Shares of Gaotu Techedu surged 4.1% in pre-market trading on Thursday after the Beijing-based educational technology company reported better-than-expected second-quarter results.
The company posted net revenue of RMB 1.67 billion for the quarter ended June 30, a 20.2% increase from the same period last year and above the consensus estimate of approximately RMB 1.62 billion. Operational losses narrowed to RMB 149.8 million from RMB 241.9 million in the prior-year period, while net losses shrank to RMB 135.8 million from RMB 216.0 million. However, loss per share came in at ¥-0.57, missing analyst expectations of ¥-0.46.
Gaotu Techedu, which provides AI-driven learning solutions across age groups, also provided guidance for the third quarter, projecting total net revenue between RMB 1.84 billion and RMB 1.86 billion. This implies an estimated annual growth rate of 16.4% to 17.7%, signaling continued recovery in its core business despite macroeconomic headwinds.
The company’s improved cost management and revenue trajectory overshadowed the EPS miss, driving investor optimism ahead of the U.S. market open.
