TAL Reports FY 2021 4Q Results: Rise in Revenue with Broad Losses

Consumer Discretionary Author: Qasim Khan Apr 23, 2021 10:42 AM (GMT+8)

"Looking ahead, we will keep investing in the quality of our products, services and technology as well as in sustainable marketing efforts. We will also further diversify our products, content and services while improving operational efficiency to meet our students and parents' evolving needs at affordable prices," said Rong Luo, TAL's chief financial officer.

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Net revenue growth in the fourth quarter was up by 58.9% year-on-year to USD 1,362.7 million. Total normal-priced long-term course student enrollments increased by 44% year-on-year, mostly driven by online as well as Xueersi Peiyou small class enrollments.

GAAP loss from operations was USD 297.2 million compared to USD 41.3 million in the fourth quarter of the last fiscal year. Non-GAAP operating loss was USD 216.9 million compared to USD 8.4 million in the same period. In the full year of fiscal 2021, net revenue growth was 37.3%. 

Net loss widened on a GAAP basis to USD 169M from a year-ago loss of USD 90.1 million. Reported Non-GAAP net loss of USD 88.7 million from a loss of USD 57.2 million a year ago.

The total physical network increased from 871 learning centers in 70 cities as of February 29, 2020, to 1,098 in 110 cities as of February 28, 2021.

Cash and cash equivalents of USD 3,243 million and USD 2,694.5 million of short-term investments as of February 28, 2021, compared to USD 1,873.9 million of cash and cash equivalents and USD 345.4 million of short-term investments as of February 29, 2020.

Total net revenues for fiscal Q1 2022 are expected to be between USD 1,302.2 million and USD 1,320.5 million vs. a consensus of USD 1.27 billion.