Q1 net revenues decreased by 7.6% year-over-year
Q1 gross billings (non-GAAP) decreased by 11.7% year-over-year
Q1 net income reached RMB180.1 million
BEIJING, May 25, 2023 (GLOBE NEWSWIRE) — Sunlands Technology Group STG (“Sunlands” or the “Company”), a leader in China’s online post-secondary and professional education, today announced its unaudited financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Financial and Operational Snapshots
- Net revenues were RMB566.9 million (US$82.5 million), representing a 7.6% decrease year-over-year.
- Gross billings (non-GAAP) were RMB345.1 million (US$50.2 million), representing a 11.7% decrease year-over-year.
- Gross profit was RMB498.7 million (US$72.6 million), representing a 3.5% decrease year-over-year.
- Net income was RMB180.1 million (US$26.2 million), as compared to RMB179.4 million in the first quarter of 2022.
- Net income margin, defined as net income as a percentage of net revenues, increased to 31.8% from 29.3% in the first quarter of 2022.
- New student enrollments1 were 143,179, representing a 22.2% increase year-over-year.
- As of March 31, 2023, the Company’s deferred revenue balance was RMB1,513.9 million (US$220.4 million).
1 New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period, including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses. (In June 2019, we introduced low-price courses, including “mini courses” and “RMB1 courses,” to strengthen our competitiveness and improve customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming.)
“As we reflect on the first quarter of 2023, we have witnessed a steadfast and consistent performance amid a challenging operating environment. Our first quarter net revenues remained steady, reaching RMB566.9 million,…