US-listed shares of Gaotu fall after wider-than-expected Q3 net loss

Gaotu Techedu

04/12/2024 11:51

** U.S.-listed shares of China's online education firm Gaotu
Techedu  GOTU.N  fall 10.7% at $2.7 in premarket, after its
third quarter net loss widened more than expected
    ** The quarterly net loss stood at RMB 471.3 million ($64.85
million), compared with net loss of RMB 57.7 million a year ago
mainly driven by a widening in operational losses
    ** Cost of revenues increased 97.1% year-on-year in the
third quarter to RMB 429.8 million
    ** The increase in cost of revenues was mainly due to
expansion of instructors and tutors workforce, growing rental
cost, as well as an increased cost of learning materials, the
company said
    ** The company reported that both basic and diluted net loss
per share stood at RMB 2.75 in the third quarter
    ** ​LSEG's mean analyst estimate for Gaotu Techedu was for a
loss of RMB 0.97 per share
    ** Co's Q3 net revenue up 53.1% YoY to RMB 1.21 billion;
expects a Q4 net revenue between RMB 1.28 billion and RMB 1.31
billion
    ** Up to the previous session's close, shares were down
17.7%​ YTD.


($1 = 7.2673 Chinese yuan renminbi)

 (Reporting by Joao Manuel Mauricio)
 ((JoaoManuel.VicenteMauricio@thomsonreuters.com))