Home Share Market Gaotu Techedu dips back below $1 after earnings (NYSE:GOTU)

Gaotu Techedu dips back below $1 after earnings (NYSE:GOTU)


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Gaotu Techedu (NYSE:GOTU) tumbled back into NYSE non-compliance after earnings.

The Chinese education technology company posted a $0.17 loss for the quarter alongside a 45.6% decline in revenue from the prior year to $85.21M. Gross billings rose to RMB607.0M from RMB301.6M in the same period of 2021.

“As we continued to explore new businesses post restructuring against the backdrop of external challenges and uncertainties, we are pleased to report that our business sustained its continuous and healthy growth as we expected, driven by our deepening understanding of the vertical markets, relentless efforts to improve our operational efficiency and constant investment in teaching quality,” CFO Shannon Shen said.

For the fourth quarter, the company anticipates between RMB608M and RMB628M representing a decrease of 50.7% to 52.3% on a year-over-year basis.

The board of directors authorized an up to $30M share repurchase program, bolstered by CEO Larry Xiangdong Chen’s intention to repurchase a significant number of shares as well.

“I also intend to personally purchase up to $20M of our shares,” he said. “Going forward, we will continue to stay true to our original aspiration to educate, continue to create value for our shareholders, continue to nurture talents for our society and continue to contribute to the educational development of China.”

Despite the vote of confidence from the CEO, shares fell over 7% in the first hour of trading, dipping beneath the NYSE compliance level. The company received a non-compliance letter on Friday.



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