Gaotu Techedu's strategic pivot to adult and vocational training amid disruptive policy changes in China's EdTech market has been a smart move. The company leverages AI-powered features to enhance learning engagement and operational efficiency. Recent financials show strong growth, with an 83% revenue jump and improved cash generation.
Gaotu Techedu: Strong Growth And Improved Profitability, Maintain 'Buy'
Gaotu Techedu Inc. (NYSE:GOTU ) Q4 2024 Earnings Conference Call February 26, 2025 8:00 AM ET Company Participants Catherine Chen - Head, Investor Relations Larry Chen - Founder, Chairman & Chief Executive Officer Shannon Shen - Chief Financial Officer Conference Call Participants Crystal Li - China Merchant Securities Operator Ladies and gentlemen, thank you for standing by, and welcome to the Gaotu Techedu Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. All participants will be in listen-only mode.
BEIJING , Feb. 26, 2025 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) ("Gaotu" or the "Company"), a technology-driven education company and online large-class tutoring service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024. Fourth Quarter 2024 Highlights[1] Net revenues were RMB1,388.6 million, increased by 82.5% from RMB761.0 million in the same period of 2023.
BEIJING , Feb. 13, 2025 /PRNewswire/ -- Gaotu Techedu Inc. ("Gaotu" or the "Company") (NYSE: GOTU), a technology-driven education company and online large-class tutoring service provider in China, today announced that it will report its financial results for the fourth quarter and fiscal year 2024 ended December 31, 2024, before U.S. markets open on Wednesday, February 26, 2025. Gaotu's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, February 26, 2025 (9:00 PM on the same day, Beijing/Hong Kong Time).
Gaotu's Q3 2024 revenue growth was robust at 53.1% YoY, but profitability declined due to heavy investments in workforce and marketing. Despite the stock's 11% drop post-earnings, I maintain a "buy" rating due to Gaotu's strong balance sheet and significant undervaluation. Management expects Q4 revenue growth of 69.2%-71.9% YoY, driven by aggressive offline expansion and diversified revenue streams.
BEIJING , Dec. 4, 2024 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) ("Gaotu" or the "Company"), a technology-driven education company and online large-class tutoring service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Highlights[1] Net revenues were RMB1,208.3 million, increased by 53.1% from RMB789.4 million in the same period of 2023.
BEIJING , Nov. 19, 2024 /PRNewswire/ -- Gaotu Techedu Inc. ("Gaotu" or the "Company") (NYSE: GOTU), a technology-driven education company and online large-class tutoring service provider in China, today announced that it will report its financial results for the third quarter ended September 30, 2024, before U.S. markets open on Wednesday, December 4, 2024. Gaotu's management will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, December 4, 2024 (9:00 PM on the same day, Beijing/Hong Kong Time).
I maintain my "buy" rating for GOTU due to its significant undervaluation and potential for dramatic positive fundamental change. Gaotu's rapid offline expansion, especially in Guangzhou, positions it to capture market share from competitors like TAL and EDU. Exiting the loss-making Gaotu Jiapin business will enhance profitability starting Q4 2024, improving the company's financial outlook.
Gaotu Techedu's Q2 2024 results showed strong revenue growth but significant net losses due to upfront expenses for future demand, validating my "buy" rating. Despite a 19% stock drop post-earnings, Gaotu's cash-rich balance sheet and share repurchase program offer strong downside protection and significant upside potential. Non-academic tutoring business surged, contributing over 20% of total revenues, indicating robust future growth regardless of Chinese government policies.