiangdong posted a Weibo "Battle Report" with an accompanying article stating that the data for Gaotu Jiapin, created by everyone together, was released on December 14th! Really, it's great to win a big battle together!
On the evening of December 14th, Chen Xiangdong high-profile posted on Weibo: "100000+simultaneous online, miracle, belongs to Gaotu Jiapin, belongs to Gaotu, belongs to you, belongs to us, dear friend."
Earlier, Chen Xiangdong posted a Weibo response to Dong Yuhui's "essay writing" incident. He said: Starting from December 11th, a large number of fans flocked to the Gaotu Jiapin live broadcast room, and my personal account 'Gaotu Chen Xiangdong' also had a large number of fans coming to comment. Out of the most basic respect for those who follow Gaotu, Gaotu Jiapin, and my friends, I made my debut in the Gaotu Jiapin live broadcast room on the evening of December 12th. Many friends asked me, will Gaotu dig Dong Yuhui? I replied, 'Dong Yuhui is not for digging, but for digging.' Love, a blurted out sentence, is indeed my state of mind. Because, it is really, really not easy for a 'hero' who has been recognized by so many fans to come out and come from a teacher's background in this era. Friends, Gaotu Jiapin will cheer and with your help, we will definitely do better and better! "
According to comprehensive media reports, from December 11th to 13th, for three consecutive nights, in the "Gaotu Jiapin" live broadcast room next to Dongfang Zhenxuan, a large wave of greetings from "Dong Yuhui's mother-in-law" from all over the country were suddenly received. Many fans fired barrage shots, demanding that Gao Tu catch up with the overwhelming wealth and status sent by Dongfang Zhenxuan. On December 10th, only 27000 people went online in the Gaotu live broadcast room, and the next day 600000 people flooded in. Many fans left comments in the comment section saying, "Try to dig Dong Yuhui over."
Layout live streaming business
According to the unaudited financial report for the third quarter released by Gaotu on November 22, the company achieved revenue of 789.4 million yuan during the reporting period, compared to 606.2 million yuan in the same period last year, a year-on-year increase of 30.2%. Cash income was 639.3 million yuan, compared to 607 million yuan in the same period last year, a year-on-year increase of 5.3%. The operating loss was 99.54 million yuan, compared to 69.56 million yuan in the same period last year. The non US GAAP operating loss was 83.61 million yuan, compared to 52.97 million yuan in the same period last year. The net loss was 57.66 million yuan, compared to 61.35 million yuan in the same period last year. The non US GAAP net loss was 41.73 million yuan, compared to 44.75 million yuan in the same period last year.
In the first three quarters, the company achieved a total revenue of 2.1998 billion yuan, compared to 1.8686 billion yuan in the same period last year, a year-on-year increase of 17.7%. Cash income was 2.0606 billion yuan, compared to 1.5368 billion yuan in the same period last year, a year-on-year increase of 34.1%. The operating profit was 38.91 million yuan, a year-on-year increase of 137.1%. The non US GAAP operating profit was 81.58 million yuan, compared to 1.07 million yuan in the same period last year. The net profit was 112.4 million yuan, a year-on-year increase of 295.6%. The non GAAP net profit was 155 million yuan, compared to 48.43 million yuan in the same period last year.
Chen Xiangdong stated that the company is gradually focusing on clear business boundaries and areas, committed to building core organizational competitiveness, and continuously deepening in new business directions.
For online live streaming business, Gaotu stated that when the company was established in 2014, it had already formed a technical team for online education. In March 2015, it successfully conducted online live streaming for 3000 people. The internal team of e-commerce live streaming began to explore in the second half of 2022, and the initial live streaming room was named "Gaotu Haowu". On November 16, 2022, Gaotu Jiapin was officially established, and on December 24, Gaotu Jiapin officially began broadcasting.