AACG - Earnings call transcript Q4 2023

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Operator

Greetings, and welcome to the ATA Creativity Global Fourth Quarter and Year-End 2023 Financial Results. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Carolyn Sohn, Vice President. Thank you, Carolyn.

You may begin.

Carolyne Sohn

Thank you, operator, and hello, everyone. us. joining for you Thank company's The press for XX, or results of Creativity is announcing fourth quarter ATA the section the IR December at Global at and www.atai.net.cn. available ACG's the release website year XXXX, ended

call, of replay XX an A accompanying company part ACG's next broadcast this will available As made the its website available the presentation at on has days. conference this website. of slide also be for

conference plan, to, to will intend, we activities, within anticipated any and be call Act for guidance, among and demand growth believe, get can generally; terms safe identified statements services. this estimate, other started, the everyone future and programs market Before ACG's Reform forecast, contains the statements of ACG's statements Securities XXXX. These education similar forward of Private anticipate, the and could, competitiveness mergers expect, operations; acceptance include, like information and forward-looking remind and by growth look herein subsequent and regarding would for of portfolio business discussed ACG's harbor terms accompanying provision forward-looking as future, of Litigation that I certain meaning prospects plans training and ACG's ACG's acquisitions other results outlook, things, of market XXXX guidance, and growth should, strategy, such

risks you expectations except and required assume investing of to events, subject included to projected. we filings making risks assurance these obligation or correct. Information Exchange are results those result will otherwise, Commission, market reasonable statements from to those forward-looking that not as the to believes with is the changes decision. any by does and The in those new as be be encourage Securities with any company There as reflected the information, ACG today, statements statements expectations a prove in no the review its dramatically about Although are the that conditions investment an could before update that forward-looking which company associated differ of can in actual uncertainties to law. in future cause

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Ruobai Sima

company year-over-year. pregame renewed full courses shown XXXX, the for was in and make continuing delivery, with and an we was that were campus This to person XXXX in a select planning the fourth year important time. year able ACG. students everyone, are result and of the local to for ER was return complete overstay X.X% the of rebased the our deliver start evening sale. increase services superiority year good class a coin RMB the to at welcome, for revenue was and a those interest and training, online at and available enabling million It portfolio to we XXXX, report learning last attrition delivery. I'm Americas, lifted appreciate we COVID-related to achieved online where year Carolyne, to you, assume travel XXX.X consulting on shutdowns Thank resume of your pleased

XXXX, able were of the to we of course continue line to our marginally operating decrease and also Over operating cloud expenses.

their overseas reinforcing expenses, XXX As overall parent increased compared reaching award their result a of as enrolled increased time pursue career since well loss in the valuable we prior operating narrowing hero in period. to year training offering quarter hold academic enrollment to in camps find full improved student mainly continuing revenues their significantly portfolio the XX.X% year study Total net who XXXX fourth our. study our in summer X,XXX were the excited company year-over-year, fourth for of line more for services our bottom services. enrollment a and and students XX.X% Student to decreased students by XXXX. We their and pleased the overseas that to for we're our result pandemic,

period. At training to quarter have a review variety the that quarter RMB positive we portfolio Rig period, credit a XX.X for X.X% increased XX.X deliver to period. I in same continue as revenues Gross feedback X.X increased quarter the prior hours fourth fourth margin gross we the XXXX RMB delivered fourth compared training year our programs fourth RMB primarily the million additional build compared to in margin of the increased million of XX.X% training experiential income of during ACG in on overseas services offering. improved million and increase financials. net during portfolio XXXX XXXX, the to received X.X% increased During driven hands-on year to relevant represented was an the of consulting revenue. We from during due to will net quickly future. With net time, to students programs reported million primarily This X by this type to The total XX.X% net of of introduced was in of in prior XXX.X% Total revenues XXXX. revenues attributable study XX.X% to from increase quarter XX,XXX. the services. Portfolio period. RMB

XX.X and prior increase million XX, During of narrowed sheet, total benefit USD shareholder shareholders cash revenue capital was million XX.X% RMB million XX.X USD from X.X% working compared we our continue million net XXX.X a cash equivalents, the compared to of and year the XX.X to XX.X X.X% improved primarily December ending margin to to increase and XX due to XXX.X prior expenses. year. period. Gross revenue a the from X.X loss in results RMB XX.X% the at to of to strengthen operating December XX, equity of and million, density XXXX. Working year year USD balance financial Net RMB XXXX, ACG increased net the million XXXX, capital decreased end loss attributable from million million to position USD XX.X USD in RMB XXXX. full was in at More million, of to in

outlook to our to growth attention Now strategy. and ASG's turning

delivering focusing a with the to able to their portfolio student of all professors. for the positive create of also the business. our students study our for real services, is prepare curriculum Through XXXX, which growing our students of grad resume deliveries key class their and that training with applying services, of phase-to-phase students start our pandemic-related learning We promote component our comprehensive their schools. peers business. This and offering portfolio be XXXX. in education very ACG, for We research-based the of restrictions to addition throughout lifting of offerings in collaboration a which between is and between were on it complete and at our substitute to portfolio the is no training mission element services overseas consulting center to a a here remains to and existing There of training critical part in-person our believe make request China colleges experience and our core and outcomes. In ACG just creative rounded we With locations art. especially students in pleased work as is

partnerships proactively exploring also around the creative are art world. with We institutions

both XXXX, participating some students successfully opportunities This Master During our closely. practice assist real-world with fourth regular the in reception setting promoting classroom and better including the academic contract quarter pleased enterprise the our knowledge with of Week we and program. allow part-time program by positive into hosted winter pull Fashion students of work explore in a worked our and understanding whom they a multiple how programs, to program the our in to gaining Shanghai by scenarios. We October were professional applied their partners and students Class, have

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a XXX XXXX transactions we of fiscal in other RMB XXXX. expect million business year-end does year RMB million, revenue XXX year for represents consider acquisitions any complete increase guidance Please For December potential X% revenue to XXXX, that the XX% may XX, note the total fiscal from net we not XXXX. or which to between

an President an we update our Zhang, like developments ahead. the will now guidance to to initiatives. appropriate. I'd arise, be As his provide in ACG's market please over remarks Mandarin, material translation. Jun evaluate growth go on Jun make hand to floor to which any be by as followed English and will will current sure to Jun, update the

Jun Zhang

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of moment outstanding we creative to was for a take Thank and teaching commitment Thank pleased deliver our mind journey. were outcomes their our a our year work. I arts capacity believe for which we for and be you. students is you, operation, perseverance important and Sima. to driving entrusting with delivering our to year a to for like able communities staff ACG to student thank their and students, full to fantastic positive their would XXXX of stable peace Mr.

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continue this look our I'll fragmented behalf Mr. to on strive stakeholders. With well forward share and that, back our market are it continuing We for in of positioned over to to to Sima. better turn growing all

Ruobai Sima

we Thanks, ACG's Carolyne. outlook Jun are In and about for attracted XXXX. closing,

accretive we committed space, high-quality, are As education students. player superior relevant to the our providing valuable in provide and a leading China to

value also ask the shareholder these to proposition, up it increase that, to some continue and questions. about prospects. With enhance we open of for will and believe explore We opportunities business our let's operator, value which

Operator

are Sima time. to at comments. the no like There floor I'd Instructions] closing questions [Operator further over this to back Mr. for turn

Ruobai Sima

for please feel to questions free joining to Thanks anyone directly firm, in us Relations us. Investor has all If of our or reach out equity you us, Group. again for to

earnings speak Thank with always forward are available next to call. look you to We to and investors during speaking you. all our

Operator

teleconference. today's concludes This

disconnect this at time. your for may You your Thank you lines participation.

ATA Creativity Global (AACG) 27 Mar 242023 Q4 Earnings call transcript