17 Education & Technology Group Inc.

Q4 2022 Earnings Conference Call


spk_0: good evening and good morning ladies and gentlemen and thank you for standing by for seventeen at tech fourth grade two thousand and twenty two earnings conference call at the time ah participants analyst and only mode after management prepared remarks there will be a question and answer session as a reminder today conference is being recorded i would now like the turn the meeting over to your hosts for do they call midler thou seventeen at text investor relations manager please proceed law
spk_1: funky operator hello they want and thank you for joining us today our earnings release was good to distribute it earlier today and is available are i always like joining us today armies the andy leo founder and chairman and chief executive officer and is the michael do director and chief financial officer and he will walk you through our lady of the business performance and strategies followed by michael who i'll discuss our financial performance and guidance they will be available to answer your questions feeling that two and a session after they're prepared remarks before we again i like to remind you that is conference call contains for looking statements as defined in section twenty why whiny of the securities exchange act of my view for the fall and a us private securities litigation reform act of my the either five the following statements are beyond our base the management current expect patients and current market and operating conditions and relief to leave them that evolved know and out and no race and seventy is another factor all of which are difficult to predict and many of which are beyond the companies control these rafe may call the companies are to resolve performance or achievements to differ materially for the information regarding the than other factors uncertainty about fathers' is included in accompanies company's filings with the us as the see the company that not as a take any obligation to update any for looking statements as a result of new information future events or otherwise accepted as required and directly applicable law i will now channel called virtual chairman and chief executive officer to receive some of our business devout development and strategic direction and andy please go ahead
spk_2: the jeweler ah hello on that you all for joining us on our fourth quarter twenty twenty two earnings call the board with him i would like to machine does the financial evolution some gov numbers
spk_3: we have presented
spk_4: on the tutoring of or something
spk_2: than all numbers are based on our in the unless otherwise stated before we go into the details let me provide new was the coldest business of those and financial performance across all does his lungs the coming emerging operate in china in the fourth quarter funny wanted to cause significant delays in the pudding and delivery proposes of our products were which in turn gilead the buildings and the delivery of quite a number of products that were previously expected to have him the fourth quarter founded on you to the existence of the affected our revenue and financial results in the quarter we responded quickly by accelerating the rumble of alternative distribution tunnels and creating more flexible cream and structures who remain agile under this is this situation
spk_4: the today in the process of t products have resulted in decreases your revenue but we did not lose done by the enemies these products of view of the isle preview that we will work consistently to that was them of cool night distributions results that example is the i am be one hundred and
spk_2: a good thing boeing products we were awarded on march twenty third twenty twenty three
spk_4: this was a product previously was the ability or is by the bidding and delivery schedule i will elaborate further on this product as by the later
spk_2: in twenty twenty two we recorded mac revenues of our and be five hundred thirty one point one million excluding not revenue from our all likely talk to three services not revenues and written by eight point four times a year that increase were mainly attributable to the steady progress of our business has formation this was achieved after we feed of unlikely top two thirds of this at the end of twenty twenty one which accounted for approximately ninety five percent of our revenue before nutter revenues for the fourth quarter twenty twenty two where i'm be thirty nine point six million residents in or year over year increase of one hundred and thirty eight percent while we exclude impact of legacy on like a top during services looking back buffy your twenty twenty two we've significantly reduced double loss will never getting on the new pass for our new business initiative
spk_4: our just if not most in twenty twenty two words reduced to our would be forty eight million from our in be one point twenty twenty five billion in twenty twenty one or two decrease of ninety six percent now i would go into more details of of the task
spk_2: le star was are in school shooting a learning source business we're glad to see key milestone processes in our inc school business suit the luck the corner on march twenty third twenty twenty three the company was officially awarded a new smart pen based education digital transformation product me i'm in august with was a concept of value of are in be one hundred and sixty million this is the product to move me how this was education digital transformation father after the precision teaching ended up to learn he said some product which was delivered in the second quarter of twenty twenty two it done the tweets our comprehensiveness and the markets reclamation of our comprehensive at fish since to resist it aims to provide off solutions that services to the pump to all public schools with not guess with and and next it will expand to cover all schools have been called district the product you the light it's our accumulated the the insects recommendation algorithm and the ai technology to provide high quality education digital transformation solutions eat homework the teaching and classroom interaction it creates a closed loop from class preparation gtx i this corruption the by the way and research and management do any a whole picking a learning process a prop promotes balance and the high quality development of regional education skill level and a normalized application smart education services and helps more students achieve personal like develop it also pay them example and a leading role in the digital transformation of regional education the other provinces and cities in the future this product clearly illustrates the industry i can leave reclamation for our teaching and learning source offering in terms of it's awesome any ability of said if eating daily peachy teachers as student views on a math skills which are rooted from i would be to inside and ai technology deep understanding of classroom and homework scenario oh and deep integration of technology into teaching and learning from all i could offline
spk_4: from a product and service offering prospective the company continues to optimize and it rates out product offering a services to meet the needs of our clients to fuller because user experience of the government enterprises and school with collaborate to promote a development of digital education we have produced up reproducible ed replicable overwrought teaching and learning solutions of a year of practice
spk_5: our flagship the case may have homework has are cheaper full coverage of public schools email district as of now more than one hundred and fifty schools use our precision teaching and adapter learning a system worse twelve top one hundred and twenty thousand students using a tool to do homework
spk_2: the accumulated number of students using the tool for homework has exceeded
spk_4: sixty million as of now the frequency of use and the most irritating rate of feature seeing the public schools continue to increase and of a light application of smart pen practice his advances desolate you appear as the road is your a recent conference was held in beijing was the theme of digital transformation and the future of at
spk_5: patients focusing on opportunities and challenges brought by digital transformation in education stop to attack as one of the only to cook culprits presenters words invited to attend the conference i was honored to deliver a speech and share alex versus and the practice of our products in fiscal transmission of at fisher with huh
spk_4: hundreds of regional education bureau's be invited to listen to and that with received the things it think this as response and the rewarding trade was industry ps and educational arthritis or what city are learning solution has also be obligated invading see trump saw hi tommy as some young district
spk_5: for mass scale and normal application as part of the digital transformation initiative which received brought recommendation from local educational arthritis luckily nike operate in tiny the fourth quarter of twenty twenty two have the fact that the bidding and delivery of quite a number of government procurement products including a number of up he products this has directly impacted our products gallery and a remedy like recommendation and thus the financial proponents of the company the fourth quarter of twenty twenty do we believe this will be absorbed it's gradually over the next few quarters example was that our recently awarded product was creep previously expected to be awarded and a partially delivered in the fourth quarter
spk_4: he would not outside of our self directed learning products we continue to develop educational products and services that meet regularly refinements including stuff directed learning products learning devices and other digital products and learning confidence for students will continue to optimize and it's rate are product operate according to changes market and
spk_5: customer nice meanwhile we carry out in depth corporation and educational institution with a strong in the faced and traditional contest to provide smart kicking products and services for primary and secondary school students now i will try to call over to michael our several to walk you through our latest financial problems think it
spk_6: thanks andy i think they're the ones for joining a cop our no luck is to the our financial and operating without pick know that often a surrogate i talk about will be presented in ninety beaten i like to remind you that the quarter results would present you should be taken with care and reference to our potential future performance the subject to potentially impact from seasonality in a one off event as a result of the sea with of regulation introducing talking just twenty one and a quick bonnie adjustments how this model obligation
spk_7: and workforce
spk_6: the delaying the bidding and delivery profits of several other project has significantly affected revenue recognized in a fourth quarter and that how over financial performance
spk_2: however such fluctuations in bathrooms i never table during the early stage of a business development is specially given external environment
spk_8: nevertheless
spk_6: we a police report that i'll continuous costs and expenses reduction measures have allowed us to significantly reduce our net loss and talented into it by termination of our legacy k to twelve after school to are likely to in operation which accounted approximately ninety five percent over revenues pot with china's economy recovering from the coby nineteen pandemic we're confident that the lakers a worthy project is not important milestone in the company continues transformation into the new business strategy
spk_2: next please allow me to go straight for sort of money should be great idea
spk_9: i'll that revenues
spk_2: the revenues for the fourth quarter onto the to will on thirty nine point six million for preventing a year over year decrease of ninety two point seven percent from the on be five hundred forty two point five million in the fourth quarter of talk with you want
spk_4: it was mainly due to the cessation of a tongue are likely to tell different services body can have found twenty one to two regulation week
spk_2: if if compared excluding the net revenues from unlikely to talk to certain services
spk_5: i'll wrap net revenues increased significantly from i'm sixteen point six million to on be thirty nine point six million doing the same hearing representing a year over year increase of a hundred thirty seven point seven percent
spk_10: the net revenue decrease
spk_4: by a sick people to the a point to prevent all quarter to quarter basis
spk_6: due to get lazy the project delivery and revenue recognition as a result from the killed in nineteen and then i'll break during a party pierce
spk_11: casa revenue for the fourth quarter
spk_6: after forty two with on be eighteen point nine mils for presenting a year over year decrease of nike paul one percent from on be one hundred ninety one point two million fourth quarter of talked with you on which was largely in line with decreasing net revenue to to the cessation of the companies are likely to tell different services under the new regulated
spk_2: gross profit for the fourth quarter twenty two was on the twenty point six million for preventing a year over year decrease of knocking four point one percent from id three hundred fifty one point focusing a million of the fourth quarter to twenty one growth model on the fourth quarter of and he to was
spk_12: fifty two point one percent
spk_2: representing a year over year decrease of top on seven percent or of compare with people for a thing the fourth quarter on could be worth it to prevent family the major of change of a major business
spk_4: cause operating expenses for for caught up on funny to with only one hundred forty one million representing a year over year degree of six two point nine percent a mining three hundred and eighty point three million for call up twenty thousand thirty one martin operations for for caught up on twenty two was on be one hundred twenty pounds three million compare with on be twenty eight point nine million in a fourth call up top twenty one
spk_6: lot from operation as a percentage of net revenues for fourth quarter with an active three hundred pound for pound puppy perfect compare with next five or three the fourth quarter
spk_4: now lot for the fourth quarter or time twenty two
spk_2: what i mean one hundred points while hundred and three on one million compare with net loss of i'm be point by point six million the fourth quarter of taunted you one now lot as a percentage of mitt romney's with next two hundred sixty point seven percent the a foothold hold talk on twenty to compare was inactive
spk_12: four point seven percent for for that particular
spk_2: adjusted net loss on and get faces for foot quarter up taunt on the to was on be seventy point one million compare with a jiffy net income of on seventy million of what caught up to twenty one that related in creating lot it's was finally related to the projects that we previously expected to be delivered in the fourth quarter of town twenty two that got delayed due to the panel the knifing outbreaks in tiny was quarters of please refer to the table caption
spk_6: the calculation reconciliation of men get measures to the milk comparable get measures at began of this press release conciliation of net loss and the year gap to i just the income despite his shots and the turbans caused by calling i think we believe it has also presented us with new opportunities for grabs we're committed to speaking progress with abilities to achieve high quality grouse will continue to explore multiple visit opportunities to include a valley will provide tell customers while keeping our momentum going
spk_2: additional and we felt it will free to optimize our operational efficiency to strengthen our competitiveness and the drive sustainable long term growth fog businesses
spk_6: looking ahead we're cautiously optimistic and copied about a future of chemical attack we are committed to creating better value for shareholders in the years ahead and deal with that that conclude that prepared remarks thank you operators of we are now ready to fucking the kinase gosh thank you
spk_13: thank you
spk_0: you have a question this time please press star one one on your touchdown telephone again met a star one one if you have a question and one moment far first question shared by the as measured question is and same game that you're diners open please go ahead
spk_14: hi good morning i would like to know what's the defeated of the share buyback program that you enough matthew even were naqqash is treating
spk_15: pressure right now
spk_6: i didn't hygiene and thanks for a questions again that the company's share buyback program has always has continued be operating officer things announcement
spk_16: we have clear instructions in towns away we want to buy back the in terms of amount and price the details of the share buyback purchase program or will be fully disclosed in the and you report which weeks to be coming out over the next month or so
spk_17: thank you
spk_0: same here and again if you have a question at this time please press star one one i'm showing no further questions at the time and like turn a conference back over dollars out for any further remarks
spk_1: some years later in closing on behalf of seventeen attack management team we'd like to thank you for your participation onto the car if you require any further information please feel free to reach out to my directly thank you for joining us today this concludes the car
spk_0: this concludes today's conference call thank you for participating you may now disconnect

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