GSX Techedu Inc. Announces Unaudited Financial Results for the Third Quarter of 2019
BEIJING, Nov. 5, 2019 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2019.
Highlights for the Third Quarter Ended September 30, 2019[1]
-- Net revenues increased 461.5% year-over-year to RMB557.0 million.
-- Gross billings[2] increased 419.5% year-over-year to RMB880.0 million.
-- Gross profit margin[3] increased to 71.9% from 62.2% in the same period
of 2018.
-- Non-GAAP gross profit margin increased to 72.8% from 62.2% in the same
period of 2018.
-- Loss from operations was RMB10.8 million, compared with income from
operations of RMB0.1 million in the same period of 2018.
-- Non-GAAP income from operations increased to RMB7.4 million from RMB0.4
million in the same period of 2018.
-- Net income increased to RMB1.9 million from RMB0.7 million in the third
quarter of 2018.
-- Non-GAAP net income increased to RMB20.1 million from RMB1.0 million in
the same period of 2018.
-- Total enrollments increased 240.2% year-over-year to 820,000.
Highlights for the Nine Months Ended September 30, 2019[1]
-- Net revenues increased 448.7% year-over-year to RMB1,179.8 million.
-- Gross billings[2] increased 428.0% year-over-year to RMB1,779.5 million.
-- Gross profit margin[3] increased to 71.2% from 60.6% in the same period
of 2018.
-- Non-GAAP gross profit margin increased to 72.1% from 60.6% in the same
period of 2018.
-- Income from operations increased to RMB48.1 million from a loss from
operations of RMB4.6 million in the same period of 2018.
-- Non-GAAP income from operations increased to RMB85.1 million from a
non-GAAP loss from operations of RMB3.3 million in the same period of
2018.
-- Net income increased to RMB52.2 million from a net loss of RMB3.3
million in the first nine months of 2018.
-- Non-GAAP net income increased to RMB89.1 million from a non-GAAP net
loss of RMB2.0 million in the same period of 2018.
-- Total enrollments increased 238.1% year-over-year to 1,623,000.
For a reconciliation of non-GAAP
numbers, please see the table
captioned "Reconciliations of non-
GAAP measures to the most comparable
GAAP measures" at the end of this
press release. Non-GAAP gross
profit, non-GAAP income from
operations and non-GAAP net income
exclude share-based compensation
[1] expenses.
Gross billings is a non-GAAP
financial measure, which is defined
as the total amount of cash received
for the sale of course offerings in
such period, net of the total amount
of refunds in such period. See "About
Non-GAAP Financial Measures" and
"Reconciliations of non-GAAP
measures to the most comparable GAAP
measures" elsewhere in this press
[2] release.
[3] Defined as gross profit as a
percentage of net revenues.
Financial and Operating Data--Third Quarter and First Nine Months of 2019
(In thousands of RMB, except for student enrollments and percentages)
Three Months Ended September 30,
2018 2019
Pct. Change
---
Net revenues 99,244 556,994 461.5%
Gross billings 169,446 880,042 419.5%
Gross profit margin 62.2% 71.9% 15.6%
Non-GAAP gross profit margin 62.2% 72.8% 17.0%
Income (loss) from operations 80 (10,815)
NM
Non-GAAP income from operations 442 7,424 1,750.0%
Net income 684 1,902 171.4%
Non-GAAP net income 1,046 20,141 1,910.0%
Total enrollments 241,000 820,000 240.2%
Nine Months Ended September 30,
2018 2019
Pct. Change
---
Net revenues 215,041 1,179,828 448.7%
Gross billings 337,013 1,779,510 428.0%
Gross profit margin 60.6% 71.2% 17.5%
Non-GAAP gross profit margin 60.6% 72.1% 19.0%
(Loss) income from operations (4,619) 48,138
NM
Non-GAAP (loss) income from operations (3,335) 85,060
NM
Net (loss) income (3,324) 52,167
NM
Non-GAAP net (loss) income (2,040) 89,089
NM
Total enrollments 480,000 1,623,000 238.1%
Larry Xiangdong Chen, GSX's founder, Chairman and CEO, commented, "GSX had another great quarter with exponential growth, demonstrating our superior teaching quality and excellent customer experience. We are proud to see our net operating cash flow for the third quarter to reach approximately RMB287.8 million. We leverage speed, efficiency and effectiveness to gain insurmountable competitive advantage. We focus on achieving a steep but shorter learning curve. We make unremitting efforts to invest in all areas of content development and technology. We are fully committed to productivity improvements and take sustained massive action immediately. We will continue to invest strategically in our customer acquisition and R&D in 2019 and drive even greater engagement with our students and parents. We will continue to have our unwavering focus on the online live large-class tutoring to reap financial rewards."
Shannon Shen, CFO of GSX, added, "We saw third quarter net revenues surpassed the high end of our guidance and strongly beat the street consensus, rising 461.5% YoY to RMB557 million. Revenue from our core business, the K12 after school tutoring, grew even faster, by 525.5%. Gross billings, an important leading indicator that provides significant visibility on our next quarter's revenue, increased 419.5% YoY to RMB880 million. Thanks to the continuous upgrading of our corporate and organizational capabilities, as well as effective execution of our marketing strategy, we observed the remarkable growth in paid course enrollments. We also managed to post our sixth consecutive quarter of non-GAAP profitability, in a fiercely competitive landscape."
Financial Results for the Third Quarter of 2019
Net Revenues
Net revenues reached RMB557.0 million, a 461.5% increase from RMB99.2 million in the third quarter of 2018. The increase was mainly driven by the growth in paid course enrollments for K-12 courses and a higher level of tuition fees that were charged to K-12 students.
Cost of revenues
Cost of revenues rose 316.8% to RMB156.7 million from RMB37.6 million in the third quarter of 2018. The increase was mainly due to an increase in compensation for instructors and tutors.
Gross Profit
Gross profit increased 548.8% to RMB400.3 million from RMB61.7 million in the third quarter of 2018. Gross profit margin increased to 71.9% from 62.2% in the same period of 2018, primarily as a result of economies of scale.
Non-GAAP gross profit increased 556.5% to RMB405.7 million from RMB61.8 million in the same period of 2018. Non-GAAP gross profit margin increased to 72.8% from 62.2% in the same period of 2018.
Operating Expenses
Operating expenses were RMB411.1 million, a 567.4% increase from RMB61.6 million in the third quarter of 2018.
Selling expenses increased to RMB330.4 million from RMB31.0 million in the third quarter of 2018. The rise was primarily a result of higher marketing expenses to expand the customer base and enhance the brand, as well as an increase in compensation to sales and marketing staff.
Research and development expenses increased 185.5% to RMB57.1 million from RMB20.0 million in the third quarter of 2018. The rise was primarily due to an increase in the number of course professionals, educational content professionals and technology development personnel, as well as an increase in compensation for such staff.
General and administrative expenses increased 122.6% to RMB23.6 million from RMB10.6 million in the third quarter of 2018. The rise in general and administrative expenses was mainly due to an increase in the number of general and administrative personnel and an increase in compensation paid to general and administrative staff.
Income (Loss) from Operations
Loss from operations was RMB10.8 million, compared with income from operations of RMB0.1 million in the third quarter of 2018.
Non-GAAP income from operations increased to RMB7.4 million from RMB0.4 million in the third quarter of 2018.
Net Income
Net income increased to RMB1.9 million from RMB0.7 million in the third quarter of 2018.
Non-GAAP net income increased to RMB20.1 million from RMB1.0 million in the third quarter of 2018.
Cash Flow
Net operating cash flow for the third quarter of 2019 was approximately RMB287.8 million, a 379.7% increase from RMB60.0 million in the third quarter of 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS was RMB0.01 and RMB0.01, respectively, in the third quarter of 2019.
Cash and Cash Equivalents, and Short-Term Investments
As of September 30, 2019, the Company had RMB32.0 million of cash and cash equivalents and RMB1,014.6 million of short-term investments, compared with RMB33.3 million of cash and cash equivalents and RMB198.0 million of short-term investments as of December 31, 2018 and RMB60.1 million of cash and cash equivalents and RMB 1,686.5 million of short-term investments as of June 30, 2019. The decrease of the balance from June 30, 2019 was primary due to the purchase of wealth management products from Citibank, classified as long-term investments, of RMB1,057.3 million during the three months ended September 30, 2019.
Deferred Revenue
As of September 30, 2019, the Company's deferred revenue balance was RMB778.3 million, an increase of 186.1% from RMB272.0 million as of December 31, 2018. Deferred revenue primarily consisted of tuition collected in advance of the fall semester.
Financial Results for the First Nine Months of 2019
Net Revenues
Net revenues reached RMB1,179.8 million, a 448.7% increase from RMB215.0 million in the first nine months of 2018. The increase was mainly driven by the growth in paid course enrollments for K-12 courses and a higher level of tuition fees that were charged to K-12 students.
Cost of revenues
Cost of revenues rose 300.8% to RMB339.9 million from RMB84.8 million in the first nine months of 2018. The increase was mainly due to an increase in compensation for instructors and tutors.
Gross Profit
Gross profit increased 545.1% to RMB839.9 million from RMB130.2 million in the first nine months of 2018. Gross profit margin increased to 71.2% from 60.6% in the same period of 2018, primarily as a result of economies of scale.
Non-GAAP gross profit increased by 551.9% to RMB850.1 million from RMB130.4 million in the same period of 2018. Non-GAAP gross profit margin increased to 72.1% from 60.6% in the same period of 2018.
Operating Expenses
Operating expenses were RMB791.8 million, an increase of 487.4% from RMB134.8 million in the first nine months of 2018.
Selling expenses increased to RMB598.9 million from RMB63.3 million in the first nine months of 2018. The rise was primarily a result of an increase in marketing expenses to expand the customer base and for brand enhancement, as well as an increase in compensation for sales and marketing staff.
Research and development expenses increased 170.9% to RMB128.7 million from RMB47.5 million in the first nine months of 2018. The increase was primarily due to an increase in the number of course professionals, educational content professionals and technology development personnel, as well as an increase in compensation paid to such staff.
General and administrative expenses increased 167.1% to RMB64.1 million from RMB24.0 million in the first nine months of 2018. The rise was mainly due to an increase in the number of general and administrative personnel and an increase in compensation paid to general and administrative staff.
(Loss) Income from Operations
Income from operations increased to RMB48.1 million from a loss from operations of RMB4.6 million in the first nine months of 2018.
Non-GAAP income from operations increased to RMB85.1 million from a non-GAAP loss from operations of RMB3.3 million in the first nine months of 2018.
Net (Loss) Income
Net income increased to RMB52.2 million from a net loss of RMB3.3 million in the first nine months of 2018.
Non-GAAP net income increased to RMB89.1 million from a non-GAAP net loss of RMB2.0 million in the first nine months of 2018.
Cash Flow
Net operating cash flow increased 490.6% to RMB546.3 million from RMB92.5 million in the first nine months of 2018.
Basic and Diluted Net Income per ADS
Basic and diluted net income per ADS were RMB0.17 and RMB0.15 respectively, in the first nine months of 2019.
Share count
As of September 30, 2019, the Company had 157,138,000 ordinary shares outstanding.
Business Outlook
Based on the Company's current estimates, total net revenues for the fourth quarter of 2019 are expected to be between RMB806 million and RMB826 million, representing a projected increase of 342.9% to 353.8% on a year-over-year basis. These estimates reflect the Company's current expectations, which are subject to change.
Conference Call
The company will hold an earnings conference call on Tuesday, November 5, 2019, at 8:00 AM U.S. Eastern Time (9:00 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:
International: 1-412-902-4272
US: 1-888-346-8982
Hong Kong: 800-905945
Mainland China: 4001-201203
Passcode: GSX
A telephone replay will be available two hours after the conclusion of the conference call through November 12, 2019. The dial-in details are:
International: 1-412-317-0088
US: 1-877-344-7529
Passcode: 10136390
Additionally, a live and archived webcast of this conference call will be available at http://gsx.investorroom.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the fourth quarter of 2019 and GSX's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to attract students to enroll in its courses; the Company's ability to continue to recruit, train and retain qualified teachers; the Company's ability to improve the content of its existing course offerings and to develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and GSX undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
About GSX Techedu Inc.
GSX Techedu Inc. is a technology-driven education company and leading online K-12 large-class after-school tutoring service provider in China. GSX offers K-12 courses covering all primary and secondary grades as well as foreign language, professional and interest courses. GSX adopts an online live large-class format to deliver its courses, which the Company believes is the most effective and scalable model to disseminate scarce high-quality teaching resources to aspiring students in China. Big data analytics permeates each aspect of the Company's business and facilitates the application of the latest technology to improve teaching delivery, student learning experience, and operational efficiency.
About Non-GAAP Financial Measures
The Company uses gross billings, non-GAAP gross profit, non-GAAP (loss) income from operations and non-GAAP net (loss) income, each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.
The Company defines gross billings for a specific period as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. The Company's management uses gross billings as a performance measurement because the Company generally bills its students for the entire course fee at the time of sale of its course offerings and recognizes revenue proportionally as the classes are delivered over a period typically ranging from 1 to 6 months. For some courses, the Company continues to provide students with 12 months to 36 months access to the pre-recorded audio-video courses after the online live courses are delivered. The Company believes that gross billings provides valuable insight into the sales of its course packages and the performance of its business. As gross billings has material limitations as an analytical metrics and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.
Non-GAAP gross profit, non-GAAP (loss) income from operations and non-GAAP net (loss) income exclude share-based compensation expenses, and such adjustment has no impacts on income tax. GSX believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. GSX believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to GSX's historical performance. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Exchange Rate
The Company's business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi ("RMB"). This announcement contains currency conversions of RMB amounts into U.S. dollars ("USD") solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to USD are made at a rate of RMB 7.1477 to USD1.00, the effective noon buying rate for September 30, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on September 30, 2019, or at any other rate.
For further information, please contact:
GSX Techedu Inc.
Ms. Sandy Qin, CFA
E-mail: ir@baijiahulian.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
GSX Techedu Inc.
Unaudited condensed consolidated balance sheets
(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31, As of September 30,
2018 2019 2019
---
RMB RMB USD
ASSETS
Current assets
Cash and cash equivalents 33,259 32,042 4,483
Short-term investments 197,991 1,014,633 141,952
Prepaid expenses and other current assets 48,841 188,456 26,366
Amounts due from related parties 710 -
Total current assets 280,801 1,235,131 172,801
---
Non-current assets
Operating lease right-of-use assets 213,993 29,939
Property, equipment and software, net 16,779 55,656 7,787
Intangible assets 237 125 17
Long-term investments 5,221 1,063,256 148,755
Goodwill 331 331 46
Deferred tax assets 31,266 40,061 5,605
Rental deposit 3,508 15,164 2,122
Other non-current assets 60 522 73
Total ASSETS 338,203 2,624,239 367,145
===
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities (including accrued expenses and
other current liabilities of the consolidated VIE without recourse to the Group of
RMB51,445 and RMB131,236 as of December 31, 2018 and September 30, 2019,
respectively) 57,244 153,835 21,522
Deferred revenue, current portion of the consolidated VIE without recourse to the
Group 263,330 772,873 108,129
Current portion of operating lease liabilities of the consolidated VIE without
recourse to the Group 63,457 8,878
Income tax payable of the consolidated VIE without recourse to the Group 17,561 2,457
Amounts due to related parties (including amounts due to related parties of the
consolidated VIE without recourse to the Group of RMB960 and RMB460 as of December
31, 2018 and September 30, 2019, respectively) 35,338 460 64
Total Current liabilities 355,912 1,008,186 141,050
---
GSX Techedu Inc.
Unaudited condensed consolidated balance sheets
(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31, As of
September
30,
---
2018 2019 2019
---
RMB
RMB USD
Non-current liabilities
Deferred revenue, non-current portion of the
consolidated VIE without recourse to the Group 8,711 5,439 761
Non-current portion of operating lease liabilities
of the consolidated VIE without recourse to the
Group 146,627 20,514
Deferred tax liabilities of the consolidated VIE
without recourse to the Group 59 31 4
TOTAL LIABILITIES 364,682 1,160,283 162,329
MEZZANINE EQUITY
Series A convertible redeemable preferred shares 466,060
SHAREHOLDERS' (DEFICIT) EQUITY
Ordinary shares 60 104 15
Additional paid-in capital 1,875,721 262,423
Accumulated other comprehensive income 1,166 35,494 4,966
Accumulated deficit (493,765) (447,363) (62,588)
TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (492,539) 1,463,956 204,816
TOTAL LIABILITIES, MEZZANINE EQUITY AND TOTAL
SHAREHOLDERS' (DEFICIT) EQUITY 338,203 2,624,239 367,145
GSX Techedu Inc.
Unaudited condensed consolidated statements of operations
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended September 30,
2018 2019 2019
---
RMB
RMB
USD
Net Revenues 99,244 556,994 77,926
Cost of revenues (37,556) (156,691) (21,922)
Gross profit 61,688 400,303 56,004
---
Operating expenses
Selling expenses (31,023) (330,352) (46,218)
Research and
development
expenses (20,013) (57,128) (7,993)
General and
administrative
expenses (10,572) (23,638) (3,307)
Total operating
expenses (61,608) (411,118) (57,518)
---
Income (Loss) from
operations 80 (10,815) (1,514)
---
Interest income 295 3,282 459
Realized gains from
investments 1,903 266
Other income 1,463 205
Income (Loss) before
provision for
income tax and
income from equity
method investments 375 (4,167) (584)
---
Income tax
(expenses) benefits (46) 5,471 765
Income from equity
method investments 355 598 84
Net income 684 1,902 265
---
Less: Series A
convertible
redeemable
preferred shares
redemption value
accretion 9,732 -
Net (loss) income
attributable to GSX
Techedu Inc.'s
ordinary
shareholders (9,048) 1,902 265
---
Net (loss) income per ordinary share
Basic (0.10) 0.01 0.01
Diluted (0.10) 0.01 0.01
---
Net (loss) income per ADS
Basic (0.07) 0.01 0.01
Diluted (0.07) 0.01 0.01
---
Weighted average shares used in net (loss) income
per share
Basic 92,224,998 157,090,261 157,090,261
Diluted 92,224,998 166,702,637 166,702,637
---
Note: Three ADS represents
two ordinary shares.
GSX Techedu Inc.
Reconciliations of non-GAAP measures to the most comparable GAAP measures
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended September
30,
2018 2019 2019
---
RMB RMB
USD
Net revenue 99,244 556,994 77,926
---
Add: VAT and surcharges 6,541 37,176 5,201
Add: ending deferred revenue 153,103 778,312 108,890
Add: ending refund liability 6,280 31,351 4,386
Less: beginning deferred revenue 91,951 503,655 70,464
Less: beginning refund liability 3,771 20,136 2,817
Gross billings (non-GAAP) 169,446 880,042 123,122
===
For the three months ended September
30,
2018 2019 2019
---
RMB RMB
USD
Gross profit 61,688 400,303 56,004
Share-based compensation expense in cost of revenues 66 5,381 753
---
Non-GAAP gross profit 61,754 405,684 56,757
===
Income (Loss) from operations 80 (10,815) (1,514)
Share-based compensation expenses 362 18,239 2,552
Non-GAAP income from operations 442 7,424 1,038
===
Net income 684 1,902 265
Share-based compensation expenses 362 18,239 2,552
Non-GAAP net income 1,046 20,141 2,817
===
GSX Techedu Inc.
Unaudited condensed consolidated statements of operations
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the nine months ended September 30,
2018 2019 2019
---
RMB
RMB
USD
Net Revenues 215,041 1,179,828 165,064
Cost of revenues (84,815) (339,925) (47,557)
Gross profit 130,226 839,903 117,507
---
Operating expenses
Selling expenses (63,329) (598,919) (83,792)
Research and
development
expenses (47,503) (128,698) (18,006)
General and
administrative
expenses (24,013) (64,148) (8,975)
Total operating
expenses (134,845) (791,765) (110,773)
---
(Loss) income from
operations (4,619) 48,138 6,734
---
Interest income 529 6,923 969
Realized gains from
investments 3,368 471
Other (expense)
income (50) 2,087 292
(Loss) income before
provision for
income tax and
income from equity
method investments (4,140) 60,516 8,466
---
Income tax benefits
(expenses) 506 (9,086) (1,270)
Income from equity
method investments 310 737 103
Net (loss) income (3,324) 52,167 7,299
---
Less: Series A
convertible
redeemable
preferred shares
redemption value
accretion 29,198 16,772 2,346
Less: Undistributed
earnings allocated
to the
participating
preferred shares 3,851 539
Net (loss) income
attributable to GSX
Techedu Inc.'s
ordinary
shareholders (32,522) 31,544 4,414
---
Net (loss) income per ordinary share
Basic (0.35) 0.25 0.04
Diluted (0.35) 0.23 0.03
---
Net (loss) income per ADS
Basic (0.23) 0.17 0.03
Diluted (0.23) 0.15 0.02
---
Weighted average shares used in net
(loss) income per share
Basic 92,224,998 125,462,376 125,462,376
Diluted 92,224,998 134,511,454 134,511,454
---
Note: Three ADS represents two ordinary shares.
GSX Techedu Inc.
Reconciliations of non-GAAP measures to the most comparable GAAP measures
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the nine months ended September 30,
2018 2019 2019
---
RMB
RMB USD
Net revenue 215,041 1,179,828 165,064
---
Add: VAT and surcharges 14,177 73,227 10,245
Add: ending deferred revenue 153,103 778,312 108,890
Add: ending refund liability 6,280 31,351 4,386
Less: beginning deferred revenue 46,307 272,041 38,060
Less: beginning refund liability 2,475 11,167 1,562
Less: deferred revenue from the acquisition of Shanghai Jinyou Education Technology
Co., Ltd. 2,806 -
Gross billings (non-GAAP) 337,013 1,779,510 248,963
===
For the nine months ended September 30,
2018 2019 2019
---
RMB
RMB USD
Gross profit 130,226 839,903 117,507
Share-based compensation expense in cost of
revenues 125 10,241 1,433
---
Non-GAAP gross profit 130,351 850,144 118,940
===
(Loss) income from operations (4,619) 48,138 6,734
Share-based compensation expenses 1,284 36,922 5,166
Non-GAAP (loss) income from operations (3,335) 85,060 11,900
===
Net (loss) income (3,324) 52,167 7,299
Share-based compensation expenses 1,284 36,922 5,166
Non-GAAP net (loss) income (2,040) 89,089 12,465
===
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SOURCE GSX Techedu Inc.
