STG - Earnings call transcript Q4 2023 | Sunlands Technology Group

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Sunlands Fourth Quarter and Full Year 2023 Earnings Conference Call. Today's conference call is being recorded. I will now turn the call over to your host today, Yuhua from Sunlands IR Representative. Please go ahead.

Yuhua Ye

Hello, everyone, and thank you for joining Sunlands Fourth Quarter and Full Year 2023 Earnings Conference Call. operating services issued posted earlier and release our online. financial Newswire via today company's results in were press The and are

for You and visiting earnings the IR our up our could by distribution press website. list download sign release

CEO, call call Financial and a will Hangyu Management conclude our Mr. prepared with session. Tongbo will Liu; with Participants on begin be remarks, Mr. today's Li. will our Controller, and Q&A the

statement of in the to on to management, like you Sunlands' over safe for it current you not harbor the them. matters Except contained hand undue I call. conference discussed Before information therefore, in These should place statements. trends, based herein, relation statements forward-looking of to today's on I'd and historical estimates this reliance and remind the are are call certain projections,

Forward-looking results in statements cause forward-looking will A involve those uncertainties. contained from and inherent important any number factors of risks to statements. materially differ actual

the please about For the information to Commission. and more with and potential uncertainties, the Exchange Securities refer company's risks filings

now I our to Tongbo CEO, that, call over turn With Liu. the will

Tongbo Liu

Welcome that Hello, referenced this and like RMB Thank operations continuing commencing, figures release denominated kind explicitly presented all would are Full all Call. Prior to Earnings in information unless everyone. Sunlands to I Fourth you, otherwise. to remind on a of Year the Bam. financial XXXX attendees Quarter Conference is in basis and specified

underscore of excellence. foundation the margin dedication net commission profit and operational unveiled It These impressive profit million we financial XXX.X and to the quarter, XX.X%. is RMB an characterized of firm steadfast with pride great a the metrics of successful fourth a by noteworthy that our net

a year-over-year we X.XX marking increase revenue decrease year, our of [ of XXX Reflecting the ] ] meanwhile, RMB [ the and the quarter our on income successfully X.X%. despite earlier XXX.X a of ] RMB annual net RMB recorded [ previous the fiscal revenue at billion surpassing million. and entire In revenue X.X% forecast from stands million, an

enrollment year-over-year, we for Additionally, offerings. our observed a demand growing the XX.X% highlighting in increase significant

in year, prudent Our XXX financial the financial our initiatives. driving cash responding growth evolving million, to continuous product remained Throughout solid across preferences, our dynamics in operating future net portfolio. agile and foundation activities a over we management for inflow RMB being and service resulted market of a user innovation from

has focused landscape. in growth has dynamic important our of driver XX.X% interest-based pivotal education a A experienced solidifying expansion sector courses, the been company, adult emerged position leading the catalyst the year-over-year growth. our which further as The

the to our programs. course of major Turning performance

post, You for in can the XX.X% revenue of also see the accounted secretary XXXX. programs our

challenges. to intricate believe we continue optimize sector with future. landscape, ] in And navigating find academic stories its themselves current the confronted pursuits investment, of we employment [ professional While promising individuals

has revenue. increase more year-over-year key In The within student contributing skills the symbiotic of in individual new XXXX, compared XX.X% relationship and XX.X% our serve in to total further educational engine, and observed as certifications, between tenant interest to XXXX. rise towards a professional This our sector pronounced. salary revenue growth XX.X% of productivity in precipitated to we a showcasing the of enrollments become education. turn has offerings sector encompassing continue surge The programs and pursuing a

year-over-year for the concurrent among education foremost and signifies of revenue our sector. Our accounting interest, in associated of resulting ] XX% sector, remained In approach search monthly disenable rewarding. particularly to catering [ significant has the the XX.X% and in need services. the age a Moreover, to courses for segments course, adult revenue the highlights user and interest to been interest-based focus the group experiencing in this education growth. trend personal of has XXXX, growing demand growing of training performance a new business surged, learners, real educational volume thereby a ranking knowledge various total adults standout first This elevation for in in

Compared age much to with of users, be elderly of our degree interest program the range user base a to some exploration, After clear who comprising several understanding portion today, gained middle-aged is broader sector the in a I'm users quarters significant insights. more tend and the learning deeper younger population. market. to And and have we practical of of elderly share delighted oriented,

nature expansive the presented for permits market China's of new landscape Firstly, demographic penetration.

This decline. of the phenomenon rare signifying the the a confronted period growth of China of XXXX, decrease. population negative first marks net of XXXXs, As population onset since a

XXXX, generation, baby spanning impending boom to retirement cohort of the with economic influence. XXXX versus a from phase introduces Additionally, China's social significant

According the age private over Ben worth high XXXX, XX% XX released to report in with by of wealth to Merchants group [ investable China the ] net of for and million. China RMB XX individuals accounts assets XX of Bank

education supplied predominantly past, government In senior the was by the agencies.

educational market-oriented to newly are such individuals this willing the However, for to prices premium institutions start autonomy retired pay it offerings. and from have

untapped gravitate towards spiritual those embracing reverent nutritional demands pursuits the last endeavors. the and demographic, brackets and towards aged various hair a health-centered and as of learning such demeanor the culture travel Conversely, lifelong aged XX Secondly, direction underscore exhibited with above tend indicating supplements elderly cohorts consumption Individuals and great this and services. XX by to patterns, potential. significant complexity XX to across the age preference display a

aged characterized vibrant of learning female XX% affluence, generation with from cultural being senior refinement, a and them XX accounts scrutiny transitional as XX% pursuit XX% tier high course individuals example, spiritual Upon for enrichment. first program in opportunities a our cities. leisure define relative higher list, and seniors by over of new meticulous XX of over an to We our as taking

group, we co-power future. demographic Our received by in well ] continue the to [ demand this age the golden seize and are services to products will this expand this of

million, products base initially Drawing notably senior illustrated by Japan's which X industry, leading on a conglomerate We trajectory and the of the aim education later consumer and value travel to expanded insurance maximize lifetime our in offerings developmental Club and senior of effective with inspiration in Japan's from propositions diversified rooted horizontally to elder into Tourism, focused travel high-value services. goods. nursing, membership interest

For have packages integrating innovative user imagination These tourism swifter ongoing our more future instance, activities. launched into travel base, we and initiatives floating possibilities. profound a our for courses us afford insights and educational with

also the General enriching the the silver of government's documents [ issued We State arm January economy, ] Council the note attention of to to which of On and the specifically industry. the dedicated the services. elderly China ever first supporting development education elder XX, mentioned since XX Office

investment this We for course will in demographic. development burgeoning to increase continue

People's and a variety of the a context. premium events supplemented funding center Online, unbearing testament created We Service by Award clinched our of brand have tailored had music including courses, range specified Craftsman of pursuit to diverse a offline situational to offerings, excellence. our Daily from prestigious Chinese Notably,

refining As exploring efforts groups targeting efficiency we progress committed our different support product to improvement developing to while in and age our our growth. XXXX, mix, sustainable constantly we remain operational long-term

public the progressing offering, Since repurchases. been has stock our with constantly company initial

December approximately share depository XXXX, of shares, adopted to total repurchase XX, investment XX.X of million. the executed American XXXX, repurchase USD equivalent December shares August As plan under XXX,XXX in ordinary the of representing successfully a we XXXX have and

shareholder through value shareholder to fortify ongoing commitment share our to pledged we ahead, interest. repurchases, steadfast underscoring Looking

call turn will to I Controller, the Financial that, run to Hangyu, our through financials. over With our

Hangyu Li

to our I'm pleased fourth you, Thank results. Hello, present quarter everyone. Tongbo.

been high placing have on Over efficiency to structure. year, growth, cost improving priority committed our and past we achieving a the sustainable operational optimizing

and We impressive our our continued market points ability of of margin of profitability a effectiveness percentage with highlights our the up profit strategies operational quarter-over-quarter. level demonstrated adapt X.X net changing to to XX.X%, This conditions.

strategy development our our commitment conditions is that activities net foundation and direct operating quickly is sustainable a This for success RMB response in to adjust to strengthening customer providing XXX market cash the It reflection solid important financial million, inflows of year highlight business. to demand. us our changing exceeded competitors, our allowing the also core from to a for of our

Notably, quarter has of a XX%, remained to is since the net strength business the margin which XXXX, model. the of above and our testament resilience fourth our profit

the financial we'll on to stable to the the focus operations and sustain management ensure company and development. efficient to future, healthy Looking refined continue

and shareholder we'll addition, of implement follow share instructions to In the value. Board enhance strategic strictly the repurchases

of the quarter XXXX. to key fourth of present me some for our let Now financial results you

comparisons all are unless RMB, noted. in year-over-year All figures are otherwise and

of the fourth For in XXXX, XXX.X by decreased decline The quarter quarter in post-secondary net revenues to the fourth from was of million RMB X.X% primarily gross from XXXX. courses decrease a RMB XXXX. million year-over-year XXX.X in billings to due

of XX.X reduction in XXXX. of million by of quarter in fourth million in from was the quarter lower revenues revenue to compensation cost of the Cost expenses RMB headcount. to XXXX primarily related due fourth The XX.X to decrease X% a our RMB decreased

fourth RMB quarter million, the of XXX profit of the of in XXX.X fourth by fourth X% RMB XXXX decreased In RMB the to in XXX.X fourth a million the XXXX. RMB from in operating quarter XXXX, Gross quarter from expenses XXX increase were million X.X% XXXX. of quarter representing million

and expenses XXXX. due salesforce on million on of as courses. from primarily fourth fourth and The including spending spending RMB XXXX activities, XXX.X the sales higher Sales interest-based of XX.X% marketing compensation as was quarter increased activities million in RMB marketing well higher to by XXX.X to brand quarter the in on increase focused increased

due quarter of RMB expenses administrative of in XXXX the The termination early the in fourth RMB was XX XX.X places. XX.X costs the primarily quarter XX.X% million expenses rental to office lower and and resulting office from to decreased General fourth of decrease XXXX. by million from

X.X quarter XXXX. quarter quarter XXX from compared increased XXXX. of million was X.X% RMB by million RMB development Product XXX.X XXXX expenses with to X.X in income fourth for fourth RMB the of the million fourth in the XXXX in fourth quarter of the of Net million RMB

income net quarter XXXX. XX.XX Basic per the the was fourth of and share RMB diluted in

of RMB of the cash XXXX. December XX, under cash RMB of restricted cash and had and XXX.X company XXX.X restricted XX.X cash, RMB of of investments, XXXX, short-term RMB with million XXX.X equivalents XX, As compared million and cash, million investments of as equivalents million December cash, short-term

X,XXX.X had of December primarily As Capital improvements the expenditures with XX, XXXX, deferred leasehold a to were the X,XXX.X XXXX. of as revenue balance equipment information operations. of XX, and RMB compared technology for million the December company infrastructure company's RMB support million required

of X.X compared million XXXX RMB RMB fourth in the Capital quarter in of expenditures million quarter with were the fourth XXXX. X.X

please results, full For see financial XXXX our more year our release. on press earnings details

outlook. our for Now

first million, the XXXX, to demand, between net change. the XX.X%. the are to company's and the market conditions a quarter of management's million and all preliminary RMB and which customer is decrease outlook subject current For X.X% RMB operating current be This year-over-year market, reflects on XXX revenues the currently of on we to estimates of based expect conditions XXX of

up With that, the to Operator? like I'd questions. to open call

Operator

our conclude will Yuhua remarks. this we session. time, At time, conference to question-and-answer closing the any further no to Instructions] questions, this turn showing like over back [Operator would At are this so I for

Yuhua Ye

with thank again, call. you, forward speaking Good everyone, bye. Once look and today's for you day soon. again We joining to

Operator

concludes today's call. This conference

You may your Thank now disconnect you. lines.

Sunlands Technology (STG) 22 Mar 242023 Q4 Earnings call transcript