Gaotu Techedu Inc (GOTU) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Gaotu Techedu fourth-quarter (sic – first-quarter) and fiscal year 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to your first speaker today, Ms. Catherine Chen, Head of Investor Relations. Please go ahead, Catherine.

女士們、先生們，感謝大家的支持，歡迎參加高圖科技第四季（原文如此 — 第一季）和 2023 財年財報電話會議。（操作員說明）請注意此事件正在被記錄。現在我想將會議交給今天的第一位發言人，投資者關係主管 Catherine Chen 女士。請繼續，凱瑟琳。

Thank you, operator. Good evening, everyone. Thank you for joining Gaotu's first-quarter 2024 earnings conference call. My name is Catherine, and I'll help host the earnings call today. Gaotu's earnings release for the quarter was distributed earlier and is available on the company's IR website at ir.gaotu.cn, as well as through PR newswire services.

謝謝你，接線生。各位晚上好。感謝您參加高圖2024年第一季財報電話會議。我叫凱瑟琳，我將幫忙主持今天的財報電話會議。高圖本季的財報已於早些時候發布，可透過該公司的投資者關係網站 ir.gaotu.cn 以及美通社服務取得。

Joining the call with me tonight from Gaotu's Senior Management is Mr. Larry Chen, Gaotu's Founder, Chairman, and Chief Executive Officer; and Ms. Shannon Shen, Gaotu's Chief Financial Officer. Larry will first provide the business highlights for the quarter, and then afterwards Shannon will discuss our financial performance in more detail. Following their prepared remark, we will open the floor to questions from analysts.

今晚與我一起參加高圖高階管理層電話會議的是高圖創辦人、董事長兼執行長 Larry Chen 先生；以及高途財務長沉珊女士。拉里將首先介紹本季的業務亮點，然後香農將更詳細地討論我們的財務表現。在他們準備好的發言之後，我們將接受分析師提問。

Before we begin, I'd like to remind you that this conference call will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current beliefs and expectations as well as the current market and operating conditions. And they involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control and may cause the company's actual results, performance or achievements to differ materially from those contained in any forward-looking statements.

在我們開始之前，我想提醒您，本次電話會議將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。這些前瞻性陳述是基於管理層目前的信念和預期以及當前的市場和經營狀況。它們涉及已知或未知的風險、不確定性和其他因素，所有這些因素都難以預測，其中許多因素超出了公司的控制範圍，並可能導致公司的實際結果、業績或成就與任何前瞻性陳述中包含的結果有重大差異。

Further information regarding this and other risks is included in the company's public filings with the US SEC. The Company does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

有關此風險和其他風險的更多資訊包含在該公司向美國證券交易委員會提交的公開文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

During today's call, management will also discuss certain non-GAAP measures for comparison purpose only. For a definition of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial results, please refer to our first quarter earnings release published earlier today. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this conference call will be available on Gaotu's IR website. It is now my pleasure to introduce our Founder, Chairman and Chief Executive Officer, Larry. Larry, please.

在今天的電話會議中，管理階層還將討論某些非公認會計準則衡量指標，僅供比較之用。有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的調整表，請參閱我們今天稍早發布的第一季財報。提醒一下，本次會議正在錄製中。此外，本次電話會議的現場直播和存檔網路直播將在高圖的 IR 網站上提供。現在我很高興向大家介紹我們的創辦人、董事長兼執行長拉里。拉里，請。

Good evening and good morning, everyone. Thank you for joining us on Gaotu the first quarter of fiscal year 2024 earning conference call. I would like to take this opportunity to express my gratitude to all of you for your interest in and support of Gaotu. Before I start, I would like to remind everyone that all financial figures discussed today are quoted in RMB, unless stated otherwise.

大家晚上好，早安。感謝您參加高途2024財年第一季獲利電話會議。藉此機會，我謹向大家對高圖的關心和支持表示感謝。在開始之前，我想提醒大家，今天討論的所有財務數據，除非另有說明，均以人民幣報價。

I'm pleased to report our financial and operational results for the opening quarter of the year. During the first quarter, we remain laser-focused on refining our educational product and expanding our customer acquisition channel. On the product front, we worked diligently to align our offerings more closely with the user needs, while enhancing the educational [prowl] of our established products. We also made a significant progress in diversifying our portfolio to better address user needs and improve learning efficiency.

我很高興地報告我們今年第一季的財務和營運表現。在第一季度，我們仍然專注於完善我們的教育產品和擴大我們的客戶獲取管道。在產品方面，我們努力使我們的產品更貼近用戶的需求，同時增強我們現有產品的教育性。我們在產品組合多元化方面也取得了重大進展，以更好地滿足用戶需求並提高學習效率。

On the customer acquisition front, we expanded customer outreach by tapping into diverse channels, and boost acquisition efficiency by streamlining and optimizing the teaching processes tailored to our product and content characteristics. This combination of a high caliber educational offerings and a robust customer acquisition channels have laid a solid foundation for the sustainable and rapid growth of our business.

在獲客方面，我們透過多元化管道擴大獲客範圍，根據產品和內容特性精簡優化教學流程，提升獲客效率。高品質的教育產品和強大的客戶獲取管道的結合為我們業務的可持續和快速成長奠定了堅實的基礎。

In the first quarter, our net revenue increased 33.9% year-over-year to RMB946.9 million, while our gross billings grew 35.3% year-over-year to RMB729.4 million. Excluding the one-off impact of such as different class retention schedules, our comparable gross billings saw an annual increase of more than 70%. Non-GAAP net income reached RMB3.0 million and non-GAAP net income margin was 0.3%. Our cash position remains strong with a total of RMB3.8 billion in cash, cash equivalents, restricted cash, and short and long-term investments, RMB374.6 million higher than the same time point than last year.

第一季度，我們的淨收入年增33.9%至人民幣9.469億元，總營收年增35.3%至人民幣7.294億元。排除不同班級保留計劃等的一次性影響，我們的可比毛收入每年增長超過 70%。非 GAAP 淨利達 300 萬元，非 GAAP 淨利率為 0.3%。我們的現金狀況仍然強勁，現金、現金等價物、限制性現金以及短期和長期投資總計人民幣 38 億元，比去年同期增加人民幣 3.746 億元。

Our strong performance in the first quarter has strengthened our confidence in continuing strategic investments in educational products and learning services, talent development, and organizational enhancement, and expansion into diverse customer acquisition channels. High quality educational products, teaching excellence, and premium learning services are the cornerstones of the education business. At Gaotu, we deployed diverse incentive mechanisms, including regular mock classes, teaching competitions, and performance evaluations to ensure rigorous quality control of our learning services, improve the quality of teaching and the service capabilities of our teachers, and providing targeted support to enhance their professional growth.

第一季的強勁表現增強了我們對繼續在教育產品和學習服務、人才發展和組織增強以及拓展多元化客戶獲取管道方面進行策略性投資的信心。高品質的教育產品、卓越的教學和優質的學習服務是教育業務的基石。在高途，我們透過定期模擬課、教學競賽、績效考核等多種激勵機制，嚴格控制學習服務質量，提升教學品質和教師服務能力，為教師的提升提供有針對性的支持。

With respect to product design, we enriched our offerings by introducing localized online content and personalized solutions that cater to different learning needs and ensure optimal learning outcomes. Our internal data revealed that the success rate of our class of 2024 on the national graduate school entrance exam was more than twice the national average. Alongside the bolstering, the long-term competitive strengths of our established business, we're also pushing forward with new initiatives. Within our learning services for college students and adults, we have established offline boot camps to help users achieve their academic goals within a shorter timeframe.

在產品設計上，我們透過引入在地化的線上內容和個人化的解決方案來豐富我們的產品，滿足不同的學習需求，確保最佳的學習效果。我們內部數據顯示，我們2024級研究生全國聯考通過率是全國平均的兩倍以上。除了增強我們現有業務的長期競爭優勢外，我們還在推動新措施。在我們為大學生和成人提供的學習服務中，我們建立了線下訓練營，以幫助使用者在更短的時間內實現他們的學術目標。

We have also launched offline all-round education services to better cultivate students' holistic development and improve their overall well-being. As our business has a experienced rapid growth, we have been increasingly ramping up our investment in cost content development. Specifically, the number of our full-time course content development professionals increased by roughly 50% year-over-year in the first quarter. As our business continues to expand, we are taking proactive steps to engage with regulatory bodies at various levels, seeking guidance on industry policies and compliance, and entering our educational products services based on related guidelines.

我們也推出線下全方位教育服務，更好地培養學生的全面發展，提升學生的整體幸福感。隨著我們業務的快速成長，我們不斷增加對成本內容開發的投資。具體來說，第一季我們的全職課程內容開發專業人員的數量年增了約 50%。隨著我們業務的不斷拓展，我們正在積極主動地與各級監管機構接觸，尋求行業政策和合規方面的指導，並根據相關指引進入我們的教育產品服務。

Exceptional talent is one of the most critical strategic assets in the education industry. At Gaotu, we are committed to investing in and strengthening our ability to recruit, cultivate, and retain outstanding individuals to advance our strategic goals and drive rapid business growth. Campus recruitment is one of our most important hiring channels. By collaborating with top 10 universities nationwide, we are able to proactively engage with and secure promising candidates, ensuring a steady expansion of our talent pool. As of the first quarter, we have entered into strategic partnerships with dozens of universities.

卓越人才是教育產業最重要的策略資產之一。在高圖，我們致力於投資並加強招募、培養和留住優秀人才的能力，以推進我們的策略目標並推動業務快速成長。校園招募是我們最重要的招募管道之一。透過與全國排名前十的大學合作，我們能夠主動接觸並吸引有前途的候選人，確保我們的人才庫穩步擴大。截至一季度，我們已與數十所大學建立策略合作夥伴關係。

In addition, we have taken several initiatives to support our teams in improving their professional expertise. These include refining our talent development and retention mechanisms, strengthening our organizational culture and coherence, and offering various themed courses and internal experience sharing opportunities. Lastly, we have improved our organizational vitality by implementing a fast-track promotion mechanism for exceptional team members. Investing in the development of diverse customer acquisition channels and a competitive content, while ensuring operational efficiency is critical to our company's long-term success.

此外，我們也採取了多項措施來支持我們的團隊提升專業知識。其中包括完善我們的人才發展和保留機制，加強我們的組織文化和凝聚力，以及提供各種主題課程和內部經驗分享機會。最後，我們透過實施優秀團隊成員快速晉升機制，增強組織活力。投資開發多樣化的客戶獲取管道和有競爭力的內容，同時確保營運效率對於我們公司的長期成功至關重要。

So far, we have expanded into a diverse range of new acquisition channels, including live streaming, short-form videos, book sales, and offline presence. By consistently offering high-quality content, we have built up our competitive edge in these channels, amplified user engagement, and reduced acquisition costs. Along with ensuring operational efficiency, we're also actively exploring new avenues to acquire customer traffic and maintain our competitive edge. This year, we will boost our regional brand recognition and market penetration by ramping up investment in the offline channels with initiatives like establishing offline-learning centers for college students.

到目前為止，我們已經拓展了多種新的獲取管道，包括直播、短影片、書籍銷售和線下展示。透過持續提供高品質的內容，我們在這些管道中建立了競爭優勢，提高了用戶參與度並降低了獲取成本。在確保營運效率的同時，我們也積極探索新的途徑來獲取客戶流量並保持競爭優勢。今年，我們將透過建立大學生線下學習中心等舉措，加大線下管道投入，提升區域品牌知名度與市場滲透率。

Gaotu is about to mark its 10th anniversary since founding. Throughout this decade long journey, we have stayed true to our educational aspirations, and actively embraced our social responsibilities by collaborating with philanthropic organizations to promote rural development and advance educational equity. We have full confidence in our ability to provide a lasting value for our users, shareholders, and the society at large as we continue to contribute to and spread ahead the sustainable development of China's education industry.

高圖即將迎來成立十週年。十年征程，我們始終不忘教育初心，積極承擔社會責任，與公益組織合作，促進鄉村發展、促進教育公平。我們充滿信心，有能力為使用者、股東和社會提供持久的價值，繼續為中國教育產業的可持續發展做出貢獻和推動。

Thank you very much. This is the end of my prepared remarks. Now I will pass the call over to our CFO, Shannon, to walk you through the financial and operational details of this quarter.

非常感謝。我準備好的發言到此結束。現在我將把電話轉給我們的財務長香農，向您介紹本季的財務和營運細節。

Thank you, Larry. And thank you, everyone for joining our call today. I will now walk you through our operating and financial performance for the first quarter of fiscal year 2024. We commenced 2024 with a notable surge in growth momentum in the first quarter. Backed by ample cash reserves, We remained committed to enhancing the expansion of our core business. This was achieved by strengthening our portfolio and organizational capabilities, thereby reinforcing our leading positions in brand recognition and competitive advantages. In parallel, we actively explored and cultivate product optimization and channel innovation, fortifying our core competitive moats and create lasting value for our shareholders.

謝謝你，拉里。感謝大家今天加入我們的電話會議。現在，我將向您介紹我們 2024 財年第一季的營運和財務表現。2024 年伊始，我們第一季的成長動能顯著飆升。憑藉充裕的現金儲備，我們持續致力於加強核心業務的拓展。這是透過加強我們的產品組合和組織能力來實現的，從而鞏固了我們在品牌認知度和競爭優勢方面的領先地位。同時，我們積極探索培養產品優化與通路創新，強化核心競爭護城河，為股東創造持久價值。

Our gross billings demonstrated robust growth. On a comparable basis, gross billings surged by more than 70% year-over-year to RMB729.4 million. We anticipate maintaining this growth trajectory throughout the remainder of the year, which will gradually translate into accelerated revenue growth. In the first quarter of the year, our net revenues increased by 33.9% year-over-year to RMB946.9 million. The business model for online education exhibits certain statistical and seasonal patterns.

我們的總營業額顯示出強勁的成長。以可比較口徑計算，總帳單年增逾 70% 至人民幣 7.294 億元。我們預計在今年剩餘時間內保持這種成長軌跡，這將逐漸轉化為營收的加速成長。今年第一季度，我們的淨收入年增33.9%至人民幣9.469億元。線上教育的商業模式表現出一定的統計和季節性模式。

The second quarter is typically the peak demand season, necessitating proactive investments in marketing expenses and teaching resources reserves to capitalize on the enrollment window. This strategy ensures the maximization of operational efficiency and economics of scale. Historically, this entails certain upfront marketing expenditure in marketing costs with revenue realization gradually materializing in the latter half of the year. As student retention increases and concurrent enrollments, product penetration, and brand recognition improves, the manpower costs associated with course and service delivery can be amortized and the economics of scale, progressively unlocking profitability potential.

第二季度通常是需求旺季，需要積極投資行銷費用和教學資源儲備，以充分利用招生窗口。該策略確保營運效率和規模經濟的最大化。從歷史上看，這需要在行銷成本中付出一定的前期行銷支出，並在下半年逐漸實現收入。隨著學生留任率的增加以及並發入學率、產品滲透率和品牌認知度的提高，與課程和服務提供相關的人力成本可以攤銷，規模經濟也可以逐步釋放盈利潛力。

As such, profitability in a single quarter for online education is contingent on the ratio of new users to existing users. Well, working to ensure a healthy unit economics, we recognize the need for a simultaneous escalation in marketing investment going forward. Beginning in the second quarter, we plan to deploy additional tutors and resources and dynamically manage our customer acquisition channels to seize the acquisition window to drive meaningful growth in the student enrollments.

因此，線上教育單季的獲利能力取決於新用戶與現有用戶的比例。嗯，為了確保健康的單位經濟效益，我們意識到未來需要同時升級行銷投資。從第二季開始，我們計劃部署更多的導師和資源，並動態管理我們的獲客管道，以抓住獲客窗口，推動學生入學人數的有意義增長。

Next, I will walk you through the progress we have made during the quarter. Learning services contributed over 95% of net revenues. Breaking it down, more than 75% of total revenues came from non-academic tutoring services and other traditional learning services, representing an increase of roughly 25% year over year. Our new initiatives are centered on academic student services aimed at unleashing students' unit potential and fostering activities and holistic development through engaging content.

接下來，我將向您介紹本季我們的進展。學習服務貢獻了超過 95% 的淨收入。細分來看，總收入的75%以上來自非學術輔導服務和其他傳統學習服務，較去年同期成長約25%。我們的新措施以學術學生服務為中心，旨在透過引人入勝的內容釋放學生的單位潛力並促進活動和全面發展。

During the quarter, this segment generated year-over-year growth of more than triple digits in gross billings on a comparable basis. Furthermore, it surpassed 20% for the first time as a percentage of total gross billings. This increasing progress is a testament to our ongoing efforts to improve the teaching standard of our instructors and tutors, coupled with the continuous refinements we have made through our educational offerings.

本季度，該部門的可比總營業額年增超過三位數。此外，其佔總帳單的百分比首次超過 20%。這種不斷進步證明了我們不斷努力提高教師和導師的教學水平，以及我們透過教育產品不斷改進。

Additionally, we are venturing into offline non-academic all-around education courses, including coding and basketball that align with government and regulatory initiatives to promote diversified education and holistic development for K-9 students. Our traditional learning services continued to generate robust growth momentum. With a diversified portfolio tailored to varied user needs, we expanded user outreach and enhanced the sustainability and scalability of our product pipeline. This will serve as a long-term driver for sustainable growth.

此外，我們正在嘗試線下非學術全方位教育課程，包括與政府和監管舉措一致的程式設計和籃球課程，以促進 K-9 學生的多元化教育和全面發展。我們的傳統學習服務持續產生強勁的成長動力。透過針對不同使用者需求的多元化產品組合，我們擴大了使用者範圍，增強了產品線的可持續性和可擴展性。這將成為可持續成長的長期動力。

During the quarter, this segment recorded high double-digit growth in gross billings on a comparable basis and a year-over-year revenue increase of more than 35%. The other crucial component of our learning services is educational service for college students and adults, which accounted for around 20% of total revenues during the quarter. Revenue and gross billings both increased by more than 30% year over year. The better-than-expected performance of this segment was primarily attributable to rapid growth in overseas data related to services driven by our expanded customer acquisition efforts, across short-form radio and live streaming platforms.

本季度，該部門的可比總營業額實現了兩位數的高成長，營收年增超過 35%。我們學習服務的另一個重要部分是針對大學生和成人的教育服務，佔本季總收入的 20% 左右。收入和總帳單年增超過 30%。該部門的表現優於預期，主要歸因於我們在短格式廣播和直播平台上擴大獲客努力所推動的與服務相關的海外數據的快速增長。

During the quarter, our overseas data-related services saw a year-over-year increase of more than triple digit in revenue and gross billings. Jointly developed by industry-leading teachers and course content development professionals, our educational offerings harness cutting-edge technologies like artificial intelligence, providing users with a personalized one-stop exam preparation experience, teaching tailored content plans, learning paths that adopt to their pace, and progress evaluation tools. Notably, our post-graduate entrance exam prep services generated positive cash flow for the third consecutive quarter, while our civil service exam prep business achieved profitability for the second consecutive quarter.

本季度，我們的海外數據相關服務的收入和總流水年增超過三位數。我們的教育產品由業界領先的教師和課程內容開發專業人士共同開發，利用人工智慧等尖端技術，為用戶提供個人化的一站式準備體驗、量身定制的教學內容計劃、適合他們節奏的學習路徑、和進度評估工具。值得注意的是，我們的研究生入學考試準備服務連續第三個季度產生正現金流，而我們的公務員考試準備業務連續第二個季度實現盈利。

I will now present our financials in more detail. Our cost of revenues this quarter was RMB271.4 million. Gross profit increased 23.4% year-over-year to RMB675.5 million, with a gross profit margin of 71.3%. the year-over-year decrease in gross margin was predominantly a result of changes to our product mix and the more proactive recruitment of teaching staff to meet future demand.

我現在將更詳細地介紹我們的財務狀況。本季我們的收入成本為 2.714 億元。毛利年增23.4%至人民幣675.​​5百萬元，毛利率為71.3%。毛利率較去年同期下降的主要原因是我們產品結構的變化以及為滿足未來需求而更積極地招聘教師。

Total operating expenses during the quarter increased 66.6% year-over-year to RMB753.2 million. Breaking it down, selling expenses increased 82.8% year-over-year to RMB 506.4 million, accounting for 53.5% of net revenues. This was partially attributable to the low base effect creating during the same period last year. The increase also reflected a rise in marketing expenses in response to heightened market demand over the winter season. We track and monitor sales and marketing efficiency on a weekly basis and drive scalable growth, raising such boundaries to enhance brand awareness, provided that our unit economics meet specific profitable criteria.

該季度總營運費用年增 66.6% 至人民幣 7.532 億元。其中，銷售費用年增82.8%至人民幣5.064億元，佔淨收入的53.5%。這部分歸因於去年同期產生的低基數效應。這一增長也反映出行銷費用的增加，以應對冬季市場需求的增加。我們每週追蹤和監控銷售和行銷效率，並推動可擴展的成長，提高這些界限以提高品牌知名度，前提是我們的單位經濟效益滿足特定的獲利標準。

Based on the performance in the first quarter, our long-term investment in diversified channels and the meticulous refinement of our expert teaching quality have yielded satisfactory. Our return on investment metrics remain high efficiency, promoting us to appropriately increase our investment in sales expenses, thereby laying a solid foundation for long-term growth.

從第一季的表現來看，我們對多元化管道的長期投入以及對專家教學品質的精心打磨，取得了令人滿意的效果。我們的投資回報指標仍保持較高的效率，促使我們適當增加銷售費用的投入，為長期成長奠定堅實的基礎。

Moving on, research and development expenses increased 56.3% year-over-year to RMB151.6 million, accounting for 16.0% of net revenues. General and administrative expenses increased 21.7% year-over-year to RMB95.2 million, accounting for 10.1% of net revenues. Loss from operations was RMB77.7 million, and operating margin was negative 8.2%. Non-GAAP loss from operations was RMB62.4 million, and non-GAAP operating margin was negative 6.6%. Net loss was RMB12.3 million, and net income margin was negative 1.3%. Non-GAAP net income was RMB3.0 million and non-GAAP net income margin was 0.3%. Our net operating cash outflow was RMB197.4 million.

接下來，研發費用年增56.3%至人民幣1.516億元，佔淨收入的16.0%。一般及行政費用較去年同期成長21.7%至人民幣9,520萬元，佔淨收入的10.1%。經營虧損為人民幣 7,770 萬元，經營利潤率為負 8.2%。非 GAAP 營運虧損為 6,240 萬元，非 GAAP 營運利潤率為負 6.6%。淨虧損為人民幣1,230萬元，淨利率為負1.3%。非 GAAP 淨利為 300 萬元，非 GAAP 淨利率為 0.3%。我們的經營現金流淨額為人民幣1.974億元。

Turning to our balance sheet, as of March of the 31, 2024, we held RMB1.2 billion in cash, cash equivalents and restricted cash, RMB1.6 billion in short-term investments, RMB974.1 million in long-term investments. This comes to a total RMB3.8 billion, approximately RMB374.6 million higher than the -- at the same time of point last year.

就我們的資產負債表而言，截至2024年3月31日，我們持有現金、現金等價物和限制性現金12億元人民幣，短期投資16億元人民幣，長期投資9.741億元。總額達38億元人民幣，較去年同期增加約3.746億元。

As of March 31, 2024, our deferred revenue balance was RMB1.0 billion, which primarily consists of tuition received in advance. As of March 31, 2024, we have repurchased an aggregate of approximately 4.9 million ADS on the open market for approximately USD12.4 million. We will continue to execute stock buybacks in accordance with the guidance of the Board of Directors and create a long-term value for our shareholders. Furthermore, Larry has reinforced his confidence in the company and unwavering commitment to the original aspiration to education by personally purchasing an additional 0.51 million ADS in 2024.

截至2024年3月31日，我們的遞延收入餘額為人民幣10億元，主要包括預收的學費。截至 2024 年 3 月 31 日，我們已在公開市場回購了總計約 490 萬股美國存託憑證，金額約 1,240 萬美元。我們將繼續按照董事會的指導，實施股票回購，為股東創造長期價值。此外，Larry個人於2024年增購51萬股ADS，堅定了對公司的信心和對教育初心的堅定不移。

Before I provide our business outlook for the next quarter, please allow me to remind everyone that this contains forward-looking statements which include risks and uncertainties that are beyond our control and could cause the actual results to differ materially from our predictions. Based on our current estimates, total net revenues for the second quarter of 2024 are expected to be between RMB908 million and RMB928 million, representing an increase of 29.1% to 32.0% on a year-over-year basis.

在我提供下一季的業務展望之前，請容許我提醒大家，其中包含前瞻性陳述，其中包括我們無法控制的風險和不確定性，可能導致實際結果與我們的預測有重大差異。根據我們目前的預測，2024年第二季的淨收入總額預計在人民幣9.08億元至人民幣9.28億元之間，年增29.1%至32.0%。

This concludes my prepared remarks. Operator, we are now ready for the Q&A section. Thank you, everyone, for listening.

我準備好的發言到此結束。接線員，我們現在準備好進行問答部分。謝謝大家的聆聽。

(Operator Instructions) Alice Cai, Citibank.

（操作員指示）Alice Cai，花旗銀行。

Good evening management. Thank you for talking my question. I have a question regarding the 2Q revenue guidance and the impact of the shift in re-enrollment timeline. Because we know that the guidance appears relatively conservative, could you please provide more information on whether it is influenced by the shift in the re-enrollment period? Last year, re-enrollment occurred in March. While this year it took place in April. Could you please break down the situation for us, sharing details on how re-enrollment of existing students and enrollment of new students are performing separately? Thank you.

晚上好管理。謝謝你說出我的問題。我對第二季收入指導以及重新註冊時間表轉變的影響有疑問。因為我們知道指導意見顯得相對保守，您能否提供更多資訊來說明它是否受到重新註冊期變化的影響？去年，重新註冊發生在三月。而今年則發生在四月。您能否為我們介紹一下具體情況，具體介紹一下現有學生的重新註冊和新生的註冊情況分別如何？謝謝。

Thanks, Alice. Let's start with the guidance of the second quarter, then we can dive into our expectations for the whole year. So from the revenue perspective, we expected the revenue to be between RMB908 million and RMB928 million in the second quarter of 2024, representing an increase of 29% to 32% on a year-over-year basis. So the primary revenue contributor is learning services, within which around 75% of our total revenues came from non-academic tutoring services and our traditional learning services.

謝謝，愛麗絲。讓我們從第二季的指引開始，然後我們可以深入探討全年的預期。因此從營收角度來看，我們預計2024年第二季營收將在9.08億元至9.28億元之間，年增29%至32%。因此，主要的收入貢獻者是學習服務，其中我們總收入的約75%來自非學術輔導服務和傳統學習服務。

So we still in the second quarter, we see strong momentum for this segment, and we foresee this part of revenue to grow near or over 45% on a year-over-year basis in the second quarter. So the segments with growth rates lower than the overall company growth primarily the impact of the education services we provided for college students and adults. Although the gross billings increased in the past two quarters showed a strong momentum, but it's mainly contributed by college learning services and overseas related business.

所以我們仍然在第二季度，我們看到這個細分市場的強勁勢頭，我們預計第二季度這部分收入將同比增長接近或超過45%。因此，成長率低於公司整體成長率的細分市場主要是我們為大學生和成人提供的教育服務的影響。雖然過去兩季的總流水成長呈現強勁勢頭，但主要由大學學習服務和海外相關業務貢獻。

According to the class schedule and the seasonality, the revenue usually recognized in the third quarter and even the second half of the year. So therefore, although we saw the strong growth momentum in gross billings, the revenue remains flat in the second quarter and therefore, it cannot project down the whole company's revenue growth rate. So in terms of gross billings, we expected to -- I mean in the second quarter of 2024, we still anticipate it to grow at a high double digit growth rate in the second quarter on a year-over-year basis.

根據課程安排和季節性，收入通常在第三季甚至下半年確認。因此，儘管我們看到總流水的強勁成長勢頭，但第二季的營收仍然持平，因此不能預測整個公司的營收成長率。因此，就總帳單而言，我們預計 - 我的意思是在 2024 年第二季度，我們仍然預計第二季度將同比將實現兩位數的高成長率。

And also, especially for our academic children's services and our traditional learning services, the gross billings collected from new students are expected to grow over triple digits. And this momentum has been continued from last November, and we still see the momentum to continue in the second quarter. So regardless all the scheduling differences compared with last year, if we see the first half in 2024 as a whole, we still expected the gross billings to grow at the high end of middle double digit on a year-over-year basis.

而且，特別是對於我們的學術兒童服務和傳統學習服務，從新生收取的總帳單預計將增加三位數以上。而這種勢頭從去年11月就一直延續著，我們仍然認為這種勢頭會在第二季度繼續下去。因此，儘管與去年相比存在各種安排差異，但如果我們將 2024 年上半年作為一個整體來看，我們仍然預計總營收將同比增長在中兩位數的高端。

So because we all know that gross billings is a leading indicator for the revenue growth, so which basically this can place a solid foundation for the whole year revenue growth. So then if we're looking into the second half, the demand for academic tutoring and traditional business is still substantial. With clear compliance and the governance guidance in place, our business growth initiatives with new enrollments and substantial generated incremental revenue through retention and course expansion.

因為我們都知道總流水是收入成長的先行指標，所以基本上這可以為全年的收入成長奠定堅實的基礎。那麼如果我們展望下半年，學術輔導和傳統業務的需求仍然很大。有了明確的合規性和適當的治理指導，我們的業務成長計劃將透過新的入學人數和透過保留和課程擴展產生大量增量收入。

So we do have the confidence in our operational capabilities and the reputation we have established among the students and parents. Therefore, we anticipate that the growth rate for both gross billings and the revenues to accelerate in the second quarter and especially in the second half of the year. So we should have a higher level of clarity by the time of our next earnings call, but based on our assessment of the current situation, we saw revenue growth rate move towards to the high-end of our expectations for the whole year.

所以我們對我們的營運能力以及我們在學生和家長中建立的聲譽充滿信心。因此，我們預計第二季度，尤其是下半年，總帳單和收入的成長率都會加快。因此，到下一次財報電話會議時，我們應該有一個更高的清晰度，但根據我們對當前情況的評估，我們看到收入增長率正在向我們全年預期的高端邁進。

And in terms of enrollment changes, because like we haven't disclosed details of the enrollments by segment, but because the [ASP] is stable. So actually the increase of the gross billings shows basically the same pace with the enrollment increase. So let's put all this information together. So although the revenue guidance of the second quarter seems a little bit weak, but if we put emphasizes on the gross billings we collected during the fourth quarter last year and the first half of 2024, we still have strong confidence for the whole year's revenue goal.

在招生變化方面，因為我們沒有按細分市場揭露招生細節，但因為 [ASP] 是穩定的。因此，實際上總帳單的成長速度與入學人數的成長速度基本相同。因此，讓我們將所有這些資訊放在一起。因此，雖然第二季的營收指引看起來有點弱，但如果我們強調去年第四季和2024年上半年的總流水，我們對全年的營收目標仍然有很強的信心。

And for specific quarterly growth guidance, we will primarily share updates with you in each of the earnings release. Hope that address your questions, Alice.

對於具體的季度成長指引，我們將主要在每次收益發布中與您分享最新情況。希望這能解決您的問題，愛麗絲。

Thank you.

謝謝。

Jeffrey Chan, CLSA.

傑弗裡·陳（Jeffrey Chan），里昂證券。

Hi, thank you, management, for taking my question. I have a question regarding the OpEx and also GP margins. Can management give us some more color on the GP margin and the OpEx ratio in the next quarter and in the rest of this year, 2024? And perhaps if you could, can you give a small color on the profitability in full year 2024? Thank you.

您好，謝謝管理層回答我的問題。我有一個關於營運支出和總利潤率的問題。管理層能否為我們提供有關下一季和今年剩餘時間（即 2024 年）的 GP 利潤率和營運支出比率的更多資訊？如果可以的話，您能否稍微介紹一下 2024 年全年的獲利能力？謝謝。

Thanks Jeffrey for your question. So let's split the OpEx line-by-line and start with the change of our GP, gross profit margin. So first for the gross profit margin, we observed around 6% decrease in GP margin on a year-over-year basis. So the year-over-year decrease in gross profit margin was due to a few reasons. The primary reason was the revenue mix change. In terms of revenue contributor, to meet diversified user demand, we have constructed a product mix primarily focused on online live large class business, complemented by one-on-one class, smart textbooks, and offline small classes.

感謝傑弗裡的提問。因此，讓我們逐行拆分營運支出，並從 GP、毛利率的變化開始。首先是毛利率，我們觀察到毛利率年減了 6% 左右。因此，毛利率年減是由於以下幾個原因造成的。主要原因是收入結構的改變。在收入貢獻方面，為滿足多元化的用戶需求，我們建構了以線上直播大課業務為主，一對一課、智慧教材、線下小課為輔的產品結構。

Among all these business models, online large class boosts the highest the GP margin level. As our business expands, the proportion of revenue generated from our one-on-one classes, smart textbooks, and offline classes is gradually increasing, altering the revenue mix and subsequently impacting gross profit margins. Especially, our offline learning center expansion is accelerating, brought us a higher level of cost of good sale, which marks the GP margin lower at this point of time. Secondly, to enhance the comprehensiveness and competitiveness of our curriculum system, we are making efforts to introduce and develop new courses.

在這些商業模式中，線上大班提升的毛利率水準最高。隨著我們業務的擴展，一對一課程、智慧教材和線下課程產生的收入比例逐漸增加，改變了收入結構，從而影響了毛利率。特別是，我們的離線學習中心擴張正在加速，為我們帶來了更高水準的良好銷售成本，這標誌著此時的 GP 利潤率較低。二是加強新課程的引進與開發，增強課程體系的綜合性和競爭力。

The associated investment in faculty resources in the early stage will also impact the gross profit margin before they achieve their full capacity. So in the long run, our GP margin will highly depend on the future revenue structures. So that's the reason for the GP margin fluctuation. Then secondly, let's look into the details of our R&D expenses change. So the year-over-year increase in our research and development expenses in this quarter was mainly due to corresponding resources investment in innovative technologies, such as artificial intelligence, started in the second half of last year.

前期師資資源的投入也會對未充分發揮能力之前的毛利率產生影響。所以從長遠來看，我們的毛利率將很大程度上取決於未來的收入結構。這就是毛利率波動的原因。其次，我們來看看我們的研發費用變化的細節。所以我們本季研發費用年增主要是去年下半年開始對人工智慧等創新技術進行了相應的資源投入。

Education raises vast potential stand as a promising domain for practical implementation. So currently, our application of AI primarily focus on enhancing internal efficiency other than external tools. This includes areas such as curriculum research, student also question-and-answer section, and also product research and design customer service call center and overall internal operations. Simultaneously, we are also exploring tool-based products aimed at improving learning efficiency, like that they can assist our students to learn at a higher efficient level.

教育作為一個有前景的實際實施領域具有巨大的潛力。所以目前我們對人工智慧的應用主要集中在內部效率的提升，而不是外部工具。這包括課程研究、學生問答部分、產品研究和設計客戶服務呼叫中心以及整體內部營運等領域。同時，我們也在探索旨在提高學習效率的工具型產品，例如它們可以幫助我們的學生更有效率地學習。

Also, to support the development of our offline business, we also started to invest in the research and development of offline operating system. That's basically a new system and different from our online operating system, as well as content development. Our offline business is expanding very fast. So we recruit top-notch content researchers to help us to make a solid foundation for the content development. But if we make a quarter-over-quarter comparison, the R&D expenses, as a percentage of revenue actually decreased nearly 2%, which shows the economics of scale and operating leverage.

另外，為了支持線下業務的發展，我們也開始投入離線作業系統的研發。這基本上是一個新系統，與我們的線上作業系統以及內容開發不同。我們的線下業務擴張得非常快。因此我們聘請了頂尖的內容研究人員來幫助我們為內容開發打下堅實的基礎。但如果我們進行季度環比比較，研發費用佔收入的比例實際上下降了近2%，這體現了規模經濟和營運槓桿。

And thirdly, if we dive into the G&A section, so the year-over-year growth in our G&A expenses was mainly due to the increase in labor costs. So since the beginning of this year, we brought a reasonable number of general management talents to our non-academic tutoring services, especially a couple of numbers of top-notch offline learning center managers. And we believe that by doing so, our K-12 related business will achieve rapid growth while also improving operational quality and efficiency because we all know that talent is the most factor to success for our offline business.

第三，如果我們深入研究G&A部分，那麼我們的G&A費用年增率主要是因為勞動成本的增加。所以今年以來，我們為非學業輔導服務帶來了一定數量的綜合管理人才，特別是一群頂尖的線下學習中心管理人員。我們相信，透過這樣做，我們的K-12相關業務將實現快速成長，同時提高營運品質和效率，因為我們都知道人才是我們線下業務成功的最重要因素。

And last but most is our expenses. We spent all sales marketing. So it's highly relative to our gross billings increase. So as I mentioned in the prepared remarks, if we made an apple-to-apple comparison, actually, the gross billings collected from our newly added students increased over 70% on a year-over-year basis. Well, our sales marketing expenses increased nearly around 58% on a year-over-year basis. So we still see our customer acquisition cost is within the profitability boundaries. And we still see, like we have questionnaire and room there, that we saw our investment -- our returns of our investment on the customer acquisition side still maintains our high efficiency. So that gives you a high level or a color on our OpEx variations there and hope that helps. Thanks, Jeffrey.

最後但也是最重要的是我們的開支。我們把所有的銷售行銷都花在了上面。因此，這與我們的總帳單成長密切相關。正如我在準備好的發言中提到的，如果我們進行逐一比較，實際上，我們新增學生的總帳單比去年同期成長了 70% 以上。我們的銷售行銷費用年增了近 58% 左右。因此，我們仍然認為我們的客戶獲取成本在獲利能力範圍內。我們仍然看到，就像我們在那裡有問捲和房間一樣，我們看到了我們的投資——我們在客戶獲取方面的投資回報仍然保持著我們的高效率。因此，這為您提供了我們的營運支出變體的高水準或顏色，希望有所幫助。謝謝，傑弗裡。

This concludes our question-and-answer session. I would like to turn the conference back over to Catherine Chen for any closing remarks.

我們的問答環節到此結束。我想將會議轉回凱瑟琳·陳（Catherine Chen）發表閉幕詞。

Thank you, operator, and thank you everyone for joining the call today. And if you have any further questions, please don't hesitate to contact our investor relations department or our management team via email at ir@gaotu.cn directly. You are also welcome to subscribe to our news alert on the company's IR website. Thank you very much again for your time. Have a great night.

謝謝接線員，也謝謝大家今天加入通話。如果您有任何其他疑問，請隨時透過電子郵件 ir@gaotu.cn 直接聯絡我們的投資者關係部門或我們的管理團隊。也歡迎您在公司的 IR 網站上訂閱我們的新聞快訊。再次非常感謝您抽出寶貴的時間。祝你有個愉快的夜晚。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。