BEIJING, Aug. 22, 2019 /PRNewswire/ -- GSX Techedu Inc.
(NYSE: GSX) ("GSX" or the "Company"), a leading online K-12
large-class after-school tutoring service provider in China, today announced its unaudited financial
results for the second quarter ended June
30, 2019.
Highlights for the Second Quarter Ended June 30, 2019[1]
- Net revenues increased 413.4% year-over-year to RMB353.7 million from RMB68.9 million in the same period of 2018.
- Gross billings[2]
increased 462.4% year-over-year to RMB599.4
million from RMB106.6 million
in the same period of 2018.
- Gross profit margin[3] increased to 71.4% from 61.4% in
the same period of 2018.
- Non-GAAP gross profit margin increased to 72.6% from 61.5% in
the same period of 2018.
- Income from operations increased to RMB16.2 million from loss from operations of
RMB0.5 million in the same period of
2018.
- Non-GAAP income from operations increased to RMB31.1 million from RMB0.2 million in the same period of 2018.
- Total enrollments increased 250.3% to 592,000 from 169,000 in
the same period of 2018.
Highlights for the Six
Months Ended June 30, 2019[1]
- Net revenues increased 437.9% year-over-year to RMB622.8 million from RMB115.8 million in the same period of 2018.
- Gross billings[2]
increased 436.8% year-over-year to RMB899.5
million from RMB167.6 million
in the same period of 2018.
- Gross profit margin[3] increased to 70.6% from 59.2% in
the same period of 2018.
- Non-GAAP gross profit margin increased to 71.4% from 59.2% in
the same period of 2018.
- Income from operations increased to RMB59.0 million from loss from operations of
RMB4.7 million in the same period of
2018.
- Non-GAAP income from operations increased to RMB77.6 million from non-GAAP loss from
operations of RMB3.8 million in the
same period of 2018.
- Total enrollments increased 234.6% to 803,000 from 240,000 in
the same period of 2018.
[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. Non-GAAP gross profit, non-GAAP income from
operations and non-GAAP net income exclude share-based compensation
expenses.
|
[2] Gross billings is a non-GAAP
financial measure, which is defined as the total amount of cash
received for the sale of course offerings in such period, net of
the total amount of refunds in such period. See "About Non-GAAP
Financial Measures" and "Reconciliations of non-GAAP measures to
the most comparable GAAP measures" elsewhere in this press
release.
|
[3]
Defined as gross profit as a percentage of net revenues.
|
Financial and Operating Data——Second Quarter and First Six
Months of 2019
(In thousands of RMB, except for per student enrollments and
percentages)
|
Three Months Ended
June 30,
|
|
2018
|
|
2019
|
|
Pct.
Change
|
Net
revenues
|
68,886
|
|
353,679
|
|
413.4%
|
Gross
billings
|
106,568
|
|
599,373
|
|
462.4%
|
Gross profit
margin
|
61.4%
|
|
71.4%
|
|
16.3%
|
Non-GAAP gross profit
margin
|
61.5%
|
|
72.6%
|
|
18.0%
|
(Loss) income from
operations
|
(539)
|
|
16,226
|
|
NM
|
Non-GAAP income from
operations
|
170
|
|
31,087
|
|
18,186.5%
|
Total
enrollments
|
169,000
|
|
592,000
|
|
250.3%
|
|
Six Months Ended June
30,
|
|
2018
|
|
2019
|
|
Pct.
Change
|
Net
revenues
|
115,797
|
|
622,834
|
|
437.9%
|
Gross
billings
|
167,567
|
|
899,468
|
|
436.8%
|
Gross profit
margin
|
59.2%
|
|
70.6%
|
|
19.3%
|
Non-GAAP gross profit
margin
|
59.2%
|
|
71.4%
|
|
20.6%
|
(Loss) income from
operations
|
(4,699)
|
|
58,953
|
|
NM
|
Non-GAAP (loss)
income from operations
|
(3,777)
|
|
77,636
|
|
NM
|
Total
enrollments
|
240,000
|
|
803,000
|
|
234.6%
|
Larry Xiangdong Chen, GSX's
founder, chairman of board of directors and chief executive
officer, commented, "We continue to focus on
online-live-large-class tutoring, which we believe most effectively
leverages our extremely high teaching quality since we focus on
hiring only the very best teachers in China. This, combined with our cutting edge
technology, effectively ensures the best learning results for
students. Our continued emphasis on improving our organizational
capabilities, collaborative execution and employee training and
development is giving us a growing number of competitive
advantages and has been contributing to higher conversion and
retention rate. We have created an entirely new model in terms of
how to provide individualized service and unique value to both
students and their parents. This solid foundation should help us
generate sustainable value and profitable growth over the
long-term."
Shannon Shen, chief financial
officer of GSX, commented, "We entered 2019 with robust growth in
the first quarter, and I am pleased to report that the strong
momentum across all of our key operating metrics helped drive the
strong financial performance during the second quarter. Our gross
billings in the second quarter increased 462.4% year-over-year to
RMB599.4 million, and our net revenue
increased 413.4% year-over-year to RMB353.7
million, demonstrating that we have been effectively
executing our strategy, and that our unique education model is
resonating with parents and supporting their kids in China's highly competitive education
environment."
Financial Results for the Second Quarter of 2019
Net Revenues
Net revenues reached RMB353.7
million, a 413.4% increase from RMB68.9 million in the second quarter of 2018.
The increase was mainly driven by the higher level of tuition fees
we charged our K-12 students and the growth in paid course
enrollments in our K-12 courses.
Cost of revenues
Cost of revenues rose 280.8% to RMB101.2
million from RMB26.6 million
in the second quarter of 2018. The increase was mainly due to an
increase in compensation for instructors and tutors.
Gross Profit
Gross profit increased 496.7% to RMB252.5
million from RMB42.3 million
in the second quarter of 2018. Gross profit margin increased
to 71.4% from 61.4% in the same period of 2018, primarily as a
result of economies of scale.
Non-GAAP gross profit increased 506.5% to RMB256.9 million from RMB42.4 million in the same period of 2018.
Non-GAAP gross profit margin increased to 72.6% from 61.5% in the
same period of 2018.
Operating Expenses
Operating expenses were RMB236.3
million, a 451.3% increase from RMB42.9 million in the second quarter of
2018.
Selling expenses increased to RMB169.0
million from RMB18.4 million
in the second quarter of 2018. The increase was primarily a result
of higher marketing expenses to expand the customer base and
enhance the brand, as well as an increase in compensation to sales
and marketing staff.
Research and development expenses increased 164.2% to
RMB41.1 million from RMB15.6 million in the second quarter of 2018.
The increase was primarily due to a rise in the number of courses
professionals, educational content professionals and technology
development personnel, as well as an increase in compensation for
such staff.
General and administrative expenses increased 194.3% to
RMB26.1 million from RMB8.9 million in the second quarter of 2018. The
rise in general and administrative expenses was mainly due to an
increase of the number of general and administrative personnel and
an increase in compensation paid to general and administrative
staff.
(Loss) Income from Operations
Income from operations increased to RMB16.2 million from a loss from operations of
RMB0.5 million in the second quarter
of 2018.
Non-GAAP income from operations increased to RMB31.1 million from RMB0.2 million in the second quarter of 2018.
Net (Loss) Income
Net income increased to RMB16.4
million from a net loss of RMB0.4
million in the second quarter of 2018.
Non-GAAP net income increased to RMB31.2
million from RMB0.3 million in
the second quarter of 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS was RMB0.04 and RMB0.04, respectively, in the second quarter of
fiscal year 2019.
Cash and Cash Equivalents, and Short-Term
Investments
As of June 30, 2019, the Company
had RMB60.1 million of cash and cash
equivalents and RMB1,686.5 million of
short-term investments, compared with RMB33.3 million of cash and cash equivalents and
RMB198.0 million of short-term
investments as of December 31,
2018.
Deferred Revenue
As of June 30, 2019, the Company's
deferred revenue balance was RMB503.7
million, an increase of 85.1% from RMB272.0 million as of December 31, 2018. Deferred revenue primarily
consisted of tuition collected in advance of the summer and fall
semesters.
Financial Results for the First Six Months of 2019
Net Revenues
Net revenues reached RMB622.8
million, a 437.9% increase from RMB115.8 million in the first six months of 2018.
The increase was mainly driven by the higher level of tuition fees
we charged our K-12 students and the growth in paid course
enrollments in our K-12 courses.
Cost of revenues
Cost of revenues rose 287.7% to RMB183.2
million from RMB47.3 million
in the first six months of 2018. The increase was mainly due to an
increase in compensation for instructors and tutors.
Gross Profit
Gross profit increased 541.4% to RMB439.6
million from RMB68.5 million
in the first six months of 2018. Gross profit margin increased to
70.6% from 59.2% in the same period of 2018, primarily as a result
of economies of scale.
Non-GAAP gross profit increased by 547.9% to RMB444.5 million from RMB68.6 million in the same period of 2018.
Non-GAAP gross profit margin increased to 71.4% from 59.2% in the
same period of 2018.
Operating Expenses
Operating expenses were RMB380.6
million, an increase of 419.7% from RMB73.2 million in the first six months of
2018.
Selling expenses increased to RMB268.6
million from RMB32.3 million
in the first six months of 2018. The increase in selling expenses
was primarily a result of more marketing expenses to expand the
customer base and for brand enhancement, as well as an increase in
compensation for sales and marketing staff.
Research and development expenses increased 160.3% to
RMB71.6 million from RMB27.5 million in the first six month of 2018.
The increase was primarily due to a rise in the number of courses
professionals, educational content professionals and technology
development personnel, as well as an increase in compensation paid
to such staff.
General and administrative expenses increased 201.4% to
RMB40.5 million from RMB13.4 million in the first six months of 2018.
The rise in general and administrative expenses was mainly due to
an increase in the number of general and administrative personnel
and an increase in compensation paid to general and administrative
staff.
(Loss) Income from Operations
Income from operations increased to RMB59.0 million from a loss from operations of
RMB4.7 million in the first six
months of 2018.
Non-GAAP income from operations increased to RMB77.6 million from non-GAAP loss from
operations of RMB3.8 million in the
first six months of 2018.
Net (Loss) Income
Net income increased to RMB50.3
million from a net loss of RMB4.0
million in the first six months of 2018.
Non-GAAP net income increased to RMB68.9
million from non-GAAP net loss of RMB3.1 million in the first six months of
2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were RMB0.18 and RMB0.17
respectively, in the first six months of 2019.
Share count
As of June 30, 2019, the Company
had 156,650,000 ordinary shares outstanding.
Recent Developments
Initial Public Offering ("IPO")
On June 6, 2019, the Company
completed an IPO on the New York Stock Exchange. Including the
partial exercise of a greenshoe, the Company sold a total of
20,532,000 ADSs, representing 13,688,000 Class A ordinary shares,
raising USD215.6 million. The Company
received a total of net proceeds of USD200.5
million.
Business Outlook
Based on the Company's current estimates, total net revenues for
the third quarter of 2019 are expected to be between RMB486 million and RMB506
million, representing an increase of 390.9% to 411.1% on a
year-over-year basis. These estimates reflect the Company's current
expectations, which are subject to change.
Conference Call
The company will hold an earnings conference call on
Thursday, August 22, 2019, at
8:00 AM U.S. Eastern Time
(8:00 PM on the same day,
Beijing/Hong Kong Time). Dial-in
details for the earnings conference call are as follows:
International:
|
1-412-902-4272
|
US:
|
1-888-346-8982
|
Hong Kong:
|
800-905945
|
Mainland
China:
|
4001-201203
|
Passcode:
|
GSX
|
A telephone replay will be available two hours after the
conclusion of the conference call through August 29, 2019. The dial-in details are:
International:
|
1-412-317-0088
|
US:
|
1-877-344-7529
|
Passcode:
|
10134202
|
Additionally, a live and archived webcast of this conference
call will be available at http://gsx.investorroom.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of 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" and similar statements. Among other things,
the outlook for the third quarter of 2019 and GSX's strategic and
operational plans, contain forward-looking statements. The Company
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 reports to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. 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: the
Company's ability to continue to attract students to enroll in its
courses; the Company's ability to continue to recruit, train and
retain qualified teachers; the Company's ability to improve the
content of its existing course offerings and to develop new
courses; the Company's ability to maintain and enhance its brand;
the Company's ability to maintain and continue to improve its
teaching results; and the Company's ability to compete effectively
against its competitors. Further information regarding these and
other risks is included in the Company's reports filed with, or
furnished to the U.S. Securities and Exchange Commission. All
information provided in this press release and in the attachments
is as of the date of this press release, and GSX undertakes no duty
to update such information or any forward-looking statement, except
as required under applicable law.
About GSX Techedu Inc.
GSX Techedu Inc. is a technology-driven education company and
leading online K-12 large-class after-school tutoring service
provider in China. GSX offers K-12 courses covering all
primary and secondary grades as well as foreign language,
professional and interest courses. GSX adopts an online live
large-class format to deliver its courses, which the Company
believes is the most effective and scalable model to disseminate
scarce high-quality teaching resources to aspiring students
in China. Big data analytics permeates each aspect of the
Company's business and facilitates the application of the latest
technology to improve teaching delivery, student learning
experience, and operational efficiency.
About Non-GAAP Financial Measures
The Company uses gross billings, non-GAAP gross profit, non-GAAP
(loss) income from operations and non-GAAP net (loss) income, each
a non-GAAP financial measure, in evaluating its operating results
and for financial and operational decision-making purposes.
The Company defines gross billings for a specific period as the
total amount of cash received for the sale of course offerings in
such period, net of the total amount of refunds in such period. The
Company's management uses gross billings as a performance
measurement because the Company generally bills its students for
the entire course fee at the time of sale of its course offerings
and recognizes revenue proportionally as the classes are delivered
over a period typically ranging from 1 to 6 months. For some
courses, the Company continues to provide students with 12 months
to 36 months access to the pre-recorded audio-video courses after
the online live courses are delivered. The related revenue for
playback is recognized proportionally over the playback period. The
Company believes that gross billings provides valuable insight into
the sales of its course packages and the performance of its
business. As gross billings has material limitations as an
analytical metrics 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.
Non-GAAP gross profit, non-GAAP (loss) income from operations
and non-GAAP net (loss) income exclude share-based compensation
expenses, and such adjustment has no impacts on income tax. GSX
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by
excluding share-based expenses that may not be indicative of its
operating performance from a cash perspective. GSX believes that
both management and investors benefit from these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to GSX's historical
performance. A limitation of using non-GAAP measures is that
these non-GAAP measures exclude share-based compensation charges
that have been and will continue to be for the foreseeable future a
significant recurring expense in the Company's business.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from or as a substitute for
the financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliations of non-GAAP
measures to the most comparable GAAP measures" set forth at the end
of this release.
The accompanying tables have more details on the reconciliations
between GAAP financial measures that are most directly comparable
to non-GAAP financial measures.
Exchange Rate
The Company's business is primarily conducted in China and the significant majority of revenues
generated are denominated in Renminbi ("RMB"). This announcement
contains currency conversions of RMB amounts into U.S. dollars
("USD") solely for the convenience of the reader. Unless otherwise
noted, all translations from RMB to USD are made at a rate of
RMB 6.8650 to USD1.00, the effective noon buying rate for
June 28, 2019 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 USD at that rate on June 28, 2019, or at any
other rate.
For further information, please contact:
GSX Techedu Inc.
E-mail: ir@baijiahulian.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
GSX Techedu
Inc.
|
Unaudited
condensed consolidated balance sheets
|
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
As of
December 31,
|
|
As of June
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
33,259
|
|
60,100
|
|
8,755
|
Short-term investments
|
197,991
|
|
1,686,491
|
|
245,665
|
Prepaid expenses and other current assets
|
48,841
|
|
148,372
|
|
21,613
|
Amounts due from related parties
|
710
|
|
-
|
|
-
|
Total current
assets
|
280,801
|
|
1,894,963
|
|
276,033
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Operating lease right-of-use assets
|
-
|
|
216,012
|
|
31,466
|
Property, equipment and software, net
|
16,779
|
|
31,769
|
|
4,628
|
Intangible assets
|
237
|
|
150
|
|
22
|
Long-term investments
|
5,221
|
|
5,385
|
|
784
|
Goodwill
|
331
|
|
331
|
|
48
|
Deferred tax assets
|
31,266
|
|
22,362
|
|
3,257
|
Rental deposit
|
3,508
|
|
9,395
|
|
1,369
|
Other non-current assets
|
60
|
|
265
|
|
39
|
Total
ASSETS
|
338,203
|
|
2,180,632
|
|
317,646
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accrued expenses and
other current liabilities
(including accrued expenses and other
current liabilities of the consolidated VIE
without recourse to the Group of
RMB51,445 and RMB96,947 as of
December 31, 2018 and June 30, 2019,
respectively)
|
57,244
|
|
109,177
|
|
15,904
|
Deferred revenue,
current portion of the
consolidated VIE without recourse to the
Group
|
263,330
|
|
494,108
|
|
71,975
|
Current portion of
operating lease liabilities of the
consolidated VIE without recourse to the
Group
|
-
|
|
57,281
|
|
8,344
|
Income tax payable of
the consolidated VIE
without recourse to the Group
|
-
|
|
5,327
|
|
776
|
Amounts due to related
parties (including
amounts due to related parties of the
consolidated VIE without recourse to the
Group of RMB960 and RMB460 as of
December 31, 2018 and June 30, 2019,
respectively)
|
35,338
|
|
460
|
|
67
|
Total Current
liabilities
|
355,912
|
|
666,353
|
|
97,066
|
GSX Techedu
Inc.
|
Unaudited
condensed consolidated balance sheets
|
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
As of
December 31,
|
|
As of June
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Non-current
liabilities
|
|
|
|
|
|
Deferred revenue,
non-current portion of the
consolidated VIE without recourse to the
Group
|
8,711
|
|
9,547
|
|
1,391
|
Non-current portion of
operating lease
liabilities of the consolidated VIE without
recourse to the Group
|
-
|
|
154,265
|
|
22,471
|
Deferred tax
liabilities of the consolidated
VIE without recourse to the Group
|
59
|
|
38
|
|
6
|
TOTAL
LIABILITIES
|
364,682
|
|
830,203
|
|
120,934
|
|
|
|
|
|
|
MEZZANINE
EQUITY
|
|
|
|
|
|
Series A convertible
redeemable preferred
shares
|
466,060
|
|
-
|
|
-
|
|
|
|
|
|
|
SHAREHOLDERS'
(DEFICIT) EQUITY
|
|
|
|
|
|
Ordinary
shares
|
60
|
|
104
|
|
15
|
Additional paid-in
capital
|
-
|
|
1,807,436
|
|
263,283
|
Accumulated other
comprehensive
income/(loss)
|
1,166
|
|
(7,846)
|
|
(1,143)
|
Accumulated
deficit
|
(493,765)
|
|
(449,265)
|
|
(65,443)
|
TOTAL
SHAREHOLDERS' (DEFICIT) EQUITY
|
(492,539)
|
|
1,350,429
|
|
196,712
|
|
|
|
|
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY
AND TOTAL SHAREHOLDERS' (DEFICIT)
EQUITY
|
338,203
|
|
2,180,632
|
|
317,646
|
GSX Techedu
Inc.
|
Unaudited
condensed consolidated statements of operations
|
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
For the three
months ended June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
Revenues
|
68,886
|
|
353,679
|
|
51,519
|
Cost of
revenues
|
(26,571)
|
|
(101,189)
|
|
(14,740)
|
Gross
profit
|
42,315
|
|
252,490
|
|
36,779
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
(18,424)
|
|
(169,048)
|
|
(24,625)
|
Research and
development expenses
|
(15,566)
|
|
(41,128)
|
|
(5,991)
|
General and
administrative expenses
|
(8,864)
|
|
(26,088)
|
|
(3,800)
|
Total operating
expenses
|
(42,854)
|
|
(236,264)
|
|
(34,416)
|
(Loss) income from
operations
|
(539)
|
|
16,226
|
|
2,363
|
Interest
income
|
146
|
|
3,990
|
|
581
|
Other (expense)
income
|
(120)
|
|
91
|
|
13
|
(Loss) income
before provision for income tax
and income from equity method investments
|
(513)
|
|
20,307
|
|
2,957
|
Income tax benefits
(expenses)
|
63
|
|
(4,539)
|
|
(661)
|
Income from equity
method investments
|
45
|
|
606
|
|
88
|
Net (loss)
income
|
(405)
|
|
16,374
|
|
2,384
|
Less: Series A
convertible redeemable preferred
shares redemption value accretion
|
9,733
|
|
7,039
|
|
1,025
|
Less: Undistributed
earnings allocated to the
participating preferred shares
|
-
|
|
1,682
|
|
245
|
Net (loss) income
attributable to GSX Techedu
Inc.'s ordinary shareholders
|
(10,138)
|
|
7,653
|
|
1,114
|
Net (loss) income
per ordinary share
|
|
|
|
|
|
Basic
|
(0.11)
|
|
0.06
|
|
0.01
|
Diluted
|
(0.11)
|
|
0.06
|
|
0.01
|
Net (loss) income
per ADS
|
|
|
|
|
|
Basic
|
(0.07)
|
|
0.04
|
|
0.01
|
Diluted
|
(0.07)
|
|
0.04
|
|
0.01
|
Weighted average
shares used in net (loss)
income per share
|
|
|
|
|
|
Basic
|
92,224,998
|
|
120,701,922
|
|
120,701,922
|
Diluted
|
92,224,998
|
|
129,617,224
|
|
129,617,224
|
|
|
|
|
|
|
Note: Three ADS
represents two ordinary shares.
|
|
|
GSX Techedu
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 June 30,
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue
|
68,886
|
|
353,679
|
|
51,519
|
Add: VAT and
surcharges
|
4,542
|
|
23,121
|
|
3,368
|
Add: ending deferred
revenue
|
91,951
|
|
503,655
|
|
73,366
|
Add: ending refund
liability
|
3,771
|
|
20,136
|
|
2,933
|
Less: beginning
deferred revenue
|
60,079
|
|
291,355
|
|
42,441
|
Less: beginning
refund liability
|
2,503
|
|
9,863
|
|
1,437
|
Gross billings
(non-GAAP)
|
106,568
|
|
599,373
|
|
87,308
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30,
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
USD
|
Gross
profit
|
42,315
|
|
252,490
|
|
36,779
|
Share-based
compensation expense in cost of revenues
|
47
|
|
4,437
|
|
646
|
Non-GAAP gross
profit
|
42,362
|
|
256,927
|
|
37,425
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
(539)
|
|
16,226
|
|
2,363
|
Share-based
compensation expenses
|
709
|
|
14,861
|
|
2,165
|
Non-GAAP income
from operations
|
170
|
|
31,087
|
|
4,528
|
|
|
|
|
|
|
|
Net (loss)
income
|
(405)
|
|
16,374
|
|
2,384
|
Share-based
compensation expenses
|
709
|
|
14,861
|
|
2,165
|
Non-GAAP net
income
|
304
|
|
31,235
|
|
4,549
|
GSX Techedu
Inc.
|
Unaudited
condensed consolidated statements of operations
|
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
For the six months
ended June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
Revenues
|
115,797
|
|
622,834
|
|
90,726
|
Cost of
revenues
|
(47,259)
|
|
(183,234)
|
|
(26,691)
|
Gross
profit
|
68,538
|
|
439,600
|
|
64,035
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
(32,306)
|
|
(268,567)
|
|
(39,121)
|
Research and
development expenses
|
(27,490)
|
|
(71,570)
|
|
(10,425)
|
General and
administrative expenses
|
(13,441)
|
|
(40,510)
|
|
(5,901)
|
Total operating
expenses
|
(73,237)
|
|
(380,647)
|
|
(55,447)
|
(Loss) income from
operations
|
(4,699)
|
|
58,953
|
|
8,588
|
Interest
income
|
234
|
|
5,106
|
|
744
|
Other (expense)
income
|
(50)
|
|
624
|
|
91
|
(Loss) income
before provision for income tax
and (loss) income from equity method
investments
|
(4,515)
|
|
64,683
|
|
9,423
|
Income tax benefits
(expenses)
|
552
|
|
(14,557)
|
|
(2,120)
|
(Loss) income from
equity method investments
|
(45)
|
|
139
|
|
20
|
Net (loss)
income
|
(4,008)
|
|
50,265
|
|
7,323
|
Less: Series A
convertible redeemable preferred
shares redemption value accretion
|
19,466
|
|
16,772
|
|
2,443
|
Less: Undistributed
earnings allocated to the
participating preferred shares
|
-
|
|
4,212
|
|
614
|
Net (loss) income
attributable to GSX Techedu
Inc.'s ordinary shareholders
|
(23,474)
|
|
29,281
|
|
4,266
|
Net (loss) income
per ordinary share
|
|
|
|
|
|
Basic
|
(0.25)
|
|
0.27
|
|
0.04
|
Diluted
|
(0.25)
|
|
0.25
|
|
0.04
|
Net (loss) income
per ADS
|
|
|
|
|
|
Basic
|
(0.17)
|
|
0.18
|
|
0.03
|
Diluted
|
(0.17)
|
|
0.17
|
|
0.03
|
Weighted average
shares used in net (loss)
income per share
|
|
|
|
|
|
Basic
|
92,224,998
|
|
106,542,125
|
|
106,542,125
|
Diluted
|
92,224,998
|
|
115,457,427
|
|
115,457,427
|
Note: Three ADS
represents two ordinary shares.
|
|
|
|
|
|
GSX Techedu
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 six months
ended June 30,
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue
|
|
115,797
|
|
622,834
|
|
90,726
|
Add: VAT and
surcharges
|
7,636
|
|
36,051
|
|
5,251
|
Add: ending deferred
revenue
|
91,951
|
|
503,655
|
|
73,366
|
Add: ending refund
liability
|
3,771
|
|
20,136
|
|
2,933
|
Less: beginning
deferred revenue
|
46,307
|
|
272,041
|
|
39,627
|
Less: beginning
refund liability
|
2,475
|
|
11,167
|
|
1,627
|
Less: deferred
revenue from the acquisition of
Shanghai Jinyou Education Technology Co., Ltd.
|
2,806
|
|
-
|
|
-
|
Gross billings
(non-GAAP)
|
167,567
|
|
899,468
|
|
131,022
|
|
|
|
For the six months
ended June 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Gross
profit
|
68,538
|
|
439,600
|
|
64,035
|
Share-based
compensation expense in cost of
revenues
|
59
|
|
4,860
|
|
708
|
Non-GAAP gross
profit
|
68,597
|
|
444,460
|
|
64,743
|
|
|
|
|
|
|
(Loss) income from
operations
|
(4,699)
|
|
58,953
|
|
8,588
|
Share-based
compensation expenses
|
922
|
|
18,683
|
|
2,721
|
Non-GAAP (loss)
income from operations
|
(3,777)
|
|
77,636
|
|
11,309
|
|
|
|
|
|
|
Net (loss)
income
|
(4,008)
|
|
50,265
|
|
7,323
|
Share-based
compensation expenses
|
922
|
|
18,683
|
|
2,721
|
Non-GAAP net
(loss) income
|
(3,086)
|
|
68,948
|
|
10,044
|
View original
content:http://www.prnewswire.com/news-releases/gsx-techedu-inc-announces-unaudited-financial-results-for-the-second-quarter-of-2019-300905659.html
SOURCE GSX Techedu Inc.