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BEIJING - Gaotu Techedu Inc. (NYSE:GOTU) reported first quarter earnings and revenue that exceeded analyst expectations on Thursday.
The Chinese education technology company’s shares jumped 12.63% in pre-market trading following the release.
The company posted adjusted earnings per share of RMB0.49, significantly beating the analyst estimate of RMB0.09. Revenue came in at RMB1.49 billion ($205.7 million), surpassing the consensus forecast of RMB1.39 billion.
Net income for the quarter was RMB124.0 million ($17.1 million), compared to a net loss of RMB12.3 million in the same period last year. Revenue increased 57.7% YoY, driven by strong growth in gross billings.
"In the first quarter of 2025, we delivered results that surpassed expectations across revenue, profit, user growth, and organizational efficiency," said Larry Xiangdong Chen, Gaotu’s founder, Chairman and CEO.
The company’s gross billings, a key metric measuring cash received from the sale of courses, rose 21.8% YoY to RMB888.7 million ($122.5 million).
For the second quarter, Gaotu expects revenue between RMB1,298 million and RMB1,318 million, representing YoY growth of 28.5% to 30.5%.
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