Gaotu Techedu reports Q2 earnings; sees Q3 net revenue between RMB576M and RMB596M

Gaotu Techedu press release: Q2 GAAP EPS of -$0.03.

Revenue of $80.29M (-75.9% Y/Y).

Gross billings were RMB611.7M, compared with gross billings of RMB2,694.7M in the same period of 2021.

Non-GAAP gross profit margin increased to 73.7% from 69.1% in the same period of 2021.

As of June 30, 2022, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3,353.2M in aggregate, compared with a total of RMB3,671.1M as of December 31, 2021.

Based on the company’s current estimates, total net revenues for the third quarter of 2022 are expected to be between RMB576 million and RMB596 million, representing a decrease of 46.5% to 48.3% on a Y/Y basis vs. estimated decline of 75.93% Y/Y.

Author: Meghavi Singh, Seeking Alpha

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