Gaotu Techedu Inc.

Ladies and gentlemen, thank you for standing by and welcome to the GATU TechEDU fourth quarter and fiscal year 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to your first speaker today, Ms. Catherine Chen, Head of Investor Relations. Please go ahead, Catherine.

Thank you, Operator. Good evening, everyone. Thank you for joining GAL2's first quarter 2024 earnings conference call. My name is Catherine, and I'll help host the earnings call today. GAL2's earnings release for the quarter was distributed earlier and is available on the company's IR website at ir.gal2.cn, as well as through PR newsletter services. Joining the call with me tonight from GAL2's senior management is Mr. Larry Chen, Souto's founder, chairman, and chief executive officer, and Ms. Shannon Shen, Souto's chief financial officer. Larry will first provide the business highlights for the quarter, and then afterwards, Shannon will discuss our financial performance in more detail. Following their prepared remarks, we will open the floor to questions from analysts. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon management's current beliefs and expectations, as well as the current market and operating conditions, and they involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict, and many of which are beyond the company's control. and may cause the company's actual results, performance, or achievements to differ materially from those contained in any forward-looking statement. Further information regarding this and other risks is included in the company's public filing with the USSEC. The company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. During today's call, Management will also discuss certain non-GAAP measures for comparison purposes only. For a definition of non-GAAP financial measures and recommendations of GAAP to non-GAAP financial results, please refer to our first quarter earnings release published earlier today. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this conference call will be available on Galtis' IR website. It is now my pleasure to introduce our founder, chairman, and chief executive officer, Larry. Larry, please.

Good evening and good morning, everyone. Thank you for joining us on GoTo, the first quarter of fiscal year 2024 earnings conference call. I would like to take this opportunity to express my gratitude to all of you for your interest in and support of GoTo. Before I start, I would like to remind everyone that all financial figures discussed today are quoted in RMB and as stated otherwise. I'm pleased to report our financial and operational results for the opening quarter of the year. During the first quarter, we remained laser-focused on refining our educational products and expanding our customer acquisition channels. On the product front, we worked diligently to align our offerings more closely with user needs. While enhancing the educational prowess of our established products, we also made significant progress in diversifying our portfolio to better address user needs and improve learning efficiency. On the customer acquisition front, We expanded customer outreach by tapping into diverse channels and boost acquisition efficiency by streamlining and optimizing the teaching processes tailored to our product and content characteristics. This combination of high caliber educational offerings and robust customer acquisition channels have laid a solid foundation for the sustainable and rapid growth of our business. In the first quarter, our net revenues increased 33.9% year-over-year to $946.9 million, while our gross billions grew 35.3% year-over-year to $729.4 million. Excluding the one-off impact such as different class retention schedules, our comparable gross billions saw an annual increase of more than 70%. Non-GAAP net income reached $3.0 million, and non-GAAP net income margin was 0.3%. Our cash position remains strong with a total of $3.8 billion in cash, cash equivalents, restricted cash, and short- and long-term investments, $374.6 million higher than the same time point last year. Our strong performance in the first quarter has strengthened our confidence in continuing strategic investments in educational products and learning services. talent development, and organizational enhancement and expansion to diverse customer acquisition channels. High-quality educational products, teaching excellence, and premium learning services are the cornerstones of the education business. At GoTo, we deployed diverse incentive mechanisms, including regular mock classes, teaching competitions, and performance evaluations to ensure rigorous quality control of our learning services, improve the quality of teaching and the service capabilities of our teachers, and providing targeted support to enhance their professional growth with respect to product design We enriched our offerings by introducing localized online content and personalized solutions dedicated to different learning needs and ensure optimal learning outcomes. Our internal data revealed that the success rate of our class of 2024 on the National Graduate School Entrance Exam with more than twice the national average. Alongside the fostering the long-term competitive strength of our established business, we are also pushing forward with new initiatives. Within our learning services for college students and adults, we have established online boot camps to help users achieve their academic goals within a shorter timeframe. We have also launched offline all-round education services to better cultivate students' holistic development and improve their overall well-being. As our business has experienced rapid growth, we have been increasingly ramping up our investment in course content development. Specifically, the number of our full-time course content development professionals increased by roughly 50% year-over-year in the first quarter. As our business continues to expand, we are taking proactive steps to engage with regulatory bodies at various levels, seeking guidance on industry policies and compliance, and entering our educational products and services based on related guidelines. Exceptional talent is one of the most critical strategic assets in the education industry. At GoTo, we are committed to investing in and strengthening our ability to recruit, cultivate, and retain outstanding individuals to advance our strategic goals and drive rapid business growth. Time-based recruitment is one of our most important hiring channels. By collaborating with top 10 universities nationwide, we are able to proactively engage with and secure promising candidates, ensuring a steady expansion of our talent pool. As of the first quarter, we have entered into a strategic partnership with thousands of universities. In addition, we have taken several initiatives to support our teams in improving their professional expertise. These include refining our talent development and retention mechanisms, strengthening our organizational culture and cohesion, and offering various themed courses and internal experience sharing opportunities. We have improved our organizational vitality by implementing a fast track promotion mechanism for exceptional team members. Investing in the development of diverse customer acquisition channels and the competitive content while ensuring operational efficiency is critical to our company's long-term success. So far, we have expanded into a diverse range of new acquisition channels, including live streaming, short-form videos, book sales, and offline presence. By consistently offering high-quality content, we have built up our competitive edge in these channels, amplified user engagement, and reduced acquisition costs. Along with ensuring operational efficiency, we are also actively exploring new avenues to acquire customer traffic and maintain our competitive edge. This year, we will boost our regional brand recognition and market penetration by ramping up investment in offline channels with initiatives like establishing offline learning centers for college students. GALT is about to mark its 10th anniversary since founding. Throughout this decade-long journey, we have stayed true to our educational aspirations and actively embraced our social responsibilities by collaborating with philanthropic organizations to promote rural development and advance educational equity. We have full confidence in our ability to provide lasting value for our users, shareholders, and society at large as we continue to contribute to and spread ahead the sustainable development of China's education industry. Thank you very much. This is the end of my prepared remarks. Now I will pass the call over to our CFO, Shannon, to walk you through the financial and operational details of this quarter.