Consumer Discretionary Author: EqualOcean News Sep 25, 2021 12:00 AM (GMT+8)

The Chinese edtech firm’s K-12 tutoring service contributes 98.7% of its revenue.

education

17EdTech released its Q2 earnings report for the period ending June 30, 2021, on September 23.

·       Net revenue was CNY 671 million, a 147.2% year-over-year increase.

·       Net revenues of K-12 tutoring service increased 163.9% year-over-year to CNY 662 million.

·       Paid courses enrollment reached 1.18 million, a 131.1% year-over-year increase

·       A 68.3% increase in operating expense year-over-year consists of CNY 307 million in S&D and CNY 230 million in R&D.

·       Net loss was CNY 218 million, narrowing down by 73% compared to Q1 2021.

·       Cash and cash equivalent CNY 2.16 billion, an 23% decrease from last fiscal year.

·       Monthly average users reached 1.65 million, a 24% decrease year-over-year

17EdTech also announced that Co-founder Mr. Xiao Tong resigned from the board of directors due to personal reasons effective from September 23, 2021. Due to the uncertainty in the supervision of the firm and the operation circumstances 17EdTech did not release the performance guideline for the following quarter.