#China #Beijing #Gaotu Techedu #Education Technology #NYSE GOTU

Gaotu Techedu Achieves Milestones in Q1 2025 Financial Results

On May 15, 2025, Gaotu Techedu Inc. (NYSE: GOTU), a prominent education technology company based in China, disclosed its unaudited financial results for the first quarter ending March 31, 2025. This quarter's achievements highlight notable advancements in revenue generation, profitability, and operational efficiency, underscoring Gaotu's commitment to delivering cutting-edge educational solutions using artificial intelligence.

Financial Highlights

The company's financial performance for the first quarter of 2025 showcased robust growth. Key highlights include:

• - Net Revenues reached RMB1,493.0 million, marking a 57.7% increase from RMB946.9 million YOY.
• - Gross Billings rose to RMB888.7 million, reflecting a 21.8% increase from the previous year’s RMB729.4 million.
• - Operating Income was recorded at RMB34.8 million, a significant recovery from a loss of RMB77.7 million in the same period last year.
• - Net Income registered at RMB124.0 million, compared to a net loss of RMB12.3 million in Q1 2024.
• - Furthermore, Non-GAAP net income skyrocketed to RMB137.3 million, an astounding surge of 4,419.2% from RMB3.0 million year-over-year.

These unprecedented results can be attributed to Gaotu’s strategic positioning in the education sector and its commitment to innovation in educational offerings.

Share Repurchase Program

As part of its strategic initiatives, Gaotu has initiated a new share repurchase program authorizing up to US$100 million for common stocks over the next three years. This decision follows an earlier program that accumulated approximately RMB460 million in buybacks. Chairman and CEO Larry Xiangdong Chen expressed that the share repurchase reflects the company’s dedication to enhancing shareholder value while bolstering market confidence in Gaotu's long-term profitability amid rapid operational growth.

Future Growth Strategy

Gaotu's ongoing mission is to cultivate lifelong learning opportunities through AI-driven solutions. The company's technological advancements are designed to create a more engaging educational experience. As articulated by CFO Shannon Shen, Gaotu has laid a solid foundation for sustained future growth through personalized and adaptable learning solutions, meeting the evolving needs of students.

Upcoming Revenue Projections
Looking ahead, Gaotu expects total net revenues for Q2 2025 to range between RMB1,298 million and RMB1,318 million, marking an anticipated year-over-year growth of approximately 28.5% to 30.5%. This forecast is in line with the company’s momentum during the first quarter and reflects its confidence in the market demand for its educational services.

Conclusion

As Gaotu Techedu continues to implement strategic initiatives and enhance its educational technology offerings, stakeholders are optimistic about the company's ability to innovate and deliver value. The strong Q1 financial results and strategic share repurchase endeavor serve as testaments to Gaotu's resilience and proactive approach in the competitive educational landscape.

The company will host an earnings call on May 15 to further discuss the results and outline future strategies, allowing investors and analysts an opportunity to gain insights directly from the leadership team.

To stay informed about Gaotu Techedu’s developments, visit their investor relations page here.