NYSE-listed K12 education platform GSX Techedu (GSX:NYSE) shares went on a rollercoaster after releasing its first quarterly earnings results after IPO.
The financial report shows the second-quarter revenue was CNY 353.7 million (USD 49.86 million), a year-on-year increase of 413.4%; gross profit was CNY 252.5 million (USD 35.59 million) with a year-on-year increase of 496.7%. Non-GAAP gross profit was RMB 256.9 million (USD 36.21 million), surging 506.5% year-on-year; the gross margin rose from 61.5% in the same period last year to 72.6%.
The education company announced its 2019 second-quarter earnings during pre-market on August 22, 2019. The stock price once went up 11.25% to USD 17.8 and then down 8% to USD 14.64.
Chen Xiangdong, CEO of GSX Techedu, said that specializing in the online live broadcast of large classes can maximize the quality of our high-quality teaching. "Besides, by focusing on improving organizational capabilities, collaborative execution and employee growth, we are more competitive, gaining higher conversion rates and renewal rates."