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Investing.com - Gaotu Techedu Inc. (NYSE:GOTU) reported stronger-than-expected second quarter revenue on Thursday, sending shares up 4.8% despite a slight earnings miss.
The Chinese education technology company posted revenue of RMB1.39 billion ($215.5 million) for the quarter ended June 30, 2025, exceeding analyst estimates of RMB1.24 billion and representing a 37.6% increase YoY.
However, the company reported a loss of RMB0.88 per share, slightly worse than the analyst estimate of RMB0.86 per share. The revenue growth was driven by increased gross billings, which rose 36.2% YoY to RMB2.25 billion.
"We maintained solid growth momentum in our core business and harnessed the power of AI to enhance our service models, foster product innovation and strengthen our organizational capabilities," said Larry Xiangdong Chen, the Company’s founder, Chairman and CEO.
"These results demonstrate our ability to sustain solid growth momentum while enhancing operational quality and sharpening our competitive edge."
The company significantly narrowed its losses compared to the same period last year, with non-GAAP net loss improving by 50.5% to RMB206.8 million from RMB418.0 million in the second quarter of 2024.
Gaotu also reported a net operating cash inflow of RMB588.8 million, up 52.5% from the previous year.
For the third quarter of 2025, Gaotu expects total net revenues between RMB1,558 million and RMB1,578 million, representing an increase of 28.9% to 30.6% YoY.
The company maintained a strong cash position with cash, cash equivalents, restricted cash, and short-term and long-term investments totaling RMB3.82 billion as of June 30, 2025.
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