Gaotu Techedu Reports Wider Loss Despite Surge in Revenue

Gaotu Techedu Inc. faced a wider net loss in Q4, but its revenue surged 82.5%. This year-over-year growth indicates strong market demand, making investors keen on future performance.

Date: 26-02-2025

AI Rating: 5

Widened Net Loss and Revenue Growth - Gaotu Techedu Inc. reported a widened net loss for the fourth quarter, increasing from RMB 119.65 million to RMB 135.83 million. However, the significant revenue growth of 82.5% to RMB 1.39 billion demonstrates positive year-over-year performance fueled by strong market demand.

Net Loss Per Share Details - The net loss per ordinary share rose to RMB 0.80 from RMB 0.69 in the previous year, while the net loss per American Depository share also showed an increase, from RMB 0.46 to RMB 0.53. These figures highlight the challenges the company faces in controlling losses as revenue climbs.

Adjusted Net Loss - The adjusted net loss reported was RMB 123.54 million, up from RMB 103.97 million, further indicating that while revenue is increasing, costs and losses remain significant. The adjusted net loss per ADS was recorded at RMB 0.49.

Future Projections - Looking ahead, Gaotu forecasts total net revenues for the first quarter to fall between RMB 1,408 million and RMB 1,428 million, projecting a robust increase of 48.7% to 50.8% year-over-year. This outlook could positively impact investor sentiment despite current losses.

Stocks: GOTU