Chinese K12 education and large-class tutoring company Gaotu Techedu Inc. (NYSE:GOTU) has reported second-quarter net revenue of RMB537.8 million as compared to net revenue of RMB2,232.3 million a year ago. This is an ~76% decrease in the company’s top line.
On the other hand, net loss narrowed to RMB49.8 million from RMB918.8 million during this period. The company’s gross billings nearly doubled sequentially and it generated positive net operating cash flow.
Further, this was the third consecutive quarter of non-GAAP profitability for GOTU post its restructuring.
Net revenue for the third quarter is expected to land between RMB576 million and RMB596 million. This range indicates a year-over-year decrease between 46.5% and 48.3%.
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