New Oriental Announces Results for the Third Fiscal Quarter Ended February 28, 2025
BEIJING, April 23, 2025 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the third fiscal quarter ended February 28, 2025, which is the third quarter of New Oriental's fiscal year 2025.
Financial Highlights for the Third Fiscal Quarter Ended February 28, 2025
-- Total net revenues decreased by 2.0% year over year to US$1,183.1
million for the third fiscal quarter of 2025. Total net revenues,
excluding revenues generated from East Buy private label products and
livestreaming business, increased by 21.2% year over year to US$1,038.3
million for the third fiscal quarter of 2025.
-- Operating income increased by 9.8% year over year to US$124.5 million
for the third fiscal quarter of 2025. Operating income, excluding
operating loss generated from East Buy private label products and
livestreaming business, increased by 5.0% year over year to US$125.5
million for the third fiscal quarter of 2025.
-- Net income attributable to New Oriental increased by 0.1% year over year
to US$87.3 million for the third fiscal quarter of 2025.
Key Financial Results
(in thousands US$, except per ADS(1) data) 3Q FY2025 3Q FY2024 % of
change
Net revenues 1,183,055 1,207,286 -2.0 %
Operating income 124,519 113,432 9.8 %
Non-GAAP operating income (2)(3) 142,056 142,359 -0.2 %
Net income attributable to New Oriental 87,255 87,167 0.1 %
Non-GAAP net income attributable to New Oriental (2)(3) 113,344 132,279 -14.3 %
Net income per ADS attributable to New Oriental - basic 0.54 0.53 2.7 %
Net income per ADS attributable to New Oriental - diluted 0.54 0.52 2.9 %
Non-GAAP net income per ADS attributable to New Oriental - basic (2)(3)(4) 0.70 0.80 -12.1 %
Non-GAAP net income per ADS attributable to New Oriental - diluted (2)(3)(4) 0.70 0.79 -12.0 %
(in thousands US$, except per ADS(1) data) 9M FY202 9M FY202
5 4 % of
change
Net revenues 3,657,107 3,176,907 15.1 %
Operating income 436,924 339,898 28.5 %
Non-GAAP operating income (2)(3) 472,550 441,017 7.2 %
Net income attributable to New Oriental 364,616 282,619 29.0 %
Non-GAAP net income attributable to New Oriental (2)(3) 418,988 402,417 4.1 %
Net income per ADS attributable to New Oriental - basic 2.24 1.71 30.9 %
Net income per ADS attributable to New Oriental - diluted 2.22 1.69 31.7 %
Non-GAAP net income per ADS attributable to New Oriental - basic (2)(3)(4) 2.57 2.43 5.6 %
Non-GAAP net income per ADS attributable to New Oriental - diluted (2)(3)(4) 2.55 2.40 6.5 %
(1) Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.
(2) GAAP represents Generally Accepted Accounting Principles in the United States of America.
(3) New Oriental provides non-GAAP financial measures on net income attributable to New Oriental, operating income and net income per ADS attributable to New Oriental that exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss from equity method investments, impairment of long-term investments, gain on disposals of investments and others, as well as tax effects on non-GAAP
adjustments. For further details on these adjustments, please refer to the section titled "About Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth at the end of this release.
(4) The Non-GAAP net income per ADS attributable to New Oriental is computed using Non-GAAP net income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation.
Operating Highlights for the Third Fiscal Quarter Ended February 28, 2025
Michael Yu, New Oriental's Executive Chairman, commented, "I am encouraged to see that our Q3 performance has been positively set with total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increasing by 21.2% year over year. Revenues from overseas test preparation and overseas study consulting businesses increased by approximately 7.1% and 21.4% year over year, respectively. In addition, the domestic test preparation business targeting adults and university students grew by approximately 17.0% year over year. Furthermore, our new educational business initiatives have maintained strong momentum this fiscal quarter, with revenue growth of 34.5% year over year. Among these initiatives, our non-academic tutoring courses were offered in around 60 cities, attracting approximately 408,000 student enrollments in this fiscal quarter. Simultaneously, our intelligent learning system and devices were adopted in around 60 cities, with approximately 309,000 active paid users in this fiscal quarter. By leveraging our strong educational resources, we are committed to pursuing a strategy centered on sustainable long-term development, emphasizing product quality and operational efficiency to foster sustainable growth and profitability in the long run."
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "In this fiscal quarter, we have continued to monitor our capacity expansion to ensure alignment with revenue growth and operating efficiency. At the same time, we have dedicated efforts to revamping our online-merge-offline teaching system and investing in the application of AI-related technologies within the education sector. As we integrate various new applications into our offline and online educational products, our product capabilities have been consistently enhanced. Additionally, we have developed numerous innovative technologies that support our teachers and staff in their daily work, resulting in improvements in operational efficiency and service satisfaction."
Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "To better reflect New Oriental's core educational businesses, the following operating margin numbers for this fiscal quarter exclude the financial results of East Buy's private label products and livestreaming business. Our GAAP operating margin for the quarter, excluding operating margin generated from East Buy private label products and livestreaming business, was 12.1%, compared to 14.0% in the same period of the prior fiscal year. Non-GAAP operating margin, excluding operating margin generated from East Buy private label products and livestreaming business for the quarter, was 13.3%, compared to 15.1% in the same period of the prior fiscal year. The slowdown in revenue growth within our overseas-related businesses and the investment in newly-integrated tourism-related business have led to the short-term impact on our operating margin this quarter. We anticipate the pressure on margins for educational businesses will ease in the upcoming quarter and the next fiscal year as we implement our cost reduction and efficiency enhancement initiatives across all business lines, alongside ongoing efforts to improve facility utilization. We remain committed to creating sustainable value for our customers and shareholders in the long term."
Share Repurchase
The Company's board of directors approved a Share Repurchase Program in July 2022, under which the Company is authorized to repurchase up to US$400 million of the Company's ADSs or common shares through the next twelve months. The Company's board of directors further approved extending the effective time of the Share Repurchase Program to May 31, 2025, and increasing the aggregate value of shares that the Company is authorized to repurchase from US$400 million to US$700 million. As of April 22, 2025, the Company had repurchased an aggregate of approximately 14.4 million ADSs for approximately US$695.5 million from the open market under this Share Repurchase Program.
Financial Results for the Third Fiscal Quarter Ended February 28, 2025
Net Revenues
For the third fiscal quarter of 2025, New Oriental reported net revenues of US$1,183.1 million, representing a 2.0% decrease year over year. Net revenues, excluding revenues generated from East Buy private label products and livestreaming business, were US$1,038.3 million, representing a 21.2% increase year over year. The growth was mainly driven by the increase in net revenues from the Company's educational new business initiatives.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$1,058.5 million, representing a 3.2% decrease year over year.
-- Cost of revenues decreased by 17.6% year over year to US$531.6 million.
-- Selling and marketing expenses increased by 13.0% year over year to
US$182.2 million.
-- General and administrative expenses increased by 19.8% year over year to
US$344.7 million.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 41.3% to US$16.1 million in the third fiscal quarter of 2025.
Operating Income and Operating Margin
Operating income was US$124.5 million, representing a 9.8% increase year over year. Non-GAAP income from operations for the quarter, excluding share-based compensation expenses, and amortization of intangible assets resulting from business acquisitions, was US$142.1 million, representing a 0.2% decrease year over year.
Operating margin for the quarter was 10.5%, compared to 9.4% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, for the quarter was 12.0%, compared to 11.8% in the same period of the prior fiscal year.
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was US$87.3 million, representing a 0.1% increase year over year. Basic and diluted net income per ADS attributable to New Oriental were US$0.54 and US$0.54, respectively.
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss from equity method investments, impairment of long-term investments, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, was US$113.3 million, representing a 14.3% decrease year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.70 and US$0.70, respectively.
Cash Flow
Net operating cash inflow for the third fiscal quarter of 2025 was approximately US$1.0 million and capital expenditures for the quarter were US$52.4 million.
Balance Sheet
As of February 28, 2025, New Oriental had cash and cash equivalents of US$1,418.8 million. In addition, the Company had US$1,411.7 million in term deposits and US$1,853.6 million in short-term investment.
New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the third quarter of fiscal year 2025 was US$1,749.9 million, an increase of 15.0% as compared to US$1,521.7 million at the end of the third quarter of fiscal year 2024.
Financial Results for the Nine Months Ended February 28, 2025
For the first nine months of fiscal year 2025, New Oriental reported net revenues of US$3,657.1 million, representing a 15.1% increase year over year.
Operating income was US$436.9 million, representing a 28.5% increase year over year. Non-GAAP operating income, excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, for the first nine months of fiscal year 2025 was US$472.6 million, representing a 7.2% increase year over year.
Operating margin for the first nine months of fiscal year 2025 was 11.9%, compared to 10.7% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, for the first nine months of fiscal year 2025, was 12.9%, compared to 13.9% for the same period of the prior fiscal year.
Net income attributable to New Oriental for the first nine months of fiscal year 2025 was US$364.6 million, representing a 29.0% increase year over year. Basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2025 amounted to US$2.24 and US$2.22, respectively.
Non-GAAP net income attributable to New Oriental, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss from equity method investments, impairment of long-term investments, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, for the first nine months of fiscal year 2025 was US$419.0 million, representing a 4.1% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2025 amounted to US$2.57 and US$2.55, respectively.
Outlook for the Fourth Quarter of the Fiscal Year 2025
New Oriental expects total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, in the fourth quarter of the fiscal year 2025 (March 1, 2025 to May 31, 2025) to be in the range of US$1,009.1 million to US$1,036.6 million, representing year over year increase in the range of 10% to 13%. The projected increase of revenue in the Company's functional currency Renminbi is expected to be in the range of 12% to 15% for the fourth quarter of the fiscal year 2025.
This forecast reflects New Oriental's current and preliminary view, which is subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call at 8 AM on April 23, 2025, U.S. Eastern Time (8 PM on April 23, 2025, Beijing/Hong Kong Time).
Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN.
Conference call registration link: https://register-conf.media-server.com/register/BI231c9f564a7a444faff3195dc3db509f. It will automatically direct you to the registration page of "New Oriental FY2025 Q3 Earnings Conference Call" where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed via the webcast on-demand by registering at https://edge.media-server.com/mmc/p/vcnixrwv/ first. The replay will be available until April 23, 2026.
About New Oriental
New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental's program, service and product offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce, and overseas study consulting services. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.
For more information about New Oriental, please visit http://www.neworiental.org/english/.
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 fiscal year 2025, quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed 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 New Oriental'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 effectively and efficiently manage changes of its existing business and new business; its ability to execute its business strategies; uncertainties in relation to the interpretation and implementation of or proposed changes to, the PRC laws, regulations and policies regarding the private education industry; its ability to attract students without a significant increase in course fees; its ability to maintain and enhance its "New Oriental" brand; its ability to maintain consistent teaching quality throughout its school network, or service quality throughout its brand; its ability to achieve the benefits it expects from recent and future acquisitions; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector and livestreaming e-commerce business in China; the continuing efforts of its senior management team and other key personnel, health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in its annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments; operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; operating margin excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; and basic and diluted net income per ADS and per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation 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 tables captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding from each non-GAAP measure certain items that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to 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 New Oriental's historical performance and liquidity. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude from each non-GAAP measure certain items that have been and will continue to be for the foreseeable future a significant recurring expense in its business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Rita Fong Ms. Sisi Zhao
FTI Consulting New Oriental Education & Technology Group Inc.
Tel: +852 3768 4548 Tel: +86-10-6260-5568
Email: rita.fong@fticonsulting.com Email: zhaosisi@xdf.cn
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of February
28 As of May 31
2025 2024
(Unaudited) (Audited)
USD USD
ASSETS:
Current assets:
Cash and cash equivalents 1,418,786 1,389,359
Restricted cash, current 146,982 177,411
Term deposits, current 1,022,396 1,320,167
Short-term investments 1,853,591 2,065,579
Accounts receivable, net 34,046 29,689
Inventory, net 85,714 92,806
Prepaid expenses and other current assets, net 306,166 309,464
Amounts due from related parties, current 5,237 4,403
Total current assets 4,872,918 5,388,878
Restricted cash, non-current 23,509 22,334
Term deposits, non-current 389,301 169,203
Property and equipment, net 724,976 507,981
Land use rights, net 4,362 4,450
Amounts due from related parties, non-current 13,957 7,273
Long-term deposits 44,223 38,161
Intangible assets, net 14,282 18,672
Goodwill, net 103,473 103,958
Long-term investments, net 389,368 355,812
Deferred tax assets, net 80,426 72,727
Right-of-use assets 727,018 653,905
Other non-current assets 59,396 188,319
Total assets 7,447,209 7,531,673
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 85,604 105,681
Accrued expenses and other current liabilities 677,826 774,805
Income taxes payable 189,260 139,822
Amounts due to related parties 457 551
Deferred revenue 1,749,923 1,780,063
Operating lease liability, current 239,579 199,933
Total current liabilities 2,942,649 3,000,855
Deferred tax liabilities 29,968 19,407
Unsecured senior notes 14,403 14,403
Operating lease liabilities, non-current 484,655 447,994
Total long-term liabilities 529,026 481,804
Total liabilities 3,471,675 3,482,659
Equity
New Oriental Education & Technology Group Inc. 3,686,228 3,775,934
shareholders' equity
Non-controlling interests 289,306 273,080
Total equity 3,975,534 4,049,014
Total liabilities and equity 7,447,209 7,531,673
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Three Months For the Three
Months
Ended February 28 Ended February 29
2025 2024
(Unaudited) (Unaudited)
USD
USD
Net revenues 1,183,055 1,207,286
Operating cost and expenses (note 1)
Cost of revenues 531,586 644,786
Selling and marketing 182,240 161,259
General and administrative 344,710 287,809
Total operating cost and expenses 1,058,536 1,093,854
Operating income 124,519 113,432
(Loss)/Gain from fair value change of investments (212) 1,545
Other income, net 29,095 16,841
Provision for income taxes (52,579) (32,703)
Loss from equity method investments (11,157) (13,325)
Net income 89,666 85,790
Net (income)/loss attributable to non-controlling interests (2,411) 1,377
Net income attributable to New Oriental Education & 87,255 87,167
Technology Group Inc.'s shareholders
Net income per share attributable to New Oriental- 0.05 0.05
Basic (note 2)
Net income per share attributable to New Oriental- 0.05 0.05
Diluted (note 2)
Net income per ADS attributable to New Oriental-Basic 0.54 0.53
(note 2)
Net income per ADS attributable to New Oriental- 0.54 0.52
Diluted (note 2)
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except for per share and per ADS amounts)
For the Three For the Three
Months Months
Ended February 28 Ended February 29
2025 2024
(Unaudited) (Unaudited)
USD
USD
Operating income 124,519 113,432
Share-based compensation expenses 16,119 27,470
Amortization of intangible assets resulting from 1,418 1,457
business acquisitions
Non-GAAP operating income 142,056 142,359
Operating margin 10.5 % 9.4 %
Non-GAAP operating margin 12.0 % 11.8 %
Net income attributable to New Oriental 87,255 87,167
Share-based compensation expenses 14,151 19,094
Loss/(Gain) from fair value change of investments 212 (1,545)
Amortization of intangible assets resulting from 882 911
business acquisitions
Loss from equity method investments 11,157 13,325
Impairment of long-term investments - 16,846
Gain on disposals of investments and others (161)
Tax effects on Non-GAAP adjustments (152) (3,519)
Non-GAAP net income attributable to New Oriental 113,344 132,279
Net income per ADS attributable to New Oriental- 0.54 0.53
Basic (note 2)
Net income per ADS attributable to New Oriental- 0.54 0.52
Diluted (note 2)
Non-GAAP net income per ADS attributable to New 0.70 0.80
Oriental - Basic (note 2)
Non-GAAP net income per ADS attributable to New 0.70 0.79
Oriental - Diluted (note 2)
Weighted average shares used in calculating basic net 1,612,894,657 1,654,982,205
income per ADS (note 2)
Weighted average shares used in calculating diluted 1,624,843,387 1,671,727,365
net income per ADS (note 2)
Non-GAAP net income per share - basic 0.07 0.08
Non-GAAP net income per share - diluted 0.07 0.08
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as
follows:
For the Three Months For the Three Months
Ended February 28 Ended February 29
2025 2024
(Unaudited) (Unaudited)
USD
USD
Cost of revenues 698 7,405
Selling and marketing 1,894 5,839
General and administrative 13,527 14,226
Total 16,119 27,470
Note 2: Each ADS represents ten common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Three For the Three
Months Ended Months Ended
February 28 February 29
2025 2024
(Unaudited) (Unaudited)
USD USD
Net cash provided by operating activities 963 109,436
Net cash provided by investing activities 79,891 11,285
Net cash used in financing activities (94,581) (33,492)
Effect of exchange rate changes (8,069) (18,901)
Net change in cash, cash equivalents and restricted cash (21,796) 68,328
Cash, cash equivalents and restricted cash at beginning of 1,611,073 2,120,746
period
Cash, cash equivalents and restricted cash at end of period 1,589,277 2,189,074
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Nine Months For the Nine
Months
Ended February 28 Ended February 29
2025 2024
(Unaudited) (Unaudited)
USD
USD
Net revenues 3,657,107 3,176,907
Operating cost and expenses (note 1)
Cost of revenues 1,613,419 1,508,562
Selling and marketing 572,053 452,345
General and administrative 1,034,711 876,102
Total operating cost and expenses 3,220,183 2,837,009
Operating income 436,924 339,898
(Loss)/Gain from fair value change of investments (9,620) 8,613
Other income, net 99,190 88,571
Provision for income taxes (144,759) (104,159)
Loss from equity method investments (17,239) (36,327)
Net income 364,496 296,596
Net loss/(income) attributable to non-controlling interests 120 (13,977)
Net income attributable to New Oriental Education & 364,616 282,619
Technology Group Inc.'s shareholders
Net income per share attributable to New Oriental-Basic 0.22 0.17
(note 2)
Net income per share attributable to New Oriental- 0.22 0.17
Diluted (note 2)
Net income per ADS attributable to New Oriental-Basic 2.24 1.71
(note 2)
Net income per ADS attributable to New Oriental- 2.22 1.69
Diluted (note 2)
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except for per share and per ADS amounts)
For the Nine For the Nine
Months Months
Ended February 28 Ended February 29
2025 2024
(Unaudited) (Unaudited)
USD
USD
Operating income 436,924 339,898
Share-based compensation expenses 31,297 96,661
Amortization of intangible assets resulting from 4,329 4,458
business acquisitions
Non-GAAP operating income 472,550 441,017
Operating margin 11.9 % 10.7 %
Non-GAAP operating margin 12.9 % 13.9 %
Net income attributable to New Oriental 364,616 282,619
Share-based compensation expenses 27,655 70,186
Loss/(Gain) from fair value change of investments 9,620 (8,613)
Amortization of intangible assets resulting from 2,703 2,832
business acquisitions
Loss from equity method investments 17,239 36,327
Impairment of long-term investments - 23,328
Gain on disposals of investments and others (161) (185)
Tax effects on Non-GAAP adjustments (2,684) (4,077)
Non-GAAP net income attributable to New Oriental 418,988 402,417
Net income per ADS attributable to New Oriental- 2.24 1.71
Basic (note 2)
Net income per ADS attributable to New Oriental- 2.22 1.69
Diluted (note 2)
Non-GAAP net income per ADS attributable to New 2.57 2.43
Oriental - Basic (note 2)
Non-GAAP net income per ADS attributable to New 2.55 2.40
Oriental - Diluted (note 2)
Weighted average shares used in calculating basic 1,630,423,658 1,653,742,514
net income per ADS (note 2)
Weighted average shares used in calculating diluted 1,640,843,710 1,668,903,402
net income per ADS (note 2)
Non-GAAP net income per share - basic 0.26 0.24
Non-GAAP net income per share - diluted 0.26 0.24
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as
follows:
For the Nine Months Ended For the Nine Months Ended
February 28 February 29
2025 2024
(Unaudited) (Unaudited)
USD
USD
Cost of revenues (1,738) 18,977
Selling and marketing 3,383 21,577
General and administrative 29,652 56,107
Total 31,297 96,661
Note 2: Each ADS represents ten common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Nine For the Nine
Months Ended Months Ended
February 28 February 29
2025 2024
(Unaudited) (Unaudited)
USD USD
Net cash provided by operating activities 497,470 745,808
Net cash used in investing activities (5,136) (289,912)
Net cash used in financing activities (486,494) (51,208)
Effect of exchange rate changes (5,667) (21,041)
Net change in cash, cash equivalents and restricted cash 173 383,647
Cash, cash equivalents and restricted cash at beginning of 1,589,104 1,805,427
period
Cash, cash equivalents and restricted cash at end of period 1,589,277 2,189,074
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SOURCE New Oriental Education and Technology Group Inc.
