Tarena International, Inc.

Q4 2022 Earnings Conference Call


spk_0: they'd even gentlemen thank you for standing by and welcome to the fourth quarter and full year of twenty twenty two serene international incorporated earnings conference call all participants are analysts and only mode there will be a presentation followed by a question and answer session if you wish to ask a question you will need to press the start he followed by the number one on your telephone keypad mike advise you that at a conference call is being recorded today march twenty eight twenty twenty three our knowledge began hand the conference call over your first speaker today is still the again the investor relationship manager thank you please go ahead
spk_1: and can operate talk for know everyone and welcome to join us earnings conference call for the fourth quarter and four year are plenty can be to the company's earnings results were released earlier today and how valuable ally our side i thought t v or gaussian as well as on years were savages the day you're hear from me and nancy soon our see old and meet pm way our cfl while to get through the company's accretion know and the financial results for the fourth quarter and for for of twenty thirty two and give up new guidance for the fourth quarter of twenty twenty three after they are prepared remarks nancy enemies way well be available to answer your questions the continue please know that the discussion today while contain certain forward looking statements made and there's a safe harbor provisions of the us private securities litigation reform act of night in that fight this forward looking statements are subject to risks and uncertainties some cause actual results to depot much you're only from our coach parents expectations between we us now to assume an application to opted annual forward looking statements except as required under applicable law oh so pretty know that some of the information to the discussed includes non gas financial measures as defined in reclamation she the us that financial measures and information reconciling that non gaap financial with measures to terrain us financial results prepared a no contest was the last cat i included in terrain us or history release which has been posted on companies our website i thought td of dust again i nodded as a reminder this conference call is being recorded in addition our constructive conference call is available on to a nothing less your relations website i will now to call or to miss messaging soon as the all a cold enough
spk_2: dude you're young song completely country to be able to your cooking fish you feed your number or like hundred woman that your coffee
spk_1: thank you have the of the are and the thanks everyone for joining us
spk_2: are you are you eat that show home she get one he dealt with the should see he she didn't he kinda thing you eat younger people to the have a t getting didn't give him in the union fell to make even know you're cheating begins young woman because i didn't teach you can do with you the should you kill them you didn't kill shoot with you should impeach him he's shooting began him send him to binghamton new you didn't she didn't need food from combat fish you don't wanna bet you who when huge chunk pretty junky eg sink your teeth is he should honor computer games
spk_1: the muck around the end of twenty twenty two was a challenging period for as as covert nike dynamics and the chinese new year temporarily have impacted our daily operation are offline center closed for almost two months as a large number of teachers and student activists when classes to to pandemic restrictions or illnesses meanwhile some employees were a the unable to work for a period of time to varying degrees this affected are offline customer acquisition or online and offline court delivery and our allies that are services
spk_2: yeah i'm doing pretty good job that you need one to make a human tissue that single indian them be wouldn't be the all and own feel she can you be too late she she going to other humans him killed again when the either she's young or the iranian pieces he does young future but by didn't even think of anything to do you watch to for huge him kinda feed to be he didn't he
spk_3: are you are new people
spk_2: heat from the modi you by the to be forgotten to keep on the pub you forego to being hidden to your you keep him but he won't be back on the five hundred cheaper than you are can keep all a party either by the media or think you're using to go you can keep agency she can competing for more sure that coupon when tv population food on the thank you the should cheat and mommy yeah obama said he just got it you can keep all of you think of i can be it you the more you chilean she be an equally you can even that all to you will by someone yeah
spk_1: the me what i'm twenty two watching be good saddle he didn't we weren't here in the challenging business environment we achieved positive operating cash inflow of twenty four million rmb and a non gaap operating income excluding shared the composition expenses in the fourth quarter little due to our operational agility our table of oh i know based court deliberate system and are consistent improvement of operational efficiency will call profit margin on the group level reached fifty eight point four percent in the fourth quarter up eight point four percentage points year over year a physically or eighty professional education did not remain stable with a a gross profit margin of seventy three point two percent rising by eight point one percentage point year over year or i keep focused the supplementary seen education doesn't continues to demonstrate market resilience and business model scale ability registering as a woman's growth of seventy percent and a gross profit margin of forty eight point six percent in the fourth quarter of thirteen percent this point year over year in addition
spk_4: despite the challenges from external headwinds routes point twenty two we achieve a turnaround from a net loss to a that profit of eighty five point two three million rmb and a non gaap net profit of one hundred and two million rmb for year as a result of the continuous operate in our operating model
spk_2: deliver quality and service capability so you feel about each million one of the early are you people do these things all the way would be a will argue yeah your are you are rd and committee will indian media them up and he defeated she she didn't cheat on you fool the county
spk_1: was your children keep fucking or children to you know you'll see eg t v he wanted he didn't show me john bueller i can to say you get you our total net revenues amounted to five hundred sixty two million rmb in the fourth quarter down fifteen point seven percent compared with six hundred and fifty five million rmb in the same period of twenty twenty one due to the factor i mentioned earlier settlement why i keep focus
spk_2: supplementary education revenue was comparable with that of the fourth quarter of twenty twenty one while or i keep professional education revenue declined by thirty one point six percent due to the impact of macro economic headwinds they treat you differently than woman children born to die you bloody more shoot people who can we do you generally speaking je da silva think i'm too
spk_5: gun people forgiven the to nice he young she wanted to single new york or the guardian kisses you do see come been t v rt or union speech cheap shut him up a few the or to do the boss phil mali these people have been sued the by you can you for you chilean
spk_2: you teach i'm shot him about you to shooting she should the woman people gb thing you quitting and food right by teaching target to bite you should see where you are kidding me what the pretty good looking you leave this book how do you teach your kids for you we have fun get some wonder if you shoot and kill you he wants to continue continue
spk_4: really he thought all to to somebody to my you certainly wasn't was pretty good looking believe that though he deleted it
spk_1: then with with that to caught control during the period we optimize our business management model to enhance operational efficiency and effectively control expensive in the fourth quarter impacted by factors beyond our control our revenue decreased however common degree by twenty nine point eight percent year over year as a result of gross profit up our gross margin wronged by eight point four percentage points year over year in the fourth quarter additionally operating expenses decree five fifteen point seven percent year over year substantially narrowing or awfully
spk_2: off by ninety two point four percent year over year to four point five seven million rmb our non gaap operating income excluding sherpa composition expensive was two hundred thirty three thousand rmb new while we realize i'm operating income of ninety three point o four million rmb on the phone
spk_1: twenty twenty two you compared with an operating lot and twenty twenty one as well as a non gaap operating income of one hundred and nine point three million rmb
spk_2: do july i could i get your show young woman to cheat on you tube video your with a coupon text let me walk you through our ip focus supplementary theme education business early morning and the people gb cheat on you tube video new the theme who funded point for them or the hardy and people do do that funding for losing here she'd been fucking
spk_5: can feel the show me some true true competing for the and
spk_6: a woman told go to the courtroom could the on t v plan for the conviction pretty can't be avoided fools and party or union people tease me the sure would you use them bargain come up and destruction about early are hardly and t v the she cheated she london since you agree to free the when he didn't he could be doing
spk_2: somebody gets killed hundred woman to for gb molly i'm don't like to thank you
spk_1: i think your title with your buck moly do can be function molly do play different from sri lanka by can be at about five hundred budget bill in the fourth quarter of twenty twenty two net revenue from on our i keep a supplementary in education program was a three hundred thirty four million or and be horrible to three hundred thirty six million id we recorded in the fourth quarter of twenty twenty one that's represented his fix this represented sixty point five percent of our total revenue during the period and increase on the fourth quarter of twenty twenty one irrelevant increased by seventeen percent thousand one hundred fifty one thousand three hundred in the fourth quarter of twenty twenty one to one hundred and seventy seven thousand in that same pure
spk_2: creative twenty twenty two thanks to our high quality quarters and deliberate as well as our glowing france meanwhile would study revenue growth and effective crowd control at at or center or got caught that rose by three five point eight percent year over year in the fourth quarter and are gross profit margin climbed by thirteen percentage points the forty eight point six percent but will be upon him shooting up in contention one either these young woman company the country think should have he killed himself a june fourth sunday a barber you should be true intentions yard young by teachers should be cheap and people new key to kill you don't you either could you could not be two young children your from a young what a pity show you we woman fine i simply people like kobe with shooting shooting the gym more easily concealed a new book of short you feel about her does seem goldfinger to thank you thank you you're not you're missing from to joshua you could have proven guilty conscience
spk_1: you wonder why more mature than thirty people that you knew what intrusion beginning feedback from to the from the oh poor treaty twenty three trillion odinga and food and i can to should see them them killing them you're confusing go figure into i'll be told what you're doing tpp eat turkey vultures that i can to chief for baggage she in the trunk i'm a customer acquisition france or total number of fee paying dues in the fourth quarter of twice by the to was thirty eight thousand two hundred degrees of ten point seven percent year over year as was to equipment was affected by the temporary closure of our off my center however are excellent court and deliver quality and our students learning a result in i can focus supplementary theme education have translated into word of mouth with files and an increase in a number of when you're still wins as the percentage of keeping students partially offsetting the decrease in customer acquisition
spk_2: a due to limited center after me a while thanks to our integrated online and offline court delivered them and our non dom aware most service model it we're short high court and service quality of the maximum except despite the constraints imposed on our operations in a fourth quarter in the fourth quarter involvement in crete by seventeen percent year over year notably the percentage of of when you're children to have a road for over a year continue for to exceed seventy eight point seven percent in the fourth quarter they do to him being shot seen on people didn't feel you tv show
spk_1: in front of him to do some woman she she keeps some people be shown him not all due partly keeping to them for that the tedium defeating that you didn't feel are the are you people gp he was a youtube video you the ppp young the already or you kids would you do more are becoming popular take a shot archie equal to or new are new people viewed more or but if it's legal issue and confusion either issue the tree and a meeting simply by thirty one key feature or the her new people give you don't make anything other you get people to be teaching an introduction i think you're cheating back regarding the operational on that are although some of them suspended operations due to the pandemic in the fourth quarter managed to improve operational efficiency wow in the showing port authority quality that helped are operating costs and expand single and for profitability
spk_2: at the end of the fourth quarter a point when the to the total number of are providing i keep focused supplementary in education services declined to two hundred and thirteen from two hundred and thirty eight at the end of the fourth quarter of twenty twenty two a notch reduction of twenty one center at same time the number of students enrolled
spk_1: presenter increased from three hundred and thirty third or fourth quarter of twenty twenty one two eight hundred and five in a same period of twenty twenty two in the fourth quarter average revenue per center will buy seven point eight percent
spk_2: you can i could i get the are shown chuck true i people you feel you need a gym class
spk_5: ap moving to our i t professional education differ people he do probably they'll probably to do you feel about each on t v show you can include shouldn't be nice
spk_2: can you love
spk_5: kinda seen but you didn't should you shouldn't you done differently to the game show dominance
spk_1: people tb woman become a huge informed him he already are you need to get shut him a thank you to think it will come down to your whole to people in future mean ppv she might say could she didn't think you'd think you killed between people being shown you the when he didn't want he people to really listen to the fitting use the early are you teaching him unit biking to every sunday cheap during the fourth quarter the pandemic impacted suicidal mobility in general affecting our enrollments and operations as well to cope with a situation with offended the operation of thumb offline that earth for period the had a significant impact on on our operation that the enough
spk_2: a quarter of the typically net revenue for our id professional education business drop by thirty one point six percent year over year apart out that i have resumed for reasons since the chinese new year holiday in addition we continue to to facilitate the operations are reducing costs and improving operational efficiency in the fourth quarter the total cost and operating expenses or i t professional education percent decrease by twenty three point seven percent year over year leadership way to you see the bachelor party and sure that i'm sure he can he from the media jumper duty don't want to teach you can you live far gun shooting people are the she's smart tv cheap or june june she'll feel ashamed human didn't deter them from the lamb chops or did she didn't have the shouldn't crucial in your emotions you can be coming trump the and from it you should be the fica he chewed up he did you even like when we could get all should be king and thief who ushered from to the thought he he pondered pumpkin platoon computer you could you want to make sure people wouldn't cheat again shouldn't side pregnant with that wouldn't be able to walk through the what's your unfortunately party from side to you can you be either legal
spk_1: one young t here a few the pg he couldn't find enough people like people will be opened a i and as usual are you keeping calm he showed him in that africa and with young children by could you can kinda julian triple whammy be kinda curriculum that young from infusion get from the people were like to the judge i'd society place more emphasis on digitalization that information a development will embrace the opportunities brought about by the digital economy during china's macro economic recovery chives tpp has that up a new wave of a high tech law and you advancements worldwide and it's core of generative a i model will promote the deployment of new technologies as important how business and the society develop we always stay abreast of the latest cutting edge technologies and market demand and continuously in a innovate on courses services and weezer accordingly and new while we have continued to explore the application of latest technology recently we became one of the first approved ecosystem partnered of the ernie ball developed by by to through this collaboration will explore the application of a smart a lot technology in professional education which marked the first application of the car additional
spk_2: anguish model in professional education in china we believe that powder application and rapid development of ai technology are bound to drive the demand for high standard eighty thousand and that they will fuel load the development of the t professional education industry we will continue the and at the box
spk_1: and of technology logical innovations in industry and continue to create value for our students and their employer without industry leading courses and delivery services
spk_2: we've shown should leave for early our new pc people t chile and be and you to think ya
spk_1: that concludes my review of the company's operations for a fourth quarter and oh europe twenty twenty two danny gokey one of the careful where you can use should be back out there like hunting are you people do teach union i would contend with your shop
spk_2: x l time the call over to payments well here to our financial for the fourth quarter of for your point where
spk_7: thank you know three and hello everyone now let me walk you through some up the financial highlights of the fourth quarter of fiscal year twenty twenty two prefer to the press release for more information about tried to be brief
spk_1: for the fourth quarter twenty twenty truth because we narrowed his property law to four point six million rmb or zero point seven million us dollars compared to your operating loss of sixty point four million rmb been affirmed here read of twenty twenty one now gap operating income which excluded
spk_7: share of a conversation expensive
spk_1: what arm billion euro point two million or zero point zero three million us dollar a the fourth quarter of twenty twenty two compared to now gap of a lot of for perfect point five million rmb in the same period of twenty twenty one
spk_7: the improvement in now operating profit was driven by our well executed cost an expense control during the quarter or though it face challenges from temporary uncertainties in the business environment
spk_1: i'll follow that revenues reached five hundred fifty two point four million rmb or eighty point one million us dollars in the fourth quarter of twenty twenty two of which net revenue from our if you focus to speed to prevent is the in education business was three hundred thirty four point one alarm be the freezer
spk_7: anything about sixty percent of our total revenue meanwhile thanks to our we effective control measures i will cost of revenues decreased by twenty nine point eight percent to two hundred thirty point one the alarm the word thirty three point four million dollars in the fourth quarter twenty twenty two from three hundred twenty seven point seven million rmb in
spk_1: sm here it of twenty twenty one total operating expenses decreased by thirteen point seven percent to three hundred twenty six point nine million rmb or forty seven point four million us dollars in the fourth quarter of twenty twenty two from three hundred eighty eight million rmb in the same period of twenty twenty one as well he achieved a friend expense reduction across i'll often ovation the main contributors to the cost and expense reductions include the following firstly we continuously closed the local polling centers and optimizing personnel places to improve efficiency as the leave out as nancy mentioned earlier are learning centers for both eyes you focused supplementary theme education and i see professional education businesses decreased to two hundred seventeen and eighty six centers respectively and i will tell the headcount be increased by twenty point five percent year over year secondly we reduce sales and marketing push your now as well as much been fairly while remaining focused operational accidents by in the worrying to up the quality of all course content delivery and services will continue to generate more word of mouth referrals and with me you loman and maximize the lifetime value flower student thanks to the to all of referral effect our in rome and so slowly really is this guy social mobility ah restrictions dealing with exceptional it as a result of the foregoing we narrowed our net loss to seventeen point seven million rmb or two point six million us dollars in the fourth quarter of twenty twenty two i'm proud to a net loss of hundred eighty two point five million rmb aden the stand
spk_7: he'll read appointee point one non gaap net loss which exclude your fear based compensation expensive i was proud point nine my little arm be all one point nine million us dollars in the fourth quarter of twenty twenty two compared to non gaap net loss of hundred seventy eight point six million rmb a the and here it up twenty twenty one
spk_1: oh annual basis
spk_7: given our implementation of operational strategies that amplify the profits woke woke of the company net income for the year has reached eighty five point two million rmb or trout point loma yards dollars compared to a net loss of one hundred seventy five point eight million rmb for twenty two only one non gaap net income was one hundred and one point eight million rmb or fourteen point eight million us dollars for twenty twenty two compared to a non gaap net loss of four hundred fifty six point seven million rmb in the same period of twenty twenty one now only yes side basic and diluted lot for a the as was one calling
spk_1: seven to i'm be or twenty five cents us dollars in the fourth quarter of twenty twenty two compelled to lot lot for eighty that of sixteen point trout i'm be in the same period of twenty twenty one oh an annual basis basic income for abs was seven point six to a fix for i am be all one dollar eleven cents us dollars in twenty twenty two compared to last for ages of forty two point seven pm arm be in twenty twenty one pilots the income put eddie as was seven point two three armed be all one point zero five dollars us in twenty twenty two compared to last for a the as of forty two point one some the arm be in twenty twenty one as of december thirty one twenty twenty two the total balance of cash cash equivalents and time deposit including current and mom current endless just a cash was the three hundred eighty point five million rmb or fifty five point two million us dollars increasing by thirty eight point four million rmb from september thirtieth of twenty twenty two
spk_2: the increase was many due to twenty four million rmb of operating cash inflow generated in the quarter and twenty seven million rmb of info from financing activities as we threw down on our party facilities capital expenditures in the fourth quarter of twenty twenty two one nine point two million rmb or one point three million us dollars money from purchasing ip equipment used in classrooms and payments to renovate learning centers this include concludes my financial highlights section and nancy will share with view the business i'll look and revenue garden for the first quarter of twenty twenty three nancy grace
spk_1: i'm here we can you certainly aren't you are new young people you do each union how incompetent year
spk_2: new one nice embargo freedom compete with are you are being or twenty and one party
spk_8: thank you miss way for your summary of our financial performance for the fourth quarter and full year of twenty twenty two now turning of companies outlook for twenty three
spk_9: arlene are you in the shoot each without single tweet year to and should be an easy one you
spk_5: had been one
spk_2: a lawsuit young
spk_6: you do a decent job the fusari to feed or twenty years young hope she'll go media when either eg youth is nice and tight she'll she'll wonder what you think that aren't even believe you can see not from kitchen cooking
spk_2: you are the some be tb wouldn't he couldn't be good luck he simply to the shitty do more easy to the food or the all the you tube shoot you he is a beautiful the black woman he could i should be on t for the kids in shock choir i do he couldn't come from qualm shuttling here are divided yeah
spk_6: are you know what the team more shit shit central plot hopefully to and approach we go to teach you about your for yeah so are your poonam go point so that's why he seemed kinda he put it in foot
spk_1: once we didn't come should teach him how the city so that he is ambulance young people the issue are are funny and eg do the twenty four a pandemic evolved continuously from october twenty twenty two through the chinese new year as many of our teachers it's employees the students and their families fell ill from the or until around the chinese new year we made that decision to spend most of our non essential operation or four january twenty twenty three including the majority of our classes that meant we only maintained normal operations for approximately two thirds of the fourth quarter of twenty twenty three as a result of first quarter revenue represents only about two months of revenue in addition we estimate and eighty two hundred eighty million rmb reduction in our cash repeat during that period compared with fury of normal operation at customer came and precede services rendered based on our operating model for both keep professional education and id focus of supplementary theme education services
spk_2: the through all him later recognition of a county or revenue ban catcher easy addition given that eighty professional educational quarter of last four to nine months or gap revenue for subsequent quarter it's particularly the fourth quarter of twenty twenty three will also be affected some then treat know what you know that children should be the you feel good thanks using using who are you putting out the door to get that cheap years old are your to woman you do to a meal we pool of can compete with you but you don't want one thing the people wifi hear you on be relaxing weekend to go to a company or theme in the emotion from the look hot young woman the one he chose your killed for me
spk_1: you have to mm be engine them be they can be children the put them boom she's yosemite we want our different financially and the canadian film it's usually that guilty to you can handle the to clock will meal thank you for are your denied the local below him to your kids will crush you could you do for show since he believed by the one to britain from rd are funny and i we built should begin usual of course we believe the impact of the spending our centered operations of temporary by the end of the chinese new year holiday in early february we fully resumed normal operation and that the study recovery of macro economic condition feel old soon as enthusiasm to lower
spk_2: in our quarters we have been as an enhanced level of course sign up moreover we marched from the top challenging stronger would have operated or i'm okay to live with system and little as optimized customer acquisition and operational capability made in a solid foundation for all your up with
spk_6: your and twenty twenty three this has given up confidence that on the second quarter our our great performance since early february will off that some of the earlier outward the fact of external headwinds on the company's financial in twenty twenty three
spk_2: yum yum both sides how would reinforce the and when you boot been to do you watch the movie or new york for new t v d c children from what we keep our a new new to the sunday a buddy he once and you're earning army and fiji getting full the police shot young i think thing to do the me too i think this would be union
spk_1: the to tv them to should come cheap on the to some from julian flight imovie bank issued from cooking continue to combat is it important to london queen far from be being
spk_2: accordingly with respect to financial guidance we estimate our total net revenues for the fourth quarter of twenty twenty three to be between three hundred and sixty five million rmb and three hundred and eighty million rmb representing a few create of thirty nine point one percent support
spk_5: forty one point five percent from the fourth quarter of twenty twenty two the company guidance reflect our preliminary estimate that the current market environment and the companies operating conditions which may change cannot where you live woman to you i keep your usage want the we like it lead to my teaching one completely go oh i mom from she's him them for the trunk and the old city from he would include can keep you to them but he did he show with usual by likely to judge you for the uncle to keep yeah
spk_1: come to light bulb you didn't see the same time eg didn't kill the middle one income case you didn't do it could be feel you you begun to do other things from feet he loves him to think she kids eat poop think you will meet young can you people feel quite reading shelby try two hundred billion quick beauchamp she didn't she hadn't you can be freaking him people looking ahead were fully confident about the potential of the t educational services market will continue to optimize our or mlb product delivery system and services and suddenly prove our corporate with quality to bring more value and a better experience or students were optimistic
spk_2: about the way down in a roman and will consistently ringing the word of mouth referrals to drive growth in new paying student and when you're doing while lowering customer acquisition
spk_1: i think times reporter in hands are operating efficiency and strive to achieve of a new level of pull your profitability wood healthy in the book businesses and operation
spk_2: he fell woman to you polite a chat lung tissue the julian
spk_1: the fitment about in our outlook for the future and our revenue guidance
spk_0: due to do site for don't you about yacht eg you might have one do her teachers union want me to be hot futile cuban i will i could take this opportunity to thank you again for your attention and support were now ready for question ladies and gentlemen thank you he would like to ask the question please press star and one on your telephone and with you need to be a know if you wish to care for your request we fresh start and to if you aren't a speakerphone we do as please pick up your hands that the after question
spk_10: what began at a store and then one to join the question you
spk_11: a first question for a comes from edward riley from he of hutton please go ahead with your question sigma question
spk_12: on comfort and reconcile the both quarter guidance with
spk_13: fourth quarter results
spk_10: in the environment in the same so the totally no classes in january he said but in the fourth quarter it looks like he continued online classes
spk_1: during the lockout go so i'm i'm just gonna wondering if you could maybe provide some color on on locals margins might look like the first quarter of them gonna be fillon when because i'm wrong with them listen i'll pass and in the corner been limited revenue and in january right any of it ah have cathy i try said the question first that i'll take the question
spk_14: guan yu concert hall and oates you are oh god i quiet call that there's also your teeth out all about of bible or shine you'll find you know young shock or through the door dog or yet treasure way our point of getting not stop was all function huge luxury zone out his are are arlene our ten years eat
spk_15: a to the mound he didn't seem quite hi y'all are caught on fell casualties on me
spk_1: or comes home but fisher
spk_15: it that's actually a good got great question because said know you know as the mention the we we basically didn't have any non essential crisis open for january he and the you know a lot of our staff i had to take a sick leave effect trap so over war the first quarter we won't be
spk_1: able to match the market which caved and nothing he was twenty twenty two we are was looking for a last martin climbed a pillow or forty percent or so that the outside of that are what we expect now you you making that the yeah up personnel caused the yeah i'll grant yeah we actually got down rental relief in kill for and enter in the other quarters of twenty twenty two we don't expect that to be repeated eating that january and the twenty twenty three so rent a excess
spk_15: all caught up to two will be about the say but the yeah out of as the last year but we were so were too late improving efficiency and optimizing open aviation so from personally out cronk first war as i mentioned earlier we
spk_7: twenty percent of haqqani come and during the year so land up the so the first quarter twenty twenty three people reside it cost will be ah much work one has with the point of no reduction you had come to an also some of them cake strictly so over all oh
spk_16: oh cluster excess adding together we should be able to say like more than a hundred probably around a hundred thirty two hundred fifty million of costs and expenses for the first quarter as compared to a normal quarter of you know so with you all need so why
spk_15: while we will have a significant no word out and topline revenue for the quarter bad law wife you know would probably be losing money out for the quarter by won't be as significant so are all off though a lot more sort of for longer have lives in we actually expect our
spk_10: full year after up a margin both all block and next five will be thought of been of the be better and own operating income absolute dahlan number wise as well we actually that to put y twenty three ah q q while and all annual basis would be better than twenty twenty two
spk_17: so i hope that i feel pressured eddie
spk_1: yeah you're certainly make so much for learn
spk_15: and this isn't housekeeping i'm i'm wondering what and woman was for the professional segment in the fourth quarter and i might have missed them
spk_1: oh what south that i thought
spk_10: homegrown or you without your pardon right the are in rome and for our adult is a gun did not a twenty seven thousand people take a few hundred and third about said plan percent lower day at the same pure of of last year primary a cause of lowly nation you know like bump up the were all was the social mobility much lower as compelled to a normal here
spk_11: okay got it on the month student you wade through center
spk_10: continues to grow pretty strong within the adolescent third man could we expect us to continue going to throw twenty twenty three
spk_17: i'm an issue any specific target
spk_18: capacity comes to me
spk_1: that you hang up on the sims the comedy even what you're looking to fill the road person a sure about it on me
spk_19: can talk about
spk_1: lot of which and contrary eg ball you will be calm him down from don't have real t sure that a sharia law audrey good do not hundred the and our financial issues it which are both retired able to you buy me you really going on at home apple them go
spk_2: again very the question eddie after we yeah we feel normal operating in february we do see fairly normal enter either with involvement is better so we still expect expected not alive long way faces like for kids especially are under in lama was
spk_7: the away high king to even go twenty percentage point now the second part of the yeah i've seen as the all wet that the current number centrist will be a call about to accommodate this kind of the romans was the answer for this yes yes for sure and then at the same time so that for you know we have
spk_1: how about a scale of a lot of because we have a old bottle in a week while you didn't come to san cisco courses are we have some of the cocker popular online would have some some of the classes with combine online and upon learning so essential you try basin certainly have your photos euro
spk_20: the growth at the same time ah things the yeah country is now
spk_11: put back to normal we are closing or expansion plans with our children sudden the a settlement as this blog as we are we up for them already enough huge market with great wealth potential and that you know we yeah we certainly oh wow
spk_1: won't want to forgive the your extension opportunities you know you to and thought of but because we want to the just like the lot to drive sustainable profit bulk well so yet okay gotta i mean won't be to really sweet respect polling centers to continue to decline going forward women flat in
spk_21: if you'd like that you may be some growth there
spk_10: right before the first half of that here i was a we probably will have said he only valid the place they've all numbers and they are heading into second ah yes you should expect found lot our growth in trenton numbers won't be a lot like will primarily live korea's gross from existing centers okay gotcha
spk_22: and then regarding similar cost reductions to the them year
spk_1: how much bigger dog or permanent
spk_23: i'm sure beats that posted we move back to normal levels and twenty twenty two
spk_1: by the yeah again on the cost reduction side you can see that said now both florida south and marketing the and for a dna at what cost of wrapping new you know we actually get turned up with yeah achieved a sizable reduction in ah from twenty twenty one to one twenty two
spk_2: ooh a lot going for what bases
spk_15: how you know all all caught some revenues by use like basically we don't anticipate over all costs of revenue to be higher than twenty twenty two simply because one that a lot her colleague option up twenty percent kicking full deal for the here and second delay off the most part of the here you know when will be longing and the operating off or optimizing operations with existing center rather than friend who expresses over there won't be more are a lot more structural cost of from that cloth so they figure when to work a pretty stable and
spk_1: then all marketing fight again i tallied option the kids and their marketing sending optimized so what do you watch the as some of additional funding as our scalp well as the as we are genuine one believed and cool room more the but other than that ah is will be he ah
spk_11: browning i'm conservative for a control on sunday only sell them on t side i think that he and the dna side i think both will also delivered in lower old the or annual numbers as compelled to twenty twenty two ah yeah i think good that ten to fifteen percent say being unfair
spk_10: phil not be side he and dead now on a yeah what a mansion on cnn a while although it probably what a flat spot in twenty twenty two they are about up to merlin of one time are expensive one has to a bit of with know the while a long time litigation settlement charge of three million dollars that the one time try and second delay we have found love the a provision taken on balance sheet that's awful long time thing so
spk_1: i would say dna side will profit was a black compelled to bed x go to a long time dna exact level or twenty twenty three oh good grief alone good color on the man who i was wondering if he could maybe providers
spk_15: with some details on what turkey's i look like for the next year
spk_1: pack
spk_11: yes at the i'd i'd ask me about income tax
spk_15: yes
spk_0: hit
spk_1: i sat on and use requires for the on afraid of single photo shoot abortion
spk_0: yeah for twenty twenty two little we we we acted the our effective tax rate to be around eighteen percent that's true or not but for the yard
spk_24: we have very level of tax you played for our what if been legal entities that we've been an ovation settle for twenty twenty three because of some except we actually expect around sixteen percent of effective tax rate for be year
spk_1: oh get rid of the to me
spk_2: thank you ready in ladies and gentlemen we don't have any other questions at the moment presenters please continue available question of murder are we do have an additional question actually from you do from
spk_1: about poor guy with your question other
spk_2: oh we on the shot which and under two turnovers charlotte sign of was you i can't on a that's high yoshio gnashing and my question as in the current market competition of thought of and children's education services one offering offering as differentiated advantages
spk_1: as he got incredibly awkward i think of and yeah
spk_2: a hotdog up a out here in that he went up the aren't fun yeah sure sure wouldn't guy that are or shower year we could you to join the fight off able to write it was kinda bizarre adult unfortunately he sits in that the on potential family not your true shoe boxes outside the afghani median the gym don't know shit
spk_25: show him by sorry could you to the eating idiot
spk_4: ah woman five he only tom cheap political jokes if you're young trump should she she didn't she and that one something woman for near the that you could use your richard yeah jumping since you didn't do a poo poo the see
spk_2: oh thank you for your question actually enjoying twenty three some changes that taken place in both children and adults education differences but terrain are had maintained our leading advantages mainly into areas firstly in terms of ah
spk_1: theme education our advantages mammy lie in our our diverse educational scenarios and our high delivery polity these two advantages will continue to help us win twat from our customers
spk_2: yard you're not a shower their take on all pretty soon to tell you the media will be true to see from what you're not familiar with you and i get other people keep i need to be
spk_1: women are blown off the tongue hotdogs able to catch up with to the day
spk_2: and settle late again and our theme education business we have when increasing recognition that a word of mouth problems parents because of our prefer highly professional services and a growing brand influence
spk_1: t sunday at monsieur woman gg from the trump walk through thousand people want more
spk_2: all new to the whole problem be your people will be tricky that he didn't them third we have a an expansive national of line customer acquisition that word that have boosted our customer acquisition capabilities and that will continue to be our advantage he flew the a woman treaty people sell you da vinci he had young people young woman kinda didn't think i'm them be
spk_1: for our highly efficient operation operational custom will continue to increase our competitiveness in the shower use your hard yards on yeah the well only confidence about the development of our thing that it isn't business and twenty twenty three
spk_2: my my tongue and like them new three times or woman sat on your inbox i teach you know you meet you dpm that people are audition
spk_1: and now moving on to our advantages and i ip professional education for adults aren't union doggy meeting the and should the woman the i keep you from the the uncool you'll different for the for you the ip people that don't show
spk_17: fall kinda showing you the been google their lives the do you propose i'm sure there are you didn't happen
spk_2: yeah yeah he turned from consumers ritual searching for new family know to be completed with union
spk_1: we'd have been developing or ip professional education system as the for twenty years and over these past years we have accumulated ample experience and in insight into the change of of technology and markets the man
spk_26: allow with the birth of new technologies our com changes in business model said the applications of technologies and we have been able to to keep abreast of the latest developments including new technologies and new market
spk_27: the man and we have rich experience in this area
spk_0: mama woman when one income from the oh i'm old and he killed for the t him but he keeps putting your food for the guadalupe on the only two people the ones are too good either seen the movie
spk_1: our table and strong oh i'm all day courts to the library system and experience teachers team these are all our advantages air
spk_28: i cheat professional education
spk_0: okay folks emotion from the to all all that are pretty simple are common sense it

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.