Gaotu(GOTU) Prnewswire·2024-12-04 06:00Core Viewpoint - Gaotu Techedu Inc. reported significant growth in net revenues and gross billings for the third quarter of 2024, despite increasing operational losses, indicating a strong market demand and strategic investments in educational services [1][2][4]. Financial Performance - Net revenues for Q3 2024 reached RMB 1,208.3 million, a 53.1% increase from RMB 789.4 million in Q3 2023 [2][3]. - Gross billings for Q3 2024 were RMB 1,069.2 million, up 67.2% from RMB 639.3 million in the same period last year [2][3]. - The company reported a loss from operations of RMB 490.1 million, compared to a loss of RMB 99.5 million in Q3 2023, marking a 392.4% increase in operational losses [2][3][12]. - Net loss for Q3 2024 was RMB 471.3 million, a significant increase from a net loss of RMB 57.7 million in Q3 2023, reflecting a 717.3% rise in losses [2][3][15]. - Non-GAAP net loss was RMB 457.2 million, compared to a non-GAAP net loss of RMB 41.7 million in the same quarter of 2023, indicating a 995.6% increase [2][3][16]. - Net operating cash outflow was RMB 714.4 million, compared to RMB 209.9 million in Q3 2023, representing a 240.3% increase in cash outflow [2][3][17]. Operational Insights - The company allocated over RMB 120 million for share buybacks, demonstrating a commitment to shareholder returns [6]. - As of September 30, 2024, Gaotu had over RMB 3.3 billion in cash and equivalents, providing a solid foundation for future growth [6][20]. - The deferred revenue balance increased by 89.0% year-over-year to over RMB 1.4 billion, indicating strong future revenue potential [6]. Strategic Outlook - The company anticipates Q4 2024 net revenues to be between RMB 1,288 million and RMB 1,308 million, reflecting a year-over-year increase of 69.2% to 71.9% [23]. - The growth in revenues is attributed to a robust market demand, particularly during the summer vacation period, leading to increased student enrollments and market share [6][23].