2018 full year net revenues increased by
103.5% year-over-year
2018 full year gross billings (non-GAAP) increased by 35.0%
year-over-year
2018 full year new student enrollments[1] increased by 35.6%
year-over-year
BEIJING, March 22, 2019 /PRNewswire/ -- Sunlands
Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a
leader in China's online
post-secondary and professional education, today announced its
unaudited financial results for the fourth quarter and full year
ended December 31, 2018.
Fourth Quarter 2018 Financial and Operational
Highlights
- Net revenues were RMB568.8
million (US$82.7 million),
representing a 65.0% increase year-over-year.
- Gross billings (non-GAAP) were RMB759.8
million (US$110.5 million),
representing a 5.8% decrease year-over-year.
- Gross profit was RMB490.3 million
(US$71.3 million), representing an
84.8% increase year-over-year.
- Net loss was RMB183.7 million
(US$26.7 million), representing a
57.1% decrease year-over-year. Net loss margin, defined as net loss
as a percentage of net revenues, decreased to 32.3% from 124.1% in
the fourth quarter of 2017.
- New student enrollments were 119,746, representing a 10.8%
decrease year-over-year.
- As of December 31, 2018, the
Company's deferred revenue balance was RMB3,286.0 million (US$477.9 million).
Full Year 2018 Financial and Operational Highlights
- Net revenues were RMB1,974.0
million (US$287.1 million),
representing a 103.5% increase from the full year 2017.
- Gross billings (non-GAAP) were RMB3,214.4 million (US$467.5 million), representing a 35.0% increase
from the full year 2017.
- Gross profit was RMB1,643.6
million (US$239.1 million),
representing a 105.5% increase from the full year 2017.
- Net loss was RMB927.0 million
(US$134.8 million), representing a
0.9% increase from the full year 2017. Net loss margin decreased to
47.0% from 94.7% in the full year 2017.
- New student enrollments were 526,014, representing a 35.6%
increase from the full year 2017.
[1] New student
enrollments for a given period refers to the total number of orders
placed by students that newly enroll in at least one course during
that period (including those students that enroll and then
terminate their enrollment with the Company).
|
Mr. Tongbo Liu, Chief Executive Officer of Sunlands, said,
"2018 marked a year of strategic positioning and advancements for
our Company. We completed our IPO, launched our AI-powered
personalized study program, and broadened our graduate and
post-graduate program offerings. We ended the year at the top end
of our fourth quarter revenue guidance and narrowed our net loss
margin.
"In 2018, we started to explore innovative ways to attract more
students to our online learning platform. One of our biggest
achievements was initiating free trials. By offering potential
students our upgraded free trials withintroductory seminars and
free short-courses, we believe we can increase average gross
billings, conversion rates and sales efficiency over the
longer-term.
"Our mission is to transform education with technology and
innovation to make learning experiences enjoyable and
rewarding. In line with these ideals, in 2018, we also began
pursuing more user-friendly marketing tactics to introduce
potential students not only to Sunlands' online STE platform, but
to a broader range of our best-in-class programs. As we strengthen
our brand awareness, we are capable of reaching a larger pool of
prospective students who may benefit from our courses. In 2019, we
will be focused on attracting more students to our platform by
expanding our free trials with even more course offerings. We
believe these initiatives will help develop online learning habits
for more students, transferring them from offline to online, and
enhance a stronger brand for Sunlands over the longer-term.
"As a pioneer in the massive and evolving online post-secondary
and professional education market, we are dedicated to providing a
comprehensive online continuing education ecosystem, powered by our
proprietary software that is tailored to each student's learning
patterns. In 2019, we will look to further expand our business and
gain market share. Empowered by our one-to-many live streaming
model, we plan to broaden our course offerings to serve a larger
student base and leverage our premier AI-technology and industry
leading online education platform to create additional value for
our students, teachers, partners and investors," Mr. Liu
concluded.
Mr. Steven Yipeng Li, Chief Financial Officer of Sunlands,
said, "The continuous growth in the number of
students[2] drove our
growth in the fourth quarter, with our net revenues and gross
profit increasing by 65.0% and 84.8%, respectively, year-over-year.
Expanding our free trials with introductory seminars enabled us to
enhance our sales productivity and efficiency, and our net loss
margin decreased to 32.3% during the quarter from 124.1% in the
fourth quarter of 2017. We plan to further invest in our growth by
continuing to acquire and engineer best-in-breed content for our
platform that supports our student acquisition efforts and
maintains our leadership in the online post-secondary and
professional education market."
[2] Number
of students for a given period refers to the total number of orders
placed by students which remain in their respective service
periods.
|
Financial Results for the Fourth Quarter of 2018
Net Revenues
In the fourth quarter of 2018, net revenues increased by 65.0%
to RMB568.8 million (US$82.7 million) from RMB344.7 million in the fourth quarter of 2017.
The increase was mainly driven by the growth in the number of
students in the fourth quarter of 2018 compared to the fourth
quarter of 2017, following new student enrollments continuous
increase over the past years.
Cost of Revenues
Cost of revenues decreased by 1.1% from RMB79.4 million in the fourth quarter of 2017 to
RMB78.5 million (US$11.4 million) in the fourth quarter of
2018.
Gross Profit
Gross profit increased by 84.8% to RMB490.3 million (US$71.3
million) from RMB265.3 million
in the fourth quarter of 2017.
Operating Expenses
In the fourth quarter of 2018, operating expenses were
RMB699.7 million (US$101.8 million), representing a 0.2% increase
from RMB698.0 million in the fourth
quarter of 2017.
Sales and marketing expenses increased by 2.5% to RMB530.1 million (US$77.1
million) in the fourth quarter of 2018 from RMB517.3 million in the fourth quarter of 2017.
The increase was mainly due to increases in spending on branding
and marketing activities, including investments in broadening
Sunlands' search engine and mobile application channels.
General and administrative expenses decreased by 15.5% to
RMB142.6 million (US$20.7 million) in the fourth quarter of 2018
from RMB168.7 million in the fourth
quarter of 2017. The decrease was mainly due to significant
share-based compensation expenses recognized in the fourth quarter
of 2017.
Product development expenses increased by 125.6% to RMB27.0 million (US$3.9
million) in the fourth quarter of 2018 from RMB11.9 million in the fourth quarter of 2017.
The increase was primarily due to an increase in the number of
employees and compensation paid to Sunlands' course and educational
content professionals and technology development personnel during
the quarter.
Net Loss
Net loss for the fourth quarter of 2018 was RMB183.7 million (US$26.7
million), compared with RMB427.8
million in the fourth quarter of 2017.
Basic and Diluted Net Loss Per Share
Basic and diluted net loss per share was RMB26.68 (US$3.88)
in the fourth quarter of 2018.
Cash and Cash Equivalents and Short-term Investments
As of December 31, 2018, the
Company had RMB1,248.8 million
(US$181.6 million) of cash and cash
equivalents and RMB1,028.6 million
(US$149.6 million) of short-term
investments, respectively, compared to RMB559.5 million of cash and cash equivalents and
RMB353.1 million of short-term
investments, respectively, as of December
31, 2017.
Deferred Revenue
As of December 31, 2018, the
Company had deferred revenue balance of RMB3,286.0 million (US$477.9 million).
Capital Expenditures
Capital expenditures were incurred primarily in connection with
purchases of buildings and IT infrastructure equipment necessary to
support Sunlands' operations. Capital expenditures were
RMB263.1 million (US$38.3 million) in the fourth quarter of 2018,
compared to RMB307.2 million in the
fourth quarter of 2017.
Financial Results for the Year of 2018
Net Revenues
For the year of 2018, net revenues increased by 103.5% to
RMB1,974.0 million (US$287.1 million) from RMB970.2 million in the year of 2017. The
increase was mainly driven by the growth in the number of students
in the year of 2018 compared to 2017, following new student
enrollments continuous increase over the past years.
Cost of Revenues
Cost of revenues increased by 94.0% from RMB170.3 million in the year of 2017 to
RMB330.4 million (US$48.1 million) in the year of 2018. The
increase was primarily due to the increase in compensation for our
faculty members, which mainly included teachers and mentors, as we
continued to retain our existing faculty members and attract new
faculty members.
Gross Profit
Gross profit increased by 105.5% to RMB1,643.6 million (US$239.1 million) from RMB799.9 million in the year of 2017.
Operating Expenses
For the year of 2018, operating expenses were RMB2,672.5 million (US$388.7 million), representing a 54.7% increase
from RMB1,727.6 million in the year
of 2017.
Sales and marketing expenses increased by 59.3% to RMB2,152.8 million (US$313.1 million) from RMB1,351.8 million in the year of 2017. The
increase was mainly due to increases in (i) our sales and marketing
compensation; and (ii) spending on branding and marketing
activities, including investments in broadening our search engine
and mobile application channels.
General and administrative expenses increased by 29.4% to
RMB443.7 million (US$64.5 million) from RMB342.9 million in the year of 2017.
Product development expenses increased by 131.3% to RMB76.0 million (US$11.1
million) from RMB32.9 million
in the year of 2017.The increase was primarily due to an increase
in compensation for our course and educational content
professionals and technology development personnel during the
quarter.
Net Loss
Net loss for the year of 2018 was RMB927.0 million (US$134.8
million), compared with RMB918.7
million in the year of 2017.
Basic and Diluted Net Loss Per Share
Basic and diluted net loss per share was RMB147.27 (US$21.42) in the year of 2018.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
purchases of buildings and IT infrastructure equipment necessary to
support Sunlands' operations. Capital expenditures were
RMB518.4 million (US$75.4 million) and RMB398.9 million for the years ended
December 31, 2018 and 2017,
respectively.
Outlook
For the first quarter of 2019, Sunlands currently expects net
revenues to be between RMB550.0
million to RMB570.0 million,
which would represent an increase of 35.3% to 40.3%
year-over-year.
The above outlook is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to substantial uncertainty.
Exchange Rate
The Company's business is primarily conducted in China and all of the revenues are denominated
in Renminbi ("RMB"). This announcement contains currency
conversions of RMB amounts into U.S. dollars ("US$") solely for the
convenience of the reader. Unless otherwise noted, all translations
from RMB to US$ are made at a rate of RMB6.8755 to US$1.00, the effective noon buying rate for
December 28, 2018 as set forth in the H.10 statistical release
of the Federal Reserve Board. No representation is made that the
RMB amounts could have been, or could be, converted, realized or
settled into US$ at that rate on December
28, 2018, or at any other rate.
Conference Call and Webcast
Sunlands' management team will host a conference call
at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong
Kong time) on March 22, 2019, following the quarterly
results announcement.
The dial-in details for the live conference call are:
International:
|
+1-412-902-4272
|
US toll
free:
|
+1-888-346-8982
|
Canada toll
free:
|
+1-855-669-9657
|
Mainland China toll
free:
|
400-120-1203
|
Hong Kong toll
free:
|
800-905-945
|
Hong Kong:
|
+852-3018-4992
|
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the call for "Sunlands
Technology Group." Participants will be required to state their
name and company upon entering the call.
A live webcast and archive of the conference call will be
available on the Investor Relations section of Sunlands' website at
http://www.sunlands.investorroom.com/
A replay of the conference call will be available 1 hour after
the end of the conference call until March
29, 2019.
International:
|
+1-412-317-0088
|
US toll
free:
|
+1-877-344-7529
|
Canada toll
free:
|
855-669-9658
|
Replay access
code:
|
10129493
|
About Sunlands
Sunlands Technology Group (NYSE: STG) ("Sunlands" or the
"Company"), formerly known as Sunlands Online Education Group, is
the leader in China's online post-secondary and
professional education in terms of gross billings in 2017,
according to iResearch. With a one-to-many, live streaming
platform, Sunlands offers various degree and diploma-oriented
post-secondary courses as well as online professional courses and
educational content, to help students prepare for professional
certification exams and attain professional skills. Students can
access its services either through PC or mobile applications. The
Company's online platform cultivates a personalized, interactive
learning environment by featuring a virtual learning community and
a vast library of educational content offerings that adapt to the
learning habits of its students. Sunlands offers a unique approach
to education research and development that organizes subject
content into Learning Outcome Trees, the Company's proprietary
knowledge management system. Sunlands has a deep understanding of
the educational needs of its prospective students and offers
solutions that help them achieve their goals.
About Non-GAAP Financial Measures
We use gross billings and EBITDA, each a non-GAAP financial
measure, in evaluating our operating results and for financial and
operational decision-making purposes.
We define gross billings for a specific period as the total
amount of cash received for the sale of course packages, net of the
total amount of refunds paid in such period. Our management uses
gross billings as a performance measurement because we generally
bill our students for the entire course tuition at the time of sale
of our course packages and recognize revenue proportionally over a
period. EBITDA is defined as net loss excluding depreciation and
amortization, interest expense, interest income, and income tax
expenses. We believe that gross billings and EBITDA provide
valuable insight into the sales of our course packages and the
performance of our business.
These non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, their most directly
comparable financial measure prepared in accordance with GAAP. A
reconciliation of the historical non-GAAP financial measures to
their respective most directly comparable GAAP measure has been
provided in the tables included below. Investors are encouraged to
review the reconciliation of the historical non-GAAP financial
measures to their respective most directly comparable GAAP
financial measures. As gross billings and EBITDA have material
limitations as an analytical metric and may not be calculated in
the same manner by all companies, it may not be comparable to other
similarly titled measures used by other companies. In light of the
foregoing limitations, you should not consider gross billings and
EBITDA as a substitute for, or superior to, their respective most
directly comparable financial measures prepared in accordance with
GAAP. We encourage investors and others to review our financial
information in its entirety and not rely on a single financial
measure.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. 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," "confident" and similar statements. Sunlands may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, 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. Any statements
that are not historical facts, including statements about Sunlands'
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: Sunlands' goals and strategies; its expectations
regarding demand for and market acceptance of its brand and
services; its ability to retain and increase student enrollments;
its ability to offer new courses and educational content; its
ability to improve teaching quality and students' learning results;
its ability to improve sales and marketing efficiency and
effectiveness; its ability to engage, train and retain new faculty
members; its future business development, results of operations and
financial condition; its ability to maintain and improve technology
infrastructure necessary to operate its business; competition in
the online education industry in China; relevant government policies and
regulations relating to Sunlands' corporate structure, business and
industry; and general economic and business condition in
China Further information
regarding these and other risks, uncertainties or factors is
included in the Sunlands' filings with the U.S. Securities and
Exchange Commission. All information provided in this press release
is current as of the date of the press release, and Sunlands does
not undertake any obligation to update such information, except as
required under applicable law.
For investor and media enquiries, please contact:
Yingying Liu
IR Director
Tel: +86 182 5691 2232
Email: ir@sunlands.com
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
Email: sunlands@tpg-ir.com
Ross Warner
Tel: +86-10-5730-6201
Email: sunlands@tpg-ir.com
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in
thousands, except for share and per share data, or otherwise
noted)
|
|
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
559,459
|
|
1,248,810
|
|
181,632
|
Short-term
investments
|
|
353,070
|
|
1,028,564
|
|
149,598
|
Prepaid expenses and other
current assets
|
|
48,993
|
|
124,908
|
|
18,169
|
Amounts due from related
parties
|
|
250,096
|
|
-
|
|
-
|
Deferred costs,
current
|
|
55,073
|
|
180,657
|
|
26,275
|
Total current
assets
|
|
1,266,691
|
|
2,582,939
|
|
375,674
|
Non-current
assets
|
|
|
|
|
|
|
Property and equipment,
net
|
|
525,288
|
|
559,511
|
|
81,377
|
Intangible assets,
net
|
|
1,552
|
|
1,369
|
|
199
|
Deferred costs,
non-current
|
|
43,187
|
|
146,610
|
|
21,324
|
Long-term
investments
|
|
3,300
|
|
30,009
|
|
4,365
|
Other non-current
assets
|
|
129,641
|
|
418,700
|
|
60,897
|
Total non-current
assets
|
|
702,968
|
|
1,156,199
|
|
168,162
|
TOTAL
ASSETS
|
|
1,969,659
|
|
3,739,138
|
|
543,836
|
|
|
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accrued expenses and other current liabilities (including accrued
expenses
|
|
|
|
|
|
|
and other
current liabilities of the consolidated VIEs without recourse
to
|
|
|
|
|
|
|
Sunlands
Technology Group of RMB223,298 and RMB241,204 as of
|
|
|
|
|
|
|
December
31, 2017 and December 31, 2018, respectively)
|
|
235,900
|
|
455,284
|
|
66,218
|
Deferred
revenue, current (including deferred revenue, current of the
consolidated VIEs
|
|
|
|
|
|
|
without
recourse to Sunlands Technology Group of RMB1,325,954
and
|
|
|
|
|
|
|
RMB1,765,085 as of December 31, 2017 and December 31, 2018,
respectively)
|
|
1,325,954
|
|
1,765,085
|
|
256,721
|
Payables to acquire buildings (including payables to acquire
buildings of the
|
|
|
|
|
|
|
consolidated VIEs without recourse to Sunlands Technology Group of
RMB180,390
|
|
|
|
|
|
|
and nil as
of December 31, 2017 and December 31, 2018,
respectively)
|
|
240,390
|
|
61,540
|
|
8,951
|
Long-term debt, current (including long-term debt, current of the
consolidated VIEs
|
|
|
|
|
|
|
without
recourse to Sunlands Technology Group of RMB nil as of
December
|
|
|
|
|
|
|
31,
2017 and December 31, 2018)
|
|
-
|
|
32,500
|
|
4,727
|
Total current
liabilities
|
|
1,802,244
|
|
2,314,409
|
|
336,617
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS-continued
|
(Amounts in
thousands, except for share and per share data, or otherwise
noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
Non-current
liabilities
|
|
|
|
|
|
|
Deferred revenue, non-current (including deferred revenue,
non-current of the
|
|
|
|
|
|
|
consolidated VIEs
without recourse to Sunlands Technology Group of
|
|
|
|
|
|
|
RMB784,474 and RMB1,520,940 as of December 31, 2017 and December
31,
|
|
|
|
|
|
|
2018,
respectively)
|
|
784,474
|
|
1,520,940
|
|
221,212
|
Other non-current
liabilities (including other non-current liabilities of the
consolidated
|
|
|
|
|
|
|
VIEs without recourse to Sunlands Technology Group of nil and
RMB135 as of
|
|
|
|
|
|
|
December 31, 2017 and December 31,
2018, respectively)
|
|
-
|
|
17,147
|
|
2,494
|
Long-term debt,
non-current (including long-term debt, non-current of the
consolidated
|
|
|
|
|
|
|
VIEs without recourse to Sunlands Technology Group of RMB nil as
of
|
|
|
|
|
|
|
December 31, 2017 and December 31, 2018)
|
|
-
|
|
225,625
|
|
32,816
|
Total non-current
liabilities
|
|
784,474
|
|
1,763,712
|
|
256,522
|
TOTAL
LIABILITIES
|
|
2,586,718
|
|
4,078,121
|
|
593,139
|
|
MEZZANINE
EQUITY
|
|
|
|
|
|
|
Series A convertible
redeemable preferred shares
|
|
292,000
|
|
-
|
|
-
|
Series B convertible
redeemable preferred shares
|
|
601,605
|
|
-
|
|
-
|
Series B+ convertible
redeemable preferred shares
|
|
131,104
|
|
-
|
|
-
|
TOTAL MEZZANINE
EQUITY
|
|
1,024,709
|
|
-
|
|
-
|
|
|
|
|
|
|
|
SHAREHOLDERS'
DEFICIT
|
|
|
|
|
|
|
Ordinary shares (par value
of US$0.00005, 1,000,000,000 shares
|
|
|
|
|
|
|
authorized; 4,329,000 and nil shares issued and
outstanding
|
|
|
|
|
|
|
as of
December 31, 2017 and December 31, 2018, respectively)
|
|
1
|
|
-
|
|
-
|
Class A ordinary shares (par value of US$0.00005, 796,062,195
shares
|
|
|
|
|
|
|
authorized; nil and
1,818,383 shares issued as of December 31, 2017
|
|
|
|
|
|
|
and December 31, 2018,
respectively; nil and 1,773,301 shares
|
|
|
|
|
|
|
outstanding as of December 31, 2017 and December 31, 2018,
respectively)
|
|
-
|
|
1
|
|
-
|
Class B ordinary shares (par value of US$0.00005, 826,389
shares
|
|
|
|
|
|
|
authorized; nil and
826,389 shares issued and outstanding
|
|
|
|
|
|
|
as of December 31,
2017 and December 31, 2018, respectively)
|
|
-
|
|
-
|
|
-
|
Class C ordinary
shares (par value of US$0.00005, 203,111,416 shares
|
|
|
|
|
|
|
authorized; nil and
4,265,286 shares issued and outstanding
|
|
|
|
|
|
|
as
of December 31, 2017 and December 31, 2018,
respectively)
|
|
-
|
|
1
|
|
-
|
Treasury stock
|
|
-
|
|
-
|
|
-
|
Additional paid-in
capital
|
|
289,674
|
|
2,391,822
|
|
347,876
|
Accumulated
deficit
|
|
(1,922,748)
|
|
(2,849,770)
|
|
(414,482)
|
Accumulated other
comprehensive (loss)/income
|
|
(8,759)
|
|
118,827
|
|
17,283
|
Total Sunlands
Technology Group shareholders' deficit
|
|
(1,641,832)
|
|
(339,119)
|
|
(49,323)
|
Noncontrolling
interest
|
|
64
|
|
136
|
|
20
|
TOTAL SHAREHOLDERS'
DEFICIT
|
|
(1,641,768)
|
|
(338,983)
|
|
(49,303)
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
|
|
1,969,659
|
|
3,739,138
|
|
543,836
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except for share and per share data, or otherwise
noted)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues
|
|
344,657
|
|
568,799
|
|
82,728
|
Cost of
revenues
|
|
(79,376)
|
|
(78,515)
|
|
(11,420)
|
Gross
profit
|
|
265,281
|
|
490,284
|
|
71,308
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(517,330)
|
|
(530,100)
|
|
(77,100)
|
Product development
expenses
|
|
(11,948)
|
|
(26,956)
|
|
(3,921)
|
General and administrative
expenses
|
|
(168,732)
|
|
(142,613)
|
|
(20,742)
|
Total operating
expenses
|
|
(698,010)
|
|
(699,669)
|
|
(101,763)
|
Loss from
operations
|
|
(432,729)
|
|
(209,385)
|
|
(30,455)
|
Interest
income
|
|
6,753
|
|
23,421
|
|
3,409
|
Interest
expense
|
|
-
|
|
(2,171)
|
|
(316)
|
Other income,
net
|
|
170
|
|
1,179
|
|
171
|
Loss before income
tax expenses
|
|
(425,806)
|
|
(186,956)
|
|
(27,191)
|
Income tax
expenses
|
|
-
|
|
-
|
|
-
|
(Loss)/gain from
equity method investments
|
|
(1,993)
|
|
3,288
|
|
478
|
Net loss
|
|
(427,799)
|
|
(183,668)
|
|
(26,713)
|
|
|
|
|
|
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
(78)
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
Net loss attributable
to Sunlands Technology Group
|
|
(427,721)
|
|
(183,667)
|
|
(26,713)
|
Net loss per share
attributable to ordinary shareholders of
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
Basic and diluted
|
|
(100.64)
|
|
(26.68)
|
|
(3.88)
|
Weighted average
shares used in calculating net loss
|
|
|
|
|
|
|
per ordinary share:
|
|
|
|
|
|
|
Basic and diluted
|
|
4,249,989
|
|
6,883,286
|
|
6,883,286
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net loss
|
|
(427,799)
|
|
(183,668)
|
|
(26,713)
|
Other comprehensive
(loss)/income, net of tax effect of nil:
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
|
(25,775)
|
|
1,820
|
|
265
|
Total comprehensive
loss
|
|
(453,574)
|
|
(181,848)
|
|
(26,448)
|
Less: comprehensive
loss attributable to noncontrolling
|
|
|
|
|
|
|
interest
|
|
(78)
|
|
(1)
|
|
-
|
Comprehensive loss
attributable to Sunlands Technology
|
|
|
|
|
|
|
Group
|
|
(453,496)
|
|
(181,847)
|
|
(26,448)
|
SUNLANDS
TECHNOLOGY GROUP
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
|
MEASURES
|
(Amounts in
thousands)
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
Net
revenues
|
|
344,657
|
|
568,799
|
Less: other
revenues
|
|
(2,025)
|
|
(697)
|
Add: tax and
surcharges
|
|
12,493
|
|
21,879
|
Add: ending deferred
revenue
|
|
2,110,428
|
|
3,286,025
|
Less: beginning
deferred revenue
|
|
(1,659,084)
|
|
(3,116,225)
|
Gross billings
(non-GAAP)
|
|
806,469
|
|
759,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(427,799)
|
|
(183,668)
|
Add: income tax
expenses
|
|
-
|
|
-
|
depreciation and
amortization
|
|
2,813
|
|
8,013
|
interest
expense
|
|
-
|
|
2,171
|
Less: interest
income
|
|
(6,753)
|
|
(23,421)
|
EBITDA
(non-GAAP)
|
|
(431,739)
|
|
(196,905)
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except for share and per share data, or otherwise
noted)
|
|
|
|
|
|
|
|
|
|
For the Years Ended
December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net
revenues
|
|
970,162
|
|
1,973,985
|
|
287,104
|
Cost of
revenues
|
|
(170,261)
|
|
(330,376)
|
|
(48,051)
|
Gross
profit
|
|
799,901
|
|
1,643,609
|
|
239,053
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,351,811)
|
|
(2,152,830)
|
|
(313,116)
|
Product development
expenses
|
|
(32,862)
|
|
(76,022)
|
|
(11,057)
|
General and administrative
expenses
|
|
(342,906)
|
|
(443,691)
|
|
(64,532)
|
Total operating
expenses
|
|
(1,727,579)
|
|
(2,672,543)
|
|
(388,705)
|
Loss from
operations
|
|
(927,678)
|
|
(1,028,934)
|
|
(149,652)
|
Interest
income
|
|
13,578
|
|
70,355
|
|
10,232
|
Interest
expense
|
|
-
|
|
(2,171)
|
|
(316)
|
Other income,
net
|
|
276
|
|
32,090
|
|
4,667
|
Loss before income
tax expenses
|
|
(913,824)
|
|
(928,660)
|
|
(135,069)
|
Income tax
expenses
|
|
-
|
|
-
|
|
-
|
(Loss)/gain from
equity method investments
|
|
(4,890)
|
|
1,710
|
|
249
|
Net loss
|
|
(918,714)
|
|
(926,950)
|
|
(134,820)
|
|
|
|
|
|
|
|
Less: Net
(loss)/income attributable to noncontrolling interest
|
|
(136)
|
|
72
|
|
10
|
|
|
|
|
|
|
|
Net loss attributable
to Sunlands Technology Group
|
|
(918,578)
|
|
(927,022)
|
|
(134,830)
|
Net loss per share
attributable to ordinary shareholders of
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
Basic and diluted
|
|
(232.80)
|
|
(147.27)
|
|
(21.42)
|
Weighted average
shares used in calculating net loss
|
|
|
|
|
|
|
per ordinary share:
|
|
|
|
|
|
|
Basic and diluted
|
|
3,945,864
|
|
6,294,870
|
|
6,294,870
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Years Ended
December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net loss
|
|
(918,714)
|
|
(926,950)
|
|
(134,820)
|
Other comprehensive
(loss)/income, net of tax effect of nil:
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
|
(8,759)
|
|
127,586
|
|
18,557
|
Total comprehensive
loss
|
|
(927,473)
|
|
(799,364)
|
|
(116,263)
|
Less: comprehensive
(loss)/income attributable to noncontrolling
|
|
|
|
|
|
|
interest
|
|
(136)
|
|
72
|
|
10
|
Comprehensive loss
attributable to Sunlands Technology
|
|
|
|
|
|
|
Group
|
|
(927,337)
|
|
(799,436)
|
|
(116,273)
|
SUNLANDS
TECHNOLOGY GROUP
|
RECONCILIATION OF
NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP
|
MEASURES
|
(Amounts in
thousands)
|
|
|
|
|
|
For the Years Ended
December 31,
|
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
Net
revenues
|
|
970,162
|
|
1,973,985
|
Less: other
revenues
|
|
(5,978)
|
|
(6,961)
|
Add: tax and
surcharges
|
|
34,712
|
|
71,779
|
Add: ending deferred
revenue
|
|
2,110,428
|
|
3,286,025
|
Less: beginning
deferred revenue
|
|
(727,569)
|
|
(2,110,428)
|
Gross billings
(non-GAAP)
|
|
2,381,755
|
|
3,214,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(918,714)
|
|
(926,950)
|
Add: income tax
expenses
|
|
-
|
|
-
|
depreciation and
amortization
|
|
8,109
|
|
25,778
|
interest
expense
|
|
-
|
|
2,171
|
Less: interest
income
|
|
(13,578)
|
|
(70,355)
|
EBITDA
(non-GAAP)
|
|
(924,183)
|
|
(969,356)
|
View original
content:http://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-fourth-quarter-and-full-year-2018-financial-results-300816934.html
SOURCE Sunlands Technology Group