Gaotu Techedu, Inc. Q4 FY2024 earnings call

• Driven by strategic focus and organizational capability enhancement, revenue grew by 82.5% Y/Y to nearly RMB 1.4 billion in Q4, with gross billings up 69.0% Y/Y. Loss from operations narrowed by 20.6% and operating margin improved by 13.9 percentage points. - Fully embracing AI strategy: Using AI for personalized learning, efficient content service, boosted homework grading efficiency by over 50%, and provided tailored study planning support. - Committed to education essence: Investing in product development, refining curriculum, with new enrollments retention rates improving. - Upheld social responsibility: Established Beijing Gaotu Foundation for educational equity and executed share buybacks totaling nearly US$47.5 million as of Feb 21, 2025.

Learning services contributed more than 95% of net revenues. Nearly 85% of total revenues came from non-academic tutoring services and other traditional learning services, with non-academic tutoring seeing triple-digit year-over-year growth in gross billings for the third consecutive quarter. Traditional learning services maintained a leading position in the online education sector. Educational services for college students and adults contributed nearly 15% of total revenues in the quarter, with gross billings and revenue showing strong growth. Overseas test prep business had successes in helping students gain admission to prestigious international universities.

• First quarter 2025 net revenues expected between RMB 1.408 billion and RMB 1.428 billion, +48.7% to 50.8% Y/Y. - 2025 outlook: Focus on enhancing student learning inspiration, user experience, operational efficiency via AI integration, aiming for improved profitability.

• Forward-looking statements involve known and unknown risks, uncertainties, and factors beyond the company's control that may cause actual results to differ materially from forward-looking statements.

Q: Could you elaborate more on the margin outlook and guidance for 2025 full year?

A: Shannon Shen responded discussing 2024 performance, emphasis on 2025 focus on enhancing learning inspiration, user experience, operational efficiency via AI, and confidence in achieving profitability.

Q: How stoutly integrating AI into core operations and measurable improvements?

A: Larry Chen responded on AI reshaping education via personalized learning, automated assessment, intelligent tutoring, operational efficiencies, and embedding AI in various processes like content creation and teaching support.