QuantaSing (QSG) 27 Nov 242025 Q1 Earnings call transcript

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to QuantaSing's Earnings Conference Call. [Operator Instructions] Please note that today's event is being recorded. I would now like to turn the conference over to Ms. Leah Guo, Investor Relations Associate Director of the company.

Thank you. to year call XXXX. welcome quarter the and fiscal of everyone, QuantaSing's for earnings first Hello, With today us are Mr. Peng CEO; Li, and and Mr. our Founder, Chairman Tim our CFO. Xie, Mr. Li quarter for the will in business will financials Tim discuss the details. more provide a then overview

Mr. translate their will will be session. Mr. Li. and available Following Li Tim the for remarks, Q&A prepared for I

on at ir.quantasing.com. website can to You IR refer our our quarterly financial results

hours becomes after call You conclusion. can on this available also a when website of few access our it its a IR replay

today, Before the press we prepared we more that in to call like now comparable note measures making over would And remarks will are are call, QuantaSing, Mr. to and refer to release measures harbor earnings SEC. I and the statement be you with safe management's our Please continue, I also Li. CEO all non-GAAP this discuss to numbers in and the release, to which will reconciled statements. our terms. our applies stated we filings earnings will reported most in Founder as forward-looking explained of thoroughly following the RMB which turn in the

XXXX today Good you Thank for fiscal joining call. our morning, first quarter us year everyone. earnings for

year journey and has this Our over strategic. past purposeful been

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and XX, up we cash of XXXX, cash RMB and totaling cash short-term investments have September X,XXX.X June. restricted end from the of As at X,XXX.X million, million RMB equivalents,

Our transition business shareholders cash special silver a our positive only robust It period. This generate in continues while from us economy during through with flow commitment investing shareholders. financial operations to announced strategy, has solid October. share in to also our success our health, this rewarding allowed our position demonstrates not cash to our but dividend

China's significant Looking ahead, focused in opportunity silver we on the realizing economy. remain

silver comprehensive more activities. an economy XXXX solutions. senior joining and our represents we in learning According in already the ages. validates solutions impact building China XX% More opportunity. our to The chance in competitive industry economy China's such expressing sustainable are market. senior by importantly, advantages a educational XX% to meaningful It's report, interest event-based strategy the over with additional building event-based is of as wellness upon development This engaged learning a population creating to for a silver our business broader lifestyle provide than population foundation create of

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ecosystem enriches building lives silver China's a not just but are a We that the of comprehensive business, population.

hand will provide details financial our Tim, our over more CFO, I will to Now on who performance.

you. Thank

reporting September that provide amounts ending Before the the operations. fiscal clarity and also that in on that in note I GAAP into the all we financial XXXX of are to RMB on greater XX, be our trends go first the in details period XXXX our to terms, actual measures measures, non-GAAP quarter addition of results, please is will discussing year

For decline our of of a quarter XX.X% XXX XXX.X were for XXXX, shareholders. towards of sustainable services total for our reflects primarily individual year-over-year. revenues we long-term RMB a Among repositioning accounting total will strategic the revenues, fiscal first million, the generated online revenues. transition X.X% silver our market, our representing revenues This value create decrease RMB economy believe learning million, year

Going to in courses forward, population. developing the invest we our silver will continue for

refine become market. economy course this demonstrates contributor. our meeting expect our we offerings the elderly course silver focused we across to of categories, and specific increasingly realignment to This commitment revenue both the As our important business an of expand needs offerings preferences and

carry This was period gross to within between the RMB XX.X X.X% our of year. total which million, year business compared economy RMB us demographic. structure XX.X% This services the evolving XX.X% target our external the a entity in XXX of related our were We reflects transactions. Gross mix. from naturally which offerings billings capture diverse individual to million, a showing was a shift online market, gross learning with of impacting product-focused view we enterprise progression margin product from services. RMB change positions mix, learning different during Our in year-over-year, the natural our Revenues from ago XX.X% XXX.X party and million, of transformation believe better X.X% business margin quarter a shift strategic a cost this our same for silver services margin reflects to towards revenues. needs representing traditional decline shift of and a mix our our of the profile, strategic as compared profit modest more change last while

marketing year. were RMB efficiency. in cost operational the initiatives. XXX in million, period improved down, a XXX.X XX.X% disciplined RMB due last and decrease the management, On decreased -- investing our front, this from same primarily XX% in break we million, XXX.X strategic To expenses to marketing while year by of expenses operational to spend operating the same Total optimized million RMB sales and maintained

from of development. ago. Research decreased percentage XX.X expenses XX.X% our reflecting declined year which XX.X% to RMB and non-GAAP a to focused XX.X% expenses, product approach excludes to by share-based total As marketing compensation, million, development a sales and revenue,

expenses revenue, expenses, compensation from a compensation, a total General ago. decreased decreased to expenses. XX.X million, share-based non-GAAP due share-based a of As RMB X.X% administrative which XX.X% decline X.X% percentage mainly in year and to excludes to by R&D

remained net total a X.X% representing of revenues. of income from net G&A of RMB a achieved share-based which stable a As XX.X margin decline excludes non-GAAP percentage at a despite revenue, in ago. We million, the year expenses, XX% compensation,

RMB and which representing net income and million, per respectively. share income, healthy was margin compensation, Our were RMB share-based XX adjusted excludes X.XX X.XX Basic net a net of RMB XX.X%. diluted adjusted

the share quarter. during adjusted During net RMB X.XX diluted were basic quarter, per and RMB income X.XX respectively the and

market. demonstrates position balance transition, providing representing strategic in XXXX, cash This we in million position, our sustainable September while economy growth restricted equivalents, as investments, cash of RMB million XX, enhanced strengthened million sheet to increase within XXX.X short-term X,XXX.X executing an our XX, Regarding of our as us RMB liquidity our June to ability RMB from and invest X,XXX.X of position XXXX. cash the generate with cash, opportunities to silver flexibility cash,

Looking operational of cash ahead, transition net this our strengthened enhanced XX.X% position foundation solid us efficiency and a RMB provide margin million, during X,XXX.X with period. adjusted of healthy

Our management give improved disciplined cost metrics our us confidence execution in and capability. operational

transparent While to transition we shareholders we concludes have period, we strategic during communication the prepared guidance in for committed specific let's with you. remain our up journey. That our providing open Thank my remarks. this discontinued Operator, call progress questions. as

first Michael will the And with Kim Instructions] Small-Cap [Operator Zacks from Research. come question

recent senior businesses First, get in average? just for more impact expect how various perspectives well your backdrop may you more citizens China stimulus the impacts given to just initiatives balance would government as curious sort on of maybe macroeconomic sheets stronger on limited your the or as

in for and positioned for navigate your you to translate and I we are question. present question. these to see and value-driven shifts continue influencing to behaviors, have changes essential opportunities products me. [Interpreted] Thank these effectively and you both for strategically consumer We us our Chinese Thank factors adapt and recognized to answer patterns diversified capability the will these on that consumer Despite which Okay. needs. effectively. demand. them We portfolio your evolving challenges will meet Leah spending focus in allow to challenges, and are

spending domestic have and also consumption, for and enhance services. products support seen the which power. consumer will demand confidence booster This our measures We to

aligning and emerging strategies developments to opportunities. capitalize are on our We these closely monitoring

and focus needs. economy silver welfare power the this significant targeting catering Importantly, to the quality demographic businesses life, we its for improve opportunities impacts up anticipate Policies government's more purchasing on of their increased their to positive aim for from boost senior opening and citizens. their

focus. our As to sheets, have consumption for senior and from more position offer tailored this senior us the typically consumers balance citizens stable well stronger patterns benefit

Great. That's super helpful. Maybe question, just I if other one may.

focus products leverage about you're on base rise transition e-commerce nature of customer Just the curious benefit sort lifetime broadly. would how acquisition consumer like just user and the existing purchase value? continue of you like then CAC cost given increasingly As the repeat LTVs to thinking as to set trends channels business, seem would seem you to more they're and

you Thank question. for one. this take I'll the

to we I and planning our metrics them think growth these sustained optimizing and indeed strategic ensure central are are to profitability. actively

our transition heavily which online existing on private so effectively our the existing This by and in including more reliance we favorable acquisition products As business more driven and leverage services, user our our on, measures. we label expensive more anticipate focus courses, and products to is base, on trends improvement ability our wellness reduces CAC. customer

per acquisition marketing Additionally, community, lower our customer offline with value personalized with lifetime now are and efficiency we expect our combining new of the experiences, operation, as strategy users. which users we especially cost we of engagement with online improve to of our extend the is and our local the deepen the through strategies targeted to current with cooperating

we potential for significant lifetime growth. On side, the value see

because expansion repeat we -- opportunities to well LTV across ratio customer we rising shift acquisition value. aim our optimizing and achieve maximize our return time. private in expect think customer the in -- label consumer position By we leveraging see also purchases always the they strong mix these I both segments. to existing quarters, efficiency, And our to and to the needs, create our base, scale will between offerings LTVs over upside favorable deeply investments. Furthermore, with customer lifetime purchases we and -- we're have the the user a we to CAC to and that on repeat develop further increasing resonate offerings of making trends Our we past marketing unlock as refine made position of us The profits. expect product interplay drive the

have the courses means the can proved that CAC. courses, generate only many LTV the So to we positive online

expand are and we the to enlarge now CAC to to doing ratio what time. So is over just LTV

So benefit in us will that future. the is the strategy silver economy focused

Steve from Argus Research. come will question next The Silver with

investments. morning, the of prepared how remarks really investments healthy shareholder to an non-core on balance strengthening back company was sheet value? growth you the some balance to balance as in terms hoping driving I balance This share as strategy view just and the spoke the sheet the the scaling between the repurchases provide well sheet continues could to update of of and

Okay.

us and reinforcing strategy allocation drive to to built on committed think value. growth the At with we exploring And scalability. funds high approach deliver flows and We adapt competitive disciplined with strong. It's stock to potential during markets. aims highlight shareholder market effectively. investments is to position provides This long-term is generated seize flow undervalued these or a our future growth to years. opportunities And I financial initiatives balance investments strategic our especially manage to have our remain flexibility are we our repurchase that ensuring of edge programs, important just the our capital that risk strategic sheet. the same when time, and conditions, very sustainable also operating repurchase, is through growth focus share consistently positive share cash recognize importance for when our our safeguarding capital shareholders the vital robust the cash the while period past and to in returning

maintaining for and summary, This us creation. to in flows sustainable investing enables positions growth, generate operating balance approach for our a shareholders returning capital strong value sheet. So balance to ability to cash us healthy long-term

our deliver. shareholders, the dividend So consider model. we people's for on to reward we new That the example, recent business consider will the on And opportunities. also, also strategic we and announcement strategy the transition, focus the executed both will and the is focus silver

helpful. That's

e-commerce so a the and you business growth forward? do the early far fashion been or so growth in rapid of of expect this remains has more pace the strategy private envision of Do steady a stages to steady. in And period expansion moving you label continue

Yes.

I think clarify first I that. will

of view because our growth large see strategy while channels customer on our more base our significant based recognized in as is label And e-commerce private in value we is online long-term for based just to value the of lifetime as the just a planned and started e-commerce any our we we and business. is label the this creation. We the scale. kind we steady products extend live can business products. operation for can of and these that potential a expansion offline so wellness on whole, one streaming test think start I opportunity business That challenges faces private that and attempting That's customers. of

growth stages. of as we result, was rate be early in a rapid business As it not that as private may our label the anticipate the

However, solid our all customer satisfaction courses strong which million XXX deepening including SKUs registered expansion for foundation, and further business. built I and a users, XX label think over private we have support rate, XX.X% provide

milestone RMB strategy. And across moving will quarter, channels. we the achieved on the already online operational This through capabilities proprietary and have in label GMV quality both forward, improved market XX focus million alignment product and enhancing we the offline private

to committed demand, products label the are long-term sustainable and high-quality the offer We the customer that private continuing meet future. growth ensuring in to

As like any over to conference questions, remarks. to there hand management no for are further the closing I'd back

joining call for Thank you today. again our

with you good day. IR a submit everyone look our contact request us our If call. free in questions, or website. feel any next through forward further Have please to We to have speaking a

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

now You disconnect. may