Four Seasons Education (Cayman), Inc. Q1 FY2020 earnings call

• Total student enrollment grew 53.2% YOY, with math-related courses as core. Middle school programs saw strong YOY enrollment growth and increased revenue contribution. - Learning centers in Shanghai and other provinces continued steady development; learning centers outside Shanghai had 75% YOY enrollment growth. - Recognized by the government, selected by Shanghai Children's Foundation for Trusty Summer Childcare project in 12 Shanghai learning centers. - Continues to pioneer Sudoku teaching and hosted Sudoku level testing; Four Seasons Bridge game performed well in the [indiscernible] National Open.

In the first quarter, total student enrollment grew 53.2% year-over-year. Math-related courses are the core education offering. Middle school programs gained popularity with strong YOY enrollment growth and increasing revenue contribution. Learning centers in Shanghai and other provinces continued steady development; learning centers outside Shanghai had a remarkable 75% enrollment growth YOY. Revenue for the first quarter was RMB85.6 million, a 0.8% decrease from the same period last year. Cost of revenue was RMB46.3 million, a 21.3% increase. Gross profit was RMB39.4 million, an 18.3% decrease. General and administrative expenses were RMB33.5 million, a 34.2% increase. Sales and marketing expenses were RMB7.9 million, a 2.2% decrease. Operating loss was RMB2.1 million, compared to operating income of RMB15.1 million last year.

• For the second quarter of fiscal 2020, expects revenue in the range of RMB121.4 million to RMB126.1 million, representing a year-over-year growth of approximately 30% to 35%.

• Forward-looking statements involve inherent risks and uncertainties; company's results may differ materially from views expressed. - Further information regarding risks and uncertainties included in the company's prospectus filed with the U.S. Securities and Exchange Commission.