Gaotu Techedu’s U.S.-listed shares advanced 4% in pre-market trading on Thursday after the Beijing-based edtech company reported second-quarter results that topped revenue forecasts despite a wider-than-expected loss.
The company, which provides AI-powered learning solutions for K-12 and adult education, posted net revenue of RMB 1.67 billion for the three months ended June 30, up 20.2% from the same period a year earlier. The figure surpassed the consensus estimate of approximately RMB 1.62 billion, according to available data.
Earnings per share came in at ¥-0.57, missing analyst expectations of ¥-0.46. The net loss narrowed to RMB 135.8 million from RMB 216.0 million in the prior-year quarter, while the operating loss decreased to RMB 149.8 million from RMB 241.9 million. The company attributed the improved profitability to cost controls and operational efficiencies.
Gaotu Techedu provided guidance for the third quarter, forecasting total net revenue between RMB 1.84 billion and RMB 1.86 billion, representing a year-over-year increase of 16.4% to 17.7%. The outlook reflects continued demand for its digital learning products amid China’s broader education sector recovery.
Shares of Gaotu Techedu have gained 4.1% in pre-market trading, extending gains after the results were released. The stock has underperformed broader Chinese tech benchmarks in recent months, though the revenue beat may support sentiment in the near term.
