BEIJING, March 27,
2023 /PRNewswire/ -- Tarena International, Inc.
(NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of
IT professional education and IT-focused supplementary STEAM
education services in China, today
announced its unaudited financial results for the fourth
quarter and full year ended December 31,
2022.
Highlights for the Fourth Quarter of
2022
- Total student enrollment in IT-focused supplementary STEAM
education increased by 17.0% to 177,000 in the fourth quarter of
2022, compared to student enrollment of 151,300 in the same period
of 2021.
- Net revenues decreased by 15.7% year-over-year to RMB552.4 million (US$80.1
million), from RMB655.3
million in the same period of 2021.
- Gross profit decreased by 1.6% year-over-year to RMB322.4 million (US$46.7
million), from RMB327.6
million in the same period of 2021.
- Gross profit margin increased by 8.4% year-over-year to 58.4%,
from 50.0% in the same period of 2021.
- Operating loss decreased to RMB4.6
million (US$0.7 million), from
a loss of RMB60.4 million in the same
period of 2021.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB0.2
million (US$0.03 million),
compared to a non-GAAP operating loss of RMB56.5 million in the same period of 2021.
- Net loss was RMB17.7 million
(US$2.6 million), compared to a net
loss of RMB182.5 million in the same
period of 2021.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB12.9 million
(US$1.9 million), compared to a
non-GAAP net loss of RMB178.6 million
in the same period of 2021.
- Basic and diluted loss per American Depositary Share ("ADS"),
each representing five Class A ordinary shares with an effective
date of December 23, 2021, was
RMB1.72 (US$0.25), compared to a loss per ADS of
RMB16.12 in the fourth quarter of
2021.
- Operating cash inflow for the quarter was RMB24.0 million (US$3.5
million).
- Cash, cash equivalents, and time deposits, including current
and non-current, and restricted cash totaled RMB380.5 million (US$55.2
million) as of December 31,
2022.
Highlights for Fiscal Year of 2022
- Total student enrollment in our IT-focused supplementary STEAM
education for fiscal year 2022 reached 209,400, increasing by
17.4%, compared to student enrollment of 178,400 in the same period
in 2021.
- Net revenues increased by 3.4% year-over-year to RMB2,468.1 million (US$357.8 million), from RMB2,386.5 million in the same period in
2021.
- Gross profit increased by 19.1% year-over-year to RMB1,412.0 million (US$204.7 million), from RMB1,185.1 million in the same period in
2021.
- Gross profit margin increased by 7.5% year-over-year to 57.2%,
from 49.7% in the same period in 2021.
- Operating income was RMB93.0
million (US$13.5 million),
compared to an operating loss of RMB369.1
million in the same period in 2021.
- Non-GAAP operating income, which excluded share-based
compensation expenses, was RMB109.6
million (US$15.9 million),
compared to a non-GAAP operating loss of RMB350.0 million in the same period in 2021.
- Net income was RMB85.2 million
(US$12.4 million), compared to a net
loss of RMB475.8 million in the same
period in 2021.
- Non-GAAP net income, which excluded share-based compensation
expenses, was RMB101.8 million
(US$14.8 million), compared to a
non-GAAP net loss of RMB456.7 million
in the same period in 2021.
- Basic income per American Depositary Share ("ADS"), each
representing five Class A ordinary shares with an effective date of
December 23, 2021, was RMB7.64 (US$1.11).
Diluted income per American Depositary Share ("ADS") was
RMB7.23 (US$1.05).
Key Financial Results
|
|
For the Three Months Ended
December 31,
|
Variance
|
% of
change
|
Fiscal Year
Ended
December 31,
|
Variance
|
% of
change
|
|
|
2021
|
|
2022
|
|
|
|
2021
|
|
2022
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
(in thousands,
except for percentages)
|
Net
revenues
|
|
655,301
|
|
552,444
|
|
(102,857)
|
-15.7
|
2,386,520
|
|
2,468,074
|
|
81,554
|
3.4
|
Cost of
revenues(a)
|
|
(327,689)
|
|
(230,067)
|
|
97,622
|
-29.8
|
(1,201,419)
|
|
(1,056,043)
|
|
145,376
|
-12.1
|
Gross
profit
|
|
327,612
|
|
322,377
|
|
(5,235)
|
-1.6
|
1,185,101
|
|
1,412,031
|
|
226,930
|
19.1
|
Gross
margin
|
|
50.0 %
|
|
58.4 %
|
|
8.4 %
|
|
49.7 %
|
|
57.2 %
|
|
7.5 %
|
|
Selling and
marketing
expenses(a)
|
|
(221,847)
|
|
(145,301)
|
|
76,546
|
-34.5
|
(878,130)
|
|
(642,937)
|
|
235,193
|
-26.8
|
General and
administrative
expenses(a)
|
|
(132,465)
|
|
(153,556)
|
|
(21,091)
|
15.9
|
(569,985)
|
|
(604,028)
|
|
(34,043)
|
6.0
|
Research and
development
expenses(a)
|
|
(33,664)
|
|
(28,088)
|
|
5,576
|
-16.6
|
(106,098)
|
|
(72,028)
|
|
34,070
|
-32.1
|
Total operating
expenses
|
|
(387,976)
|
|
(326,945)
|
|
61,031
|
-15.7
|
(1,554,213)
|
|
(1,318,993)
|
|
235,220
|
-15.1
|
Operating
income/(loss)
|
|
(60,364)
|
|
(4,568)
|
|
55,796
|
-92.4
|
(369,112)
|
|
93,038
|
|
462,150
|
125.2
|
Note:
(a) Includes share-based compensation expenses.
"The changing dynamics in the fourth quarter of 2022 and January
of 2023 and the uncertain business environment during the period
temporarily affected our regular operations. We had to close some
of our offline centers for almost two months as a good portion of
our students, instructors, employees, and their families weathered
the pandemic. Facing challenges during the period, particularly
with respect to customer acquisition, course delivery, and services
at our offline centers, we navigated through our robust online
delivery system and continued focusing on cost reduction and
efficiency enhancement. As a result, we realized an operating cash
inflow of RMB24.0 million for the
quarter," remarked Ms. Ying Sun, the
Chief Executive Officer of Tarena.
Ms. Sun continued, "After the Chinese New Year holiday, as the
country recovered from the impact, we also fully emerged, with all
our offline centers resuming normal classes and operations in
February. In addition, the gradual recovery of the macro
environment has brought increased enthusiasm for students to
enroll, which we believe will partially offset the impact of these
exceptional circumstances on the financial performance of fiscal
year of 2023."
"Looking ahead, we will continue to optimize our integrated
online and offline product delivery and service system and promote
the improvement of course and service quality, aiming to provide
increased value and optimized experiences for our students. We will
also drive new enrollment and renewal of existing students via
strengthening word-of-mouth to achieve efficient customer
acquisition at a lower cost. We are optimistic about the rebound in
enrollment and future growth. At the same time, we will remain
laser focused on enhancing operating efficiency, and strive for
continued improvement in our profitability in 2023," concluded Ms.
Ying Sun.
Financial Results for the Fourth Quarter of
2022
Net Revenues
Total net revenues decreased by 15.7% to RMB552.4 million (US$80.1 million) in the fourth quarter of 2022
from RMB655.3 million in the same
period of 2021. The decrease was mainly due to a decrease in
student enrollment in our IT professional education, and was
partially offset by an increase in IT-focused supplementary STEAM
education revenues.
Cost of Revenues
The cost of revenues decreased by 29.8% to RMB230.1 million (US$33.4 million) in the fourth quarter of 2022,
from RMB327.7 million in the same
period of 2021. The decrease was mainly due to decreased rental and
personnel-related costs resulting from the closing of some of our
teaching centers.
Gross Profit and Gross Margin
Gross profit decreased by 1.6% to RMB322.4 million (US$46.7
million) in the fourth quarter of 2022, from RMB327.6 million in the same period of 2021.
Gross margin expanded to 58.4% in the fourth quarter of 2022,
compared to 50.0% in the same period of 2021, as we continued
to improve operational efficiency.
Operating Expenses
Total operating expenses decreased by 15.7% to RMB326.9 million (US$47.4
million) in the fourth quarter of 2022, from RMB388.0 million in the same period of 2021.
Total non-GAAP operating expenses, which excluded share-based
compensation expenses, decreased by 16.0% to RMB322.4 million (US$46.7 million) in the fourth quarter of 2022,
from RMB383.6 million in the same
period of 2021. Total share-based compensation expenses allocated
to related operating expenses were RMB4.6 million
(US$0.7 million) in the fourth
quarter of 2022, compared to RMB4.4
million in the same period of 2021.
Selling and marketing expenses decreased by 34.5% to
RMB145.3 million (US$21.1 million) in the fourth quarter of 2022,
from RMB221.8 million in the same period of 2021. The decrease
was mainly due to the drop in the number of sales staff and a
decrease in advertising spending as the Company continued to
optimize marketing spending in the fourth quarter of 2022.
General and administrative expenses increased by 15.9% to
RMB153.6 million (US$22.3 million) in the fourth quarter of 2022,
from RMB132.5 million in the same
period of 2021. The increase was mainly attributable to the lower
general and administrative expenses in the fourth quarter of 2021
resulting from the receipt of a settlement payment from the buyer
group in connection with the termination of a proposed
privatization transaction. Personnel-related expenses and rental
expenses decreased in the fourth quarter of 2022 because the number
of administration staff decreased and we obtained some rental
relief as we closed some low performing centers.
Research and development expenses decreased by 16.6% to
RMB28.1 million (US$4.1 million) in the fourth quarter of 2022,
from RMB33.7 million in the same
period of 2021. The decrease was mainly due to the decrease in
personnel-related expenses in the fourth quarter of 2022.
Operating Income/(Loss)
Operating loss was RMB4.6 million
(US$0.7 million) in the fourth
quarter of 2022, compared to an operating loss of RMB60.4 million in the same period of 2021.
Non-GAAP operating income, which excluded share-based compensation
expenses, was RMB0.2 million
(US$0.03 million) in the fourth
quarter of 2022, compared to a non-GAAP operating loss of
RMB56.5 million in the same period of
2021.
Income Tax Expense
The Company recorded an income tax expense of RMB17.6 million (US$2.6 million) in the fourth quarter of 2022,
compared to an income tax expense of RMB125.7 million in the same period of 2021.
Net Loss
As a result of the foregoing factors, net loss was RMB17.7 million (US$2.6
million) in the fourth quarter of 2022, compared to a net
loss of RMB182.5 million in the same
period of 2021. Non-GAAP net loss, which excluded share-based
compensation expenses, was RMB12.9 million (US$1.9 million) in the fourth quarter of 2022,
compared to a non-GAAP net loss of RMB178.6
million in the same period of 2021.
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS was RMB1.72 (US$0.25)
in the fourth quarter of 2022, compared to a loss per ADS of
RMB16.12 in the fourth quarter of
2021. Non-GAAP basic and diluted loss per ADS, which excluded
share-based compensation expenses, was RMB1.27 (US$0.18)
in the fourth quarter of 2022, compared to a non-GAAP loss per ADS
of RMB15.78 in the fourth quarter of
2021.
Cash Flow
Net cash inflow from operating activities in the fourth quarter
of 2022 was RMB24.0 million
(US$3.5 million). Net cash inflow
from financing activities in the fourth quarter of 2022 was
RMB27.0 million (US$3.9 million), as we borrowed a net amount of
RMB35.5 million (US$5.1 million). Capital expenditures in the
fourth quarter of 2022 were RMB9.2
million (US$1.3 million).
Fiscal Year 2022 Results
Net Revenues
Total net revenues increased by 3.4% to RMB2,468.1 million (US$357.8 million) in 2022, from RMB2,386.5 million in 2021. The increase was
primarily driven by higher student enrollment in our IT-focused
supplementary STEAM education, and was partially offset by a
decrease in IT professional education revenues.
Cost of Revenues
The cost of revenues decreased by 12.1% to RMB1,056.0 million (US$153.1 million) in 2022, from RMB1,201.4 million in 2021. The decrease was
mainly due to the decrease in rental costs, depreciation costs, and
personnel-related costs resulting from the closing of some of our
teaching centers.
Gross Profit and Gross Margin
Gross profit increased by 19.1% to RMB1,412.0 million (US$204.7 million) in 2022, from RMB1,185.1 million in 2021. Gross margin
increased to 57.2% in 2022, compared to 49.7% in 2021 as we
continued to improve operational efficiency.
Operating Expenses
Total operating expenses decreased by 15.1% to RMB1,319.0 million (US$191.2 million) in 2022, from RMB1,554.2 million in 2021. Total non-GAAP
operating expenses, which excluded share-based compensation
expenses, decreased by 15.1% to RMB1,302.8
million (US$188.9 million) in
2022, from RMB1,535.2 million in
2021. Total share-based compensation expenses allocated to related
operating expenses decreased by 14.7% to RMB16.2 million (US$2.3 million) in 2022, from RMB19.0 million in 2021.
Selling and marketing expenses decreased by 26.8% to
RMB642.9 million (US$93.2 million) in 2022, from RMB878.1 million in 2021. The decrease was mainly
due to a drop in the number of sales staff and a decrease in
advertising spending as the Company continued to control marketing
spending in 2022.
General and administrative expenses increased by 6.0% to
RMB604.0 million (US$87.6 million) in 2022, from RMB570.0 million in 2021. The increase was mainly
due to the lower general and administrative expenses in the fourth
quarter of 2021 resulting from the receipt of a settlement payment
from the buyer group in connection with the termination of a
proposed privatization transaction, as well as a provision of a
shareholder litigation in 2022. Rental expenses decreased as we
closed some low performing centers and obtained some rental relief.
Office expenses decreased as the Company focused on improving
operational efficiency.
Research and development expenses decreased by 32.1% to
RMB72.0 million (US$10.4 million) in 2022, from RMB106.1 million in 2021. The decrease was mainly
due to a decrease in personnel-related costs in 2022.
Operating Income/(Loss)
Operating income was RMB93.0
million (US$13.5 million) in
2022, compared to an operating loss of RMB369.1 million in 2021. Non-GAAP operating
income, which excluded share-based compensation expenses, was
RMB109.6 million (US$15.9 million) in 2022, compared to a non-GAAP
operating loss of RMB350.0 million in
2021.
Income Tax Expense
The Company recorded an income tax expense of RMB20.8 million (US$3.0
million) in 2022, compared to RMB114.1 million in income tax expense in
2021.
Net Income/(Loss)
As a result of the foregoing, net income was RMB85.2 million (US$12.4
million) in 2022, compared to net loss of RMB475.8 million in 2021. Non-GAAP net income,
which excluded share-based compensation expenses, was RMB101.8 million (US$14.8
million) in 2022, compared to non-GAAP net loss of
RMB456.7 million in 2021.
Basic and Diluted Income/(Loss) per ADS
Basic income per ADS was RMB7.64
(US$1.11) in 2022. Diluted income per
ADS was RMB7.23 (US$1.05) in 2022. Non-GAAP basic income per ADS,
which excluded share-based compensation expenses, was RMB9.15 (US$1.33)
in 2022. Non-GAAP diluted income per ADS, which excluded
share-based compensation expenses, was RMB8.67 (US$1.26)
in 2022.
Cash Flow
The total balance of cash, cash equivalents, time deposits, and
restricted cash decreased by RMB49.9
million from RMB430.4 million
as of December 31, 2021, to
RMB380.5 million (US$55.2 million) as of December 31, 2022. Net cash outflow from
operating activities in 2022 was RMB27.5
million (US$4.0 million),
primarily due to operational spending exceeding the amount of cash
received from enrollments. Net cash outflow from financing
activities in 2022 was RMB2.1 million
(US$0.3 million) as we made treasury
stock buyback. Capital expenditures in 2022 were RMB38.8 million (US$5.6
million).
The financial statements for the full year ended
December 31, 2022 included within this earnings release have
not been audited by the Company's independent registered accounting
firm. The audited financial statements for the year ended
December 31, 2022 to be disclosed in the Company's
Form 20-F may have discrepancies with the above-mentioned
unaudited financial statements.
Business Outlook
As classes and non-essential operations were suspended for the
month of January and after taking into consideration the lingering
impact from the fourth quarter of 2022, based on the Company's
current estimates, total net revenues for the first quarter of 2023
are expected to be in the range of RMB365
million to RMB380 million,
representing a decrease of 39.1% to 41.5% compared to net revenues
in the same period of 2022. Since February
2023, we have resumed normal classes and business operations
and we expect a better financial performance for the remainder of
fiscal 2023.
This guidance is based on current market conditions and reflects
the Company's current and preliminary estimates of market and
operating conditions, which are subject to change.
Exchange Rate Information
All translations made in the financial statements or elsewhere
in this press release from RMB to United
States dollars ("US$") are solely for convenience and
calculated at the rate of US$1.00=RMB6.8972,
representing the exchange rate as of December 30, 2022, as set forth in the H.10
statistical release of the U.S. Federal Reserve Board. No
representation is made that the RMB amounts could have been
converted, realized or settled into US$ at that rate, or at any
other rate, on December 30, 2022.
Conference Call
Company management will hold an earnings conference call and
live webcast to discuss the Company's results at 8:00 AM on March 28,
2023, U.S. Eastern Time (8:00
PM on March 28, 2023, Beijing
Time).
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, a passcode, and a unique registrant
ID.
Conference call registration link:
https://s1.c-conf.com/diamondpass/10029490-hd82y4.html. It will
automatically direct you to the registration page for "Tarena's
Fourth Quarter and Fiscal Year 2022 Earnings Conference Call,"
where you may fill in your details to RSVP. If it requires you to
enter a participant conference ID, please enter "10029490".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s), direct
event passcode, and registrant ID) provided in the confirmation
email received at the point of registration.
A replay of the conference call may be accessed by phone at the
following number until April 4,
2023:
United States: +1855 883
1031
China: 400 1209 216
Hong Kong: 800 930 639
Conference ID: 10029490
Additionally, a live and archived webcast of this call will be
available on the Investor Relations section of Tarena's website at
http://ir.tedu.cn.
About Tarena International, Inc.
Tarena is a leading provider of IT professional education and
IT-focused supplementary STEAM education services in China. Through its innovative education
platform combining live distance instruction, classroom-based
tutoring and online learning modules, Tarena offers professional
education courses in IT and non-IT subjects. Its professional
education courses provide students with practical skills to prepare
them for jobs in industries with significant growth potential and
strong hiring demand. Tarena also offers IT-focused supplementary
STEAM education programs, including computer coding and robotics
programming courses, etc., targeting students between three and
eighteen years of age. Aiming to encourage "code to learn," Tarena
embraces the latest trends in STEAM education and technology to
develop children's logical thinking and learning abilities while
allowing them to discover their interests and potential.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Among other
things, the business outlook, the quotations from management in
this announcement, as well as the Company's strategic and
operational plans contain forward-looking statements. Tarena may
also make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including any business outlook and
statements about Tarena's beliefs and expectations, are
forward-looking statements. Many factors, risks and uncertainties
could cause actual results to differ materially from those in the
forward-looking statements. Such factors and risks include, but not
limited to the following: the impact of the COVID-19 outbreak;
Tarena's goals and strategies; its future business development,
financial condition and results of operations; its ability to
continue to attract students to enroll in its courses; its ability
to continue to recruit, train and retain qualified instructors and
teaching assistants; its ability to continually tailor its
curriculum to market demand and enhance its courses to adequately
and promptly respond to developments in the professional job
market; its ability to maintain or enhance its brand recognition,
its ability to maintain high job placement rate for its students,
and its ability to maintain cooperative relationships with
financing service providers for student loans.
Further information regarding these and other risks,
uncertainties or factors is included in Tarena's filings with the
U.S. Securities and Exchange Commission. All information provided
in this press release is current as of the date of the press
release, and Tarena does not undertake any obligation to update
such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Tarena's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Tarena's management uses non-GAAP measures of
cost of revenues, operating expenses, operating income, net income,
and basic and diluted net income per ADS, which are adjusted from
results based on GAAP to exclude the share-based compensation
expenses. These non-GAAP financial measures should be considered in
addition to results prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, GAAP results.
In addition, calculation of the non-GAAP financial measures may be
different from the calculation used by other companies, and
therefore comparability may be limited.
Tarena's management believes that excluding the share-based
compensation expenses provides meaningful supplemental information
regarding our performance and liquidity by excluding certain items
identified as non-recurring and infrequent in nature, and non-cash
charges. The amount of share-based compensation expenses is not
built into the Company's annual budgets and quarterly forecasts,
which generally will be the basis for information Tarena provides
to analysts and investors as guidance for future operating
performance.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Tarena's current financial
performance and prospects for the future. A limitation of using
non-GAAP cost of revenues, operating expenses, operating income
(loss) and net income (loss), excluding the share-based
compensation expenses is that the share-based compensation charge
has been and will continue to be a recurring expense in the
Company's business for the foreseeable future. In order to mitigate
the limitation, the Company has provided specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
GAAP financial measures that are most directly comparable to the
non-GAAP financial measures the Company has presented.
For further information, please contact:
Investor Relations Contact:
Tarena International, Inc.
Investor Relations
E-mail: ir@tedu.cn
The Piacente Group, Inc.
In China
Yang Song
Tel: +86-10-6508-0677
E-mail: tedu@tpg-ir.com
In the U.S.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: tedu@tpg-ir.com
TARENA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share data and per ADS data)
|
|
|
|
As of
|
|
|
December 31,
|
|
December
31,
|
|
December
31,
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
423,766
|
|
356,237
|
|
51,650
|
Time
deposits
|
|
6,257
|
|
6,277
|
|
910
|
Restricted
cash
|
|
255
|
|
17,730
|
|
2,571
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
48,458
|
|
68,733
|
|
9,965
|
Amounts due from
related parties
|
|
839
|
|
698
|
|
101
|
Asset held for
sale
|
|
-
|
|
106,539
|
|
15,447
|
Prepaid expenses and
other current assets
|
|
139,757
|
|
111,339
|
|
16,142
|
Total current
assets
|
|
619,332
|
|
667,553
|
|
96,786
|
Time deposits-non
current
|
|
123
|
|
228
|
|
33
|
Accounts receivable,
net of allowance for doubtful accounts-non current
|
|
90
|
|
182
|
|
26
|
Amount due from
related parties-non current
|
|
683
|
|
701
|
|
102
|
Property and
equipment, net
|
|
299,441
|
|
122,834
|
|
17,809
|
Intangible assets,
net
|
|
9,906
|
|
7,542
|
|
1,093
|
Goodwill
|
|
52,782
|
|
52,782
|
|
7,653
|
Right-of-use
assets
|
|
495,936
|
|
350,501
|
|
50,818
|
Long-term investments,
net
|
|
46,449
|
|
46,183
|
|
6,696
|
Deferred income tax
assets
|
|
41,000
|
|
40,127
|
|
5,818
|
Other non-current
assets, net
|
|
76,040
|
|
48,867
|
|
7,085
|
Total
assets
|
|
1,641,782
|
|
1,357,500
|
|
193,919
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term bank
loans
|
|
30,000
|
|
52,000
|
|
7,539
|
Accounts
payable
|
|
8,914
|
|
6,330
|
|
918
|
Amounts due to related
parties
|
|
554
|
|
87
|
|
13
|
Operating lease
liabilities-current
|
|
239,937
|
|
197,969
|
|
28,703
|
Income taxes
payable
|
|
89,000
|
|
108,434
|
|
15,721
|
Deferred
revenue-current
|
|
2,008,078
|
|
1,688,610
|
|
244,825
|
Accrued expenses and
other current liabilities
|
|
563,603
|
|
603,516
|
|
87,502
|
Total current
liabilities
|
|
2,940,086
|
|
2,656,946
|
|
385,221
|
Deferred revenue-non
current
|
|
16,774
|
|
14,051
|
|
2,037
|
Operating lease
liabilities-non current
|
|
272,575
|
|
168,736
|
|
24,464
|
Other non-current
liabilities
|
|
4,767
|
|
4,448
|
|
645
|
Total
liabilities
|
|
3,234,202
|
|
2,844,181
|
|
412,367
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
-
|
Shareholders'
equity:
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
355
|
|
359
|
|
52
|
Class B ordinary
shares
|
|
74
|
|
74
|
|
11
|
Treasury
stock
|
|
(459,815)
|
|
(476,918)
|
|
(69,147)
|
Additional paid-in
capital
|
|
1,347,205
|
|
1,363,845
|
|
197,739
|
Accumulated other
comprehensive income
|
|
48,699
|
|
49,664
|
|
7,201
|
Accumulated
deficit
|
|
(2,520,438)
|
|
(2,436,918)
|
|
(353,320)
|
Total deficit
attributable to the shareholders of Tarena
International, Inc.
|
|
(1,583,920)
|
|
(1,499,894)
|
|
(217,464)
|
Non-controlling
interest
|
|
(8,500)
|
|
(6,787)
|
|
(984)
|
Total liabilities
and equity
|
|
1,641,782
|
|
1,337,500
|
|
193,919
|
TARENA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
(in thousands,
except share data and per ADS data)
|
|
|
|
For the Three Months Ended
December 31
|
|
Fiscal
Year Ended
December 31
|
|
|
2021
Unaudited
|
|
2022
Unaudited
|
|
2022
Unaudited
|
|
2021
Audited
|
|
2022
Unaudited
|
|
2022
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
655,301
|
|
552,444
|
|
80,097
|
|
2,386,520
|
|
2,468,074
|
|
357,837
|
Cost of
revenues(a)
|
|
(327,689)
|
|
(230,067)
|
|
(33,357)
|
|
(1,201,419)
|
|
(1,056,043)
|
|
(153,112)
|
Gross
profit
|
|
327,612
|
|
322,377
|
|
46,740
|
|
1,185,101
|
|
1,412,031
|
|
204,725
|
Selling and
marketing
expenses(a)
|
|
(221,847)
|
|
(145,301)
|
|
(21,067)
|
|
(878,130)
|
|
(642,937)
|
|
(93,217)
|
General and
administrative
expenses(a)
|
|
(132,465)
|
|
(153,556)
|
|
(22,264)
|
|
(569,985)
|
|
(604,028)
|
|
(87,576)
|
Research and
development
expenses(a)
|
|
(33,664)
|
|
(28,088)
|
|
(4,072)
|
|
(106,098)
|
|
(72,028)
|
|
(10,443)
|
Operating
income/(loss)
|
|
(60,364)
|
|
(4,568)
|
|
(663)
|
|
(369,112)
|
|
93,038
|
|
13,489
|
Interest income,
net
|
|
774
|
|
844
|
|
122
|
|
2,335
|
|
2,700
|
|
391
|
Other income
|
|
2,749
|
|
3,503
|
|
508
|
|
5,572
|
|
11,283
|
|
1,636
|
Foreign exchange
loss
|
|
(12)
|
|
158
|
|
23
|
|
(518)
|
|
(954)
|
|
(138)
|
Income/(loss)
before
income taxes
|
|
(56,853)
|
|
(63)
|
|
(10)
|
|
(361,723)
|
|
106,067
|
|
15,378
|
Income tax
expense
|
|
(125,696)
|
|
(17,641)
|
|
(2,558)
|
|
(114,057)
|
|
(20,834)
|
|
(3,021)
|
Net
income/(loss)
|
|
(182,549)
|
|
(17,704)
|
|
(2,568)
|
|
(475,780)
|
|
85,233
|
|
12,357
|
Less: Net
income/(loss)
attributable to non-
controlling interests
|
|
(75)
|
|
802
|
|
116
|
|
-1233
|
|
1713
|
|
248
|
Net
income/(loss)
attributable to Class A
and Class B ordinary
shareholders
|
|
(182,474)
|
|
(18,506)
|
|
(2,684)
|
|
(474,547)
|
|
83,520
|
|
12,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
per ADS(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic(b)
|
|
(16.12)
|
|
(1.72)
|
|
(0.25)
|
|
(42.17)
|
|
7.64
|
|
1.11
|
Diluted(b)
|
|
(16.12)
|
|
(1.72)
|
|
(0.25)
|
|
(42.17)
|
|
7.23
|
|
1.05
|
Weighted average
number of Class A and
Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
56,587,227
|
|
53,856,656
|
|
53,856,656
|
|
56,260,925
|
|
54,657,222
|
|
54,657,222
|
Diluted
|
|
56,587,227
|
|
53,856,656
|
|
53,856,656
|
|
56,260,925
|
|
57,730,672
|
|
57,730,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
(182,549)
|
|
(17,704)
|
|
(2,568)
|
|
(475,780)
|
|
85,233
|
|
12,357
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of
nil income taxes
|
|
(285)
|
|
595
|
|
86
|
|
(421)
|
|
965
|
|
140
|
Comprehensive
income/(loss)
|
|
(182,834)
|
|
(17,109)
|
|
(2,482)
|
|
(476,201)
|
|
86,198
|
|
12,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(a) Includes share-based compensation expenses as
follows:
|
|
For the Three Months Ended
December 31,
|
|
Fiscal Year
Ended
December
31
|
|
|
2021
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
(485)
|
|
246
|
|
36
|
|
70
|
|
325
|
|
47
|
Selling and marketing
expenses
|
|
(189)
|
|
413
|
|
60
|
|
2,785
|
|
1,388
|
|
201
|
General and
administrative expenses
|
|
4,245
|
|
3,165
|
|
459
|
|
14,840
|
|
12,296
|
|
1,783
|
Research and
development expenses
|
|
341
|
|
977
|
|
142
|
|
1,408
|
|
2,528
|
|
367
|
TARENA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
|
(in thousands,
except share data and per ADS data)
|
|
|
|
For the Three Months Ended
December 31,
|
|
Fiscal
Year Ended December 31,
|
|
|
2021
Unaudited
|
|
2022
Unaudited
|
|
2022
Unaudited
|
|
2021
Unaudited
|
|
2022
Unaudited
|
|
2022
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
|
327,689
|
|
230,067
|
|
33,357
|
|
1,201,419
|
|
1,056,043
|
|
153,112
|
Share-based
compensation expense in cost
of revenues
|
|
-485
|
|
246
|
|
36
|
|
70
|
|
325
|
|
47
|
Non-GAAP Cost of
revenues
|
|
328,174
|
|
229,821
|
|
33,321
|
|
1,201,349
|
|
1,055,718
|
|
153,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
|
221,847
|
|
145,301
|
|
21,067
|
|
878,130
|
|
642,937
|
|
93,217
|
Share-based
compensation expense in
selling and marketing expenses
|
|
(189)
|
|
413
|
|
60
|
|
2,785
|
|
1,388
|
|
201
|
Non-GAAP Selling and
marketing
expenses
|
|
222,036
|
|
144,888
|
|
21,007
|
|
875,345
|
|
641,549
|
|
93,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
administrative
expenses
|
|
132,465
|
|
153,556
|
|
22,264
|
|
569,985
|
|
604,028
|
|
87,576
|
Share-based
compensation expense in
general and administrative expenses
|
|
4,245
|
|
3,165
|
|
459
|
|
14,840
|
|
12,296
|
|
1,783
|
Non-GAAP General and
administrative
expenses
|
|
128,220
|
|
150,391
|
|
21,805
|
|
555,145
|
|
591,732
|
|
85,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development
expenses
|
|
33,664
|
|
28,088
|
|
4,072
|
|
106,098
|
|
72,028
|
|
10,443
|
Share-based
compensation expense in
research and development expenses
|
|
341
|
|
977
|
|
142
|
|
1,408
|
|
2,528
|
|
367
|
Non-GAAP Research
and development
expenses
|
|
33,323
|
|
27,111
|
|
3,930
|
|
104,690
|
|
69,500
|
|
10,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
(60,364)
|
|
(4,568)
|
|
(663)
|
|
(369,112)
|
|
93,038
|
|
13,489
|
Share-based
compensation expenses
|
|
3,912
|
|
4,801
|
|
697
|
|
19,103
|
|
16,537
|
|
2,398
|
Non-GAAP Operating
income/(loss)
|
|
(56,452)
|
|
233
|
|
34
|
|
(350,009)
|
|
109,575
|
|
15,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
(182,549)
|
|
(17,704)
|
|
(2,568)
|
|
(475,780)
|
|
85,233
|
|
12,357
|
Share-based
compensation expenses
|
|
3,912
|
|
4,801
|
|
697
|
|
19,103
|
|
16,537
|
|
2,398
|
Non-GAAP Net
income/(loss)
|
|
(178,637)
|
|
(12,903)
|
|
(1,871)
|
|
(456,677)
|
|
101,770
|
|
14,755
|
Less: Net
income/(loss) attributable to
non-controlling interests
|
|
(75)
|
|
802
|
|
116
|
|
(1,233)
|
|
1,713
|
|
248
|
Non-GAAP net
income/(loss)
attributable to Class A and Class B
ordinary shareholders
|
|
(178,562)
|
|
(13,705)
|
|
(1,987)
|
|
(455,444)
|
|
100,057
|
|
14,507
|
Non-GAAP net
income/(loss) per ADS(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic(b)
|
|
(15.78)
|
|
(1.27)
|
|
(0.18)
|
|
(40.48)
|
|
9.15
|
|
1.33
|
Diluted(b)
|
|
(15.78)
|
|
(1.27)
|
|
(0.18)
|
|
(40.48)
|
|
8.67
|
|
1.26
|
Weighted average
number of ordinary
shares outstanding used in calculating
Non-GAAP net income/loss per ADS(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
56,587,227
|
|
53,856,656
|
|
53,856,656
|
|
56,260,925
|
|
54,657,222
|
|
54,657,222
|
Diluted
|
|
56,587,227
|
|
53,856,656
|
|
53,856,656
|
|
56,260,925
|
|
57,730,672
|
|
57,730,672
|
Notes:
(a) There was no tax impact of share-based compensation
expenses for the fourth quarter of 2022 and 2021, respectively.
(b) The Non-GAAP net income/(loss) per ADS is computed
using Non-GAAP net income/(loss) attributable to ordinary
shareholders and the same number of ordinary shares are used in
GAAP basic and diluted net income/(loss) per ADS calculation.
(c) Each ADS represents five Class A ordinary shares. The
weighted average number of ADS and earnings per ADS have been
retrospectively adjusted to reflect the ADS ratio change from one
ADS representing one Class A ordinary share to one ADS representing
five Class A ordinary shares, which became effective on December
23, 2021.
View original
content:https://www.prnewswire.com/news-releases/tarena-international-inc-announces-the-unaudited-results-for-the-fourth-quarter-and-fiscal-year-of-2022-301782233.html
SOURCE Tarena International, Inc.