Exhibit 99.1
QuantaSing Announces Unaudited Financial Results for the Second Quarter of Fiscal Year 2025
Beijing, March 11, 2025 /GLOBE NEWSWIRE/ - QuantaSing Group Limited (NASDAQ: QSG) (“QuantaSing” or the “Company”), a leading lifestyle solution provider empowering adults to live better and longer, today announced its unaudited financial results for the second quarter of the fiscal year ending June 30, 2025 (the “second quarter of FY 2025”, which refers to the quarter from October 1, 2024 to December 31, 2024).
Highlights for the Second Quarter of FY 2025
| ● | Revenues for the second quarter of FY 2025 were RMB726.6 million (US$99.6 million), representing a decrease of 10.3% from the first quarter of the fiscal year ending June 30, 2025 (the “first quarter of FY 2025”) and a decrease of 25.9% from the second quarter of the fiscal year ended June 30, 2024 (the “second quarter of FY 2024”). |
| | | |
| ● | Gross billings of individual online learning services1 for the second quarter of FY 2025 were RMB546.2 million (US$74.8 million), representing a decrease of 23.5% from the first quarter of FY 2025 and a decrease of 42.2% from the second quarter of FY 2024. |
| | | |
| ● | Net income for the second quarter of FY 2025 was RMB126.8million (US$17.4 million), representing an increase of 57.1% from the first quarter of FY 2025 and an increase of 17.8% from the second quarter of FY 2024. |
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| ● | Adjusted net income2 for the second quarter of FY 2025 was RMB132.0 million (US$18.1 million), representing an increase of 50.0% from the first quarter of FY 2025 and an increase of 27.1% from the second quarter of FY 2024. |
| | | |
| ● | Total registered users increased by 24.2% to approximately 139.6 million as of December 31, 2024, from 112.4 million as of December 31, 2023. |
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| ● | Paying learners was approximately 0.3 million in the second quarter of FY 2025. |
Mr. Peng Li, Chairman and Chief Executive Officer of QuantaSing, commented, “Our second quarter results demonstrate our deliberate approach to business development as we execute our strategic transition. Our established online learning business continues to operate effectively, generating steady cash flow that supports our strategic initiatives. Meanwhile, our consumer business is experiencing promising growth, driven by strong demand for our health and wellness products, with a focus on the silver economy. By diversifying our revenue streams across multiple business lines while enhancing our technological capabilities, we’re building a more resilient business model that can navigate market uncertainties. Our focus remains on creating long-term shareholder value through disciplined execution and selective investments in promising growth opportunities.”
Mr. Dong Xie, Chief Financial Officer of QuantaSing, added, “Our second quarter financial performance reflects our disciplined approach to business transformation. While revenue has moderated as expected during this transition, our focus on operational efficiency has enabled us to maintain a solid financial foundation. Our ongoing IT infrastructure enhancement and process optimization efforts are driving improved efficiency across our business lines. With our cash and cash equivalents, restricted cash and short-term investments of RMB1,213.2 million, we have the flexibility to carefully evaluate strategic opportunities as we navigate this transitional phase.”
| 1 | Gross billings of individual online learning services is a non-GAAP financial measure. For a reconciliation of revenues of individual online learning services to gross billings of individual online learning services, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below. |
| 2 | Adjusted net income is a non-GAAP financial measure. For a reconciliation of net income to adjusted net income, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below. |
Financial Results for the Second Quarter of FY 2025
Revenues
Revenues were RMB726.6 million (US$99.6 million) in the second quarter of FY 2025, compared to RMB980.5 million in the second quarter of FY 2024. The change reflects the Company’s deliberate shift from traffic-driven growth to high-quality growth, with strategic focus on the silver economy market.
| ● | Revenues from individual online learning services decreased by 31.2% year over year to RMB601.3 million (US$82.5million) in the second quarter of FY 2025, from RMB873.6 million in the second quarter of FY 2024. This decrease was primarily due to a decrease of RMB162.7 million (US$22.3 million) in revenues from skills upgrading courses, a decline of RMB92.6 million (US$12.7 million) in revenues from financial literacy courses and a decline of RMB17.0 million (US$2.3 million) in revenues from recreation and leisure courses. |
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| ● | Revenues from enterprise services were RMB55.7 million (US$7.6 million) in the second quarter of FY 2025, compared to RMB57.6 million in the second quarter of FY 2024, representing a year-over-year change of 3.4%, primarily due to changes in existing customers’ demands. |
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| ● | Revenues from consumer business3 increased to RMB64.5 million (US$8.8 million) in the second quarter of FY 2025, representing a 39.0% increase from RMB46.4 million in the second quarter of FY 2024, driven by the Company’s expansion into wellness products. |
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| ● | Revenues from others3 were RMB5.1 million (US$0.7 million) in the second quarter of FY 2025, compared to RMB3.0 million in the second quarter of FY 2024, primarily due to revenue generated from the Company’s newly initiated business. |
Cost of revenues
Cost of revenues was RMB122.5 million (US$16.8 million) in the second quarter of FY 2025, compared to RMB145.0 million in the second quarter of FY 2024, representing a decrease of 15.5%. The decrease was primarily due to reduced labor outsourcing costs of RMB12.2 million (US$1.7 million) and lower staff costs of RMB5.8 million (US$0.8 million), partially offset by a RMB5.8 million (US$0.8 million) increase in procurement costs.
Sales and marketing expenses
Sales and marketing expenses were RMB407.0 million (US$55.8 million) in the second quarter of FY 2025, compared to RMB657.1 million in the second quarter of FY 2024, representing a decrease of 38.1%. The decrease was mainly due to declines in marketing and promotion expenses of RMB224.5 million (US$30.8 million) and labor outsourcing costs of RMB31.0 million (US$4.3 million), partially offset by an increase in staff costs of RMB14.0 million (US$1.9 million), which includes an increase in share-based compensation expenses of RMB16.8 million (US$2.3 million).
Research and development expenses
Research and development expenses were RMB28.4 million (US$3.9 million) in the second quarter of FY 2025, compared to RMB41.0 million in the second quarter of FY 2024, representing a decrease of 30.9%. The decrease was primarily due to lower staff costs of RMB9.7 million (US$1.3 million).
| 3 | Effective from the fourth quarter of FY 2024, the Company has introduced “Revenues from Consumer Business” as a separate line item. This revenue was previously included in “Revenues from Others”. The historical revenues presentation has been conformed to the current presentation. |
General and administrative expenses
General and administrative expenses were RMB30.5 million (US$4.2 million) in the second quarter of FY 2025, compared to RMB35.1 million in the second quarter of FY 2024, representing a decrease of 12.9%. The decrease was primarily due to lower share-based compensation expenses of RMB5.0 million (US$0.7 million).
Net income and adjusted net income
Net income was RMB126.8 million (US$17.4 million) in the second quarter of FY 2025, compared with RMB107.6 million in the second quarter of FY 2024. Adjusted net income was RMB132.0 million (US$18.1 million) in the second quarter of FY 2025, compared to RMB103.9 million in the second quarter of FY 2024.
Earnings per share and adjusted earnings per share4
Basic and diluted net income per share were RMB0.78 (US$0.11) and RMB0.77 (US$0.11), respectively, in the second quarter of FY 2025, compared with basic and diluted net income per share of RMB0.65 and RMB0.64 in the second quarter of FY 2024. Basic and diluted adjusted net income per share were RMB0.81 (US$0.11) and RMB0.80 (US$0.11), respectively, in the second quarter of FY 2025, compared with basic and diluted adjusted net income per share of RMB0.63 and RMB0.62 in the second quarter of FY 2024.
Balance Sheet
As of December 31, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1,213.2 million (US$166.2 million), compared with RMB1,026.3 million as of June 30, 2024.
Recent Developments
Changes in Composition of Board
On January 21, 2025, the Company announced changes to its board of directors (the “Board”). Mr. Chenyang Wei resigned as a director effective January 21, 2025, for personal reasons. The Company appointed Mr. Shunyan Zhu as a new independent director and member of the audit committee of the Board (the “Audit Committee”), effective the same date. Following these changes, the Board consists of seven directors: Mr. Peng Li, Mr. Frank Lin, Mr. Dong Xie and Ms. Xihao Liu, and three independent directors, Mr. Hongqiang Zhao, Ms. Pei Hua (Helen) Wong and Mr. Shunyan Zhu. The Audit Committee consists of the three independent directors.
Investments in Letsvan
Through a series of transactions commencing in December 2024, the Company has invested in Shenzhen Yiqi Culture Co., Ltd. (深圳市熠起文化有限公司)(“Letsvan”), a PRC-based company primarily engaged in IP incubation and discovery, IP operation, copyright commercialization, and the promotion and sales of pop toys and other cultural products for global artists. The Company believes that such investments in Letsvan will effectively capitalize on the Company’s transferable expertise and established operational infrastructure, thereby unlocking a wider array of business opportunities. The Company expects to consummate the investments by the end of March 2025, upon which the Company will have control over and be able to consolidate the results of Letsvan into the Company’s consolidated financial statements.
| 4 | Basic and diluted adjusted net income per share are non-GAAP financial measures. For a reconciliation of basic and diluted net income per share to basic and diluted adjusted net income per share, see the “Non-GAAP Financial Measures” section and the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below. |
Share Repurchase Program
On June 11, 2024, the Company announced that the Board had approved a share repurchase program of up to US$20.0 million of the Company’s Class A ordinary shares in the form of ADSs for a 12-month period beginning on June 11, 2024 (the “2024 Share Repurchase Program”). As of December 31, 2024, a total of 1.7 million ADSs had been repurchased for an aggregate consideration of US$3.6 million under the 2024 Share Repurchase Program.
Conference Call Information
The Company’s management team will hold an earnings conference call at 07:00 A.M. Eastern Time on Tuesday, March 11, 2025 (07:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers:
| International: | | 1-412-902-4272 |
| United States Toll Free: | | 1-888-346-8982 |
| Mainland China Toll Free: | | 4001-201203 |
| Hong Kong Toll Free: | | 800-905945 |
| Conference ID: | | QuantaSing Group Limited |
The replay will be accessible through March 18, 2025 by dialing the following numbers:
| International: | | 1-412-317-0088 |
| United States Toll Free: | | 1-877-344-7529 |
| Replay Access Code: | | 7982374 |
A live and archived webcast of the conference call will be available at the Company’s investor relations website at https://ir.quantasing.com.
Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, the Company uses gross billings of individual online learning services, adjusted net income and basic and diluted adjusted net income per share as its non-GAAP financial measures. Gross billings of individual online learning services for a specific period represents revenues of the Company’s individual online learning services net of the changes in deferred revenues in such period, further adjusted by value-added tax in such period. Adjusted net income represents net income excluding share-based compensation expense. Basic and diluted adjusted net income per share represents adjusted net income attributable to QuantaSing Group Limited divided by weighted average number of ordinary shares outstanding during the periods used in computing adjusted net income per share, basic and diluted. The Company believes that the non-GAAP financial measures provide useful information about the Company’s results of operations, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for revenue, net income, net income per share, basic and diluted or other consolidated statements of operations data prepared in accordance with U.S. GAAP. The Company’s definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures.
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on these non-GAAP financial measures, please see the table captioned “QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release.
Exchange Rate Information
This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.
Safe Harbor Statements
This announcement contains forward-looking statements within the meaning of Section 27A of Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1955. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding QuantaSing’s financial outlook, beliefs and expectations. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), 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. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new users and learners and to increase the spending and revenues generated from users and learners; its ability to maintain and enhance the recognition and reputation of its brand; its expectations regarding demand for and market acceptance of its services and products; the expected growth, trends and competition in the markets that the Company operates in; changes in its revenues and certain cost or expense items; PRC governmental policies and regulations relating to the Company’s business and industry, general economic and political conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC, including, without limitation, the final prospectus related to the IPO filed with the SEC dated January 24, 2023. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
About QuantaSing Group Limited
QuantaSing is a leading lifestyle solution provider empowering adults to live better and longer. Leveraging its profound understanding of adult users and robust infrastructure, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners as well as consumer products and services in selected areas to address the senior users’ aspirations for wellness.
For more information, please visit: https://ir.quantasing.com.
Contact
Investor Relations
Leah Guo
QuantaSing Group Limited
Email: ir@quantasing.com
Tel: +86 (10) 6493-7857
Robin Yang, Partner
ICR, LLC
Email: QuantaSing.IR@icrinc.com
Phone: +1 (212) 537-0429
QUANTASING GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except for share and per share data)
| | | As of | |
| | | June 30,
2024 | | | December 31,
2024 | | | December 31,
2024 | |
| | | RMB | | | RMB | | | US$ | |
| | | | | | | | | | |
| ASSETS | | | | | | | | | |
| Current assets: | | | | | | | | | |
| Cash and cash equivalents | | | 779,931 | | | | 1,094,762 | | | | 149,982 | |
| Restricted cash | | | 160 | | | | 1,174 | | | | 161 | |
| Short-term investments | | | 246,195 | | | | 117,285 | | | | 16,068 | |
| Accounts receivable, net | | | 16,676 | | | | 16,403 | | | | 2,247 | |
| Amounts due from related parties | | | 4,488 | | | | - | | | | - | |
| Inventory, net | | | 6,345 | | | | 13,398 | | | | 1,836 | |
| Prepayments and other current assets | | | 275,549 | | | | 157,802 | | | | 21,620 | |
| Total current assets | | | 1,329,344 | | | | 1,400,824 | | | | 191,914 | |
| | | | | | | | | | | | | |
| Non-current assets: | | | | | | | | | | | | |
| Property and equipment, net | | | 6,569 | | | | 5,032 | | | | 689 | |
| Long-term investments | | | 9,010 | | | | 35,776 | | | | 4,901 | |
| Intangible assets, net | | | - | | | | 59 | | | | 8 | |
| Operating lease right-of-use assets | | | 58,889 | | | | 37,205 | | | | 5,097 | |
| Deferred tax assets | | | 847 | | | | 2,014 | | | | 276 | |
| Other non-current assets | | | 21,360 | | | | 6,102 | | | | 836 | |
| Total non-current assets | | | 96,675 | | | | 86,188 | | | | 11,807 | |
| TOTAL ASSETS | | | 1,426,019 | | | | 1,487,012 | | | | 203,721 | |
| | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | |
| Accounts payables | | | 62,066 | | | | 46,301 | | | | 6,343 | |
| Accrued expenses and other current liabilities | | | 190,508 | | | | 197,866 | | | | 27,108 | |
| Income tax payable | | | 20,399 | | | | 51,966 | | | | 7,119 | |
| Contract liabilities, current portion | | | 385,227 | | | | 304,788 | | | | 41,756 | |
| Advance from customers | | | 162,257 | | | | 122,815 | | | | 16,826 | |
| Operating lease liabilities, current portion | | | 49,099 | | | | 45,021 | | | | 6,168 | |
| Total current liabilities | | | 869,556 | | | | 768,757 | | | | 105,320 | |
| | | | | | | | | | | | | |
| Non-current liabilities: | | | | | | | | | | | | |
| Contract liabilities, non-current portion | | | 11,365 | | | | 28,057 | | | | 3,844 | |
| Operating lease liabilities, non-current portion | | | 16,989 | | | | 2,443 | | | | 335 | |
| Deferred tax liabilities | | | 11,625 | | | | 23,765 | | | | 3,256 | |
| Total non-current liabilities | | | 39,979 | | | | 54,265 | | | | 7,435 | |
| TOTAL LIABILITIES | | | 909,535 | | | | 823,022 | | | | 112,755 | |
QUANTASING GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - continued
(Amounts in thousands, except for share and per share data)
| | | As of | |
| | | June 30,
2024 | | | December 31,
2024 | | | December 31,
2024 | |
| | | RMB | | | RMB | | | US$ | |
| | | | | | | | | | |
| SHAREHOLDERS’ EQUITY | | | | | | | | | |
| Class A ordinary shares | | | 81 | | | | 81 | | | | 11 | |
| Class B ordinary shares | | | 34 | | | | 34 | | | | 5 | |
| Treasury stock | | | (109,257 | ) | | | (46,363 | ) | | | (6,352 | ) |
| Additional paid-in capital | | | 1,192,474 | | | | 1,067,975 | | | | 146,312 | |
| Accumulated other comprehensive income | | | 17,313 | | | | 18,780 | | | | 2,573 | |
| Accumulative deficit | | | (584,161 | ) | | | (376,717 | ) | | | (51,610 | ) |
| TOTAL QUANTASING GROUP LIMITED SHAREHOLDERS’ EQUITY | | | 516,484 | | | | 663,790 | | | | 90,939 | |
| Non-controlling interests | | | - | | | | 200 | | | | 27 | |
| TOTAL SHAREHOLDERS’ EQUITY | | | 516,484 | | | | 663,990 | | | | 90,966 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | | 1,426,019 | | | | 1,487,012 | | | | 203,721 | |
QUANTASING GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Amounts in thousands, except for shares and per share data)
| | | For the Three Months
Ended December 31, | | | For the Six Months
Ended December 31, | |
| | | 2023 | | | 2024 | | | 2024 | | | 2023 | | | 2024 | | | 2024 | |
| | | RMB | | | RMB | | | US$ | | | RMB | | | RMB | | | US$ | |
| | | | | | | | | | | | | | | | | | | |
| Revenues | | | 980,542 | | | | 726,647 | | | | 99,550 | | | | 1,849,678 | | | | 1,537,051 | | | | 210,575 | |
| Cost of revenues | | | (145,018 | ) | | | (122,512 | ) | | | (16,784 | ) | | | (263,210 | ) | | | (256,960 | ) | | | (35,203 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross Profit | | | 835,524 | | | | 604,135 | | | | 82,766 | | | | 1,586,468 | | | | 1,280,091 | | | | 175,372 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales and marketing expenses | | | (657,112 | ) | | | (407,022 | ) | | | (55,762 | ) | | | (1,277,264 | ) | | | (922,031 | ) | | | (126,318 | ) |
| Research and development expenses | | | (41,015 | ) | | | (28,354 | ) | | | (3,884 | ) | | | (84,815 | ) | | | (56,434 | ) | | | (7,731 | ) |
| General and administrative expenses | | | (35,059 | ) | | | (30,524 | ) | | | (4,182 | ) | | | (77,821 | ) | | | (61,145 | ) | | | (8,377 | ) |
| Total operating expenses | | | (733,186 | ) | | | (465,900 | ) | | | (63,828 | ) | | | (1,439,900 | ) | | | (1,039,610 | ) | | | (142,426 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from operations | | | 102,338 | | | | 138,235 | | | | 18,938 | | | | 146,568 | | | | 240,481 | | | | 32,946 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Other income: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | | 2,409 | | | | 1,221 | | | | 167 | | | | 5,856 | | | | 3,160 | | | | 433 | |
| Others, net | | | 2,221 | | | | 6,283 | | | | 861 | | | | 14,478 | | | | 16,018 | | | | 2,194 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before income tax | | | 106,968 | | | | 145,739 | | | | 19,966 | | | | 166,902 | | | | 259,659 | | | | 35,573 | |
| Income tax benefit/(expense) | | | 642 | | | | (18,983 | ) | | | (2,601 | ) | | | 7,388 | | | | (52,215 | ) | | | (7,153 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | 107,610 | | | | 126,756 | | | | 17,365 | | | | 174,290 | | | | 207,444 | | | | 28,420 | |
| Net loss attributable to noncontrolling interests | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Net income attributable to QuantaSing Group Limited | | | 107,610 | | | | 126,756 | | | | 17,365 | | | | 174,290 | | | | 207,444 | | | | 28,420 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Other comprehensive (loss)/income | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign currency translation adjustments, net of nil tax | | | (3,372 | ) | | | 5,013 | | | | 687 | | | | (5,377 | ) | | | 1,467 | | | | 201 | |
| Total other comprehensive (loss)/income | | | (3,372 | ) | | | 5,013 | | | | 687 | | | | (5,377 | ) | | | 1,467 | | | | 201 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total comprehensive income | | | 104,238 | | | | 131,769 | | | | 18,052 | | | | 168,913 | | | | 208,911 | | | | 28,621 | |
| Total comprehensive loss attributable to noncontrolling interests | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Comprehensive income attributable to QuantaSing Group Limited | | | 104,238 | | | | 131,769 | | | | 18,052 | | | | 168,913 | | | | 208,911 | | | | 28,621 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income per ordinary share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | 0.65 | | | | 0.78 | | | | 0.11 | | | | 1.04 | | | | 1.30 | | | | 0.18 | |
| - Diluted | | | 0.64 | | | | 0.77 | | | | 0.11 | | | | 1.02 | | | | 1.27 | | | | 0.17 | |
| Weighted average number of ordinary shares used in computing net income per share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | 165,369,914 | | | | 162,250,442 | | | | 162,250,442 | | | | 167,213,449 | | | | 159,347,748 | | | | 159,347,748 | |
| - Diluted | | | 167,356,510 | | | | 165,374,240 | | | | 165,374,240 | | | | 171,180,058 | | | | 163,341,734 | | | | 163,341,734 | |
| Share-based compensation expenses included in | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of revenues | | | (3,289 | ) | | | (1,480 | ) | | | (203 | ) | | | (7,067 | ) | | | (3,783 | ) | | | (518 | ) |
| Sales and marketing expenses | | | 15,946 | | | | (859 | ) | | | (118 | ) | | | 11,457 | | | | (898 | ) | | | (123 | ) |
| Research and development expenses | | | (1,402 | ) | | | (409 | ) | | | (56 | ) | | | (7,012 | ) | | | (2,307 | ) | | | (316 | ) |
| General and administrative expenses | | | (7,513 | ) | | | (2,470 | ) | | | (338 | ) | | | (20,922 | ) | | | (5,502 | ) | | | (754 | ) |
QUANTASING GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands, except for shares and per share data)
The following table below sets forth a reconciliation of revenues to gross billings for the periods indicated:
| | | For the Three Months Ended December 31, | | | For the Six Months Ended December 31, | |
| | | 2023 | | | 2024 | | | 2024 | | | 2023 | | | 2024 | | | 2024 | |
| | | RMB | | | RMB | | | US$ | | | RMB | | | RMB | | | US$ | |
| | | | | | | | | | | | | | | | | | | |
| Revenues of individual online learning services: | | | 873,551 | | | | 601,293 | | | | 82,377 | | | | 1,629,461 | | | | 1,310,305 | | | | 179,510 | |
| Add: value-added tax | | | 47,100 | | | | 33,359 | | | | 4,570 | | | | 94,679 | | | | 74,050 | | | | 10,145 | |
| Add: ending deferred revenues(1) | | | 643,929 | | | | 440,632 | | | | 60,366 | | | | 643,929 | | | | 440,632 | | | | 60,366 | |
| Less: beginning deferred revenues(1) | | | (619,954 | ) | | | (529,054 | ) | | | (72,480 | ) | | | (661,360 | ) | | | (565,030 | ) | | | (77,409 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross billings of individual online learning services | | | 944,626 | | | | 546,230 | | | | 74,833 | | | | 1,706,709 | | | | 1,259,957 | | | | 172,612 | |
| (1) | Deferred revenues include contract liabilities, advance from customers, and refund liability of individual online learning services included in “accrued expenses and other current liabilities”. |
QUANTASING GROUP LIMITED
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS - continued
(Amounts in thousands, except for shares and per share data)
The following table below sets forth a reconciliation of net income to adjusted net income and basic and diluted net income per share to basic and diluted adjusted net income per share for the periods indicated:
| | | For the Three Months
Ended December 31, | | | For Six Months
Ended December 31, | |
| | | 2023 | | | 2024 | | | 2024 | | | 2023 | | | 2024 | | | 2024 | |
| | | RMB | | | RMB | | | US$ | | | RMB | | | RMB | | | US$ | |
| | | | | | | | | | | | | | | | | | | |
| Net income | | | 107,610 | | | | 126,756 | | | | 17,365 | | | | 174,290 | | | | 207,444 | | | | 28,420 | |
| Add: Share-based compensation expenses | | | (3,742 | ) | | | 5,218 | | | | 715 | | | | 23,544 | | | | 12,490 | | | | 1,711 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted net income | | | 103,868 | | | | 131,974 | | | | 18,080 | | | | 197,834 | | | | 219,934 | | | | 30,131 | |
| Attributable to noncontrolling interests | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Adjusted net income attributable to QuantaSing Group Limited | | | 103,868 | | | | 131,974 | | | | 18,080 | | | | 197,834 | | | | 219,934 | | | | 30,131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average number of ordinary shares used in computing net income per share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | 165,369,914 | | | | 162,250,442 | | | | 162,250,442 | | | | 167,213,449 | | | | 159,347,748 | | | | 159,347,748 | |
| - Diluted | | | 167,356,510 | | | | 165,374,240 | | | | 165,374,240 | | | | 171,180,058 | | | | 163,341,734 | | | | 163,341,734 | |
| Weighted average number of ordinary shares used in computing adjusted net income per share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | 165,369,914 | | | | 162,250,442 | | | | 162,250,442 | | | | 167,213,449 | | | | 159,347,748 | | | | 159,347,748 | |
| - Diluted | | | 167,356,510 | | | | 165,374,240 | | | | 165,374,240 | | | | 171,180,058 | | | | 163,341,734 | | | | 163,341,734 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income per ordinary share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | 0.65 | | | | 0.78 | | | | 0.11 | | | | 1.04 | | | | 1.30 | | | | 0.18 | |
| - Diluted | | | 0.64 | | | | 0.77 | | | | 0.11 | | | | 1.02 | | | | 1.27 | | | | 0.17 | |
| Non-GAAP adjustments to net income per ordinary share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | (0.02 | ) | | | 0.03 | | | | 0.00 | | | | 0.14 | | | | 0.08 | | | | 0.01 | |
| - Diluted | | | (0.02 | ) | | | 0.03 | | | | 0.00 | | | | 0.14 | | | | 0.08 | | | | 0.01 | |
| Adjusted net income per ordinary share | | | | | | | | | | | | | | | | | | | | | | | | |
| - Basic | | | 0.63 | | | | 0.81 | | | | 0.11 | | | | 1.18 | | | | 1.38 | | | | 0.19 | |
| - Diluted | | | 0.62 | | | | 0.80 | | | | 0.11 | | | | 1.16 | | | | 1.35 | | | | 0.18 | |
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