17 Education & Technology Group Inc. (NASDAQ: YQ) (“17EdTech”
or the “Company”), a leading education technology company in China,
today announced its unaudited financial results for the fourth
quarter and the year ended December 31, 2022.
Fourth Quarter 2022
Highlights1
- Net revenues were
RMB39.6 million (US$5.7 million), compared with net revenues of
RMB542.5 million in the fourth quarter of 2021.
- Gross margin was
52.1%, compared with 64.8% in the fourth quarter of 2021.
- Net loss was
RMB103.1 million (US$15.0 million), compared with net loss of
RMB25.6 million in the fourth quarter of 2021.
- Net loss as a percentage of
net revenues was negative 260.7% in the fourth quarter of
2022, compared with negative 4.7% in the fourth quarter of
2021.
- Adjusted net
loss2 (non-GAAP), which
excluded share-based compensation expenses of RMB33.0 million
(US$4.8 million), was RMB70.1 million (US$10.2 million), compared
with adjusted net income (non-GAAP) of RMB17.0 million in the
fourth quarter of 2021.
- Adjusted net loss
(non-GAAP) as a percentage of net revenues was negative
177.3% in the fourth quarter of 2022, compared with the 3.1% of
adjusted net income as a percentage of net revenues in the fourth
quarter of 2021.
Fiscal Year 2022 Highlights
- Net revenues were
RMB531.1 million (US$77.0 million), compared with net revenues of
RMB2,184.5 million in 2021.
- Gross margin was
61.2%, compared with 59.8% in 2021.
- Net loss was
RMB177.9 million (US$25.8 million), representing a year-over-year
decrease of 87.7% from RMB1,441.9 million in 2021.
- Net loss as a percentage of
net revenues was negative 33.5% in 2022, narrowing from
negative 66.0% in 2021.
- Adjusted net loss
(non-GAAP), which excluded share-based
compensation expenses of RMB129.6 million (US$18.8 million), was
RMB48.3 million (US$7.0 million), representing a year-over-year
decrease of 96.1% from adjusted net loss (non-GAAP) of RMB1,246.7
million in 2021.
- Adjusted net loss
(non-GAAP) as a percentage of net revenues was negative
9.1% in 2022, compared with negative 57.1% in 2021.
_________________
1 For a reconciliation of non-GAAP numbers, please see the table
captioned “Reconciliations of non-GAAP measures to the most
comparable GAAP measures” at the end of this press release.2
Adjusted net income (loss) represents net income (loss) excluding
share-based compensation expenses.
Mr. Andy Liu, Founder, Chairman and Chief
Executive Officer of the Company commented, “The COVID outbreak in
China in the fourth quarter 2022 caused significant delays in the
bidding and delivery processes of our projects, which in turn
affected our revenue and financial results in the quarter. However,
we responded quickly by adapting our product offerings for
alternative distribution channels and payment structure to remain
agile under the new environment.”
“Despite the environment, we are pleased to see
significant progress since the last quarter. On March 23, 2023, the
Company was officially awarded a new educational digital
transformation project based on smart-pen and intelligent homework
in Shanghai Minhang District with a contract value of RMB 116
million. This project clearly illustrates the industry recognition
for our teaching and learning SaaS offering, which has an
outstanding ability to facilitate daily teacher and student use on
a mass scale. This ability is rooted in our deep understanding of
classroom and homework scenarios, accumulated AI technology and
data insights, as well as smooth online-offline integration.”
Mr. Michael Du, Director and Chief Financial
Officer of the Company commented, “The delay in the bidding and
delivery process of several of our projects significantly affected
the revenue recognized in the fourth quarter and thus our overall
financial performance. However, such fluctuations in revenue are
inevitable during the early stage of our business development,
especially given the external environment.”
“Nevertheless, we are pleased to report that our
continuous cost and expense reduction measures have allowed us to
significantly reduce our net loss in 2022, despite the termination
of our legacy K-12 after-school online tutoring operation which
accounted approximately 95% of our revenue in the past. With
China’s economy recovering from the COVID-19 pandemic, we are
confident the latest awarded project is another important milestone
in the Company’s continuous transformation into new business
strategies.”
Fourth Quarter 2022 Unaudited Financial
Results
Net Revenues
Net revenues for the fourth quarter of 2022 were
RMB39.6 million (US$5.7 million), representing a year-over-year
decrease of 92.7% from RMB542.5 million in the fourth quarter of
2021, mainly due to the cessation of the Company's online K-12
tutoring services by the end of 2021. Excluding net revenue from
online K-12 tutoring services, net revenues increased significantly
from RMB16.6 million to RMB39.6 million during the same period,
representing a year-over-year increase of 137.7%. Net revenue
decreased by 68.2% on a quarter-on-quarter basis due to delays in
project delivery and revenue recognition resulting from the
COVID-19 pandemic during the reporting period.
Cost of Revenues
Cost of revenues for the fourth quarter of 2022
was RMB18.9 million (US$2.7 million), representing a year-over-year
decrease of 90.1% from RMB191.2 million in the fourth quarter of
2021, which was largely in line with the decrease in net revenues
due to the cessation of the Company's online K-12 tutoring services
under the new regulatory and business environment.
Gross Profit and Gross
Margin
Gross profit for the fourth quarter of 2022 was
RMB20.6 million (US$3.0 million), representing a year-over-year
decrease of 94.1% from RMB351.4 million in the fourth quarter of
2021.
Gross margin for the fourth quarter of 2022 was
52.1%, representing a year-over-year decrease of 12.7 percentage
points, compared with 64.8% in the fourth quarter of 2021.
Total Operating Expenses
The following table sets forth a breakdown of
operating expenses by amounts and percentages of revenue during the
periods indicated (in thousands, except for percentages):
|
For the
three months ended December
31, |
|
|
|
2021 |
|
2022 |
|
Year- |
|
RMB |
% |
|
RMB |
USD |
% |
|
over-year |
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
104,054 |
19.2 |
% |
|
17,562 |
2,546 |
44.4 |
% |
|
-83.1 |
% |
Research and
development expenses |
159,524 |
29.4 |
% |
|
51,792 |
7,509 |
130.9 |
% |
|
-67.5 |
% |
General and
administrative expenses |
83,100 |
15.3 |
% |
|
71,607 |
10,382 |
181.0 |
% |
|
-13.8 |
% |
Impairment
for property and equipment and right-of-use assets |
33,586 |
6.2 |
% |
|
- |
- |
- |
|
|
-100.0 |
% |
Total operating expenses |
380,264 |
70.1 |
% |
|
140,961 |
20,437 |
356.3 |
% |
|
-62.9 |
% |
|
|
|
|
|
|
|
|
|
Total operating expenses for the fourth quarter
of 2022 were RMB141.0 million (US$20.4 million), representing a
year-over-year decrease of 62.9% from RMB380.3 million in the
fourth quarter of 2021.
Sales and marketing expenses for the fourth
quarter of 2022 were RMB17.6 million (US$2.5 million), representing
a year-over-year decrease of 83.1% from RMB104.1 million in the
fourth quarter of 2021. This was mainly due to the decreases in
promotional course expenses and advertising expenditures as a
result of the changes in regulatory environment, as well as staff
optimization in line with business adjustment.
Research and development expenses for the fourth
quarter of 2022 were RMB51.8 million (US$7.5 million), representing
a year-over-year decrease of 67.5% from RMB159.5 million in the
fourth quarter of 2021. The decrease was primarily attributable to
staff optimization in line with business adjustment.
General and administrative expenses for the
fourth quarter of 2022 were RMB71.6 million (US$10.4 million),
representing a year-over-year decrease of 13.8% from RMB83.1
million in the fourth quarter of 2021. The decrease was primarily
due to staff optimization in line with business adjustment.
Impairment for property and equipment and
right-of-use assets for the fourth quarter of 2022 were nil,
compared with RMB33.6 million in the fourth quarter of 2021.
Loss from Operations
Loss from operations for the fourth quarter of
2022 was RMB120.3 million (US$17.4 million), compared with RMB28.9
million in the fourth quarter of 2021. Loss from operations as a
percentage of net revenues for the fourth quarter of 2022 was
negative 304.2%, compared with negative 5.3% in the fourth quarter
of 2021.
Net Loss
Net loss for the fourth quarter of 2022 was
RMB103.1 million (US$15.0 million), compared with net loss of
RMB25.6 million in the fourth quarter of 2021. Net loss as a
percentage of net revenues was negative 260.7% in the fourth
quarter of 2022, compared with negative 4.7% in the fourth quarter
of 2021.
Adjusted Net Income (Loss)
(non-GAAP)
Adjusted net loss (non-GAAP) for the fourth
quarter of 2022 was RMB70.1 million (US$10.2 million), compared
with adjusted net income (non-GAAP) of RMB17.0 million in the
fourth quarter of 2021.
Please refer to the table captioned
“Reconciliations of non-GAAP measures to the most comparable GAAP
measures” at the end of this press release for a reconciliation of
net loss under U.S. GAAP to adjusted net income (loss)
(non-GAAP).
Fiscal Year 2022 Unaudited Financial
Results
Net Revenues
Net revenues in 2022 were RMB531.1 million
(US$77.0 million), representing a year-over-year decrease of 75.7%
from RMB2,184.5 million in 2021, mainly due to the cessation of the
Company's online K-12 tutoring services by the end of 2021.
Excluding net revenue from online K-12 tutoring services, net
revenues increased significantly from RMB55.9 million to RMB531.1
million during the same period, representing an 8.5-fold
year-over-year increase. The increase was mainly attributable to
the steady progress of our business transformation.
Cost of Revenues
Cost of revenues in 2022 was RMB206.2 million
(US$29.9 million), representing a year-over-year decrease of 76.5%
from RMB878.2 million in 2021, which was largely in line with the
decrease in net revenues.
Gross Profit and Gross
Margin
Gross profit in 2022 was RMB324.9 million
(US$47.1 million), representing a year-over-year decrease of 75.1%
from RMB1,306.3 million in 2021.
Gross margin in 2022 was 61.2%, compared with
59.8% in 2021.
Total Operating Expenses
The following table sets forth a breakdown of
operating expenses by amounts and percentages of revenue during the
years indicated (in thousands, except for percentages):
|
For the year
ended December 31, |
|
|
|
2021 |
|
2022 |
|
Year- |
|
RMB |
% |
|
RMB |
USD |
% |
|
over-year |
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
1,412,873 |
64.7 |
% |
|
79,129 |
11,473 |
14.9 |
% |
|
-94.4 |
% |
Research and
development expenses |
800,163 |
36.6 |
% |
|
235,846 |
34,194 |
44.4 |
% |
|
-70.5 |
% |
General and
administrative expenses |
445,440 |
20.4 |
% |
|
221,029 |
32,046 |
41.6 |
% |
|
-50.4 |
% |
Impairment
for property and equipment and right-of-use assets |
121,294 |
5.6 |
% |
|
- |
- |
- |
|
|
-100.0 |
% |
Total operating expenses |
2,779,770 |
127.3 |
% |
|
536,004 |
77,713 |
100.9 |
% |
|
-80.7 |
% |
Total operating expenses in 2022 were RMB536.0
million (US$77.7 million), representing a year-over-year decrease
of 80.7% from RMB2,779.8 million in 2021.
Sales and marketing expenses in 2022 were
RMB79.1 million (US$11.5 million), representing a year-over-year
decrease of 94.4% from RMB1,412.9 million in 2021. This was mainly
due to the decreases in promotional course expenses and advertising
expenditures as a result of the changes in regulatory environment,
as well as staff optimization in line with business adjustment.
Research and development expenses in 2022 were
RMB235.8 million (US$34.2 million), representing a year-over-year
decrease of 70.5% from RMB800.2 million in 2021. The decrease was
primarily attributable to staff optimization in line with business
adjustment.
General and administrative expenses in 2022 were
RMB221.0 million (US$32.0 million), representing a year-over-year
decrease of 50.4% from RMB445.4 million in 2021. The decrease was
primarily due to staff optimization in line with business
adjustment.
Impairment for property and equipment and
right-of-use assets in 2022 was nil, compared with RMB121.3 million
in 2021.
Loss from Operations
Loss from operations in 2022 was RMB211.1
million (US$30.6 million), compared with RMB1,473.5 million in
2021. Loss from operations as a percentage of net revenues in 2022
was negative 39.8%, improving from negative 67.5% in 2021.
Net Loss
Net loss in 2022 was RMB177.9 million (US$25.8
million), representing a year-over-year decrease of 87.7% from
RMB1,441.9 million in 2021. Net loss as a percentage of net
revenues was negative 33.5% in 2022, compared with negative 66.0%
in 2021.
Adjusted Net Loss
(non-GAAP)
Adjusted net loss (non-GAAP) in 2022 was RMB48.3
million (US$7.0 million), compared with adjusted net loss
(non-GAAP) of RMB1,246.7 million in 2021.
Cash and Cash Equivalents, Restricted Cash
and Short-term Investment
Cash and cash equivalents, restricted cash and
short-term investment were RMB737.7 million (US$107.0 million) as
of December 31, 2022, compared with RMB1,180.9 million as of
December 31, 2021.
Conference Call Information
The Company will hold a conference call on
Monday, March 27, 2023 at 9:00 p.m. U.S. Eastern Time (Tuesday,
March 28, 2023 at 9:00 a.m. Beijing time) to discuss the financial
results for the fourth quarter of 2022.
Please note that all participants will need to
preregister for the conference call participation by navigating to
https://register.vevent.com/register/BIcf07f34141ae49c1a8f350fec81e8b0a.
Upon registration, you will receive an email
containing participant dial-in numbers, and PIN number. To join the
conference call, please dial the number you receive, enter the PIN
number, and you will be joined to the conference call
instantly.
Additionally, a live and archived webcast of
this conference call will be available at
https://ir.17zuoye.com/.
Non-GAAP Financial Measures
17EdTech’s management uses adjusted net income
(loss) as a non-GAAP financial measure to gain an understanding of
17EdTech’s comparative operating performance and future
prospects.
Adjusted net income (loss) represents net loss
excluding share-based compensation expenses and such adjustment has
no impact on income tax.
Adjusted net income (loss) is used by 17EdTech’s
management in their financial and operating decision-making as a
non-GAAP financial measure; because management believes it reflects
17EdTech’s ongoing business and operating performance in a manner
that allows meaningful period-to-period comparisons. 17EdTech’s
management believes that such non-GAAP measure provides useful
information to investors and others in understanding and evaluating
17EdTech’s operating performance in the same manner as management
does, if they so choose. Specifically, 17EdTech believes the
non-GAAP measure provides useful information to both management and
investors by excluding certain charges that the Company believes
are not indicative of its core operating results.
The non-GAAP financial measure has limitations.
It does not include all items of income and expense that affect
17EdTech’s income from operations. Specifically, the non-GAAP
financial measure is not prepared in accordance with GAAP, may not
be comparable to non-GAAP financial measures used by other
companies and, with respect to the non-GAAP financial measure that
excludes certain items under GAAP, does not reflect any benefit
that such items may confer to 17EdTech. Management compensates for
these limitations by also considering 17EdTech’s financial results
as determined in accordance with GAAP. The presentation of this
additional information is not meant to be considered superior to,
in isolation from or as a substitute for results prepared in
accordance with US GAAP.
Exchange Rate Information
The Company’s business is primarily conducted in
China and all of the revenues are denominated in Renminbi (“RMB”).
However, periodic reports made to shareholders will include current
period amounts translated into U.S. dollars (“USD” or “US$”) using
the exchange rate as of balance sheet date, for the convenience of
the readers. Translations of balances in the consolidated balance
sheets and the related consolidated statements of operations,
comprehensive loss, change in shareholders’ deficit and cash flows
from RMB into USD as of and for the three months and the fiscal
year ended December 31, 2022 are solely for the convenience of the
readers and were calculated at the rate of US$1.00=RMB6.8972
representing the noon buying rate set forth in the H.10 statistical
release of the U.S. Federal Reserve Board on December 31, 2022. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
December 31, 2022, or at any other rate.
About 17 Education & Technology
Group Inc.
17 Education & Technology Group Inc. is a
leading education technology company in China, offering smart
in-school classroom solution that delivers data-driven teaching,
learning and assessment products to teachers, students and parents.
Leveraging its extensive knowledge and expertise obtained from
in-school business over the past decade, the Company provides
teaching and learning SaaS offerings to facilitate the digital
transformation and upgrade at Chinese schools, with a focus on
improving the efficiency and effectiveness of core teaching and
learning scenarios such as homework assignments and in-class
teaching. The Company also provides a personalized self-directed
learning product to Chinese families, which is not a tutoring
service. The product utilizes the Company’s technology and data
insights to provide personalized and targeted learning and exercise
content that is aimed at improving students’ learning
efficiency.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates” and similar
statements. Statements that are not historical facts, including
statements about 17EdTech’s beliefs and expectations, are
forward-looking statements. 17EdTech may also make written or oral
forward-looking statements in its periodic reports to the SEC, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: 17EdTech’s growth strategies; its future business
development, financial condition and results of operations; its
ability to continue to attract and retain users; its ability to
carry out its business and organization transformation, its ability
to implement and grow its new business initiatives; the trends in,
and size of, China’s online education market; competition in and
relevant government policies and regulations relating to China's
online education market; its expectations regarding demand for, and
market acceptance of, its products and services; its expectations
regarding its relationships with business partners; general
economic and business conditions; and assumptions underlying or
related to any of the foregoing. Further information regarding
these and other risks is included in 17EdTech’s filings with the
SEC. All information provided in this press release is as of the
date of this press release, and 17EdTech does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
For investor and media inquiries, please
contact:
17 Education & Technology Group
Inc. Ms Lara ZhaoInvestor Relations ManagerE-mail:
ir@17zuoye.com
17 EDUCATION & TECHNOLOGY GROUP INC. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands of RMB and USD, except for share and per ADS
data, or otherwise noted) |
|
|
As of December 31 |
|
As of December 31 |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
1,180,898 |
|
707,895 |
|
102,635 |
|
Restricted cash |
- |
|
10,231 |
|
1,483 |
|
Short-term investment |
- |
|
19,531 |
|
2,832 |
|
Accounts receivable |
- |
|
34,824 |
|
5,049 |
|
Prepaid expenses and other current assets |
161,826 |
|
140,894 |
|
20,428 |
|
Total current assets |
1,342,724 |
|
913,375 |
|
132,427 |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property and equipment, net |
69,811 |
|
32,295 |
|
4,682 |
|
Right-of-use assets |
153,963 |
|
30,052 |
|
4,357 |
|
Other non-current assets |
13,923 |
|
4,802 |
|
696 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
1,580,421 |
|
980,524 |
|
142,162 |
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accrued expenses and other current liabilities (including
accrued |
392,293 |
|
153,023 |
|
22,186 |
|
expenses and other current liabilities of the consolidated
VIEs |
|
|
|
without recourse to the Group of RMB93,115 and RMB35,220 as of |
|
|
|
December 31, 2021 and December 31, 2022, respectively) |
|
|
|
Deferred revenue and customer advances, current (including |
243,878 |
|
42,385 |
|
6,145 |
|
deferred revenue and customer advances, current of the |
|
|
|
consolidated VIEs without recourse to the Group of RMB239,267 |
|
|
|
and RMB40,092 as of December 31, 2021 and December 31, 2022, |
|
|
|
respectively) |
|
|
|
Operating lease liabilities, current (including operating lease
liabilities, |
46,885 |
|
18,719 |
|
2,714 |
|
current of the consolidated VIEs without recourse to the Group
of |
|
|
|
RMB29,113 and RMB8,179 as of December 31, 2021 and |
|
|
|
December 31, 2022, respectively) |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
683,056 |
|
214,127 |
|
31,045 |
|
|
As ofDecember 31, |
|
As of December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Operating lease liabilities, non-current (including operating
lease |
100,329 |
|
|
7,534 |
|
|
1,092 |
|
liabilities, non-current of the consolidated VIEs without
recourse |
|
|
to the Group of RMB57,906 and RMB3,563 as of December 31, |
|
|
2021 and December 31, 2022, respectively) |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
783,385 |
|
|
221,661 |
|
|
32,137 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
Class A ordinary shares |
293 |
|
|
279 |
|
|
40 |
|
Class B ordinary shares |
38 |
|
|
38 |
|
|
6 |
|
Additional paid-in capital |
10,859,107 |
|
|
10,954,822 |
|
|
1,588,300 |
|
Accumulated other comprehensive income |
18,691 |
|
|
62,689 |
|
|
9,089 |
|
Accumulated deficit |
(10,081,093 |
) |
|
(10,258,965 |
) |
|
(1,487,410 |
) |
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
797,036 |
|
|
758,863 |
|
|
110,025 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
1,580,421 |
|
|
980,524 |
|
|
142,162 |
|
17 EDUCATION & TECHNOLOGY GROUP INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands of RMB and USD, except for share and per ADS
data, or otherwise noted) |
|
|
For the three months ended December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Net revenues |
542,548 |
|
|
39,556 |
|
|
5,735 |
|
Cost of revenues (Note 1) |
(191,182 |
) |
|
(18,938 |
) |
|
(2,746 |
) |
|
|
|
|
|
|
Gross profit |
351,366 |
|
|
20,618 |
|
|
2,989 |
|
|
|
|
|
|
|
Operating expenses (Note 1) |
|
|
|
|
|
Sales and marketing expenses |
(104,054 |
) |
|
(17,562 |
) |
|
(2,546 |
) |
Research and development expenses |
(159,524 |
) |
|
(51,792 |
) |
|
(7,509 |
) |
General and administrative expenses |
(83,100 |
) |
|
(71,607 |
) |
|
(10,382 |
) |
Impairment for property and equipment and right-of-use assets |
(33,586 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
Total operating expenses |
(380,264 |
) |
|
(140,961 |
) |
|
(20,437 |
) |
|
|
|
|
|
|
Loss from operations |
(28,898 |
) |
|
(120,343 |
) |
|
(17,448 |
) |
|
|
|
|
|
|
Interest income |
3,298 |
|
|
4,705 |
|
|
682 |
|
Foreign currency exchange loss |
(370 |
) |
|
- |
|
|
- |
|
Other income, net |
415 |
|
|
12,500 |
|
|
1,812 |
|
|
|
|
|
|
|
Loss before provision for income tax |
(25,555 |
) |
|
(103,138 |
) |
|
(14,954 |
) |
|
|
|
|
|
|
Income tax expenses |
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Net loss |
(25,555 |
) |
|
(103,138 |
) |
|
(14,954 |
) |
|
|
|
|
|
|
Net loss available to ordinary shareholders of
17 |
(25,555 |
) |
|
(103,138 |
) |
|
(14,954 |
) |
Education & Technology Group Inc. |
|
|
|
|
|
|
|
|
Net loss per ordinary share |
|
|
|
|
|
Basic and diluted |
(0.05 |
) |
|
(0.21 |
) |
|
(0.03 |
) |
|
|
|
|
|
|
Net loss per ADS (Note 2) |
|
|
|
|
|
Basic and diluted |
(0.50 |
) |
|
(2.10 |
) |
|
(0.30 |
) |
|
|
|
|
|
|
Weighted average shares used in calculating net
loss |
|
|
|
|
|
per ordinary share |
|
|
|
|
|
Basic and diluted |
506,970,707 |
|
|
492,323,728 |
|
|
492,323,728 |
|
|
|
|
|
|
|
Note 1: Share-based compensation expenses were included in the
operating expenses as follows: |
|
|
For the three months ended December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
Share-based compensation expenses: |
|
|
|
|
|
Sales and marketing expenses |
7,071 |
|
|
5,268 |
|
|
764 |
|
Research and development expenses |
24,751 |
|
|
7,352 |
|
|
1,066 |
|
General and administrative expenses |
10,742 |
|
|
20,385 |
|
|
2,956 |
|
|
|
|
|
|
|
Total |
42,564 |
|
|
33,005 |
|
|
4,786 |
|
|
|
|
|
|
|
Note 2: Each one ADS represents ten Class A ordinary shares.
Effective on November 17, 2021, the Company changed the ratio of
its ADS to its Class A ordinary shares from two ADSs
representing five Class A ordinary shares to one ADS
representing ten Class A ordinary shares. All earnings per ADS
figures in this report give effect to the foregoing ADS to share
ratio change. |
17 EDUCATION & TECHNOLOGY GROUP INC. |
Reconciliations of non-GAAP measures to the most comparable
GAAP measures |
(In thousands of RMB and USD, except for share, per share
and per ADS data) |
|
|
|
|
|
|
|
For the three months ended December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Net Loss |
(25,555 |
) |
|
(103,138 |
) |
|
(14,954 |
) |
Share-based compensation |
42,564 |
|
|
33,005 |
|
|
4,786 |
|
|
|
|
|
|
|
Adjusted net (loss) income |
17,009 |
|
|
(70,133 |
) |
|
(10,168 |
) |
17 EDUCATION & TECHNOLOGY GROUP INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands of RMB and USD, except for share and per ADS
data, or otherwise noted) |
|
|
For the year ended December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Net revenues |
2,184,520 |
|
|
531,064 |
|
|
76,997 |
|
Cost of revenues (Note 1) |
(878,236 |
) |
|
(206,208 |
) |
|
(29,897 |
) |
|
|
|
|
|
|
Gross profit |
1,306,284 |
|
|
324,856 |
|
|
47,100 |
|
|
|
|
|
|
|
Operating expenses (Note 1) |
|
|
|
|
|
Sales and marketing expenses |
(1,412,873 |
) |
|
(79,129 |
) |
|
(11,473 |
) |
Research and development expenses |
(800,163 |
) |
|
(235,846 |
) |
|
(34,194 |
) |
General and administrative expenses |
(445,440 |
) |
|
(221,029 |
) |
|
(32,046 |
) |
Impairment for property and equipment and right-of-use assets |
(121,294 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
Total operating expenses |
(2,779,770 |
) |
|
(536,004 |
) |
|
(77,713 |
) |
|
|
|
|
|
|
Loss from operations |
(1,473,486 |
) |
|
(211,148 |
) |
|
(30,613 |
) |
|
|
|
|
|
|
Interest income |
24,573 |
|
|
11,352 |
|
|
1,646 |
|
Foreign currency exchange gain |
2,326 |
|
|
159 |
|
|
23 |
|
Other income, net |
4,674 |
|
|
21,765 |
|
|
3,156 |
|
|
|
|
|
|
|
Loss before provision for income tax |
(1,441,913 |
) |
|
(177,872 |
) |
|
(25,788 |
) |
|
|
|
|
|
|
Income tax expenses |
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Net loss |
(1,441,913 |
) |
|
(177,872 |
) |
|
(25,788 |
) |
|
|
|
|
|
|
Net loss available to ordinary shareholders of
17 |
(1,441,913 |
) |
|
(177,872 |
) |
|
(25,788 |
) |
Education & Technology Group Inc. |
|
|
|
|
|
|
|
|
Net loss per ordinary share |
|
|
|
|
|
Basic and diluted |
(2.92 |
) |
|
(0.35 |
) |
|
(0.05 |
) |
|
|
|
|
|
|
Net loss per ADS (Note 2) |
|
|
|
|
|
Basic and diluted |
(29.20 |
) |
|
(3.50 |
) |
|
(0.50 |
) |
|
|
|
|
|
|
Weighted average shares used in calculating net
loss |
|
|
|
|
|
per ordinary share |
|
|
|
|
|
Basic and diluted |
494,055,703 |
|
|
502,801,926 |
|
|
502,801,926 |
|
|
|
|
|
|
|
Note 1: Share-based compensation expenses were included in the
operating expenses as follows: |
|
|
For the year ended December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
Share-based compensation expenses: |
|
|
|
|
|
Sales and marketing expenses |
25,776 |
|
|
17,305 |
|
|
2,509 |
|
Research and development expenses |
60,002 |
|
|
28,624 |
|
|
4,150 |
|
General and administrative expenses |
109,436 |
|
|
83,629 |
|
|
12,125 |
|
|
|
|
|
|
|
Total |
195,214 |
|
|
129,558 |
|
|
18,784 |
|
|
|
|
|
|
|
Note 2: Each one ADS represents ten Class A ordinary shares.
Effective on November 17, 2021, the Company changed the ratio of
its ADS to its Class A ordinary shares from two ADSs
representing five Class A ordinary shares to one ADS
representing ten Class A ordinary shares. All earnings per ADS
figures in this report give effect to the foregoing ADS to share
ratio change. |
17 EDUCATION & TECHNOLOGY GROUP INC. |
Reconciliations of non-GAAP measures to the most comparable
GAAP measures |
(In thousands of RMB and USD, except for share, per share
and per ADS data) |
|
|
|
|
|
|
|
For the year ended December 31, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
|
|
|
|
|
|
Net Loss |
(1,441,913 |
) |
|
(177,872 |
) |
|
(25,788 |
) |
Share-based compensation |
195,214 |
|
|
129,558 |
|
|
18,784 |
|
|
|
|
|
|
|
Adjusted net (loss) income |
(1,246,699 |
) |
|
(48,314 |
) |
|
(7,004 |
) |
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