- Quarterly Results:
Net Revenues up by
412.9% Year-Over-Year
Net Income up by 658.7%
Year-Over-Year
Non-GAAP net income up by 616.7%
Year-Over-Year
Cash, cash equivalents, short-term
and long-term investments totaled up by 1,056.7%
Year-Over- Year
- Fiscal Year Results:
Net Revenues up by
432.3%
Net Income up by 1,050.3%
Non-GAAP net income up by 1,020.7%
BEIJING, Feb. 18, 2020 /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 fourth quarter and full year ended December 31, 2019.
Fourth Quarter 2019 Highlights[1]
- Net revenues increased 412.9% year-over-year to RMB935.0 million.
- Gross billings[2] increased 396.3% year-over-year to
RMB1,578.6 million.
- Income from operations increased 604.2% year-over-year to
RMB167.6 million, from RMB23.8 million in the same period of 2018.
- Non-GAAP income from operations increased 572.2% year-over-year
to RMB190.9 million, from
RMB28.4 million in the same period of
2018.
- Net income increased 658.7% year-over-year to RMB174.5 million, from RMB23.0 million in the same period of 2018.
- Non-GAAP net income increased 616.7% year-over-year to
RMB197.8 million, from RMB27.6 million in the same period of 2018.
- Cash and cash equivalents, short-term investments and long-term
investments totaled RMB2,735.7
million as of December
31,2019, compared to RMB236.5
million as of December 31,
2018.
- Total enrollments increased 290.2% year-over-year to
1,120,000.
Fiscal Year 2019 Highlights[1]
- Net revenues increased 432.3% year-over-year to RMB2,114.9 million.
- Gross billings[2] increased 412.6% year-over-year to
RMB3,358.2 million.
- Income from operations increased 1,023.4% year-over-year to
RMB215.7 million, from RMB19.2 million in the fiscal year of 2018.
- Non-GAAP income from operations increased 999.6% year-over-year
to RMB276.0 million, from
RMB25.1 million in the fiscal year of
2018.
- Net income increased 1,050.3% year-over-year to RMB226.6 million, from RMB19.7 million in the fiscal year of 2018.
- Non-GAAP net income increased 1,020.7% year-over-year to
RMB286.9 million, from RMB25.6 million in the fiscal year of 2018.
- Total enrollments increased 257.6% year-over-year to
2,743,000.
[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.
|
Financial and
Operating Data - Fourth Quarter and Fiscal Year of
2019
|
(In thousands of RMB,
except for student enrollments and percentages)
|
|
|
|
Three Months Ended
December 31,
|
|
2018
|
|
2019
|
|
Pct.
Change
|
Net
revenues
|
182,265
|
|
935,027
|
|
412.9%
|
Gross
billings
|
318,115
|
|
1,578,642
|
|
396.3%
|
Income from
operations
|
23,773
|
|
167,596
|
|
604.2%
|
Non-GAAP income from
operations
|
28,406
|
|
190,911
|
|
572.2%
|
Net income
|
22,974
|
|
174,463
|
|
658.7%
|
Non-GAAP net
income
|
27,607
|
|
197,778
|
|
616.7%
|
Total
enrollments
|
287,000
|
|
1,120,000
|
|
290.2%
|
|
Fiscal Year Ended
December 31,
|
|
2018
|
|
2019
|
|
Pct.
Change
|
Net
revenues
|
397,306
|
|
2,114,855
|
|
432.3%
|
Gross
billings
|
655,128
|
|
3,358,152
|
|
412.6%
|
Income from
operations
|
19,154
|
|
215,734
|
|
1,023.4%
|
Non-GAAP income from
operations
|
25,071
|
|
275,971
|
|
999.6%
|
Net income
|
19,650
|
|
226,630
|
|
1,050.3%
|
Non-GAAP net
income
|
25,567
|
|
286,867
|
|
1,020.7%
|
Total
enrollments
|
767,000
|
|
2,743,000
|
|
257.6%
|
Larry Xiangdong Chen,
GSX's founder, Chairman and CEO, commented, "As you can see
from the stellar performance, GSX came a long way in the fourth
quarter of 2019 by many measures. We take great pride in seeing our
revenues and gross billings growth occupying leading position in
the online education industry. From the beginning, we have been
offering our customers compelling value by focusing on online live
large class business. We extremely focus on delivering teaching
quality, strengthening organizational capability, improving
operational efficiency, as well as attracting intelligent,
education-loved and dedicated talents. As 2020 unfolds, we continue
to be committed to hiring and retaining top-notch teachers and
talented professionals, investing significantly into technology and
content development, and spending wisely in high ROI channels to
expand and leverage our customer base, as we move to establish an
enduring brand. We will continue our growth with emphasis on
effectiveness and profitability strategy as we have been doing over
the past three years."
Shannon Shen, CFO of GSX,
added, "Net revenue, gross billings and net income all hit
record highs during the quarter. Net revenue surged 412.9%
year-over-year to RMB935.0 million
during the quarter which propelled full year net revenue to
RMB2.11 billion. Gross billings for
the year reached RMB3.36 billion
while net income was RMB226.6 million
and non-GAAP net income was amounted to RMB286.9 million. Revenues from our core K-12
large online live classes maintained lightspeed growth, increasing
468% year-over-year during the quarter driven by paid enrollments
which increased 410% year-over-year. These phenomenal results
during the quarter are a direct result of our augmented
organizational capabilities, effective execution of our corporate
strategy, and improving operational efficiency. Going forward, we
will continue to enhance the quality of our courses and services
and leverage technology to optimize operational efficiency in order
to generate long-term sustainable growth healthy."
Financial Results for the Fourth Quarter of 2019
Net Revenues
Net revenues reached RMB935.0
million, a 412.9% increase from RMB182.3 million in the fourth quarter of 2018.
The increase was mainly driven by the growth in paid course
enrollments for K-12 courses.
Cost of revenues
Cost of revenues rose 238.5% to RMB196.0
million from RMB57.9 million
in the fourth quarter of 2018. The increase was mainly due to the
increase in compensation for instructors and tutors, learning
materials and other operating related expenses.
Gross Profit
Gross profit increased 494.5% to RMB739.0
million from RMB124.3 million
in the fourth quarter of 2018. Gross profit margin increased
to 79.0% from 68.2% in the same period of 2018, primarily as a
result of economies of scale.
Non-GAAP gross profit increased 498.6% to RMB745.3 million from RMB124.5 million in the same period of 2018.
Non-GAAP gross profit margin increased to 79.7% from 68.3% in the
same period of 2018.
Operating Expenses
Operating expenses were RMB571.4
million, increased from RMB100.6
million in the fourth quarter of 2018.
Selling expenses increased to RMB442.0
million from RMB58.2 million
in the fourth quarter of 2018. The increase 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 215.1% to
RMB83.5 million, from RMB26.5 million in the fourth quarter 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 for such staff.
General and administrative expenses increased 191.1% to
RMB46.0 million from RMB15.8 million in the fourth quarter of 2018.
The increase 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.
Interest income and Realized gains from
investment
Aggregation of interest income and realized gains from
investments this quarter, solely representing the income received
from cash, cash equivalents and short-term wealth management
products, increased 488.2% to RMB10.0
million, from RMB1.7 million
in the fourth quarter of 2018. This resulted from an increase to
RMB1,547.4 million as of December 31, 2019 from RMB231.3 million as of December 31, 2018 of cash, cash equivalents and
short-term investments.
As of December 31, 2019, 90% of
the short-term investments with the amount of RMB1,473.5 million and 99% of the long-term
investments with the amount of RMB1,188.3
million were classified as available-for-sale securities
("AFS"). According to ASC 320, AFS shall be measured subsequently
at fair value of which any changes shall be recognized in other
comprehensive income in the balance sheets until realized. As such,
unrealized gains related to those investments amounted to
RMB7.7 million as of December 31, 2019 were represented as part of
"accumulated other comprehensive income" of balance sheets, which
would be recorded into earnings in the statements of operations at
the date when the Company realizes the gains.
Income from Operations
Income from operations was RMB167.6
million, compared with RMB23.8
million in the fourth quarter of 2018.
Non-GAAP income from operations increased to RMB190.9 million, from RMB28.4 million in the fourth quarter of
2018.
Net Income
Net income increased to RMB174.5
million, from RMB23.0 million
in the fourth quarter of 2018.
Non-GAAP net income increased to RMB197.8
million, from RMB27.6 million
in the fourth quarter of 2018.
Cash Flow
Net operating cash flow for the fourth quarter of 2019 was
RMB738.8 million, a 394.5%
increase from RMB149.4 million in the
fourth quarter of 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS was RMB0.74 and RMB0.70, respectively, in the fourth quarter of
2019.
Cash and Cash Equivalents, Short-Term Investments and
Long-Term Investments
As of December 31, 2019, the
Company had RMB74.0 million of cash
and cash equivalents, RMB1,473.5
million of short-term investments and RMB1,188.3 million of long-term investments,
compared with RMB33.3 million of cash
and cash equivalents, RMB198.0
million of short-term investments and RMB5.2 million of long-term investments as of
December 31, 2018. The increase of
the balance from December 31, 2018
was primarily due to the cash generated from Initial Public
Offering, increase of net operating cash inflow, and efficient
deployment of capital during 2019.
Deferred Revenue
As of December 31, 2019, the
Company's deferred revenue balance was RMB1,337.6 million, an increase of 391.8% from
RMB272.0 million as of December 31, 2018. Deferred revenue primarily
consisted of tuition collected in advance.
Accumulated Other Comprehensive Income
As of December 31, 2019, the
Company's accumulated other comprehensive income totaled
RMB17.8 million, comprised
RMB10.1 million of foreign currency
translation adjustments and RMB7.7
million of unrealized gains on available-for-sale
investments, compared with RMB0.9
million of foreign currency translation adjustments and
RMB0.2 million of unrealized gains on
available-for-sale investments as of December 31, 2018.
Financial Results for the Fiscal Year of 2019
Net Revenues
Net revenues reached RMB2,114.9
million, a 432.3% increase from RMB397.3 million in 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 was charged to K-12
students.
Cost of revenues
Cost of revenues increased 275.3% to RMB535.9 million, from RMB142.8 million in 2018. The increase was mainly
due to an increase in compensation for instructors and tutors,
learning materials and other operating related expenses.
Gross Profit
Gross profit increased 520.1% to RMB1,578.9 million, from RMB254.6 million in 2018. Gross profit margin
increased to 74.7%, from 64.1% in 2018, primarily as a result of
economies of scale.
Non-GAAP gross profit increased by 526.1% to RMB1,595.4 million, from RMB254.8 million in 2018. Non-GAAP gross profit
margin increased to 75.4%, from 64.1% in 2018.
Operating Expenses
Operating expenses were RMB1,363.2
million, an increase from RMB235.4
million in 2018.
Selling expenses increased to RMB1,040.9
million, from RMB121.5 million
in 2018. The increase 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 186.4% to
RMB212.2 million, from RMB74.1 million in 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 176.6% to
RMB110.1 million, from RMB39.8 million in 2018. The increase 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.
Interest income and Realized gains from
investment
Aggregation of interest income and realized gains from
investments, solely representing the income received from cash,
cash equivalents and short-term wealth management products,
increased 822.7% to RMB20.3 million,
from RMB2.2 million in 2018. The
increase was primarily due to an increase in the cash generated and
the efficient deployment of capital.
Income from Operations
Income from operations increased to RMB215.7 million, from RMB19.2 million in 2018.
Non-GAAP income from operations increased to RMB276.0 million, from RMB25.1 million in 2018.
Net Income
Net income increased to RMB226.6
million, from RMB19.7 million
in 2018.
Non-GAAP net income increased to RMB286.9
million, from RMB25.6 million
in 2018.
Cash Flow
Net operating cash flow increased by 431.3% to RMB1,285.1 million, from RMB241.9 million in 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were RMB0.95 and RMB0.90
respectively, in 2019.
Share count
As of December 31, 2019, the
Company had 159,097,050 ordinary shares outstanding.
Recent Developments
Follow-on Offering
In November 2019, the Company
completed a registered follow-on public offering of secondary
shares. The company did not receive any proceeds from the offering.
Including the fully exercised greenshoe, the selling shareholders
sold a total of 20,700,000 ADSs, representing 13,800,000 Class A
ordinary shares.
Environmental, Social and Governance
Donation of Online Courses and Other Services
In January 2020, the Company
announced a donation of RMB20 million
worth of online courses to K-12 students in Wuhan, Hubei
Province, the epicenter of the COVID-19 outbreak. We also
launched free courses staffed with some of our best instructors, to
ensure the education quality to K-12 students across the country.
In addition, the Company opened its live broadcasting vendor
services, Weishi, to assist offline education institutions in
providing online courses to K12 students for free. The Company's
offline business consulting courses service, Chengxi, also provided
free courses to offline education institutions, guiding them in
transferring course mode from offline to online.
Business Outlook
Based on the Company's current estimates, total net revenues for
the first quarter of 2020 are expected to be between RMB1,086 million and RMB1,106 million, representing an increase of
303.4% to 310.8% 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, February 18, 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: 1-412-317-6061
US: 1-888-317-6003
Hong Kong: 800-963976
Mainland China: 4001-206115
Passcode: 2285968
A telephone replay will be available two hours after the
conclusion of the conference call through February 25, 2020. The dial-in details are:
International: 1-412-317-0088
US: 1-877-344-7529
Passcode: 10139164
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 first quarter and fiscal year of 2020 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
income from operations and non-GAAP net 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 income from operations and
non-GAAP net 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 6.9618 to USD1.00, the effective noon buying rate for
December 31, 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
December 31, 2019, or at any other
rate.
For further information, please contact:
GSX Techedu Inc.
Ms. Sandy Qin, CFA
E-mail: ir@genshuixue.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 December
31,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
33,259
|
|
73,967
|
|
10,625
|
Short-term investments
|
197,991
|
|
1,473,452
|
|
211,648
|
Prepaid expenses and other current assets
|
48,841
|
|
261,482
|
|
37,559
|
Amounts due from related parties
|
710
|
|
-
|
|
-
|
Total current
assets
|
280,801
|
|
1,808,901
|
|
259,832
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Operating lease right-of-use
assets
|
-
|
|
264,909
|
|
38,052
|
Property, equipment and software, net
|
16,779
|
|
81,860
|
|
11,758
|
Intangible assets
|
237
|
|
100
|
|
14
|
Long-term investments
|
5,221
|
|
1,188,286
|
|
170,687
|
Goodwill
|
331
|
|
331
|
|
48
|
Deferred tax assets
|
31,266
|
|
30,716
|
|
4,412
|
Rental deposit
|
3,508
|
|
18,719
|
|
2,689
|
Other non-current assets
|
60
|
|
710
|
|
102
|
Total
ASSETS
|
338,203
|
|
3,394,532
|
|
487,594
|
|
|
|
|
|
|
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 RMB188,975 as of
December 31, 2018 and December 31, 2019,
respectively)
|
57,244
|
|
228,753
|
|
32,858
|
Deferred revenue,
current portion of the
consolidated VIE without recourse to the
Group
|
263,330
|
|
1,331,962
|
|
191,324
|
Current portion of
operating lease liabilities of
the consolidated VIE without recourse to the
Group
|
-
|
|
59,982
|
|
8,616
|
Income tax payable of
the consolidated VIE
without recourse to the Group
|
-
|
|
16,093
|
|
2,312
|
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 December 31, 2019,
respectively)
|
35,338
|
|
460
|
|
66
|
Total Current
liabilities
|
355,912
|
|
1,637,250
|
|
235,176
|
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
December 31,
|
|
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
|
|
5,674
|
|
815
|
|
Non-current portion of
operating lease liabilities
of the consolidated VIE without recourse to the
Group
|
-
|
|
194,228
|
|
27,899
|
|
Deferred tax
liabilities of the consolidated VIE
without recourse to the Group
|
59
|
|
25
|
|
4
|
|
TOTAL
LIABILITIES
|
364,682
|
|
1,837,177
|
|
263,894
|
|
|
|
|
|
|
|
|
MEZZANINE
EQUITY
|
|
|
|
|
|
|
Series A convertible
redeemable preferred shares
|
466,060
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
(DEFICIT) EQUITY
|
|
|
|
|
|
|
Ordinary
shares
|
60
|
|
106
|
|
15
|
|
Treasury stock, at
cost
|
-
|
|
(86,739)
|
|
(12,459)
|
|
Additional paid-in
capital
|
-
|
|
1,899,059
|
|
272,783
|
|
Accumulated other
comprehensive income
|
1,166
|
|
17,829
|
|
2,561
|
|
Accumulated
deficit
|
(493,765)
|
|
(272,900)
|
|
(39,200)
|
|
TOTAL
SHAREHOLDERS' (DEFICIT) EQUITY
|
(492,539)
|
|
1,557,355
|
|
223,700
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY
AND TOTAL SHAREHOLDERS' (DEFICIT)
EQUITY
|
338,203
|
|
3,394,532
|
|
487,594
|
|
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 December 31,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
Revenues
|
182,265
|
|
935,027
|
|
134,308
|
Cost of
revenues
|
(57,938)
|
|
(195,987)
|
|
(28,152)
|
Gross
profit
|
124,327
|
|
739,040
|
|
106,156
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
(58,189)
|
|
(441,987)
|
|
(63,487)
|
Research and
development expenses
|
(26,547)
|
|
(83,499)
|
|
(11,994)
|
General and
administrative expenses
|
(15,818)
|
|
(45,958)
|
|
(6,601)
|
Total operating
expenses
|
(100,554)
|
|
(571,444)
|
|
(82,082)
|
Income from
operations
|
23,773
|
|
167,596
|
|
24,074
|
Interest
income
|
1,664
|
|
1,938
|
|
278
|
Realized gains from
investments
|
-
|
|
8,027
|
|
1,153
|
Other
income
|
100
|
|
4,162
|
|
598
|
Income before
provision for income tax and
income from equity method investments
|
25,537
|
|
181,723
|
|
26,103
|
Income tax
expenses
|
(3,122)
|
|
(7,871)
|
|
(1,131)
|
Income from equity
method investments
|
559
|
|
611
|
|
88
|
Net
income
|
22,974
|
|
174,463
|
|
25,060
|
Less: Series A
convertible redeemable preferred
shares redemption value accretion
|
9,732
|
|
-
|
|
-
|
Less: Undistributed
earnings allocated to the
participating preferred shares
|
3,690
|
|
-
|
|
-
|
Net income
attributable to GSX Techedu Inc.'s
ordinary shareholders
|
9,552
|
|
174,463
|
|
25,060
|
Net income per
ordinary share
|
|
|
|
|
|
Basic
|
0.10
|
|
1.10
|
|
0.16
|
Diluted
|
0.09
|
|
1.05
|
|
0.15
|
Net income per
ADS
|
|
|
|
|
|
Basic
|
0.07
|
|
0.74
|
|
0.11
|
Diluted
|
0.06
|
|
0.70
|
|
0.10
|
Weighted average
shares used in net income per
share
|
|
|
|
|
|
Basic
|
92,224,998
|
|
158,106,902
|
|
158,106,902
|
Diluted
|
111,949,277
|
|
165,855,746
|
|
165,855,746
|
|
|
|
|
|
|
|
|
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 December 31,
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue
|
|
182,265
|
|
935,027
|
|
134,308
|
Add: VAT and
surcharges
|
12,025
|
|
61,075
|
|
8,773
|
Add: ending deferred
revenue
|
272,041
|
|
1,337,636
|
|
192,139
|
Add: ending refund
liability
|
11,167
|
|
54,567
|
|
7,838
|
Less: beginning
deferred revenue
|
153,103
|
|
778,312
|
|
111,798
|
Less: beginning
refund liability
|
6,280
|
|
31,351
|
|
4,503
|
Gross billings
(non-GAAP)
|
318,115
|
|
1,578,642
|
|
226,757
|
|
|
|
For the three
months ended December
31,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Gross
profit
|
124,327
|
|
739,040
|
|
106,156
|
Share-based
compensation expense
in cost of revenues
|
158
|
|
6,263
|
|
900
|
Non-GAAP gross
profit
|
124,485
|
|
745,303
|
|
107,056
|
|
|
|
|
|
|
Income from
operations
|
23,773
|
|
167,596
|
|
24,074
|
Share-based
compensation
expenses
|
4,633
|
|
23,315
|
|
3,349
|
Non-GAAP income
from operations
|
28,406
|
|
190,911
|
|
27,423
|
|
|
|
|
|
|
Net
income
|
22,974
|
|
174,463
|
|
25,060
|
Share-based
compensation expenses
|
4,633
|
|
23,315
|
|
3,349
|
Non-GAAP net
income
|
27,607
|
|
197,778
|
|
28,409
|
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 twelve
months ended December 31,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Net
Revenues
|
397,306
|
|
2,114,855
|
|
303,780
|
Cost of
revenues
|
(142,753)
|
|
(535,912)
|
|
(76,979)
|
Gross
profit
|
254,553
|
|
1,578,943
|
|
226,801
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
(121,518)
|
|
(1,040,906)
|
|
(149,517)
|
Research and
development expenses
|
(74,050)
|
|
(212,197)
|
|
(30,480)
|
General and
administrative expenses
|
(39,831)
|
|
(110,106)
|
|
(15,816)
|
Total operating
expenses
|
(235,399)
|
|
(1,363,209)
|
|
(195,813)
|
Income from
operations
|
19,154
|
|
215,734
|
|
30,988
|
Interest
income
|
2,193
|
|
8,861
|
|
1,273
|
Realized gains from
investments
|
-
|
|
11,395
|
|
1,637
|
Other
income
|
50
|
|
6,249
|
|
898
|
Income before
provision for income tax and
income from equity method investments
|
21,397
|
|
242,239
|
|
34,796
|
Income tax
expenses
|
(2,616)
|
|
(16,957)
|
|
(2,435)
|
Income from equity
method investments
|
869
|
|
1,348
|
|
194
|
Net
income
|
19,650
|
|
226,630
|
|
32,555
|
Less: Series A
convertible redeemable preferred
shares redemption value accretion
|
38,930
|
|
16,772
|
|
2,409
|
Less: Undistributed
earnings allocated to the
participating preferred shares
|
-
|
|
21,698
|
|
3,117
|
Net (loss) income
attributable to GSX Techedu
Inc.'s ordinary shareholders
|
(19,280)
|
|
188,160
|
|
27,029
|
Net (loss) income
per ordinary share
|
|
|
|
|
|
Basic
|
(0.21)
|
|
1.42
|
|
0.20
|
Diluted
|
(0.21)
|
|
1.35
|
|
0.19
|
Net (loss) income
per ADS
|
|
|
|
|
|
Basic
|
(0.14)
|
|
0.95
|
|
0.13
|
Diluted
|
(0.14)
|
|
0.90
|
|
0.13
|
Weighted average
shares used in net (loss)
income per share
|
|
|
|
|
|
Basic
|
92,224,998
|
|
132,400,941
|
|
132,400,941
|
Diluted
|
92,224,998
|
|
139,477,898
|
|
139,477,898
|
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 twelve
months ended December 31,
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue
|
|
397,306
|
|
2,114,855
|
|
303,780
|
Add: VAT and
surcharges
|
26,202
|
|
134,302
|
|
19,291
|
Add: ending deferred
revenue
|
272,041
|
|
1,337,636
|
|
192,139
|
Add: ending refund
liability
|
11,167
|
|
54,567
|
|
7,838
|
Less: beginning
deferred revenue
|
46,307
|
|
272,041
|
|
39,076
|
Less: beginning
refund liability
|
2,475
|
|
11,167
|
|
1,604
|
Less: deferred
revenue from the acquisition of
Shanghai Jinyou Education Technology Co., Ltd.
|
2,806
|
|
-
|
|
-
|
Gross billings
(non-GAAP)
|
655,128
|
|
3,358,152
|
|
482,368
|
|
|
|
For the twelve
months ended December 31,
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
USD
|
Gross
profit
|
254,553
|
|
1,578,943
|
|
226,801
|
Share-based
compensation expense in cost of
|
|
|
|
|
|
revenues
|
283
|
|
16,504
|
|
2,371
|
Non-GAAP gross
profit
|
254,836
|
|
1,595,447
|
|
229,172
|
|
|
|
|
|
|
Income from
operations
|
19,154
|
|
215,734
|
|
30,988
|
Share-based
compensation expenses
|
5,917
|
|
60,237
|
|
8,653
|
Non-GAAP income
from operations
|
25,071
|
|
275,971
|
|
39,641
|
|
|
|
|
|
|
Net
income
|
19,650
|
|
226,630
|
|
32,555
|
Share-based
compensation expenses
|
5,917
|
|
60,237
|
|
8,653
|
Non-GAAP net
income
|
25,567
|
|
286,867
|
|
41,208
|
View original
content:http://www.prnewswire.com/news-releases/gsx-announces-financial-results-for-the-fourth-quarter-and-fiscal-year-of-2019-301006376.html
SOURCE GSX Techedu Inc.