Gaotu Techedu Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Gallatin Tech EDU third quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. 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 GALTOS' third quarter 2024 earnings conference call. My name is Catherine, and I'll help host the earnings call today. Gautu's earnings relief for the quarter was distributed earlier and is available on the company's IR website at ir.gautu.ca, as well as through PR Newsware Services. Joining the call with me tonight from Gautu Senior Management is Mr. Larry Chen, Gautu's Founder, Chairman, and Chief Executive Officer, and Ms. Shannon Shen, Gautu'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'll 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 provision of the US 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 performance or achievements to differ materially from those contained in any forward-looking statements. Further information regarding this and other risks is included in the company's public filing with the U.S. SBC. The company does not undertake any obligations to update any forward looting statement, except as required under applicable law. During today's call, management will also discuss certain non-GAAP measures for comparison purpose only. for definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results, please refer to our third 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 GoTo's 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 GAL2's third quarter of fiscal year 2024 earnings conference call. I would like to take this opportunity to express my gratitude to each of you for your interest and the support of GAL2. Before I start, I would like to remind everyone that all financial figures discussed today are quoted in RMB unless stated otherwise. During the past quarter, our core businesses continued to make steady progress with gross billions increasing by 67.2% year-over-year to approximately $1.1 billion and revenue growing by 53.1% year-over-year to over $1.2 billion. This growth is attributed to our keen understanding of market trends and the continuous optimization of our strategy and execution. As our business scales rapidly and the product matrix enriches gradually, we ramped up investments with particular books on upgrading our educational systems, enhancing organizational capabilities, and improving management practices. We also intensified efforts in talent development and professional training. In the course of business development and refinement, we have nurtured and promoted high-performing frontline and managerial talent from within, while also attracting seasoned professionals from the broader industry. This has enhanced our team's ability to navigate various complex business environments and improve execution efficiency. In this quarter, we allocated more than $120 million for share buybacks, underscoring our strong commitment to shareholder returns. While this share repurchase has impacted our cash balance, our liquidity position remains solid and robust as of September 30, 2024. We held a total of over $3.3 billion in cash, cash equivalents, restricted cash, and short-term and long-term investments, providing a firm foundation for our strategic priorities and long-term growth. Next, I will provide an update on the progress we have achieved this quarter. First, we further enhanced our educational products, learning services, and teaching quality. by seamlessly integrating the expertise of our top tier instructors, outstanding tutors, and the content development team with advanced technology. Our ultimate goal has always been to deliver an exceptional learning experience that leads to tangible learning outcomes for our users. For our instructors, We strive to achieve the best teaching practices through systematic course refinement and training by our content development team, ensuring the complex knowledge is presented to students in a clear, engaging, and accurate way. At the same time, emerging technologies such as AI are empowering our tutors with deep insight into each student's individual needs, enabling them to provide comprehensive and efficient assessment, tailored learning plans, and targeted support to boost user engagement and learning efficiency. This quarter, the referral rate of our educational services for college students achieved a significant breakthrough serving as a strong endorsement of the value we provided and highlighting the growing recognition of our brand. Furthermore, we have established a multi-tiered educational support and content system designed to meet the diverse needs of students at different stages of their learning journey Meanwhile, our Dream Coach program has been rolled out at scale, where outstanding alumni from Tsinghua and Peking Universities are invited to share their learning experiences, provide career guidance, and offer both emotional support and practical advice to current students, further enhancing student engagement. Second, we actively embraced the market changes and proactively advanced our customer acquisition capabilities. Despite the evolving market landscape and the macro environment, our efficiency in customer acquisition through live streaming and other channels remains industry-leading. This has driven significant growth in gross billions and steadily increased our market share. Since 2023, we have consistently focused on expanding and diversifying our customer acquisition channels, building a comprehensive and resilient acquisition system that encompasses self-operated channels, private traffic activation, and content-driven strategies. This decentralized approach can effectively reduce exposure to external volatility and mitigate market risks. Going forward, we will further increase investments into proprietary channels and private traffic engagement and conversion efforts, maintaining a strong emphasis on their efficiency and effectiveness. Our goal is to build a more robust and sustainable traffic acquisition system that supports our steady growth in the long run. Third, we remain committed to social responsibility and creating long-term value with education. This quarter, we continued to promote education equity by awarding underprivileged first-year college students in Xin'an County, Hainan Province, with scholarships to pursue their dreams and advance their educational journeys. Additionally, we supported regional education by building libraries and donating a substantial collection of books to schools in Gansu Province, providing local students with enhanced educational resources and a better reading environment. In alignment with our mission to generate value for all stakeholders, We have also made progress in delivering shareholder returns. From the start of the year through December the 3rd, we repurchased an aggregate of more than 6.5 million EDS for approximately 25.1 million US dollars, representing approximately 2.6% of total outstanding shares as of the end of 2023. This brings the cumulative value of shares repurchased under the program to approximately 37.5 million dollars. Looking ahead, we will continue to uphold our social responsibilities while prioritizing shareholder value by creating business values and contributing to societal progress. We aim to drive sustainable and high-quality long-term growth for our company. Thank you very much, everyone. 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 the quarter.