GAOTU TECHEDU Reports Q2 FY2023 Earnings Results on June 30th, 2023
September 7, 2023
🌥️Earnings Overview
GAOTU TECHEDU ($NYSE:GOTU) reported total revenue of CNY 703.1 million for the second quarter of FY2023, a 30.7% year-on-year increase, and net income of CNY 56.2 million, a huge improvement from the previous year’s CNY -49.8 million net loss on June 30 2023.
Market Price
On Wednesday, June 30th, 2023, GAOTU TECHEDU released their latest financial results for the second quarter of fiscal year 2023. The stock opened at $3.4 and closed at $3.2, representing a drop of 7.7% from the previous closing price of $3.5. This decrease in stock price came despite an overall improvement in the company’s quarterly results compared to the same period last year. Management believes that the company’s products and services will continue to meet customer needs and generate satisfactory returns. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gaotu Techedu. More…
| Total Revenues | Net Income | Net Margin |
| 2.65k | 179.28 | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gaotu Techedu. More…
| Operations | Investing | Financing |
| 54.55 | -158.38 | 0 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gaotu Techedu. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.03k | 1.67k | 12.9 |
Key Ratios Snapshot
Some of the financial key ratios for Gaotu Techedu are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -15.8% | -14.2% | 2.1% |
| FCF Margin | ROE | ROA |
| 1.3% | 1.1% | 0.7% |
Analysis
GoodWhale has conducted an analysis of GAOTU TECHEDU‘s wellbeing, and based on our Star Chart, the company is strong in asset, medium in growth, profitability and weak in dividend. According to our assessment, GAOTU TECHEDU has a high health score of 8/10 with regard to its cashflows and debt, which means that it is capable to sustain future operations in times of crisis. Furthermore, GAOTU TECHEDU is classified as an ‘elephant’, which is a type of company we conclude to be rich in assets after deducting off liabilities. This means that it is likely to be of interest to investors looking for a long-term investment that has the potential for growth. Additionally, such investors may be attracted to the fact that GAOTU TECHEDU has a strong asset base and could potentially provide a steady and reliable income in the form of dividends. More…
Peers
All of these companies are dedicated to providing quality educational services to their clients, ranging from online education to tutoring and more. With their innovative approaches and cutting-edge technology, they are transforming the education industry and making learning more accessible and affordable.
– Koolearn Technology Holding Ltd ($SEHK:01797)
Koolearn Technology Holding Ltd is a technology company based in China that develops educational products and services. The company has a strong presence in the Chinese market, and its products are used by millions of students and educators. As of 2023, Koolearn Technology Holding Ltd has a market cap of 54.29B, giving it a strong position in the Chinese technology sector. The company’s Return on Equity (ROE) is -3.35%, which is lower than the industry average. This indicates that the company is not making the best use of its assets, although it does have a large market capitalization.
– Jiangsu Chuanzhiboke Education Technology Co Ltd ($SZSE:003032)
Jiangsu Chuanzhiboke Education Technology Co Ltd is a leading provider of educational technology solutions in China. The company has a market capitalization of 6.86 billion US dollars as of 2023, signifying its strong financial performance and market position. Furthermore, the company’s Return on Equity (ROE) of 10.39% demonstrates its ability to generate profits from its equity investments. Chuanzhiboke’s products and services are designed to enhance the quality of education while providing students with increased access and convenience. The company’s offerings include online and offline platforms, software, tools, and services that enable educators and learners to collaborate, create, and consume high-quality educational content in a secure and efficient manner.
– Dashan Education Holdings Ltd ($SEHK:09986)
Dashan Education Holdings Ltd is an education technology company specializing in providing innovative and interactive digital learning solutions, as well as high-quality educational content. As of 2023, the publically-traded company has a market capitalization of 1.45 Billion USD and a return on equity (ROE) of -19.33%. Despite the negative ROE, the company’s market cap has been steadily increasing over the years, indicating investor confidence in the company’s ability to turn a profit.
Summary
GAOTU TECHEDU recently reported its earnings results for the second quarter of FY2023, with total revenue of CNY 703.1 million, up 30.7% from the same period last year, and net income of CNY 56.2 million, compared to a net loss of -49.8 million the previous year. Despite this positive news, investors responded by pushing the company’s stock price down on the same day. This suggests investors may be wary of investing in GAOTU TECHEDU, considering their recent losses and uncertain prospects going forward. Investors should monitor the company closely for further developments in order to make an informed decision on whether or not to invest.
Related Posts
Recent Posts
