Gaotu Techedu Announces First Quarter 2025 Unaudited Financial Results and a New Share Repurchase Program

Core Viewpoint - Gaotu Techedu Inc. reported strong financial results for the first quarter of 2025, with significant year-over-year growth in revenues and profitability, driven by enhanced operational efficiency and strategic investments in AI-powered educational solutions [1][5][10]. Financial Performance - Net revenues increased by 57.7% to RMB1,493.0 million from RMB946.9 million in Q1 2024 [3][10]. - Gross billings rose by 21.8% to RMB888.7 million from RMB729.4 million in the same period [3][10]. - Income from operations was RMB34.8 million, a turnaround from a loss of RMB77.7 million in Q1 2024 [3][14]. - Net income reached RMB124.0 million, compared to a net loss of RMB12.3 million in the prior year [3][19]. - Non-GAAP net income surged by 4,419.2% to RMB137.3 million from RMB3.0 million in Q1 2024 [3][19]. Operational Highlights - The company achieved a net income margin of 9.2% and an operating margin increase of 10.5 percentage points year-over-year [5][8]. - Deferred revenue balance grew by 44.0% to over RMB1.4 billion, indicating strong future revenue potential [8]. - The company allocated RMB136 million for share repurchases, with a total of approximately RMB460 million under the current buyback plan [6][9]. Strategic Initiatives - Gaotu is focusing on creating a technology-empowered value loop in education by integrating AI into its products and services, enhancing user experience and learning outcomes [7][9]. - The company plans to continue investing in product quality and expanding its user base to meet evolving customer needs [9]. Future Outlook - For Q2 2025, total net revenues are expected to be between RMB1,298 million and RMB1,318 million, reflecting a year-over-year increase of 28.5% to 30.5% [26].