In This Article:
-
Revenue Growth: 19.4% year-over-year increase.
-
Net Revenue (Excluding East Buy): 31.3% year-over-year increase.
-
Operating Margin: 2.8%.
-
Non-GAAP Operating Margin: 3.2%.
-
Overseas Test Prep Revenue: 21% year-over-year increase.
-
Overseas Study Consulting Revenue: 31% year-over-year increase.
-
Adults and University Students Revenue: 35% year-over-year increase.
-
New Education Business Initiatives Revenue: 43% year-over-year increase.
-
Integrated Tourism-related Business Revenue: 233% year-over-year increase.
-
Operating Income: $19.3 million, 9.8% decrease year-over-year.
-
Non-GAAP Operating Income: $27.6 million, 45.8% decrease year-over-year.
-
Net Income: $31.9 million, 6.2% increase year-over-year.
-
Non-GAAP Net Income: $35.5 million, 29.1% increase year-over-year.
-
Net Cash Flow from Operations: $313.3 million.
-
Capital Expenditures: $60.6 million.
-
Cash and Cash Equivalents: $1,418.2 million.
-
Term Deposits: $1,443.2 million.
-
Short-term Investments: $1,951.4 million.
-
Deferred Revenue: $1,960.6 million, 19.2% increase year-over-year.
-
Expenses: $1,019.4 million, 20.2% increase year-over-year.
-
Cost of Revenue: $498.3 million, 17.9% increase year-over-year.
-
Selling and Marketing Expenses: $196.1 million, 26.6% increase year-over-year.
-
G&A Expenses: $324.9 million, 20% increase year-over-year.
-
Non-GAAP G&A Expenses: $319.4 million, 24.7% increase year-over-year.
-
Share-based Compensation Expenses: $8.3 million, 71.8% decrease year-over-year.
-
Special Dividend: $0.06 per common share or $0.6 per ADS.
-
Share Repurchase Program: $542.8 million spent on repurchasing 11.2 million ADSs.
Release Date: January 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
New Oriental Education & Technology Group Inc (NYSE:EDU) achieved a 19.4% year-over-year revenue growth, surpassing expectations.
-
The company's new ventures contributed significantly to revenue, with a 31.3% increase excluding East Buy's private label products and live streaming business.
-
The Overseas Test Prep business saw a 21% year-over-year revenue increase, while the Adults and University Students business recorded a 35% increase.
-
New education business initiatives, including Non-Academic Tutoring and intelligent learning systems, reported a 43% year-over-year revenue increase.
-
The newly integrated tourism-related business line experienced a 233% year-over-year revenue increase, showcasing strong growth potential.
Negative Points
-
Operating income decreased by 9.8% year over year, indicating potential challenges in maintaining profitability.
-
Non-GAAP income from operations decreased by 45.8% year over year, highlighting significant pressure on operational efficiency.
-
Expenses for the quarter increased by 20.2% year over year, driven by accelerated capacity expansion and new business investments.
-
The company faces macroeconomic uncertainties impacting high-end education business demand, such as Overseas Test Prep.
-
Revenue growth guidance for Q3 indicates a deceleration, with expected growth in the range of 18% to 21% in dollar terms.