METX - Earnings call transcript Q3 2021

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Operator

Good morning, ladies and gentlemen and welcome to Meten HoldingS Group's Third Quarter and Nine Months of 2021 Earnings Conference Call.

Joining us today are the company’s Chairman of the Board, Mr. Jason Zhao; the company’s Chief Executive Officer, Mr. Alan Peng; and the company’s Financial Vice President, Mr. [indiscernible]. presentation nice overview months today’s quarter the start the and of will with for an third Alan XXXX performance. share will [indiscernible] more our about Then, financial details performance. you happy presentation, take will the during be After any Q&A we questions may session. have the to

like would call the please turn Peng. over ahead. to Alan Alan, I Now, to go

Alan Peng

centers adjustments of remarks for today. business I presentation third joining third optimization by Thank the earnings an and Holdings you of quarter and the and quarter first of begin my the XXXX Group's Meten first providing overview a company's the company's resurgence business nine XXXX first nine months followed XXXX significantly prepare during will of operations. summary company's months of by pandemic reduced the performance. In months learning the for and the XXXX number COVID-XX offline we effectively of impact transformation. the to third of on reduce the have Improved of quarter our a utilization of offline business resource nine our

result, As one each the reduced city. centers to centers or two is in a of learning number

fixed will company's reduce of XXXX. a the the measures business perspective, adjustment, third been increase costs, From and has margins reduce the initiation operational these impacted With quarter relatively company's this of the profit performance long-term in greatly risks.

resource significantly once year. the improved that effective the situation offline be will better operating re-allocation, next expects an the company of COVID-XX-XX Following centers conditions and learning profitability gets pandemic

training a the existing of businesses, our We explore to for use the new are plan adjusting to metaverse. launch opportunities metaverse. professional planning new and business centers to addition the strategies to line offline skills career to to related In we planning launch related business to

overseas opportunities experience the our our experience customers combining the interactive build and experience plan brand. also will of industry company in which explore centers to blockchain world the aim increase of our the by an offline provide in crypto attractiveness We metaverse The to raise We will enhanced and our awareness of centers future. virtual to and emerging actively real within of currency. communities and centers offline

month manufacturing past The AGM the of and seeking company mine mining and a partnership with During strategic machines. for sales have opportunity is construction, mining Group. we in actively established

to the a planning into crypto related to one new transformation become and additional opportunity in strategic development. it they partner fund new to a business to operation, are vision expects the with this, new from for addition In generate seek will reflexion we companies a company the LP a currency gradually future limited for next company expand place, businesses These years. two moving of to taking further revenues Once opportunities the tremendous in join are as direction to business will potentials. company and put a our strategic the that and are its management for company. with commitment technology grow metaverse The invest

the in third Group during launched look product four both XXXX, products online Now included new and quarter Japanese, Holding invest of third recently Korean quarter first operational the several offline of of details. and which nine developments languages; let's some new Meten product in to German months Spanish, XXXX of continued the at its platforms, more and leveraging line. development across

months In XX.X% as to decreased the or to revenue XXXX, profit resurgence XX.X% RMBXXX.X the third gross first million U.S. quarter million training For decreased learning offline year-on-year, dollars. million of In centres. in the year-on-year of reduction of decreased result Spanish, COVID-XX services primarily and primarily number Japanese, XXXX, the the result a nine the the of XXXX, by the XX.X% $X.XXX financial third gross the and U.S. now will RMBX.XX to more derived of XXXX, million Korean of invite about the as In to [indiscernible] or months our US$XX billings. first nine the gross from or months billings gross In talk in of decreased million company's you of quarter year-over-year X.X% profit $XX.X declining of revenue RMBXXX.X million, was languages I German year-on-year. performance XXXX, nine detail. by dollars.

Unidentified Company Representative

Alan. you, Thank

For the XXXX, RMBXXX.X revenue total amounted million, US$XX.X third to quarter a of XX.X%. million year-on-year decrease of or

in For the million XX.X%, of learning result offline the the million, to centres. resurgence XXXX, a decrease revenue RMBXXX.X of a US$XX.X year-on-year of first COVID-XX nine of as amounted months of primarily or and a reduction number

in million general year-on-year the COVID-XX adult centres. million of primarily third XX.X% in third the XXXX US$X.X to and quarter ELT, million the of from RMBXXX.X XXXX, of closure For offline or RMBXX.X revenues the due of to learning decreased quarter resurgence

year-on-year overseas training of the RMBXX.X services, the million X.X% quarter to of of US$X.X had million decrease or third a in in quarter million XXXX. RMBXX.X revenues from For third XXXX

million XXXX. year-on-year in months For in nine million the RMBXXX.X first XXXX XX.X% nine general adult of of from million decreased ELT, RMBXXX.X to revenues the months US$XX.X or first

RMBXX.X increased US$XX.X year-on-year revenues RMBXXX.X services, million million first training months from first overseas in in or the in of months XX.X nine of months million XXXX. nine XXXX, the For nine to the of

due impact million reduction the For in third XXXX to US$X.X quarter RMBXX.X or decreased RMBXX.X double to revenues in the COVID-XX third of policy. of resurgence junior million quarter of the and the XXXX, the million of ELT, from primarily

or first million For junior XXXX from ELT, the of the months in to RMBXX.Xmillion nine revenues million in of nine US$XX.X months XXXX. RMBXXX.X decreased first

in of ELT of XX.X% by amortization of third and the COVID-XX to million million reached US$X.X costs by to the nine million in nine nine the million US$XX.X million slight last operating the million of online months result XXXX, to Gross operating months year-on-year third nine of million depreciation to businesses In profit to by RMBXX.X of the RMBXXX.X gross that million was first decreased or XXXX, due from In XXXX. RMBXXX.X expenses, decline in of XX.X% profit quarter our million. X.X% quarter or cetera, consists the in RMBXXX.X from mainly or XX.X% In fact in million XXXX primarily the costs the the months RMBXX.X from million. for first online company’s of first million XXXX RMBXX.X RMBXXX.X year. or of a decrease or million in million RMBXXX.X by of due period third decreased peak same For decreased the to months property revenues months US$XX.X year-on-year of the the as million quarter in increased billings. This the US$XX.X XXXX. quarter decreased which XXXX. to US$XX.X million to the staff Revenues year-on-year RMBXXX.X XXXX first et costs, first gross or third XX.X% XXXX US$XX.X nine decreased third ELT, quarter RMBXXX.X XXXX the in X.X% from the of

XXXX. administrative year-on-year quarter XXXX or million by increase and first R&D to XX.X% or loss million quarter of of representing gross year-on-year $XX.X million RMBXX.X a by US$XX.X RMBXXX.X amounted expenses administrative million of decrease of primarily in the to in million months first million the General result of margin marketing RMBXX.X development US$X.X of year-over-year million expenses from points the million RMBXXX.X first the third by expenses XXXX. to months of was third third of from million amounted in a and months XX.X% XXXX. XXXX. expenses of in representing months US$XX.X US$X.X margin XXXX the a X.X and increased based to first RMBXXX.X third year-on-year. RMBXX.X expenses million by in from nine or Selling or This to the RMBX.X from As million year-on-year XXXX year-on-year. by RMBX.X third million decreased or XXXX the of months of to months quarter XX.X% Research XXXX US$X.X million XX.X% X.X% goodwill decrease RMBXX.X nine in year-on-year quarter decreased quarter due XXXX compensation impairment the the in million nine the of nine of third the quarter Selling share in by decreased for the and XXXX to increased million nine the percentage points to expenses XX.X% to nine profit X.X expenses. for Gross General profit of XX.X%. XXXX XX.X% year-on-year million increase or of percentage in in increased first marketing and RMBXXX.X in

For loss the was million RMBXXX.X from of operations the quarter or loss a from to XXXX operations quarter of RMBXX.X compared third of million third US$XX.X in million, XXXX.

in For to of operations million the first from was nine RMBXXX.X from first XXXX months operations loss the RMBXXX.X nine of of US$XX.X months million a or million loss XXXX. compared

or For loss loss third net quarter the the was million RMBXX.X to in US$XX.X of third million quarter RMBXXX.X net XXXX, a of XXXX. of million compared

of RMBXXX.X of I'll XXXX, call RMBXXX.X was had million Meten of equivalents. an or RMBXXX.X million nine finally, nine our net XXXX. Group XXXX now Holding US$XX.X months cash loss first million a provide of loss For compared XX, the Holding September Meten in first Group's And as turn who update million months to and of outlook. or will Jason, the the net over Chairman on US$XX.X to cash

Jason Zhao

are that comprehensive blockchain field approach. cryptocurrency, training business is of the the opportunities workplace Holding us As an metaverse, in provides which online, offline to directions training Meten Group and actively organization merging services, strategic for exploring

industry. our As next training while company become competitiveness metaverse looking one company maintaining the develop and technology the two mentioned the years, previously, in to expects service to a forward in

take to these our developing continually the of by Given of new developments advantage further technologies, the we possibilities explore aim various commitment metaverse field. in to

Operator

for gentlemen, our presentation this and concludes today. Ladies

any We will questions take have. now you may

Operator

The Johnson David Instructions] first from question [ph]. [Operator comes

Unidentified Analyst

I have got questions. two

company’s share question the first more situation can the you service? is, premium information So of regarding

Alan Peng

Okay.

people use providing as only has stronger future. we the of have only with the English to will priorities third number centers centers to services, the should the with them the of that all fourth and some has make challenge, centers. two. affected close career we have have English by the affected centers study that their number at businesses and government to cities will double The lot continue to different training affected parents to been of the our Furthermore, to centers happens, children which but policy, order and we be sure quarter. COVID-XX desire on also how of help actually, some one recently metaverse way In the the to well in Meten epidemic our this decided not as to each Holding and also training according help their are And successful of -- whenever face reduce in proven this some regulations. are times city of had of because be the by that, So, in In hit our epidemic. doing been the center thinking a Furthermore, different centers. our has have Group this left of the development, one things that in quarter reduction in to

Unidentified Analyst

you for thank Okay, sharing that.

my metaverse share is So question opportunity company this? exploring is, develop actually the more your can information you to second so our sales, regarding

Alan Peng

third to Okay, so continued the opportunities. quarter, different explore have in we

is be of even a the this would our how of challenges metaverse. make that this one we and XX to and of related most to new to in opportunity the and We take the to in related to to training we and technology. one and One why the to exploration the skills this We third how new use related quarter years, interesting this metaverse, have develop related model lot opportunities this and prioritizing the believe of there abilities used careers that announce advantage that believe, will be to next type develop related is changing metaverse. to

new are and lot our will believe a we able looking because that of company all and to these other we cryptocurrency be level. We bring technologies this, a of at mining into also using

like technologies. are We have new to going

We have will new a and will models new opportunities. lot of have we business

Operator

Roma next [ph] Thank question Capital, comes go [indiscernible] please The from you. ahead. of

Unidentified Analyst

trading What for I also operations you. business that recruiting do generating that about future. do think and that professors, Thank date revenues Good to inquire morning. you Yes. metaverse you begin business? teachers how and the might begin the wanted about in go

Jason Zhao

Okay.

basically of have we a right lot for of, as ideas a coming So, lot on. now there's

million the people of actually how of a of use to opportunities actually in demand or and missing. cryptocurrency learning there to China, a have lot we this. Right will now find with be million and advantage for have training trying that are we or that of metaverse, believe we are who are, take opportunities job over We of a

a to lot comes it said going when Now, teachers, using to are Alan to we actually, ways. recruit be that how of

them people have of around platforms China, is in One the as as well we universities partnerships all world. in with and

lot of to are there to We to lot and of also of a have newly lot, are we a professionals. graduates access advantage of our forums a where able course have take platform also hire we

that's this And of part answer. second the so

Unidentified Analyst

much. very you Thank

Operator

all and nine call. earnings months Meten the That's XXXX Holding Group of third quarter conference for

all you any us today. If joining have IR directly. contact our questions, you team please for Thank further

Jason Zhao

Okay, thank you everyone. See you.

BTC Digital (BTCT) 22 Nov 212021 Q3 Earnings call transcript