Q4 net revenues decreased by 1.7%
year-over-year
Q4 gross billings (non-GAAP) decreased by
23.3% year-over-year
Q4 net income reached RMB181.0 million
BEIJING, March 24, 2023 /PRNewswire/
-- Sunlands Technology Group (NYSE: STG) ("Sunlands" or
the "Company"), a leader in China's online post-secondary and professional
education, today announced its unaudited
financial results for the fourth quarter ended
December 31, 2022.
Fourth Quarter 2022 Financial and
Operational Snapshots
- Net revenues were RMB578.6
million (US$83.9 million),
representing a 1.7% decrease year-over-year.
- Gross billings (non-GAAP) were RMB370.8
million (US$53.8 million),
representing a 23.3% decrease year-over-year.
- Gross profit was RMB503.3 million
(US$73.0 million), representing a
0.8% increase year-over-year.
- Net income was RMB181.0 million
(US$26.2 million), compared with net
income of RMB150.8 million in the
fourth quarter of 2021.
- Net income margin, defined as net income as a percentage of net
revenues, increased to 31.3% from 25.6% in the fourth quarter of
2021.
- New student enrollments[1] were
161,348, representing a 48.2% increase year-over-year.
- As of December 31, 2022, the
Company's deferred revenue balance was RMB1,690.9 million (US$245.2 million).
[1] New
student enrollments for a given period refers to the total number
of orders placed by students that newly enroll in at least one
course during that period,including those students that enroll and
then terminate their enrollment with us, excluding orders of our
low-price courses. (In June 2019, we introduced low-price courses,
including "mini courses" and "RMB1 courses," to strengthen our
competitiveness and improve customer experience. We offer such
low-price courses mainly in the formats of recorded videos or short
live streaming.)
|
Full Year 2022 Financial and Operational
Snapshots
- Net revenues were RMB2,323.1
million (US$336.8 million),
compared with RMB2,507.8 million in
2021.
- Gross billings (non-GAAP) were RMB1,496.7 million (US$217.0 million), compared with RMB1,970.0 million in 2021.
- Gross profit was RMB1,975.0
million (US$286.3 million),
compared with RMB2,131.6 million in
2021.
- Net income was RMB643.0 million
(US$93.2 million), compared with net
income of RMB212.4 million in
2021.
- Net income margin, defined as net income as a percentage of net
revenues, increased to 27.7% from 8.5% in the year 2021.
- New student enrollments were 534,280, compared with 434,228 in
2021.
"Thanks to unwavering execution of our balanced growth and
profitability strategy, we concluded 2022 with sustained growth in
both new student enrollments and our bottom line in the fourth
quarter," said Mr. Tongbo Liu, Chief
Executive Officer of Sunlands. "We maintained our disciplined cost
management practices and streamlined operations to boost our
efficiency and profitability, driving our quarterly net income to
RMB181.0 million in the fourth
quarter and our full-year net income to RMB643.0 million, more than triple that of
2021."
"During the quarter, we sharpened our strategic focus on
diversifying our course content, enhancing our course and service
quality, and improving student acquisition efficiency, leading to
48.2% year-over-year and 19.5% quarter-over-quarter increases in
new student enrollments. Moreover, we further pursued the
opportunities fueling the ongoing market demand for skill and
interest courses by expanding our professional certification
preparation, professional skills and interest programs, which
yielded encouraging results. In addition to our continued product
mix optimization, we have been prudently exploring new monetization
opportunities to drive our future growth. As we progress into 2023,
we remain committed to refining our products and services to
fulfill a wider age group's learning needs while amplifying our
operational efficiency improvement efforts to support our
long-term, sustainable growth," concluded Mr. Liu.
Ms. Selena Lu Lv, Chief Financial Officer of Sunlands, added,
"Amid a persistently challenging macro environment, our net
revenues came in at RMB578.6 million
in the fourth quarter, representing a 1.7% year-over-year decrease
but beating the high end of our guidance range by 7.1%. As we
continued to execute cost reduction and efficiency optimization
measures, we successfully brought our fourth quarter operating
expenses down by 16.1% year-over-year, which contributed to
enhanced profitability as reflected in our 20.0% year-over-year
increase in net income. Our net income margin also expanded further
to 31.3% in the fourth quarter from 25.6% in the same period of
2021 and 29.2% in the prior quarter. In 2023, we will continue to
deepen our strategy balancing business growth and profitability as
we strive to create incremental value for our stakeholders."
Financial Results for the fourth
quarter of 2022
Net Revenues
In the fourth quarter of 2022, net revenues decreased by 1.7% to
RMB578.6 million (US$83.9 million) from RMB588.9 million in the fourth quarter of 2021.
The decrease was mainly driven by the decline in gross billings
over the recent quarters.
Cost of Revenues
Cost of revenues decreased by 15.8% to RMB75.3 million (US$10.9
million) in the fourth quarter of 2022 from RMB89.4 million in the fourth quarter of 2021.
The decrease was primarily due to declined compensation expenses
related to headcount reduction of our cost of revenues personnel,
including teachers and mentors.
Gross Profit
Gross profit increased by 0.8% to RMB503.3 million (US$73.0
million) in the fourth quarter of 2022 from RMB499.5 million in the fourth quarter of
2021.
Operating Expenses
In the fourth quarter of 2022, operating expenses were
RMB336.0 million (US$48.7 million), representing a 16.1% decrease
from RMB400.5 million in the fourth
quarter of 2021.
Sales and marketing expenses decreased by 19.7% to RMB272.5 million (US$39.5
million) in the fourth quarter of 2022 from RMB339.4 million in the fourth quarter of 2021.
The decrease was mainly due to: (i) lower spending on branding and
marketing activities; (ii) declined compensation expenses related
to headcount reduction of our sales and marketing personnel and
(iii) declined rental expenses due to the early termination of
certain lease contracts.
General and administrative expenses increased by 11.1% to
RMB56.1 million (US$8.1 million) in the fourth quarter of 2022
from RMB50.5 million in
the fourth quarter of 2021. The increase was mainly due
to the increase in professional service fees.
Product development expenses decreased by 30.8% to RMB7.4 million (US$1.1
million) in the fourth quarter of 2022 from RMB10.7 million in the fourth quarter of 2021.
The decrease was mainly due to declined compensation expenses
related to headcount reduction of our product development
personnel.
Other Income/Other Expense
Other income was RMB4.9 million
(US$0.7 million) in the fourth
quarter of 2022, compared with other expense of RMB3.1 million in the fourth quarter of 2021.
Net Income
Net income for the fourth quarter of 2022 was RMB181.0 million (US$26.2
million), compared with RMB150.8
million in the fourth quarter of 2021.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB26.03 (US$3.77)
in the fourth quarter of 2022.
Cash, Cash Equivalents, Restricted Cash and Short-term
Investments
As of December 31, 2022, the
Company had RMB757.4 million
(US$109.8 million) of cash, cash
equivalents and restricted cash and RMB70.5
million (US$10.2 million) of
short-term investments, compared with RMB676.7 million of cash, cash equivalents and
restricted cash and RMB184.2 million
of short-term investments as of December 31,
2021.
Deferred Revenue
As of December 31, 2022, the
Company had a deferred revenue balance of RMB1,690.9 million (US$245.2 million), compared with RMB2,348.2 million as of December 31, 2021.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
information technology ("IT") infrastructure equipment and
leasehold improvements necessary to support the Company's
operations. Capital expenditures were RMB0.7
million (US$0.1 million) in
the fourth quarter of 2022, compared with RMB5.2 million in the fourth quarter of 2021.
Financial Results for the Year 2022
Net Revenues
In 2022, net revenues decreased by 7.4% to RMB2,323.1 million (US$336.8 million) from RMB2,507.8 million in the year of 2021.
Cost of Revenues
Cost of revenues decreased by 7.5% to RMB348.2 million (US$50.5
million) in the year of 2022 from RMB376.2 million in the year of 2021.
Gross Profit
Gross profit decreased by 7.4% to RMB1,975.0 million (US$286.3 million) from RMB2,131.6 million in 2021.
Operating Expenses
In the year of 2022, operating expenses were RMB1,358.0 million (US$196.9 million), representing a 32.7% decrease
from RMB2,017.4 million in 2021.
Sales and marketing expenses decreased by 35.4% to RMB1,129.5 million (US$163.8 million) in 2022 from RMB1,748.4 million in 2021. The decrease was
mainly due to: (i) lower spending on branding and marketing
activities; and (ii) declined compensation expenses related
to headcount reduction of our sales and marketing
personnel.
General and administrative expenses decreased by 10.6% to
RMB185.7 million (US$26.9 million) in 2022 from RMB207.6 million in 2021. The decrease was mainly
due to a decrease in compensation expenses related to
headcount reduction of our general and administrative
personnel.
Product development expenses decreased by 30.2% to RMB42.8 million (US$6.2
million) in 2022 from RMB61.3
million in 2021. The decrease was primarily due to declined
compensation expenses related to headcount reduction of our product
development personnel.
Other Income
Other income for 2022 was RMB24.5
million (US$3.6 million),
compared with RMB39.2 million in
2021. The decrease was primarily because value-added tax exemption
offered by the relevant tax authorities as part of the national
COVID-19 relief effort came to an end in April 2021.
Net Income
Net income for 2022 was RMB643.0
million (US$93.2 million),
compared with net income of RMB212.4
million in 2021.
Basic and Diluted Net Income Per Share
Basic and diluted net income per share was RMB94.14 (US$13.65)
in 2022, compared with RMB32.56 in
2021.
Capital Expenditures
Capital expenditures were incurred primarily in connection with
IT infrastructure equipment and leasehold improvement necessary to
support the Company's operations. Capital expenditures were
RMB3.2 million (US$0.5 million) in 2022, compared with
RMB16.5 million in 2021.
Outlook
For the first quarter of 2023, Sunlands currently expects net
revenues to be between RMB530 million
to RMB550 million, which would
represent a decrease of 10.3% to 13.6% year-over-year. The above
outlook is based on the current market conditions and reflects the
Company's current and preliminary estimates of market and operating
conditions and customer demand, which are all subject to
substantial uncertainty.
Exchange Rate
The Company's business is primarily conducted in China and all revenues are denominated in
Renminbi ("RMB"). This announcement contains currency conversions
of RMB amounts into U.S. dollars ("US$") solely for the convenience
of the reader. Unless otherwise noted, all translations from RMB to
US$ are made at a rate of RMB6.8972
to US$1.00, the effective noon buying
rate for December 30, 2022 as set
forth in the H.10 statistical release of the Federal Reserve Board.
No representation is made that the RMB amounts could have been, or
could be, converted, realized or settled into US$ at that rate on
December 30, 2022, or at any other
rate.
Conference Call and Webcast
Sunlands' management team will host a conference call
at 7:30 AM U.S. Eastern Time, (7:30 PM Beijing/Hong
Kong time) on March 24, 2023, following the quarterly
results announcement.
The dial-in details for the live conference call are:
International:
|
+1-412-902-4272
|
US toll
free:
|
+1-888-346-8982
|
Mainland China toll
free:
|
400-120-1203
|
Hong Kong toll
free:
|
800-905-945
|
Hong Kong:
|
+852-3018-4992
|
Please dial in 10 minutes before the call is scheduled to begin.
When prompted, ask to be connected to the call for "Sunlands
Technology Group." Participants will be required to state their
name and company upon entering the call.
A live webcast and archive of the conference call will be
available on the Investor Relations section of Sunlands' website at
http://www.sunlands.investorroom.com/.
A replay of the conference call will be available 1 hour after
the end of the conference call until March
24, 2023, by dialing the following telephone numbers:
International:
|
+1-412-317-0088
|
US toll
free:
|
+1-877-344-7529
|
Replay access
code:
|
3501228
|
About Sunlands
Sunlands Technology Group (NYSE: STG) ("Sunlands" or the
"Company"), formerly known as Sunlands Online Education Group, is
the leader in China's online
post-secondary and professional education. With a one to many, live
streaming platform, Sunlands offers various degree and
diploma-oriented post-secondary courses as well as online
professional courses and educational content, to help students
prepare for professional certification exams and attain
professional skills. Students can access its services either
through PC or mobile applications. The Company's online platform
cultivates a personalized, interactive learning environment by
featuring a virtual learning community and a vast library of
educational content offerings that adapt to the learning habits of
its students. Sunlands offers a unique approach to education
research and development that organizes subject content into
Learning Outcome Trees, the Company's proprietary knowledge
management system. Sunlands has a deep understanding of the
educational needs of its prospective students and offers solutions
that help them achieve their goals.
About Non-GAAP Financial Measures
We use gross billings, EBITDA, non-GAAP operating
cost and expense, non-GAAP loss/income from
operations and Non-GAAP net loss/income per share, each a
non-GAAP financial measure, in evaluating our operating results and
for financial and operational decision-making purposes.
We define gross billings for a specific period as the total
amount of cash received for the sale of course packages, net of the
total amount of refunds paid in such period. Our management uses
gross billings as a performance measurement because we generally
bill our students for the entire course tuition at the time of sale
of our course packages and recognize revenue proportionally over a
period. EBITDA is defined as net loss/income excluding depreciation
and amortization, interest expense, interest income, and income tax
expenses/benefit. We believe that gross billings and EBITDA provide
valuable insight into the sales of our course packages and the
performance of our business.
These non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, their most directly
comparable financial measure prepared in accordance with GAAP. A
reconciliation of the historical non-GAAP financial measures to
their respective most directly comparable GAAP measure has been
provided in the tables included below. Investors are encouraged to
review the reconciliation of the historical non-GAAP financial
measures to their respective most directly comparable GAAP
financial measures. As gross billings, EBITDA, operating cost and
expenses excluding share-based compensation expenses, general and
administrative expenses excluding share-based compensation
expenses, sales and marketing expenses excluding share-based
compensation expenses, product development expenses excluding
share-based compensation expenses, non-GAAP net loss/income
exclude share-based compensation expenses, and basic and
diluted net loss/income per share excluding share-based
compensation expenses have material limitations as an
analytical metric and may not be calculated in the same manner by
all companies, it may not be comparable to other similarly titled
measures used by other companies. In light of the foregoing
limitations, you should not consider gross billings and EBITDA as a
substitute for, or superior to, their respective most directly
comparable financial measures prepared in accordance with GAAP. We
encourage investors and others to review our financial information
in its entirety and not rely on a single financial measure.
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. Sunlands 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 statements about Sunlands'
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that 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: Sunlands' goals and strategies; its expectations
regarding demand for and market acceptance of its brand and
services; its ability to retain and increase student enrollments;
its ability to offer new courses and educational content; its
ability to improve teaching quality and students' learning results;
its ability to improve sales and marketing efficiency and
effectiveness; its ability to engage, train and retain new faculty
members; its future business development, results of operations and
financial condition; its ability to maintain and improve technology
infrastructure necessary to operate its business; competition in
the online education industry in China; relevant government policies and
regulations relating to Sunlands' corporate structure, business and
industry; and general economic and business condition in
China Further information
regarding these and other risks, uncertainties or factors is
included in the Sunlands' 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 Sunlands does
not undertake any obligation to update such information, except as
required under applicable law.
For investor and media enquiries, please contact:
Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
626,715
|
|
753,642
|
|
109,268
|
Restricted cash
|
|
50,008
|
|
3,762
|
|
545
|
Short-term
investments
|
|
184,159
|
|
70,542
|
|
10,228
|
Prepaid expenses and other
current assets
|
|
176,349
|
|
98,272
|
|
14,248
|
Deferred costs,
current
|
|
89,353
|
|
42,886
|
|
6,218
|
Total current
assets
|
|
1,126,584
|
|
969,104
|
|
140,507
|
Non-current
assets
|
|
|
|
|
|
|
Property and equipment,
net
|
|
857,648
|
|
813,783
|
|
117,987
|
Intangible assets,
net
|
|
2,761
|
|
1,509
|
|
219
|
Right-of-use
assets
|
|
362,335
|
|
274,643
|
|
39,819
|
Deferred costs,
non-current
|
|
109,020
|
|
78,839
|
|
11,431
|
Long-term
investments
|
|
54,844
|
|
73,513
|
|
10,658
|
Deferred tax
assets
|
|
39,265
|
|
26,799
|
|
3,885
|
Other non-current
assets
|
|
40,163
|
|
37,880
|
|
5,492
|
Total non-current
assets
|
|
1,466,036
|
|
1,306,966
|
|
189,491
|
TOTAL ASSETS
|
|
2,592,620
|
|
2,276,070
|
|
329,998
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accrued expenses and
other current liabilities (including accrued expenses
|
|
|
|
|
|
|
and other
current liabilities of the consolidated VIEs without recourse
to
|
|
|
|
|
|
|
Sunlands
Technology Group of RMB197,467 and RMB191,172 as of
|
|
|
|
|
|
|
December
31, 2021 and 2022, respectively)
|
|
586,043
|
|
436,339
|
|
63,263
|
Deferred revenue,
current (including deferred revenue, current of the consolidated
VIEs
|
|
|
|
|
|
|
without
recourse to Sunlands Technology Group of RMB295,958 and
|
|
|
|
|
|
|
RMB374,208
as of December 31, 2021 and 2022, respectively)
|
|
1,266,948
|
|
986,086
|
|
142,969
|
Lease liabilities,
current portion (including lease liabilities, current portion of
the
|
|
|
|
|
|
|
consolidated VIEs without recourse to Sunlands Technology Group of
RMB8,366
|
|
|
|
|
|
|
and RMB17,065 as
of December 31, 2021 and 2022, respectively)
|
|
14,310
|
|
17,065
|
|
2,474
|
Long-term debt,
current portion (including long-term debt, current portion of
the
|
|
|
|
|
|
|
consolidated VIEs without
recourse to Sunlands Technology Group of nil and nil
|
|
|
|
|
|
|
as
of December 31, 2021 and 2022, respectively)
|
|
38,654
|
|
38,654
|
|
5,604
|
Total current
liabilities
|
|
1,905,955
|
|
1,478,144
|
|
214,310
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS-continued
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
As of December
31,
|
|
As of
December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Non-current
liabilities
|
|
|
|
|
|
|
Deferred revenue,
non-current (including deferred revenue, non-current
|
|
|
|
|
|
|
of the consolidated
VIEs without recourse to Sunlands Technology Group of
|
|
|
|
|
|
|
RMB257,071 and
RMB251,080 as of December 31, 2021 and 2022,
|
|
|
|
|
|
|
respectively)
|
|
1,081,231
|
|
704,860
|
|
102,195
|
Lease liabilities,
non-current portion (including lease liabilities, non-current
portion
|
|
|
|
|
|
|
of the consolidated
VIEs without recourse to Sunlands Technology Group of
|
|
|
|
|
|
|
RMB318,598 and
RMB316,844 as of December 31, 2021 and 2022,
|
|
|
|
|
|
|
respectively)
|
|
404,133
|
|
316,844
|
|
45,938
|
Deferred tax liabilities (including deferred tax liabilities of the
consolidated
|
|
|
|
|
|
|
VIEs without recourse
to Sunlands Technology Group of RMB2,312 and RMB1,122
|
|
|
|
|
|
|
as of December 31,
2021 and 2022, respectively)
|
|
21,782
|
|
5,984
|
|
868
|
Other non-current
liabilities (including other non-current liabilities of the
consolidated
|
|
|
|
|
|
|
VIEs without recourse
to Sunlands Technology Group of RMB963 and RMB1,063
|
|
|
|
|
|
|
as of December 31,
2021 and 2022, respectively)
|
|
11,698
|
|
6,770
|
|
982
|
Long-term debt,
non-current portion(including long-term debt, non-current portion
of the
|
|
|
|
|
|
|
consolidated VIEs
without recourse to Sunlands Technology Group of nil and
nil
|
|
|
|
|
|
|
as of December 31,
2021 and 2022, respectively)
|
|
181,973
|
|
143,319
|
|
20,779
|
Total non-current
liabilities
|
|
1,700,817
|
|
1,177,777
|
|
170,762
|
TOTAL
LIABILITIES
|
|
3,606,772
|
|
2,655,921
|
|
385,072
|
|
SHAREHOLDERS'
DEFICIT
|
|
|
|
|
|
|
Class A ordinary shares (par value of US$0.00005, 796,062,195
shares
|
|
|
|
|
|
|
authorized; 2,085,939
and 2,982,516 shares issued as of December 31, 2021
|
|
|
|
|
|
|
and December 31, 2022,
respectively; 1,839,553 and 2,618,698 shares
|
|
|
|
|
|
|
outstanding as of
December 31, 2021 and 2022, respectively)
|
|
1
|
|
1
|
|
-
|
Class B ordinary shares (par value of US$0.00005, 826,389
shares
|
|
|
|
|
|
|
authorized; 826,389
and 826,389 shares issued and outstanding
|
|
|
|
|
|
|
as of December 31,
2021 and 2022, respectively)
|
|
-
|
|
-
|
|
-
|
Class C ordinary
shares (par value of US$0.00005, 203,111,416 shares
|
|
|
|
|
|
|
authorized; 4,002,930
and 3,481,353 shares issued and outstanding
|
|
|
|
|
|
|
as of December 31,
2021 and 2022, respectively)
|
|
1
|
|
1
|
|
-
|
Treasury stock
|
|
-
|
|
-
|
|
-
|
Accumulated deficit
|
|
(3,456,073)
|
|
(2,812,114)
|
|
(407,718)
|
Additional paid-in capital
|
|
2,364,313
|
|
2,309,740
|
|
334,881
|
Accumulated other comprehensive income
|
|
82,532
|
|
127,885
|
|
18,541
|
Total Sunlands
Technology Group shareholders' deficit
|
|
(1,009,226)
|
|
(374,487)
|
|
(54,296)
|
Non-controlling
interest
|
|
(4,926)
|
|
(5,364)
|
|
(778)
|
TOTAL SHAREHOLDERS'
DEFICIT
|
|
(1,014,152)
|
|
(379,851)
|
|
(55,074)
|
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
2,592,620
|
|
2,276,070
|
|
329,998
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net revenues
|
|
588,883
|
|
578,588
|
|
83,887
|
Cost of
revenues
|
|
(89,378)
|
|
(75,291)
|
|
(10,916)
|
Gross profit
|
|
499,505
|
|
503,297
|
|
72,971
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(339,368)
|
|
(272,477)
|
|
(39,505)
|
Product development
expenses
|
|
(10,656)
|
|
(7,369)
|
|
(1,068)
|
General and administrative
expenses
|
|
(50,499)
|
|
(56,129)
|
|
(8,138)
|
Total operating
expenses
|
|
(400,523)
|
|
(335,975)
|
|
(48,711)
|
Income from
operations
|
|
98,982
|
|
167,322
|
|
24,260
|
Interest
income
|
|
3,018
|
|
7,040
|
|
1,021
|
Interest
expense
|
|
(2,900)
|
|
(2,295)
|
|
(333)
|
Other (expense)/income,
net
|
|
(3,145)
|
|
4,860
|
|
705
|
Impairment loss on
long-term investments
|
|
(5,000)
|
|
-
|
|
-
|
Gain/(loss) on disposal
of subsidiaries
|
|
43,967
|
|
(319)
|
|
(46)
|
Income
before income tax
benefit/(expense)
|
|
|
|
|
|
|
and (loss)/income from
equity method investments
|
|
134,922
|
|
176,608
|
|
25,607
|
Income tax
benefit/(expense)
|
|
20,581
|
|
(3,424)
|
|
(496)
|
(Loss)/income from
equity method investments
|
|
(4,731)
|
|
7,770
|
|
1,127
|
Net income
|
|
150,772
|
|
180,954
|
|
26,238
|
|
|
|
|
|
|
|
Less: Net (loss)/income
attributable to non-controlling interest
|
|
(3,104)
|
|
330
|
|
48
|
Net income attributable
to Sunlands Technology Group
|
|
153,876
|
|
180,624
|
|
26,190
|
Net income per share
attributable to ordinary shareholders of
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
Basic and diluted
|
|
22.89
|
|
26.03
|
|
3.77
|
Weighted average shares
used in calculating net income
|
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
|
Basic and diluted
|
|
6,722,670
|
|
6,939,213
|
|
6,939,213
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(Amounts in
thousands)
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
|
|
150,772
|
|
180,954
|
|
26,238
|
Other
comprehensive loss, net of tax
effect of nil:
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
|
(6,117)
|
|
(15,938)
|
|
(2,311)
|
Total comprehensive
income
|
|
144,655
|
|
165,016
|
|
23,927
|
Less: comprehensive
(loss)/income attributable to non-controlling
|
|
|
|
|
|
|
interest
|
|
(3,104)
|
|
330
|
|
48
|
Comprehensive income
attributable to Sunlands Technology
|
|
|
|
|
|
|
Group
|
|
147,759
|
|
164,686
|
|
23,879
|
SUNLANDS TECHNOLOGY
GROUP
|
RECONCILIATION
OF GAAP AND NON-GAAP RESULTS
|
(Amounts in
thousands)
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
Net revenues
|
|
588,883
|
|
578,588
|
Less: other
revenues
|
|
(21,236)
|
|
(39,344)
|
Add: tax and
surcharges
|
|
58,093
|
|
10,823
|
Add: ending deferred
revenue
|
|
2,348,179
|
|
1,690,946
|
Add: deferred revenue
in connection with disposal of subsidiaries
|
|
29,572
|
|
259
|
Add: ending refund
liability
|
|
243,236
|
|
133,066
|
Less: beginning
deferred revenue
|
|
(2,540,886)
|
|
(1,798,558)
|
Less: beginning refund
liability
|
|
(222,266)
|
|
(204,961)
|
Gross billings
(non-GAAP)
|
|
483,575
|
|
370,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
150,772
|
|
180,954
|
Add: income tax
(benefit)/expense
|
|
(20,581)
|
|
3,424
|
depreciation and
amortization
|
|
9,651
|
|
18,584
|
interest
expense
|
|
2,900
|
|
2,295
|
Less: interest
income
|
|
(3,018)
|
|
(7,040)
|
EBITDA
(non-GAAP)
|
|
139,724
|
|
198,217
|
SUNLANDS TECHNOLOGY
GROUP
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
For the Three Months
Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
Cost of
revenues
|
|
(89,378)
|
|
(75,291)
|
Less: Share-based
compensation expenses in cost of revenues
|
|
(56)
|
|
-
|
Non-GAAP cost of
revenues
|
|
(89,322)
|
|
(75,291)
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(339,368)
|
|
(272,477)
|
Less: Share-based
compensation expenses in sales and marketing expenses
|
|
(58)
|
|
-
|
Non-GAAP sales and
marketing expenses
|
|
(339,310)
|
|
(272,477)
|
|
|
|
|
|
General and
administrative expenses
|
|
(50,499)
|
|
(56,129)
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
|
(357)
|
|
-
|
Non-GAAP general and
administrative expenses
|
|
(50,142)
|
|
(56,129)
|
|
|
|
|
|
Operating costs and
expense
|
|
(489,901)
|
|
(411,266)
|
Less: Share-based
compensation expenses
|
|
(471)
|
|
-
|
Non-GAAP operating
costs and expense
|
|
(489,430)
|
|
(411,266)
|
|
|
|
|
|
Income from
operations
|
|
98,982
|
|
167,322
|
Less: Share-based
compensation expenses
|
|
(471)
|
|
-
|
Non-GAAP income
from operations
|
|
99,453
|
|
167,322
|
|
|
|
|
|
Net income attributable
to Sunlands Technology Group
|
|
153,876
|
|
180,624
|
Less: Share-based
compensation expenses
|
|
(471)
|
|
-
|
Non-GAAP net income
attributable to Sunlands Technology Group
|
|
154,347
|
|
180,624
|
|
|
|
|
|
Net income per share
attributable to ordinary shareholders of
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
Basic and diluted
|
|
22.89
|
|
26.03
|
Non-GAAP net income per
share attributable to ordinary shareholders of
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
Basic and diluted
|
|
22.96
|
|
26.03
|
|
|
|
|
|
Weighted average shares
used in calculating net income
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
Basic and diluted
|
|
6,722,670
|
|
6,939,213
|
Weighted average shares
used in calculating Non-GAAP net income
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
Basic and diluted
|
|
6,722,670
|
|
6,939,213
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
For the
Years Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net revenues
|
|
2,507,817
|
|
2,323,101
|
|
336,818
|
Cost of
revenues
|
|
(376,189)
|
|
(348,150)
|
|
(50,477)
|
Gross profit
|
|
2,131,628
|
|
1,974,951
|
|
286,341
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,748,436)
|
|
(1,129,508)
|
|
(163,763)
|
Product development
expenses
|
|
(61,325)
|
|
(42,834)
|
|
(6,210)
|
General and administrative
expenses
|
|
(207,602)
|
|
(185,667)
|
|
(26,919)
|
Total operating
expenses
|
|
(2,017,363)
|
|
(1,358,009)
|
|
(196,892)
|
Income from
operations
|
|
114,265
|
|
616,942
|
|
89,449
|
Interest
income
|
|
16,175
|
|
16,248
|
|
2,356
|
Interest
expense
|
|
(10,929)
|
|
(10,059)
|
|
(1,458)
|
Other income,
net
|
|
39,156
|
|
24,527
|
|
3,556
|
Impairment loss on
long-term investments
|
|
(5,000)
|
|
(500)
|
|
(72)
|
Gain on disposal of
subsidiaries
|
|
43,967
|
|
1,390
|
|
202
|
Income before income
tax benefit
|
|
197,634
|
|
648,548
|
|
94,033
|
Income tax
benefit/(expense)
|
|
19,618
|
|
(11,992)
|
|
(1,739)
|
(Loss)/gain from equity
method investments
|
|
(4,886)
|
|
6,453
|
|
936
|
Net income
|
|
212,366
|
|
643,009
|
|
93,230
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
(6,690)
|
|
(950)
|
|
(138)
|
Net income attributable
to Sunlands Technology Group
|
|
219,056
|
|
643,959
|
|
93,368
|
Net income per share
attributable to ordinary shareholders of
|
|
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
|
|
Basic and diluted
|
|
32.56
|
|
94.14
|
|
13.65
|
Weighted average shares
used in calculating net income
|
|
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
|
|
Basic and diluted
|
|
6,727,552
|
|
6,840,079
|
|
6,840,079
|
|
|
|
|
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(Amounts in
thousands)
|
|
|
|
For the
Years Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net income
|
|
212,366
|
|
643,009
|
|
93,230
|
Other comprehensive
(loss)/income, net of tax effect of nil:
|
|
|
|
|
|
|
Change in cumulative
foreign currency translation adjustments
|
|
(13,958)
|
|
45,353
|
|
6,576
|
Total comprehensive
income
|
|
198,408
|
|
688,362
|
|
99,806
|
Less: comprehensive
loss attributable to non-controlling
|
|
|
|
|
|
|
interest
|
|
(6,690)
|
|
(950)
|
|
(138)
|
Comprehensive income
attributable to Sunlands Technology
|
|
|
|
|
|
|
Group
|
|
205,098
|
|
689,312
|
|
99,944
|
SUNLANDS TECHNOLOGY
GROUP
|
RECONCILIATION
OF GAAP AND NON-GAAP RESULTS
|
(Amounts in
thousands)
|
|
|
|
For the
Years Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
Net revenues
|
|
2,507,817
|
|
2,323,101
|
Less: other
revenues
|
|
(79,444)
|
|
(125,864)
|
Add: tax and
surcharges
|
|
177,966
|
|
66,638
|
Add: ending deferred
revenue
|
|
2,348,179
|
|
1,690,946
|
Add: deferred revenue
in connection with disposal of subsidiaries
|
|
29,572
|
|
259
|
Add: ending refund
liability
|
|
243,236
|
|
133,066
|
Less: beginning
deferred revenue
|
|
(3,024,443)
|
|
(2,348,179)
|
Less: beginning refund
liability
|
|
(232,859)
|
|
(243,236)
|
Gross billings
(non-GAAP)
|
|
1,970,024
|
|
1,496,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
212,366
|
|
643,009
|
Add: income tax
(benefit)/expense
|
|
(19,618)
|
|
11,992
|
depreciation and
amortization
|
|
37,916
|
|
46,684
|
interest
expense
|
|
10,929
|
|
10,059
|
Less: interest
income
|
|
(16,175)
|
|
(16,248)
|
EBITDA
(non-GAAP)
|
|
225,418
|
|
695,496
|
SUNLANDS TECHNOLOGY
GROUP
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(Amounts in thousands,
except for share and per share data, or otherwise noted)
|
|
|
|
For the
Years Ended December 31,
|
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
Cost of
revenues
|
|
(376,189)
|
|
(348,150)
|
Less: Share-based
compensation expenses in cost of revenues
|
|
(101)
|
|
(33)
|
Non-GAAP cost of
revenues
|
|
(376,088)
|
|
(348,117)
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,748,436)
|
|
(1,129,508)
|
Less: Share-based
compensation expenses in sales and marketing expenses
|
|
14
|
|
(4,166)
|
Non-GAAP sales and
marketing expenses
|
|
(1,748,450)
|
|
(1,125,342)
|
|
|
|
|
|
General and
administrative expenses
|
|
(207,602)
|
|
(185,667)
|
Less: Share-based
compensation expenses in general and administrative
expenses
|
|
(681)
|
|
(2,982)
|
Non-GAAP general and
administrative expenses
|
|
(206,921)
|
|
(182,685)
|
|
|
|
|
|
Operating costs and
expense
|
|
(2,393,552)
|
|
(1,706,159)
|
Less: Share-based
compensation expenses
|
|
(768)
|
|
(7,181)
|
Non-GAAP operating
costs and expense
|
|
(2,392,784)
|
|
(1,698,978)
|
|
|
|
|
|
Income from
operations
|
|
114,265
|
|
616,942
|
Less: Share-based
compensation expenses
|
|
(768)
|
|
(7,181)
|
Non-GAAP income from
operations
|
|
115,033
|
|
624,123
|
|
|
|
|
|
Net income attributable
to Sunlands Technology Group
|
|
219,056
|
|
643,959
|
Less: Share-based
compensation expenses
|
|
(768)
|
|
(7,181)
|
Non-GAAP net income
attributable to Sunlands Technology Group
|
|
219,824
|
|
651,140
|
|
|
|
|
|
Net income per share
attributable to ordinary shareholders of
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
Basic and diluted
|
|
32.56
|
|
94.14
|
Non-GAAP net income per
share attributable to ordinary shareholders of
|
|
|
|
|
Sunlands
Technology Group:
|
|
|
|
|
Basic and diluted
|
|
32.68
|
|
95.19
|
|
|
|
|
|
Weighted average shares
used in calculating net income
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
Basic and diluted
|
|
6,727,552
|
|
6,840,079
|
Weighted average shares
used in calculating Non-GAAP net income
|
|
|
|
|
per
ordinary share:
|
|
|
|
|
Basic and diluted
|
|
6,727,552
|
|
6,840,079
|
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content:https://www.prnewswire.com/news-releases/sunlands-technology-group-announces-unaudited-fourth-quarter-and-full-year-2022-financial-results-301780661.html
SOURCE Sunlands Technology Group