Due to the recent introduction of the 'double reduction' policy by the state to regulate the country's expensive private education industry, Gaotu is looking to adjust its focus.
The Chinese edtech firm Gaotu released its Q2 earnings report for the period ended June 30, 2021, on September 23 2021.
Net revenue was CNY 2.23 billion, a 35.3% year-over-year increase.
Net revenues of online K-12 courses increased 51.0% year-over-year to CNY 2.09 billion.
Gross billings were CNY 2.69 billion, a 12.2% year-over-year increase.
Gross billings of online K-12 courses increased 17.2% year-over-year to CNY 2.57 billion.
Paid course enrollments increased 4.1% year-over-year to 1,631 thousand.
Paid course enrollments of online K-12 increased 4.5% year-over-year to 1,563 thousand.
Net loss was CNY 918.8 million, compared with a net income of CNY 18.6 million in the same period of 2020.
Non-GAAP net loss was CNY 763.9 million, compared with non-GAAP net income of CNY 72.7 million in the same period of 2020.
Deferred revenue was CNY 1.97 billion, compared with CNY 2.73 million as of December 31, 2020.
Larry Chen Xiangdong, Founder and CEO of Gaotu, said in the financial report that Gaotu has adjusted its organizational structure, transformed its focus to vocational and STEAM education instead and would further work on digital products and vocational education.
Shen Nan, CFO of Gaotu, further expressed that in exploring vocational education, the public service examination has maintained a high level. The number of paying users of financial certificates has increased fourfold year-on-year, Shen said, "In the future, we will focus on areas strongly supported by the government and create a multi-faceted interactive platform covering all education categories to achieve lifelong learning."