In This Article:
-
Gross Billings: Increased by 74.4% year-over-year for the full year 2024.
-
Net Revenues: Increased by 87% year-over-year for the full year 2024; Q4 net revenues were $16.2 million, a 117.3% increase from the same quarter last year.
-
Operating Cash Flow: Positive $5.8 million for the full year 2024.
-
Gross Margin: 77.5% for the fourth quarter.
-
Q4 Operating Expenses: $13.4 million, a 35.6% increase from the same quarter last year.
-
Q4 Sales and Marketing Expenses: $10.1 million, a 40.9% increase from the same quarter last year.
-
Q4 Product Development Expenses: $0.9 million, an 8.0% increase from the same quarter last year.
-
Q4 General and Administrative Expenses: $2.4 million, a 28% increase from the same quarter last year.
-
Q4 Operating Loss: $0.9 million.
-
Net Loss Attributable to Shareholders: $1.4 million, a 75.7% decrease from the same quarter last year.
-
Q4 GAAP and Non-GAAP Earnings per ADS: Negative $0.24 and $0.2, respectively.
-
Total Cash Equivalent and Time Deposits: $29.2 million at the end of the fourth quarter.
-
Advances from Students: $45.1 million at the end of the fourth quarter.
-
Q1 2025 Gross Billing Outlook: Expected to be between $21.5 million and $22 million.
Release Date: March 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Gross billings grew by 74.4% year-over-year, indicating strong demand and business growth.
-
Net revenues increased by 87% year-over-year, showcasing significant financial improvement.
-
The company achieved a full year positive operating cash flow of $5.8 million, strengthening its cash position.
-
Integration of AI into operations has improved operational efficiency and narrowed operating losses.
-
Gross margin for the fourth quarter was 77.5%, reflecting effective cost management and profitability.
Negative Points
-
Q4 operating expenses increased by 35.6% compared to the same quarter last year, driven by higher sales and marketing costs.
-
Q4 sales and marketing expenses rose by 40.9%, indicating increased spending to drive growth.
-
Q4 product development expenses increased by 8.0%, reflecting higher investment in product innovation.
-
Q4 operating loss was $0.9 million, indicating the company is still not profitable.
-
Net loss attributable to the company's ordinary shareholders was $1.4 million, despite improvements from the previous year.
Q & A Highlights
Q: Can you elaborate on the factors driving the significant increase in net revenues for the fourth quarter? A: Jack Huang, CEO, explained that the 117.3% increase in net revenues to $16.2 million was primarily driven by a rise in active students and lesson consumption. The company has been focusing on expanding its geographic reach and integrating AI to enhance operational efficiency, which has contributed to this growth.