BEIJING, Aug. 28,
2023 /PRNewswire/ -- Tarena International, Inc.
(NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of
IT professional education and IT-focused supplementary STEAM
education services in China, today
announced its unaudited financial results for the second
quarter ended June 30, 2023.
Highlights for the Second Quarter of 2023
- Total student enrollment in IT-focused supplementary STEAM
education increased by 0.6% to 177,500 in the second quarter of
2023, compared to student enrollment of 176,500 in the same period
of 2022.
- Net revenues decreased by 16.0% year-over-year to RMB545.0 million (US$75.2
million) from RMB648.8 million
in the same period of 2022.
- Gross profit decreased by 26.0% year-over-year to RMB278.7 million (US$38.4
million) from RMB376.5 million
in the same period of 2022.
- Gross profit margin decreased by 6.9% year-over-year to 51.1%
from 58.0% in the same period of 2022.
- Operating loss was RMB6.8 million
(US$0.9 million), compared to
operating income of RMB48.0 million
in the same period of 2022.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB5.9
million (US$0.8 million),
compared to non-GAAP operating income of RMB49.2 million in the same period of
2022.
- Net income was RMB8.3 million
(US$1.2 million), compared to
RMB47.9 million in the same period of
2022.
- Non-GAAP net income, which excluded share-based compensation
expenses, was RMB9.2 million
(US$1.3 million), compared to
non-GAAP net income of RMB49.1
million in the same period of 2022.
- Basic income per American Depositary Share ("ADS"), each
representing five Class A ordinary shares with an effective date of
December 23, 2021, was RMB0.70 (US$0.10)
in the second quarter of 2023. Diluted income per ADS was
RMB0.67 (US$0.09) in the second quarter of 2023. Non-GAAP
basic income per ADS, which excluded share-based compensation
expenses, was RMB0.78 (US$0.11) in the second quarter of 2023. Non-GAAP
diluted income per ADS, which excluded share-based compensation
expenses, was RMB0.75 (US$0.10) in the second quarter of 2023.
Highlights for the Six Months Ended June 30, 2023
- Total student enrollment in our IT-focused supplementary STEAM
education decreased by 0.7% to 185,400 in the first half of 2023,
compared to student enrollment of 186,700 in the same period in
2022.
- Net revenues decreased by 26.9% year-over-year to RMB930.1 million (US$128.3
million), from RMB1,272.3
million in the same period in 2022.
- Gross profit decreased by 34.8% year-over-year to RMB479.7 million (US$66.2
million), from RMB735.4 million in the same period in
2022.
- Gross profit margin decreased by 6.2% year-over-year to 51.6%,
from 57.8% in the same period in 2022.
- Operating loss was RMB65.6
million (US$9.1 million),
compared to an operating income of RMB76.6
million in the same period in 2022.
- Non-GAAP operating loss, which excluded share-based
compensation expenses, was RMB63.7
million (US$8.8 million),
compared to a non-GAAP operating income of RMB79.1 million in the same period in 2022.
- Net loss was RMB41.6 million
(US$5.7 million), compared to a net
income of RMB75.0 million in the same
period in 2022.
- Non-GAAP net loss, which excluded share-based compensation
expenses, was RMB39.6 million
(US$5.5 million), compared to a
non-GAAP net income of RMB77.5
million in the same period in 2022.
- Basic and diluted loss per ADS was RMB3.97 (US$0.55)
in the first half of 2023. Non-GAAP basic and diluted loss per ADS,
which excluded share-based compensation expenses, was RMB3.79 (US$0.52)
in the first half of 2023.
Key Financial Results
|
|
For the Three Months Ended
June 30,
|
Variance
|
% of
change
|
For the Six Months Ended
June 30,
|
Variance
|
% of
change
|
|
|
2022
|
|
2023
|
|
|
|
2022
|
|
2023
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
(in thousands,
except for percentages)
|
Net
revenues
|
|
648,817
|
|
545,012
|
|
(103,805)
|
-16.0 %
|
1,272,323
|
|
930,116
|
|
(342,207)
|
-26.9 %
|
Cost of
revenues(a)
|
|
(272,306)
|
|
(266,301)
|
|
6,005
|
-2.2 %
|
(536,894)
|
|
(450,402)
|
|
86,492
|
-16.1 %
|
Gross
profit
|
|
376,511
|
|
278,711
|
|
(97,800)
|
-26.0 %
|
735,429
|
|
479,714
|
|
(255,715)
|
-34.8 %
|
Gross
margin
|
|
58.0 %
|
|
51.1 %
|
|
-6.9 %
|
|
57.8 %
|
|
51.6 %
|
|
-6.2 %
|
|
Selling and marketing
expenses(a)
|
|
(156,874)
|
|
(150,999)
|
|
5,875
|
-3.7 %
|
(329,274)
|
|
(264,150)
|
|
65,124
|
-19.8 %
|
General and
administrative expenses(a)
|
|
(158,742)
|
|
(118,819)
|
|
39,923
|
-25.1 %
|
(300,327)
|
|
(250,366)
|
|
49,961
|
-16.6 %
|
Research and
development expenses(a)
|
|
(12,878)
|
|
(15,696)
|
|
(2,818)
|
21.9 %
|
(29,220)
|
|
(30,824)
|
|
(1,604)
|
5.5 %
|
Total operating
expenses
|
|
(328,494)
|
|
(285,514)
|
|
42,980
|
-13.1 %
|
(658,821)
|
|
(545,340)
|
|
113,481
|
-17.2 %
|
Operating
income/(loss)
|
|
48,017
|
|
(6,803)
|
|
(54,820)
|
-114.2 %
|
76,608
|
|
(65,626)
|
|
(142,234)
|
-185.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(a) Includes
share-based compensation expenses.
|
"In the second quarter of 2023, as the external business
environment improved, our net revenues gradually rebounded,"
remarked Ms. Ying Sun, Tarena's Chief Executive Officer.
"Driven by relatively stable market demand for STEAM education, our
STEAM education services recovered from the pandemic's impact over
the past quarters, with net revenues growing at 39% quarter over
quarter and returning to its level in the same period of 2022
thanks to cash receipt growth, demonstrating our business
resilience. Benefiting from the improving external business
environment, the net revenues of our IT professional education
business also recovered from the impact of the suspension of
courses and services in the first quarter, with its net revenues
increasing by 47% quarter over quarter. On a year-over-year basis,
the net revenues of our IT professional education business
decreased due to its relatively longer recovery cycle amid the
uncertainties associated with the post-pandemic economic recovery,
which affected the supply of and demand for talents in the job
market."
"Furthermore, we continued to enhance our profitability during
the second quarter," Ms. Sun continued. "We carved out the
college-collaboration related business and focused on STEAM
education and To-C professional education services, which will
allow us to narrow losses in subsequent quarters. Meanwhile, we
continued to optimize our staff structure and learning centers to
enhance operational efficiency, achieving a comprehensive refined
management upgrade across our organization. Benefiting from our
focused strategic plan and effective cost reduction and efficiency
enhancement measures, we achieved a significant reduction in our
group's operating loss of 88% quarter over quarter."
"Looking ahead, we believe enterprises' digital transformation
and the rapid development of artificial intelligence will drive
continuous growth of market demand for IT talents, while
professional education-related policies will also benefit industry
development. In this context, our long-term efforts to enhance
operational efficiency and optimize our business model will help us
effectively strengthen our operations and improve profitability
under a light, highly efficient and highly focused operating model,
positioning our two businesses to achieve sustainable and healthy
growth," concluded Ms. Sun.
Financial Results for the Second Quarter of
2023
Net Revenues
Total net revenues decreased by 16.0% to RMB545.0 million (US$75.2 million) in the second quarter of
2023, from RMB648.8 million in the
same period of 2022. The decrease in revenue was primarily due to a
lower student enrollment for our IT professional education
business, which resulted from the closure of some teaching centers
with relatively low profitability, as well as the impact of the
divestiture of the college-collaboration related business with
revenues of only two months recognized in the second quarter of
2023.
Cost of Revenues
Cost of revenues decreased by 2.2% to RMB266.3 million (US$36.7 million) in the second quarter of 2023,
from RMB272.3 million in the same
period of 2022. The decrease was mainly due to a decrease in
personnel cost attributable to headcount reduction and a decrease
in rental fees and deprecation cost attributable to the closure of
some teaching centers during this period. The decrease was
partially offset by the increase in costs of camps and competition
activities in this quarter.
Gross Profit and Gross Margin
Gross profit decreased by 26.0% to RMB278.7 million (US$38.4
million) in the second quarter of 2023, from RMB376.5 million in the same period of 2022.
Gross margin narrowed to 51.1% in the second quarter of 2023,
compared to 58.0% in the same period of 2022, as the decline in net
revenues is greater than the reduction in the cost of revenues in
this quarter.
Operating Expenses
Total operating expenses decreased by 13.1% to RMB285.5 million (US$39.4 million) in the second quarter of 2023
from RMB328.5 million in the
same period of 2022. Total non-GAAP operating expenses, which
excluded share-based compensation expenses, decreased by 13.0% to
RMB284.6 million (US$39.3 million) in the second quarter of 2023,
from RMB327.4 million in the same
period of 2022. Total share-based compensation expenses allocated
to the related operating expenses decreased by 23.5% to
RMB0.9 million (US$0.1 million) in the second quarter of
2023, from RMB1.1 million in the same
period of 2022.
Selling and marketing expenses decreased by 3.7% to RMB151.0 million (US$20.8
million) in the second quarter of 2023 from RMB156.9 million in the same period of 2022. The
decrease was mainly due to a decrease in personnel-related costs
resulting from a decrease in the number of sales staff in the
second quarter of 2023.
General and administrative expenses decreased by 25.1% to
RMB118.8 million (US$16.4 million) in the second quarter of 2023,
from RMB158.7 million in the same
period of 2022. The decrease was mainly due to a decrease in
personnel-related costs associated with headcount reduction.
Furthermore, a one-time provision for the amount of the anticipated
settlement of a class action lawsuit was recognized in the previous
period, while no such expenditure was incurred in this period.
Research and development expenses increased by 21.9% to
RMB15.7 million (US$2.2 million) in the second quarter of 2023,
from RMB12.9 million in the same
period of 2022. The increase was mainly due to an increase in
spending on operating systems improvement to enhance operating
efficiency.
Operating Income/(Loss)
Operating loss was RMB6.8 million
(US$0.9 million) in the second
quarter of 2023, compared to operating income of RMB48.0 million in the same period of 2022.
Non-GAAP operating loss, which excluded share-based compensation
expenses, was RMB5.9 million
(US$0.8 million) in the second
quarter of 2023, compared to non-GAAP operating income of
RMB49.2 million in the same period of
2022.
Income Tax Expense
The Company recorded an income tax expense of RMB10.4 million (US$1.4 million) in the second quarter of 2023,
compared to RMB0.6 million in
the same period of 2022.
Net Income
As a result of the foregoing, net income was RMB8.3 million (US$1.2
million) in the second quarter of 2023, compared to
RMB47.9 million in the same
period of 2022. Non-GAAP net income, which excluded share-based
compensation expenses, was RMB9.2 million (US$1.3 million) in the second quarter of 2023,
compared to RMB49.1 million in the
same period of 2022. The impact on the net income due to the gain
on disposal of college business was RMB26.8
million (US$3.7 million) for
this period.
Basic and Diluted Income per ADS
Basic income per ADS was RMB0.70
(US$0.10) in the second quarter of
2023. Diluted income per ADS was RMB0.67 (US$0.09)
in the second quarter of 2023. Non-GAAP basic income per ADS, which
excluded share-based compensation expenses, was RMB0.78 (US$0.11)
in the second quarter of 2023. Non-GAAP diluted income per ADS,
which excluded share-based compensation expenses, was RMB0.75 (US$0.10)
in the second quarter of 2023.
Cash Flow
The total balance of cash, cash equivalents and restricted cash
decreased RMB2.9 million from
RMB371.0 million as of March 31, 2023 to RMB368.1
million (US$50.8 million) as
of June 30, 2023. Net cash outflow
from operating activities in the second quarter of 2023 was
RMB20.0 million (US$2.8 million). Net cash inflow from investing
activities in the second quarter of 2023 was RMB68.2 million (US$9.4
million), as we received a deposit of RMB76.6 million (US$10.6
million) on the sale of office buildings in this period.
Capital expenditures in the second quarter of 2023 were
RMB11.6 million (US$1.6 million). Net cash outflow from financing
activities in the second quarter of 2023 was RMB51.4 million (US$7.1
million), as we repaid the bank borrowing of RMB50.0 million (US$6.9
million).
Financial Results for the Six Months Ended June 30, 2023
Net Revenues
Total net revenues decreased by 26.9% to RMB930.1 million (US$128.3
million) in the first half of 2023, from RMB1,272.3 million in the same period of 2022.
The decrease in revenue was primarily due to a lower student
enrollment for our IT professional education business, which
resulted from the closure of some teaching centers with relatively
low profitability. Additionally, we suspended courses and services
for almost the entire month of January, resulting in a decrease in
net revenues.
Cost of Revenues
Cost of revenues decreased by 16.1% to RMB450.4 million (US$62.1
million) in the first half of 2023, from RMB536.9 million in the same period of 2022. The
decrease was mainly due to a decrease in personnel cost
attributable to headcount reduction and a decrease in rental fees
and deprecation cost attributable to the closure of some teaching
centers during this period.
Gross Profit and Gross Margin
Gross profit decreased by 34.8% to RMB479.7 million (US$66.2
million) in the first half of 2023, from RMB735.4 million in the same period of 2022.
Gross margin was 51.6% in the first half of 2023, compared with
57.8% in the same period of 2022. The decrease in gross profit was
due to the revenues decline in the quarter being greater than the
reduction in the cost of revenues.
Operating Expenses
Total operating expenses decreased by 17.2% to RMB545.3 million (US$75.2
million) in the first six months of 2023, from RMB 658.8 million in the same period of 2022.
Total non-GAAP operating expenses, which excluded share-based
compensation expenses, decreased by 17.2% to RMB543.4 million (US$74.9
million) in the first six months of 2023, from RMB656.3 million in the same period of 2022.
Total share-based compensation expenses allocated to the related
operating expenses decreased by 22.7% to RMB1.9 million (US$0.3 million) in the first six months of 2023,
from RMB2.5 million in the same
period of 2022.
Selling and marketing expenses decreased by 19.8% to
RMB264.2 million (US$36.4 million) in the first six months of 2023
from RMB329.3 million in the same
period of 2022. The decrease was mainly due to a decrease in
personnel-related costs resulting from a decrease in the number of
sales staff in the first six months of 2023, compared to the same
period of 2022. In addition, the efforts to control marketing
spending and the reduction in advertisement expenditure resulted in
a decrease in advertising expenses.
General and administrative expenses decreased by 16.6% to
RMB250.4 million (US$34.5 million) in the first six months of 2023,
from RMB300.3 million in the same
period of 2022. The decrease was mainly due to a decrease in
personnel expenses associated with headcount reduction.
Furthermore, a one-time provision for the amount of the anticipated
settlement of a class action lawsuit was recognized in the previous
period, while no such expenditure was incurred in this period.
Research and development expenses increased by 5.5% to
RMB30.8 million (US$4.3 million) in the first six months of 2023,
from RMB29.2 million in the same
period of 2022. The increase was mainly due to an increase in
spending on operating systems improvement to enhance operating
efficiency.
Operating Income/(Loss)
Operating loss was RMB65.6 million
(US$9.1 million) in the first six
months of 2023, compared to operating income of RMB76.6 million in the same period of 2022.
Non-GAAP operating loss, which excluded share-based compensation
expenses, was RMB63.7 million
(US$8.8 million) in the first six
months of 2023, compared to non-GAAP operating income of
RMB79.1 million in the same period of
2022.
Income Tax Expense
The Company recorded an income tax expense of RMB2.3 million (US$0.3
million) in the first six months of 2023, compared to
RMB6.0 million in the same
period of 2022.
Net Income/(Loss)
As a result of the foregoing, net loss was RMB41.6 million (US$5.7
million) in the first six months of 2023, compared to net
income of RMB75.0 million in the same
period of 2022. Non-GAAP net loss, which excluded share-based
compensation expenses, was RMB39.6
million (US$5.5 million) in
the first six months of 2023, compared to non-GAAP net income of
RMB77.5 million in the same period of
2022. The impact on the net income due to the gain on disposal of
college business was RMB26.8 million
(US$3.7 million) for this period.
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS was RMB3.97 (US$0.55)
in the first half of 2023. Non-GAAP basic and diluted loss per ADS,
which excluded share-based compensation expenses, was RMB3.79 (US$0.52)
in the first half of 2023.
Cash Flow
The total balance of cash, cash equivalents, and restricted cash
decreased RMB5.9 million from
RMB374.0 million as of December 31, 2022 to RMB368.1 million (US$50.8
million) as of June 30, 2023.
Net cash outflow from operating activities in the first half of
2023 was RMB37.7 million
(US$5.2 million). Net cash inflow
from investing activities in the first half of 2023 was
RMB85.6 million (US$11.8 million), as we received a deposit of
95.6 million (US$13.2 million) on the
sale of office buildings in this period. Capital expenditures in
the first half of 2023 were RMB17.4
million (US$2.4 million). Net
cash outflow from financing activities in the first half of 2023
was RMB53.9 million (US$7.4 million), as we repaid the bank borrowing
of RMB52.0 million (US$7.2 million).
Update on Investment from KKR
The Company entered into a registration rights agreement with
Talent Fortune Investment Limited, or KKR, an affiliate of KKR
& Co. L.P., on July 17, 2015,
pursuant to which certain registration rights were granted to KKR.
The Company's obligations under such agreement have been
terminated.
Exchange Rate Information
All translations made in the financial statements or elsewhere
in this press release made from RMB into United States dollars ("US$") are solely for
convenience and calculated at the rate of US$1.00=RMB 7.2513,
representing the exchange rate as of June
30, 2023, set forth in the H.10 statistical release of the
U.S. Federal Reserve Board. No representation is made that the RMB
amounts could have been, or could be, converted, realized or
settled into US$ at that rate, or at any other rate, on
June 30, 2023.
Conference Call
Company management will hold an earnings conference call and
live webcast to discuss the Company's results at 8:00 AM on Aug 29,
2023, U.S. Eastern Time (8:00
PM on Aug 29, 2023, Beijing
Time).
Please register in advance of the conference, using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, a passcode, and a unique registrant
ID.
Conference call registration link:
https://dpregister.com/sreg/10181809/fa32717b04. It will
automatically direct you to the registration page for " Tarena's
Second Quarter 2023 Earnings Conference Call," where you may fill
in your details to RSVP.
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial in number(s), direct
event passcode, and registrant ID) provided in the confirmation
email received at the point of registration.
A replay of the conference call may be accessed by phone at the
following number until September 5,
2023:
United States:
1-877-344-7529
International: 1-412-317-0088
Replay Access Code: 5885022
Additionally, a live and archived webcast of this call will be
available on the Investor Relations section of Tarena's website at
http://ir.tedu.cn.
About Tarena International, Inc.
Tarena is a leading provider of IT professional education and
IT-focused supplementary STEAM education services in China. Through its innovative education
platform combining live distance instruction, classroom-based
tutoring and online learning modules, Tarena offers professional
education courses in IT and non-IT subjects. Its professional
education courses provide students with practical skills to prepare
them for jobs in industries with significant growth potential and
strong hiring demand. Tarena also offers IT-focused supplementary
STEAM education programs, including computer coding and robotics
programming courses, etc., targeting students between three and
eighteen years of age. Aiming to encourage "code to learn," Tarena
embraces the latest trends in STEAM education and technology to
develop children's logical thinking and learning abilities while
allowing them to discover their interests and potential.
Safe Harbor Statement
This press release contains forward-looking statements made
under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. Among other
things, the business outlook, the quotations from management in
this announcement, as well as the Company's strategic and
operational plans contain forward-looking statements. Tarena may
also make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including any business outlook and
statements about Tarena's beliefs and expectations, are
forward-looking statements. Many factors, risks and uncertainties
could cause actual results to differ materially from those in the
forward-looking statements. Such factors and risks include, but not
limited to the following: the impact of the COVID-19 outbreak;
Tarena's goals and strategies; its future business development,
financial condition and results of operations; its ability to
continue to attract students to enroll in its courses; its ability
to continue to recruit, train and retain qualified instructors and
teaching assistants; its ability to continually tailor its
curriculum to market demand and enhance its courses to adequately
and promptly respond to developments in the professional job
market; its ability to maintain or enhance its brand recognition,
its ability to maintain high job placement rate for its students,
and its ability to maintain cooperative relationships with
financing service providers for student loans.
Further information regarding these and other risks,
uncertainties or factors is included in Tarena's filings with the
U.S. Securities and Exchange Commission. All information provided
in this press release is current as of the date of the press
release, and Tarena does not undertake any obligation to update
such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Tarena's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Tarena's management uses non-GAAP measures of
cost of revenues, operating expenses, operating income, net income,
and basic and diluted net income per ADS, which are adjusted from
results based on GAAP to exclude the share-based compensation
expenses. These non-GAAP financial measures should be considered in
addition to results prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, GAAP results.
In addition, calculation of the non-GAAP financial measures may be
different from the calculation used by other companies, and
therefore comparability may be limited.
Tarena's management believes that excluding the share-based
compensation expenses provides meaningful supplemental information
regarding our performance and liquidity by excluding certain items
identified as non-recurring and infrequent in nature, and non-cash
charges. The amount of share-based compensation expenses is not
built into the Company's annual budgets and quarterly forecasts,
which generally will be the basis for information Tarena provides
to analysts and investors as guidance for future operating
performance.
The non-GAAP financial measures are provided to enhance
investors' overall understanding of Tarena's current financial
performance and prospects for the future. A limitation of using
non-GAAP cost of revenues, operating expenses, operating income
(loss) and net income (loss), excluding the share-based
compensation expenses is that the share-based compensation charge
has been and will continue to be a recurring expense in the
Company's business for the foreseeable future. In order to mitigate
the limitation, the Company has provided specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables include details on the reconciliation between
GAAP financial measures that are most directly comparable to the
non-GAAP financial measures the Company has presented.
For further information, please contact:
Investor Relations Contact:
Tarena International, Inc.
Investor Relations
E-mail: ir@tedu.cn
The Piacente Group, Inc.
In China
Yang Song
Tel: +86-10-6508-0677
E-mail: tedu@tpg-ir.com
In the U.S.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: tedu@tpg-ir.com
TARENA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share data and per ADS data)
|
|
|
|
As of
|
|
|
December 31,
|
|
June
30,
|
|
June
30,
|
|
|
2022
|
|
2023
|
|
2023
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
356,237
|
|
280,077
|
|
38,624
|
Time
deposits
|
|
6,277
|
|
2,119
|
|
292
|
Restricted
cash
|
|
17,730
|
|
88,017
|
|
12,138
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
68,733
|
|
20,598
|
|
2,841
|
Amounts due from
related parties
|
|
698
|
|
5,975
|
|
824
|
Assets held for
sale
|
|
106,539
|
|
106,539
|
|
14,692
|
Prepaid expenses and
other current assets
|
|
111,339
|
|
129,380
|
|
17,842
|
Total current
assets
|
|
667,553
|
|
632,705
|
|
87,253
|
Time deposits-non
current
|
|
228
|
|
228
|
|
31
|
Accounts receivable,
net of allowance for doubtful accounts-non current
|
|
182
|
|
41
|
|
6
|
Amount due from
related parties-non current
|
|
701
|
|
746
|
|
103
|
Property and
equipment, net
|
|
122,834
|
|
102,464
|
|
14,130
|
Intangible assets,
net
|
|
7,542
|
|
6,422
|
|
886
|
Goodwill
|
|
52,782
|
|
52,782
|
|
7,279
|
Right-of-use
assets
|
|
350,501
|
|
273,399
|
|
37,703
|
Long-term investments,
net
|
|
46,183
|
|
57,878
|
|
7,982
|
Deferred income tax
assets
|
|
40,127
|
|
41,323
|
|
5,699
|
Other non-current
assets, net
|
|
48,867
|
|
58,401
|
|
8,055
|
Total
assets
|
|
1,337,500
|
|
1,226,389
|
|
169,127
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term bank
loans
|
|
52,000
|
|
-
|
|
-
|
Accounts
payable
|
|
6,330
|
|
5,815
|
|
802
|
Amounts due to related
parties
|
|
87
|
|
1,245
|
|
172
|
Operating lease
liabilities-current
|
|
197,969
|
|
128,513
|
|
17,723
|
Income taxes
payable
|
|
108,434
|
|
110,746
|
|
15,273
|
Deferred
revenue-current
|
|
1,688,610
|
|
1,635,321
|
|
225,521
|
Advance received for
disposal of property
|
|
-
|
|
93,165
|
|
12,848
|
Accrued expenses and
other current liabilities
|
|
603,516
|
|
644,507
|
|
88,882
|
Total current
liabilities
|
|
2,656,946
|
|
2,619,312
|
|
361,221
|
Deferred revenue-non
current
|
|
14,051
|
|
7,222
|
|
996
|
Operating lease
liabilities-non current
|
|
168,736
|
|
145,663
|
|
20,088
|
Other non-current
liabilities
|
|
4,448
|
|
4,101
|
|
566
|
Total
liabilities
|
|
2,844,181
|
|
2,776,298
|
|
382,871
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
-
|
Deficit:
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
359
|
|
362
|
|
50
|
Class B ordinary
shares
|
|
74
|
|
74
|
|
10
|
Treasury
stock
|
|
(476,918)
|
|
(478,993)
|
|
(66,056)
|
Additional paid-in
capital
|
|
1,363,845
|
|
1,365,965
|
|
188,375
|
Accumulated other
comprehensive income
|
|
49,664
|
|
47,964
|
|
6,613
|
Accumulated
deficit
|
|
(2,436,918)
|
|
(2,479,624)
|
|
(341,956)
|
Total deficit
attributable to the shareholders of Tarena International,
Inc.
|
|
(1,499,894)
|
|
(1,544,252)
|
|
(212,964)
|
Non-controlling
interest
|
|
(6,787)
|
|
(5,657)
|
|
(780)
|
Total liabilities
and deficit
|
|
1,337,500
|
|
1,226,389
|
|
169,127
|
TARENA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
(in thousands,
except share data and per ADS data)
|
|
|
|
For the Three Months Ended
June 30
|
|
For the Six Months Ended
June 30
|
|
|
|
2022
(Unaudited)
|
|
2023
(Unaudited)
|
|
2023
(Unaudited)
|
|
2022
(Unaudited)
|
|
2023
(Unaudited)
|
|
2023
(Unaudited)
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
648,817
|
|
545,012
|
|
75,161
|
|
1,272,323
|
|
930,116
|
|
128,269
|
Cost of
revenues(a)
|
|
(272,306)
|
|
(266,301)
|
|
(36,725)
|
|
(536,894)
|
|
(450,402)
|
|
(62,113)
|
Gross
profit
|
|
376,511
|
|
278,711
|
|
38,436
|
|
735,429
|
|
479,714
|
|
66,156
|
Selling and marketing
expenses(a)
|
|
(156,874)
|
|
(150,999)
|
|
(20,824)
|
|
(329,274)
|
|
(264,150)
|
|
(36,428)
|
General and
administrative expenses(a)
|
|
(158,742)
|
|
(118,819)
|
|
(16,386)
|
|
(300,327)
|
|
(250,366)
|
|
(34,527)
|
Research and
development expenses(a)
|
|
(12,878)
|
|
(15,696)
|
|
(2,165)
|
|
(29,220)
|
|
(30,824)
|
|
(4,251)
|
Operating
income/(loss)
|
|
48,017
|
|
(6,803)
|
|
(939)
|
|
76,608
|
|
(65,626)
|
|
(9,050)
|
Gain on disposal of
college business
|
|
-
|
|
26,797
|
|
3,695
|
|
-
|
|
26,797
|
|
3,695
|
Interest
income/(expense)
|
|
445
|
|
(153)
|
|
(21)
|
|
743
|
|
240
|
|
33
|
Other
income/(loss)
|
|
198
|
|
(466)
|
|
(64)
|
|
3,861
|
|
42
|
|
6
|
Foreign exchange
loss
|
|
(157)
|
|
(638)
|
|
(88)
|
|
(242)
|
|
(752)
|
|
(104)
|
Income/(loss) before
income taxes
|
|
48,503
|
|
18,737
|
|
2,583
|
|
80,970
|
|
(39,299)
|
|
(5,420)
|
Income
tax expense
|
|
(583)
|
|
(10,393)
|
|
(1,433)
|
|
(5,981)
|
|
(2,275)
|
|
(314)
|
Net
income/(loss)
|
|
47,920
|
|
8,344
|
|
1,150
|
|
74,989
|
|
(41,574)
|
|
(5,734)
|
Less: Net income
attributable to non-controlling interests
|
|
191
|
|
817
|
|
113
|
|
699
|
|
1,132
|
|
156
|
Net income/(loss)
attributable to Class A and Class B ordinary
shareholders
|
|
47,729
|
|
7,527
|
|
1,037
|
|
74,290
|
|
(42,706)
|
|
(5,890)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
per ADS(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic(b)
|
|
4.36
|
|
0.70
|
|
0.10
|
|
6.73
|
|
(3.97)
|
|
(0.55)
|
Diluted(b)
|
|
4.29
|
|
0.67
|
|
0.09
|
|
6.63
|
|
(3.97)
|
|
(0.55)
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
54,745,188
|
|
53,856,259
|
|
53,856,259
|
|
55,211,122
|
|
53,828,590
|
|
53,828,590
|
Diluted
|
|
55,606,533
|
|
56,198,770
|
|
56,198,770
|
|
56,011,622
|
|
53,828,590
|
|
53,828,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
|
|
47,920
|
|
8,344
|
|
1,150
|
|
74,989
|
|
(41,574)
|
|
(5,734)
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
440
|
|
(2,109)
|
|
(291)
|
|
389
|
|
(1,702)
|
|
(235)
|
Comprehensive
income/(loss)
|
|
48,360
|
|
6,235
|
|
859
|
|
75,378
|
|
(43,276)
|
|
(5,969)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(a) Includes
share-based compensation expenses as follows:
|
|
|
For the Three Months Ended
June 30,
|
|
For the Six Months Ended
June 30,
|
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
12
|
|
7
|
|
1
|
|
23
|
|
13
|
|
2
|
Selling and marketing
expenses
|
|
152
|
|
68
|
|
9
|
|
296
|
|
136
|
|
19
|
General and
administrative expenses
|
|
689
|
|
638
|
|
88
|
|
1,647
|
|
1,489
|
|
205
|
Research and
development expenses
|
|
287
|
|
157
|
|
22
|
|
562
|
|
311
|
|
43
|
TARENA INTERNATIONAL, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
|
(in thousands,
except share data and per ADS data)
|
|
|
|
For the Three Months Ended
June 30,
|
|
For the Six Months Ended
June 30,
|
|
|
2022
(Unaudited)
|
|
2023
(Unaudited)
|
|
2023
(Unaudited)
|
|
2022
(Unaudited)
|
|
2023
(Unaudited)
|
|
2023
(Unaudited)
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Cost of
revenues
|
|
272,306
|
|
266,301
|
|
36,725
|
|
536,894
|
|
450,402
|
|
62,113
|
Share-based
compensation expense in cost of revenues
|
|
12
|
|
7
|
|
1
|
|
23
|
|
13
|
|
2
|
Non-GAAP Cost of
revenues
|
|
272,294
|
|
266,294
|
|
36,724
|
|
536,871
|
|
450,389
|
|
62,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Selling and
marketing expenses
|
|
156,874
|
|
150,999
|
|
20,824
|
|
329,274
|
|
264,150
|
|
36,428
|
Share-based
compensation expense in selling and marketing
expenses
|
|
152
|
|
68
|
|
9
|
|
296
|
|
136
|
|
19
|
Non-GAAP Selling and
marketing expenses
|
|
156,722
|
|
150,931
|
|
20,815
|
|
328,978
|
|
264,014
|
|
36,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
administrative expenses
|
|
158,742
|
|
118,819
|
|
16,386
|
|
300,327
|
|
250,366
|
|
34,527
|
Share-based
compensation expense in general and administrative
expenses
|
|
689
|
|
638
|
|
88
|
|
1,647
|
|
1,489
|
|
205
|
Non-GAAP General and
administrative expenses
|
|
158,053
|
|
118,181
|
|
16,298
|
|
298,680
|
|
248,877
|
|
34,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
|
12,878
|
|
15,696
|
|
2,165
|
|
29,220
|
|
30,824
|
|
4,251
|
Share-based
compensation expense in research and development
expenses
|
|
287
|
|
157
|
|
22
|
|
562
|
|
311
|
|
43
|
Non-GAAP Research
and development expenses
|
|
12,591
|
|
15,539
|
|
2,143
|
|
28,658
|
|
30,513
|
|
4,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
48,017
|
|
(6,803)
|
|
(939)
|
|
76,608
|
|
(65,626)
|
|
(9,050)
|
Share-based
compensation expenses
|
|
1,140
|
|
870
|
|
120
|
|
2,528
|
|
1,949
|
|
269
|
Non-GAAP Operating
income/(loss)
|
|
49,157
|
|
(5,933)
|
|
(819)
|
|
79,136
|
|
(63,677)
|
|
(8,781)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
47,920
|
|
8,344
|
|
1,150
|
|
74,989
|
|
(41,574)
|
|
(5,734)
|
Share-based
compensation expenses
|
|
1,140
|
|
870
|
|
120
|
|
2,528
|
|
1,949
|
|
269
|
Non-GAAP Net
income/(loss)
|
|
49,060
|
|
9,214
|
|
1,270
|
|
77,517
|
|
(39,625)
|
|
(5,465)
|
Less: Net income
attributable to non-controlling interests
|
|
191
|
|
817
|
|
113
|
|
699
|
|
1,132
|
|
156
|
Non-GAAP net
income/(loss) attributable to Class A and Class
B ordinary shareholders
|
|
48,869
|
|
8,397
|
|
1,157
|
|
76,818
|
|
(40,757)
|
|
(5,621)
|
Non-GAAP net
income/(loss) per ADS(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic(b)
|
|
4.46
|
|
0.78
|
|
0.11
|
|
6.96
|
|
(3.79)
|
|
(0.52)
|
Diluted(b)
|
|
4.39
|
|
0.75
|
|
0.10
|
|
6.86
|
|
(3.79)
|
|
(0.52)
|
Weighted average
number of ordinary shares outstanding used
in calculating Non-GAAP net loss per
ADS(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
54,745,188
|
|
53,856,259
|
|
53,856,259
|
|
55,211,122
|
|
53,828,590
|
|
53,828,590
|
Diluted
|
|
55,606,533
|
|
56,198,770
|
|
56,198,770
|
|
56,011,622
|
|
53,828,590
|
|
53,828,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(a) There was no
tax impact of share-based compensation expenses for the second
quarter of 2023 and 2022, respectively.
|
(b) The Non-GAAP
net income/(loss) per ADS is computed using Non-GAAP net
income/(loss) attributable to ordinary shareholders
and the same number of ordinary shares
are used in GAAP basic and diluted net income/(loss) per ADS
calculation.
|
(c) Each ADS
represents five Class A ordinary shares.
|
View original
content:https://www.prnewswire.com/news-releases/tarena-announces-the-results-for-the-second-quarter-of-2023-301911734.html
SOURCE Tarena International, Inc.