Gaotu Techedu Inc. shares advanced 4.05% in pre-market trading on Thursday after the company reported second-quarter revenue that exceeded analyst estimates, offsetting a wider-than-expected adjusted loss per American Depositary Share (ADS).
The Beijing-based education technology provider posted revenue of RMB1.67 billion, up 20.2% from RMB1.39 billion in the same period last year and surpassing the RMB1.62 billion consensus estimate. Adjusted loss per ADS totaled RMB0.57, missing the RMB0.46 loss forecast. CEO Larry Xiangdong Chen noted the company’s focus on user-centric investments in educational products and learning services, alongside AI integration, as key drivers of improved unit economics.
The adjusted net loss narrowed by 37.6% year-over-year to RMB129.1 million, while non-GAAP loss from operations declined by 38.5%. Gross billings rose 19.4% to RMB2.69 billion, and net operating cash inflow increased 46.3% to RMB861.2 million. Operating expenses as a percentage of net revenue fell by 7.9 percentage points compared with the prior-year period.
As of August 26, Gaotu had repurchased RMB741.8 million in shares under its ongoing buyback programs. The company also provided third-quarter revenue guidance in the range of RMB1.838 billion to RMB1.858 billion, with a midpoint of RMB1.848 billion, signaling continued growth momentum despite the earnings miss.
