Sunlands Technology (STG) 22 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Sunlands' Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host today, Yuhua, Sunlands' IR representative. Please go ahead.

Hello, everyone, and thank you for joining Sunlands' Third Quarter 2024 Earnings Conference Call. operating services issued posted earlier and release our online. financial Newswire via today company's results in were press The and are

Q&A for conclude our today's with and call You and be will our session. visiting earnings begin the Tongbo will with Mr. IR our Liu; the Hangyu Mr. up Management and our on can remarks, by Director, distribution call the Participants press website. a prepared CEO, will list Financial download sign release Li.

it relation hand management, the like you on estimates undue trends, call. are I conference certain the Before over safe and are should projections, this I'd not and place in herein, for call to statements to based Sunlands' of forward-looking of on harbor Except discussed them. reliance These therefore, the historical contained current remind to you information statement matters in today's statements.

number actual those Forward-looking any uncertainties. and factors A statements from materially important differ cause inherent involve contained statements. to of could forward-looking risks in results

For please filings refer more Exchange and to and Commission. uncertainties, risks the Securities company's with the about potential information

that, will With call Liu. turn over I the CEO, our to now Tongbo

you, Sunlands' XXXX Call. like release all otherwise. are are Third specified to continuing basis Welcome everyone. a Conference operations the would Yuhua. denominated all and explicitly to figures commencing, referenced Quarter I attendees remind in unless this Hello, Prior kindly in that Thank information to financial presented RMB on

our we the has amidst reflect pleased we remained As our that the macroeconomic of performance on business environment. challenging are quarter for to report third XXXX, resilient

of representing XXX.X a quarter the for X.X%. stood total Our RMB at million, modest decline sequential revenue

our increase an RMB XX.X driven previous However, high-return areas. our net towards realignment quarter, million, from X.X% strategic the reached profit by

also only not to steady pressures, highlight business and external of our despite but the results effectiveness sustainability our model. maintain reinforce These growth ability

we across generation maintain to believe, Our operational excellence. stable ability substantiates positions success approach, value and well long-term profitability growth. This and strategic our us focus ongoing future various on further consistently is periods to for our foundational

industry customer grew year-over-year, period business first the the enrollments needs. have cater our in year, a total XX.X% proactively to effectiveness this structural of evolving realigning our of remains of we by change, While In the our strategies. model months X highlighting to better adapted

We are innovation continuing and confident long-term growth. portfolio in drive to to our optimize are invest efforts strategically will that our

As positioned well market to new we on conditions are and our current opportunities seize build momentum. stabilize,

and age company aim enhance diverse of the learners continue products on will same ahead, needs growth services. experience, brand the drive long deeper educational optimize term. user actions and believe sustainable the users its Looking across its groups. most the profitability different At delve company promising learning online focusing continuous sector to high-quality lead strengthen We structure, with Through the the time, and innovation, presence, the adult will into and cost the will more the further company these resources education we opportunities. provide position to to in

cost preparation interest, interest-based XX.X% to adults certification returns. instrumental has yielded turn course revenues. Notably, significant for interest-based our programs including our our sector early and major Now of performance let's total investments our of certifications, to skills the contributing have and programs. older each driving The professional development growth, professional in skill of in professional been education

growth demographic As it we presents. are shifts, unique about broader highly and on the the well positioned with sector the potential to its remain aligns optimistic opportunities capitalize economy and

students. sense courses local senior have painting. our accessible, engaging creativity To evolving and Chinese the to both interest music like and we designed our These continually of on focusing with traditional and a including learners, fostering specialized enriched curriculum things accomplishment particularly to specifically painting, innovate elderly among be courses, of arts, cater are and oil

advancements, educational have value our the of trial enhanced we regularizing offerings, experiential educational also learning. the Alongside

domestic researched to enabling course in socialization, needs for the our is interests our seniors, the to deliberate explore growing meet supportive and the have a learning customers in of of array wide locals. the ultimately educational market. of and iterative this cultural development combining Each realizing Through richness and destinations from their of We our the itinerary support trial include have lifelong to new these improvement senior an programs, and engaging in diverse passions study and commercial our value carefully landscape diverse of to we cities expanded offerings tours of ability pursuit international entertainment. efforts in learners to environment, learning, them

with our our programs diploma-oriented structure been addition, always ongoing reflecting align for has education accessible There our high-quality our the market. and job demand or to our traditional strong total post-sector meets needs strategic In that to degree contributed efforts of goals. revenues, optimize today's X.X%

a an our degree or their their committed professional professionals, We be for remain their giving only to young learners' additional this impactful and ensuring earning skills, competitive demand, many to in edge our boosts For continue confidence, growth. diploma supporting but relevant also programs careers. not enhances

we to high-quality education. our drive will our continue to forward, maintain commitment Moving and for innovation

We our with meet and continued we will deeply as provide embark exciting appreciate journey refine to and services the this better evolving learners an even We exceptional learning support your together. more demand market on experience. trust

our to call Director, will to our financials. Hangyu, the run through With turn that, I Financial

you, our our Tongbo. everyone. Thank I'd which third like quarter expectations. are with Hello, consistent present results, to

to decreased changes level continue profitability steady our While in net we year-over-year to slightly mix, in the quarter. revenues product of maintain a due

each operational prepared team every opportunity we capitalize are continues on full business fully improve capabilities and and obstacle. that is overcome any Our of to challenges, opportunities ensure and with challenge to our to

from be navigate managing making the and activities. to In company's maintained cash ability risk, has us operating and have improving in volatility we the to earnings, strong flow while addition flexible to uncertainty. strategic adjustments market This allowed more

for growth finding new and initiatives the Going our continued enhancing value cost success our expansion. for number forward, continuing while we and for are business, committed a of of stakeholders through our avenues to to create strength strategic

Now all RMB, and let figures comparisons quarter financial XXXX. results otherwise through in noted. of some of third our me are for are walk year-over-year you key All the unless

quarter third the sales million XXX.X the and by decrease decreased net XXX.X from books growth as quarter driven decline and quarters, the the in interest gross learning of billings goods recent XXXX. X.X% was materials. revenues third For primarily in RMB million post-secondary partially over the The such from RMB of by in of revenues by to offset courses costs from XXXX,

of by to XX.X the an quarter cost XXXX. of of in of the primarily in to million XXXX third of increase from such RMB as from was increase in from of Gross in in of revenue RMB due profit goods decreased goods. million books by gross quarter to the the XXX.X revenues Cost sales XXXX million and third the RMB lower learning third increased XX.X of XX.X% million from to sales The XX% quarter profit third materials. quarter decrease The XXXX. due the XXX.X was RMB

RMB increase In X.X% third quarter of million, million operating RMB increase expenses third was the by from head X.X% our in from in sales million and The quarter of a marketing XXXX. million XXXX. count expenses the RMB of were the quarter third the representing in a RMB increased and of XXX.X growth third marketing personnel. mainly XXX due to XXXX Sales to the quarter XXX XXXX, XXX.X of in

to million the XX.X administrative quarter of quarter from XXXX RMB expenses count of head million decreased third to the of third third and development by quarter XXXX. XXXX our RMB in General X.X from the in XXXX. declined quarter of third to was of Product in XX.X by decrease million X.X decreased X.X% in product million expenses to XX.X% personnel. mainly the related RMB expenses development due compensation The RMB reduction

net ] million (sic) and XXXX as third XXXX. XXXX. quarter third was in to Basic the of the for quarter RMB [ compared XXX.X XX.XX XX.X income million income per of quarter was in third increase share of Net RMB diluted the RMB

cash XX, As restricted XX, short-term cash the RMB company and as investments and of of RMB and million and XXX.X December XXXX. million as RMB of cash, restricted equivalents RMB cash equivalents had million September to XXX.X of cash million compared short-term of of XXX.X investments XXXX, XXX.X cash,

XXX.X revenue XX, RMB to the as December XXXX. of a million As compared of September RMB of had X,XXX.X deferred XX, company XXXX, as million balance

outlook. our for Now

For the to expects all Sunlands conditions XX.X% revenues market preliminary decrease demand, a This questions. million, market, XX.X% be up XXX reflects quarter that, Operator? current RMB to currently I'd outlook change. With estimates the and to current operating and net subject of and of on year-over-year. call fourth million the the between XXXX, based of RMB like open conditions are to to XXX which to is company's customer management's

no showing questions. At Instructions] [Operator time, this we're

to back session. So At this I'll closing time, Yuhua any turn conference question-and-answer remarks. our this for will the conclude

speaking for with again, look today's Once Good call. We everyone, you to soon. again and day, thank joining you, good forward night.

call. conference concludes This this

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