17 Education & Technology Group, Inc. Q1 FY2024 earnings call

• Strengthened core SaaS teaching and learning businesses through enhancing products and services and expanding sales networks. - Primary business had robust top-line growth. - Teaching and learning SaaS business from district level projects showed consistent progress, with total value of won district level projects exceeding RMB 40 million. - Secured orders from public and private schools on a school-by-school basis, with quick decision processes and recurring nature. - Strategic partnership established with over 120 school groups, including 7 private operated ones. - Smart pen used in over 600 schools by nearly 300,000 students, leading to over 23 million homeworks/assignments finished, providing insights for product/service improvement. - Enhanced personalized products based on comprehensive data collection, facilitating effective teaching and teacher instruction. - Continued investments in sales network, bolstering direct sales capabilities and optimizing customer relationship management.

In the first quarter of 2024, the teaching and learning SaaS business was a key segment. Net revenues were RMB 25.5 million, a year-over-year increase of 175% from RMB 9.3 million in the first quarter of 2023. Cost of revenue was RMB 15.7 million, a year-over-year increase of 124% from RMB 7 million in the first quarter of 2023. Gross profit was RMB 9.8 million compared to RMB 2.3 million in the first quarter of 2023, and gross margin was 38.4% in Q1 2024 versus 24.4% in Q1 2023. The district level projects won so far have a total value exceeding RMB 40 million. The smart pen has been used in over 600 schools by nearly 300,000 students, with over 23 million homeworks/assignments finished on the system.

• The company is focused on advancing educational digitalization and enhancing learning experiences with a focus on efficiency, quality, and sustained growth. - Dedicated to broadening offerings and embracing new technologies, aiming to generate sustainable value for clients and shareholders through strategic innovation and streamlined operations.

• This conference call contains forward-looking statements based on current expectations and market conditions, which involve known and unknown risks, uncertainties, and other factors beyond the company's control. These may cause actual results to differ materially. Further information on risks is in the company's filings with the U.S. SEC.

Q: Are there any questions at this time?

A: There are no questions at this time.