BEIJING, Nov. 5, 2019 /PRNewswire/ -- GSX Techedu
Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12
large-class after-school tutoring service provider in China, today announced its unaudited financial
results for the third quarter ended September 30, 2019.
Highlights for the Third Quarter Ended September 30, 2019[1]
- Net revenues increased 461.5% year-over-year to RMB557.0 million.
- Gross billings[2] increased 419.5% year-over-year to
RMB880.0 million.
- Gross profit margin[3] increased to 71.9% from 62.2% in the
same period of 2018.
- Non-GAAP gross profit margin increased to 72.8% from 62.2% in
the same period of 2018.
- Loss from operations was RMB10.8
million, compared with income from operations of
RMB0.1 million in the same period of
2018.
- Non-GAAP income from operations increased to RMB7.4 million from RMB0.4
million in the same period of 2018.
- Net income increased to RMB1.9
million from RMB0.7 million in
the third quarter of 2018.
- Non-GAAP net income increased to RMB20.1
million from RMB1.0 million in
the same period of 2018.
- Total enrollments increased 240.2% year-over-year to
820,000.
Highlights for the Nine
Months Ended September 30, 2019[1]
- Net revenues increased 448.7% year-over-year to RMB1,179.8 million.
- Gross billings[2] increased 428.0% year-over-year to
RMB1,779.5 million.
- Gross profit margin[3] increased to 71.2% from 60.6% in the
same period of 2018.
- Non-GAAP gross profit margin increased to 72.1% from 60.6% in
the same period of 2018.
- Income from operations increased to RMB48.1 million from a loss from operations of
RMB4.6 million in the same period of
2018.
- Non-GAAP income from operations increased to RMB85.1 million from a non-GAAP loss from
operations of RMB3.3 million in the
same period of 2018.
- Net income increased to RMB52.2
million from a net loss of RMB3.3
million in the first nine months of 2018.
- Non-GAAP net income increased to RMB89.1
million from a non-GAAP net loss of RMB2.0 million in the same period of 2018.
- Total enrollments increased 238.1% year-over-year to
1,623,000.
[1]
|
For a reconciliation
of non-GAAP numbers, please see the table captioned
"Reconciliations of non-GAAP measures to the most comparable GAAP
measures" at the end of this press release. Non-GAAP gross profit,
non-GAAP income from operations and non-GAAP net income exclude
share-based compensation expenses.
|
[2]
|
Gross billings is a
non-GAAP financial measure, which is defined as the total amount of
cash received for the sale of course offerings in such period, net
of the total amount of refunds in such period. See "About Non-GAAP
Financial Measures" and "Reconciliations of non-GAAP measures to
the most comparable GAAP measures" elsewhere in this press
release.
|
[3]
|
Defined as gross
profit as a percentage of net revenues.
|
Financial and
Operating Data——Third Quarter and First Nine Months of
2019
(In thousands of RMB,
except for student enrollments and percentages)
|
|
|
Three Months Ended
September 30,
|
|
2018
|
|
2019
|
|
Pct.
Change
|
Net
revenues
|
99,244
|
|
556,994
|
|
461.5%
|
Gross
billings
|
169,446
|
|
880,042
|
|
419.5%
|
Gross profit
margin
|
62.2%
|
|
71.9%
|
|
15.6%
|
Non-GAAP gross profit
margin
|
62.2%
|
|
72.8%
|
|
17.0%
|
Income (loss) from
operations
|
80
|
|
(10,815)
|
|
NM
|
Non-GAAP income from
operations
|
442
|
|
7,424
|
|
1,750.0%
|
Net income
|
684
|
|
1,902
|
|
171.4%
|
Non-GAAP net
income
|
1,046
|
|
20,141
|
|
1,910.0%
|
Total
enrollments
|
241,000
|
|
820,000
|
|
240.2%
|
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2019
|
|
Pct.
Change
|
Net
revenues
|
215,041
|
|
1,179,828
|
|
448.7%
|
Gross
billings
|
337,013
|
|
1,779,510
|
|
428.0%
|
Gross profit
margin
|
60.6%
|
|
71.2%
|
|
17.5%
|
Non-GAAP gross profit
margin
|
60.6%
|
|
72.1%
|
|
19.0%
|
(Loss) income from
operations
|
(4,619)
|
|
48,138
|
|
NM
|
Non-GAAP (loss)
income from operations
|
(3,335)
|
|
85,060
|
|
NM
|
Net (loss)
income
|
(3,324)
|
|
52,167
|
|
NM
|
Non-GAAP net (loss)
income
|
(2,040)
|
|
89,089
|
|
NM
|
Total
enrollments
|
480,000
|
|
1,623,000
|
|
238.1%
|
Larry Xiangdong Chen, GSX's
founder, Chairman and CEO, commented, "GSX had another great
quarter with exponential growth, demonstrating our superior
teaching quality and excellent customer experience. We are proud to
see our net operating cash flow for the third quarter to reach
approximately RMB287.8 million. We
leverage speed, efficiency and effectiveness to gain insurmountable
competitive advantage. We focus on achieving a steep but shorter
learning curve. We make unremitting efforts to invest in all areas
of content development and technology. We are fully committed to
productivity improvements and take sustained massive action
immediately. We will continue to invest strategically in our
customer acquisition and R&D in 2019 and drive even greater
engagement with our students and parents. We will continue to have
our unwavering focus on the online live large-class tutoring to
reap financial rewards."
Shannon Shen, CFO of GSX, added,
"We saw third quarter net revenues surpassed the high end of our
guidance and strongly beat the street consensus, rising 461.5% YoY
to RMB557 million. Revenue from our
core business, the K12 after school tutoring, grew even faster, by
525.5%. Gross billings, an important leading indicator that
provides significant visibility on our next quarter's revenue,
increased 419.5% YoY to RMB880
million. Thanks to the continuous upgrading of our corporate
and organizational capabilities, as well as effective execution of
our marketing strategy, we observed the remarkable growth in paid
course enrollments. We also managed to post our sixth consecutive
quarter of non-GAAP profitability, in a fiercely competitive
landscape."
Financial Results for the Third Quarter of 2019
Net Revenues
Net revenues reached RMB557.0
million, a 461.5% increase from RMB99.2 million in the third quarter of 2018. The
increase was mainly driven by the growth in paid course enrollments
for K-12 courses and a higher level of tuition fees that were
charged to K-12 students.
Cost of revenues
Cost of revenues rose 316.8% to RMB156.7
million from RMB37.6 million
in the third quarter of 2018. The increase was mainly due to an
increase in compensation for instructors and tutors.
Gross Profit
Gross profit increased 548.8% to RMB400.3
million from RMB61.7 million
in the third quarter of 2018. Gross profit margin increased to
71.9% from 62.2% in the same period of 2018, primarily as a result
of economies of scale.
Non-GAAP gross profit increased 556.5% to RMB405.7 million from RMB61.8 million in the same period of 2018.
Non-GAAP gross profit margin increased to 72.8% from 62.2% in the
same period of 2018.
Operating Expenses
Operating expenses were RMB411.1
million, a 567.4% increase from RMB61.6 million in the third quarter of 2018.
Selling expenses increased to RMB330.4
million from RMB31.0 million
in the third quarter of 2018. The rise was primarily a result of
higher marketing expenses to expand the customer base and enhance
the brand, as well as an increase in compensation to sales and
marketing staff.
Research and development expenses increased 185.5% to
RMB57.1 million from RMB20.0 million in the third quarter of 2018. The
rise was primarily due to an increase in the number of course
professionals, educational content professionals and technology
development personnel, as well as an increase in compensation for
such staff.
General and administrative expenses increased 122.6% to
RMB23.6 million from RMB10.6 million in the third quarter of 2018. The
rise in general and administrative expenses was mainly due to an
increase in the number of general and administrative personnel and
an increase in compensation paid to general and administrative
staff.
Income (Loss) from Operations
Loss from operations was RMB10.8
million, compared with income from operations of
RMB0.1 million in the third quarter
of 2018.
Non-GAAP income from operations increased to RMB7.4 million from RMB0.4
million in the third quarter of 2018.
Net Income
Net income increased to RMB1.9
million from RMB0.7 million in
the third quarter of 2018.
Non-GAAP net income increased to RMB20.1
million from RMB1.0 million in
the third quarter of 2018.
Cash Flow
Net operating cash flow for the third quarter of 2019 was
approximately RMB287.8 million,
a 379.7% increase from RMB60.0
million in the third quarter of 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS was RMB0.01 and RMB0.01, respectively, in the third quarter of
2019.
Cash and Cash Equivalents, and Short-Term
Investments
As of September 30, 2019, the
Company had RMB32.0 million of cash
and cash equivalents and RMB1,014.6
million of short-term investments, compared with
RMB33.3 million of cash and cash
equivalents and RMB198.0 million of
short-term investments as of December 31,
2018 and RMB60.1 million of
cash and cash equivalents and RMB 1,686.5
million of short-term investments as of June 30, 2019. The decrease of the balance from
June 30, 2019 was primary due to the
purchase of wealth management products from Citibank, classified as
long-term investments, of RMB1,057.3
million during the three months ended September 30, 2019.
Deferred Revenue
As of September 30, 2019, the
Company's deferred revenue balance was RMB778.3 million, an increase of 186.1% from
RMB272.0 million as of December 31, 2018. Deferred revenue primarily
consisted of tuition collected in advance of the fall semester.
Financial Results for the First Nine Months of 2019
Net Revenues
Net revenues reached RMB1,179.8
million, a 448.7% increase from RMB215.0 million in the first nine months of
2018. The increase was mainly driven by the growth in paid course
enrollments for K-12 courses and a higher level of tuition fees
that were charged to K-12 students.
Cost of revenues
Cost of revenues rose 300.8% to RMB339.9
million from RMB84.8 million
in the first nine months of 2018. The increase was mainly due to an
increase in compensation for instructors and tutors.
Gross Profit
Gross profit increased 545.1% to RMB839.9
million from RMB130.2 million
in the first nine months of 2018. Gross profit margin increased to
71.2% from 60.6% in the same period of 2018, primarily as a result
of economies of scale.
Non-GAAP gross profit increased by 551.9% to RMB850.1 million from RMB130.4 million in the same period of 2018.
Non-GAAP gross profit margin increased to 72.1% from 60.6% in the
same period of 2018.
Operating Expenses
Operating expenses were RMB791.8
million, an increase of 487.4% from RMB134.8 million in the first nine months of
2018.
Selling expenses increased to RMB598.9
million from RMB63.3 million
in the first nine months of 2018. The rise was primarily a result
of an increase in marketing expenses to expand the customer base
and for brand enhancement, as well as an increase in compensation
for sales and marketing staff.
Research and development expenses increased 170.9% to
RMB128.7 million from RMB47.5 million in the first nine months of 2018.
The increase was primarily due to an increase in the number of
course professionals, educational content professionals and
technology development personnel, as well as an increase in
compensation paid to such staff.
General and administrative expenses increased 167.1% to
RMB64.1 million from RMB24.0 million in the first nine months of 2018.
The rise was mainly due to an increase in the number of general and
administrative personnel and an increase in compensation paid to
general and administrative staff.
(Loss) Income from Operations
Income from operations increased to RMB48.1 million from a loss from operations of
RMB4.6 million in the first nine
months of 2018.
Non-GAAP income from operations increased to RMB85.1 million from a non-GAAP loss from
operations of RMB3.3 million in the
first nine months of 2018.
Net (Loss) Income
Net income increased to RMB52.2
million from a net loss of RMB3.3
million in the first nine months of 2018.
Non-GAAP net income increased to RMB89.1
million from a non-GAAP net loss of RMB2.0 million in the first nine months of
2018.
Cash Flow
Net operating cash flow increased 490.6% to RMB546.3 million from RMB92.5 million in the first nine months of
2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were RMB0.17 and RMB0.15
respectively, in the first nine months of 2019.
Share count
As of September 30, 2019, the
Company had 157,138,000 ordinary shares outstanding.
Business Outlook
Based on the Company's current estimates, total net revenues for
the fourth quarter of 2019 are expected to be between RMB806 million and RMB826
million, representing a projected increase of 342.9% to
353.8% on a year-over-year basis. These estimates reflect the
Company's current expectations, which are subject to change.
Conference Call
The company will hold an earnings conference call on
Tuesday, November 5, 2019, at
8:00 AM U.S. Eastern Time
(9:00 PM on the same day,
Beijing/Hong Kong Time). Dial-in
details for the earnings conference call are as follows:
International: 1-412-902-4272
US: 1-888-346-8982
Hong Kong: 800-905945
Mainland China: 4001-201203
Passcode: GSX
A telephone replay will be available two hours after the
conclusion of the conference call through November 12, 2019. The dial-in details are:
International: 1-412-317-0088
US: 1-877-344-7529
Passcode: 10136390
Additionally, a live and archived webcast of this conference
call will be available at http://gsx.investorroom.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of 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" and similar statements. Among other things,
the outlook for the fourth quarter of 2019 and GSX's strategic and
operational plans, contain forward-looking statements. The Company
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 reports to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's ability to continue to attract students to enroll in its
courses; the Company's ability to continue to recruit, train and
retain qualified teachers; the Company's ability to improve the
content of its existing course offerings and to develop new
courses; the Company's ability to maintain and enhance its brand;
the Company's ability to maintain and continue to improve its
teaching results; and the Company's ability to compete effectively
against its competitors. Further information regarding these and
other risks is included in the Company's reports filed with, or
furnished to the U.S. Securities and Exchange Commission. All
information provided in this press release and in the attachments
is as of the date of this press release, and GSX undertakes no duty
to update such information or any forward-looking statement, except
as required under applicable law.
About GSX Techedu Inc.
GSX Techedu Inc. is a technology-driven education company and
leading online K-12 large-class after-school tutoring service
provider in China. GSX offers K-12 courses covering all
primary and secondary grades as well as foreign language,
professional and interest courses. GSX adopts an online live
large-class format to deliver its courses, which the Company
believes is the most effective and scalable model to disseminate
scarce high-quality teaching resources to aspiring students
in China. Big data analytics permeates each aspect of the
Company's business and facilitates the application of the latest
technology to improve teaching delivery, student learning
experience, and operational efficiency.
About Non-GAAP Financial Measures
The Company uses gross billings, non-GAAP gross profit, non-GAAP
(loss) income from operations and non-GAAP net (loss) income, each
a non-GAAP financial measure, in evaluating its operating results
and for financial and operational decision-making purposes.
The Company defines gross billings for a specific period as the
total amount of cash received for the sale of course offerings in
such period, net of the total amount of refunds in such period. The
Company's management uses gross billings as a performance
measurement because the Company generally bills its students for
the entire course fee at the time of sale of its course offerings
and recognizes revenue proportionally as the classes are delivered
over a period typically ranging from 1 to 6 months. For some
courses, the Company continues to provide students with 12 months
to 36 months access to the pre-recorded audio-video courses after
the online live courses are delivered. The Company believes that
gross billings provides valuable insight into the sales of its
course packages and the performance of its business. As gross
billings has material limitations as an analytical metrics and may
not be calculated in the same manner by all companies, it may not
be comparable to other similarly titled measures used by other
companies.
Non-GAAP gross profit, non-GAAP (loss) income from operations
and non-GAAP net (loss) income exclude share-based compensation
expenses, and such adjustment has no impacts on income tax. GSX
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by
excluding share-based expenses that may not be indicative of its
operating performance from a cash perspective. GSX believes that
both management and investors benefit from these non-GAAP financial
measures in assessing its performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to GSX's historical
performance. A limitation of using non-GAAP measures is that
these non-GAAP measures exclude share-based compensation charges
that have been and will continue to be for the foreseeable future a
significant recurring expense in the Company's business.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from or as a substitute for
the financial information prepared and presented in accordance with
GAAP. For more information on these non-GAAP financial measures,
please see the table captioned "Reconciliations of non-GAAP
measures to the most comparable GAAP measures" set forth at the end
of this release.
The accompanying tables have more details on the reconciliations
between GAAP financial measures that are most directly comparable
to non-GAAP financial measures.
Exchange Rate
The Company's business is primarily conducted in China and the significant majority of revenues
generated are denominated in Renminbi ("RMB"). This announcement
contains currency conversions of RMB amounts into U.S. dollars
("USD") solely for the convenience of the reader. Unless otherwise
noted, all translations from RMB to USD are made at a rate of
RMB 7.1477 to USD1.00, the effective noon buying rate for
September 30, 2019 as set forth in
the H.10 statistical release of the Federal Reserve Board. No
representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into USD at that rate on
September 30, 2019, or at any other
rate.
For further information, please contact:
GSX Techedu Inc.
Ms. Sandy Qin, CFA
E-mail: ir@baijiahulian.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
GSX Techedu
Inc.
Unaudited
condensed consolidated balance sheets
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
As of December
31,
|
|
As of September
30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
33,259
|
|
32,042
|
|
4,483
|
Short-term investments
|
197,991
|
|
1,014,633
|
|
141,952
|
Prepaid expenses and other current assets
|
48,841
|
|
188,456
|
|
26,366
|
Amounts due from related parties
|
710
|
|
-
|
|
-
|
Total current
assets
|
280,801
|
|
1,235,131
|
|
172,801
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Operating lease right-of-use assets
|
-
|
|
213,993
|
|
29,939
|
Property, equipment and software, net
|
16,779
|
|
55,656
|
|
7,787
|
Intangible assets
|
237
|
|
125
|
|
17
|
Long-term investments
|
5,221
|
|
1,063,256
|
|
148,755
|
Goodwill
|
331
|
|
331
|
|
46
|
Deferred tax assets
|
31,266
|
|
40,061
|
|
5,605
|
Rental deposit
|
3,508
|
|
15,164
|
|
2,122
|
Other non-current assets
|
60
|
|
522
|
|
73
|
Total
ASSETS
|
338,203
|
|
2,624,239
|
|
367,145
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accrued expenses and
other current liabilities (including accrued expenses and other
current liabilities of the consolidated VIE without recourse to the
Group of RMB51,445 and RMB131,236 as of December 31, 2018 and
September 30, 2019, respectively)
|
57,244
|
|
153,835
|
|
21,522
|
Deferred revenue,
current portion of the consolidated VIE without recourse to the
Group
|
263,330
|
|
772,873
|
|
108,129
|
Current portion of
operating lease liabilities of the consolidated VIE without
recourse to the Group
|
-
|
|
63,457
|
|
8,878
|
Income tax payable of
the consolidated VIE without recourse to the Group
|
-
|
|
17,561
|
|
2,457
|
Amounts due to related
parties (including amounts due to related parties of the
consolidated VIE without recourse to the Group of RMB960 and RMB460
as of December 31, 2018 and September 30, 2019,
respectively)
|
35,338
|
|
460
|
|
64
|
Total Current
liabilities
|
355,912
|
|
1,008,186
|
|
141,050
|
GSX Techedu
Inc.
Unaudited
condensed consolidated balance sheets
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
As of December
31,
|
|
As of
September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Non-current
liabilities
|
|
|
|
|
|
|
Deferred revenue,
non-current portion of the consolidated VIE without recourse to the
Group
|
8,711
|
|
5,439
|
|
761
|
|
Non-current portion of
operating lease liabilities of the consolidated VIE without
recourse to the Group
|
-
|
|
146,627
|
|
20,514
|
|
Deferred tax
liabilities of the consolidated VIE without recourse to the
Group
|
59
|
|
31
|
|
4
|
|
TOTAL
LIABILITIES
|
364,682
|
|
1,160,283
|
|
162,329
|
|
|
|
|
|
|
|
|
MEZZANINE
EQUITY
|
|
|
|
|
|
|
Series A convertible
redeemable preferred shares
|
466,060
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
(DEFICIT) EQUITY
|
|
|
|
|
|
|
Ordinary
shares
|
60
|
|
104
|
|
15
|
|
Additional paid-in
capital
|
-
|
|
1,875,721
|
|
262,423
|
|
Accumulated other
comprehensive income
|
1,166
|
|
35,494
|
|
4,966
|
|
Accumulated
deficit
|
(493,765)
|
|
(447,363)
|
|
(62,588)
|
|
TOTAL
SHAREHOLDERS' (DEFICIT) EQUITY
|
(492,539)
|
|
1,463,956
|
|
204,816
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND TOTAL SHAREHOLDERS' (DEFICIT)
EQUITY
|
338,203
|
|
2,624,239
|
|
367,145
|
|
GSX Techedu
Inc.
Unaudited
condensed consolidated statements of operations
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
For the three
months ended September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
Revenues
|
99,244
|
|
556,994
|
|
77,926
|
Cost of
revenues
|
(37,556)
|
|
(156,691)
|
|
(21,922)
|
Gross
profit
|
61,688
|
|
400,303
|
|
56,004
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
(31,023)
|
|
(330,352)
|
|
(46,218)
|
Research and
development expenses
|
(20,013)
|
|
(57,128)
|
|
(7,993)
|
General and
administrative expenses
|
(10,572)
|
|
(23,638)
|
|
(3,307)
|
Total operating
expenses
|
(61,608)
|
|
(411,118)
|
|
(57,518)
|
Income (Loss) from
operations
|
80
|
|
(10,815)
|
|
(1,514)
|
Interest
income
|
295
|
|
3,282
|
|
459
|
Realized gains from
investments
|
-
|
|
1,903
|
|
266
|
Other
income
|
-
|
|
1,463
|
|
205
|
Income (Loss)
before provision for income tax and income from equity method
investments
|
375
|
|
(4,167)
|
|
(584)
|
Income tax (expenses)
benefits
|
(46)
|
|
5,471
|
|
765
|
Income from equity
method investments
|
355
|
|
598
|
|
84
|
Net
income
|
684
|
|
1,902
|
|
265
|
Less: Series A
convertible redeemable preferred shares redemption value
accretion
|
9,732
|
|
-
|
|
-
|
Net (loss) income
attributable to GSX Techedu Inc.'s ordinary
shareholders
|
(9,048)
|
|
1,902
|
|
265
|
Net (loss) income
per ordinary share
|
|
|
|
|
|
Basic
|
(0.10)
|
|
0.01
|
|
0.01
|
Diluted
|
(0.10)
|
|
0.01
|
|
0.01
|
Net (loss) income
per ADS
|
|
|
|
|
|
Basic
|
(0.07)
|
|
0.01
|
|
0.01
|
Diluted
|
(0.07)
|
|
0.01
|
|
0.01
|
Weighted average
shares used in net (loss) income per share
|
|
|
|
|
|
Basic
|
92,224,998
|
|
157,090,261
|
|
157,090,261
|
Diluted
|
92,224,998
|
|
166,702,637
|
|
166,702,637
|
|
Note: Three ADS
represents two ordinary shares.
|
GSX Techedu
Inc.
Reconciliations of
non-GAAP measures to the most comparable GAAP
measures
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
For the three
months ended September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue
|
99,244
|
|
556,994
|
|
77,926
|
Add: VAT and
surcharges
|
6,541
|
|
37,176
|
|
5,201
|
Add: ending deferred
revenue
|
153,103
|
|
778,312
|
|
108,890
|
Add: ending refund
liability
|
6,280
|
|
31,351
|
|
4,386
|
Less: beginning
deferred revenue
|
91,951
|
|
503,655
|
|
70,464
|
Less: beginning
refund liability
|
3,771
|
|
20,136
|
|
2,817
|
Gross billings
(non-GAAP)
|
169,446
|
|
880,042
|
|
123,122
|
|
|
For the three
months ended September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Gross
profit
|
61,688
|
|
400,303
|
|
56,004
|
Share-based
compensation expense in cost of revenues
|
66
|
|
5,381
|
|
753
|
Non-GAAP gross
profit
|
61,754
|
|
405,684
|
|
56,757
|
|
|
|
|
|
|
Income (Loss) from
operations
|
80
|
|
(10,815)
|
|
(1,514)
|
Share-based
compensation expenses
|
362
|
|
18,239
|
|
2,552
|
Non-GAAP income
from operations
|
442
|
|
7,424
|
|
1,038
|
|
|
|
|
|
|
Net
income
|
684
|
|
1,902
|
|
265
|
Share-based
compensation expenses
|
362
|
|
18,239
|
|
2,552
|
Non-GAAP net
income
|
1,046
|
|
20,141
|
|
2,817
|
GSX Techedu
Inc.
Unaudited
condensed consolidated statements of operations
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
For the nine
months ended September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
Revenues
|
215,041
|
|
1,179,828
|
|
165,064
|
Cost of
revenues
|
(84,815)
|
|
(339,925)
|
|
(47,557)
|
Gross
profit
|
130,226
|
|
839,903
|
|
117,507
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
(63,329)
|
|
(598,919)
|
|
(83,792)
|
Research and
development expenses
|
(47,503)
|
|
(128,698)
|
|
(18,006)
|
General and
administrative expenses
|
(24,013)
|
|
(64,148)
|
|
(8,975)
|
Total operating
expenses
|
(134,845)
|
|
(791,765)
|
|
(110,773)
|
(Loss) income from
operations
|
(4,619)
|
|
48,138
|
|
6,734
|
Interest
income
|
529
|
|
6,923
|
|
969
|
Realized gains from
investments
|
-
|
|
3,368
|
|
471
|
Other (expense)
income
|
(50)
|
|
2,087
|
|
292
|
(Loss) income
before provision for income tax and income from equity method
investments
|
(4,140)
|
|
60,516
|
|
8,466
|
Income tax benefits
(expenses)
|
506
|
|
(9,086)
|
|
(1,270)
|
Income from equity
method investments
|
310
|
|
737
|
|
103
|
Net (loss)
income
|
(3,324)
|
|
52,167
|
|
7,299
|
Less: Series A
convertible redeemable preferred shares redemption value
accretion
|
29,198
|
|
16,772
|
|
2,346
|
Less: Undistributed
earnings allocated to the participating preferred shares
|
-
|
|
3,851
|
|
539
|
Net (loss) income
attributable to GSX Techedu Inc.'s ordinary
shareholders
|
(32,522)
|
|
31,544
|
|
4,414
|
Net (loss) income
per ordinary share
|
|
|
|
|
|
Basic
|
(0.35)
|
|
0.25
|
|
0.04
|
Diluted
|
(0.35)
|
|
0.23
|
|
0.03
|
Net (loss) income
per ADS
|
|
|
|
|
|
Basic
|
(0.23)
|
|
0.17
|
|
0.03
|
Diluted
|
(0.23)
|
|
0.15
|
|
0.02
|
Weighted average
shares used in net (loss) income per share
|
|
|
|
|
|
Basic
|
92,224,998
|
|
125,462,376
|
|
125,462,376
|
Diluted
|
92,224,998
|
|
134,511,454
|
|
134,511,454
|
Note: Three ADS
represents two ordinary shares.
|
|
|
|
|
|
GSX Techedu
Inc.
Reconciliations of
non-GAAP measures to the most comparable GAAP
measures
(In thousands of
RMB and USD, except for share, per share and per ADS
data)
|
|
|
For the nine
months ended September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue
|
215,041
|
|
1,179,828
|
|
165,064
|
Add: VAT and
surcharges
|
14,177
|
|
73,227
|
|
10,245
|
Add: ending deferred
revenue
|
153,103
|
|
778,312
|
|
108,890
|
Add: ending refund
liability
|
6,280
|
|
31,351
|
|
4,386
|
Less: beginning
deferred revenue
|
46,307
|
|
272,041
|
|
38,060
|
Less: beginning
refund liability
|
2,475
|
|
11,167
|
|
1,562
|
Less: deferred
revenue from the acquisition of Shanghai Jinyou Education
Technology Co., Ltd.
|
2,806
|
|
-
|
|
-
|
Gross billings
(non-GAAP)
|
337,013
|
|
1,779,510
|
|
248,963
|
|
|
For the nine
months ended September 30,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Gross
profit
|
130,226
|
|
839,903
|
|
117,507
|
Share-based
compensation expense in cost of
|
|
|
|
|
|
revenues
|
125
|
|
10,241
|
|
1,433
|
Non-GAAP gross
profit
|
130,351
|
|
850,144
|
|
118,940
|
|
|
|
|
|
|
(Loss) income from
operations
|
(4,619)
|
|
48,138
|
|
6,734
|
Share-based
compensation expenses
|
1,284
|
|
36,922
|
|
5,166
|
Non-GAAP (loss)
income from operations
|
(3,335)
|
|
85,060
|
|
11,900
|
|
|
|
|
|
|
Net (loss)
income
|
(3,324)
|
|
52,167
|
|
7,299
|
Share-based
compensation expenses
|
1,284
|
|
36,922
|
|
5,166
|
Non-GAAP net
(loss) income
|
(2,040)
|
|
89,089
|
|
12,465
|
View original
content:http://www.prnewswire.com/news-releases/gsx-techedu-inc-announces-unaudited-financial-results-for-the-third-quarter-of-2019-300951313.html
SOURCE GSX Techedu Inc.