Gaotu Techedu Q1 Earnings Rise, But Revenues Edge Down

(RTTNews) - Gaotu Techedu Inc. (GOTU), a Chinese-based edutech company and online tutoring service provider, Tuesday reported higher earnings for the first quarter. However, revenues decreased by 2.4 percent.

The first-quarter income increased 112.1 percent to RMB 113.9 million or $16.58 million, from RMB 53.7 million or $8.47 million last year on higher customer acquisition, which rose by 73.8 percent increasing the gross billings by 69.4% to RMB 539.0 million.

Earnings per ADS was RMB 0.42 or $0.06, compared with earnings per ADS of RMB 0.21 or $0.03 a year ago.

Adjusted earnings increased 44.4 percent to RMB 133.6 million or $19.45 million, compared to adjusted net income of RMB 92.5 million or $14.59 million in the same period of previous year.

Net Revenue, however decreased 2.4 percent to RMB 707.3 million or $102.99 million from RMB 724.6 million or $114.30 million last year, due to changes in regulatory environment in the previous year which affected the gross billings temporarily.

Looking ahead for the second quarter, the company expects total revenue to be between RMB 648 million and RMB 668 million reflecting an increase of 20.5 percent to 24.2 percent year over year.

On Friday, shares of Gaotu closed at $2.49, up 7.33% or $0.17 on the New York Stock Exchange.