Gaotu Techedu Inc.

Ladies and gentlemen, thank you for standing by and welcome to the GOW2 Tech EDU fourth quarter and fiscal year 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then 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 GAL2's fourth quarter and fiscal year 2024 earnings conference call. My name is Katherine, 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 Newsware Services. Joining the call with me tonight from GAL2 Senior Management is Mr. Larry Chen, GAL2's founder, chairman, and chief executive officer, and Ms. Shannon Shen, Skull Tools 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 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 condition, 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 statements. Further information regarding this and other risks is included in the company's public filing with the USSEC. The company does not undertake any obligations 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 purpose only. For definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results, please refer to our fourth quarter and fiscal year 2024 earnings release published earlier today. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this conference call alive 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 GoTo's fourth quarter and fiscal year 2024 earnings conference call. I would like to take this opportunity to express my gratitude to each of you for your interest in the support of GoTo. Before I start, I would like to remind everyone that all financial figures discussed today are quoted in RMB, unless stated otherwise. Driven by our dual pillars of strategic focus and organizational capability enhancement, the value for customers has been comprehensively improved. This quarter, we made substantial progress in both revenue growth and user expansion. Utilizing profound insights into user needs, we have developed a comprehensive spectrum of products and services that cover various learning scenarios. further enhancing the user experience and driving substantial high-quality growth. What is particularly exhilarating is the breakthrough in cognitive reasoning achieved by AGI technologies, represented by DeepSeq, coupled with its outstanding cost efficiency. This innovation is not merely a technological leap, it acts as a powerful catalyst, sparkling the development of a new generation of intelligent educational resolutions. Not only does this technological advancement align strongly with our existing AI strategy, but it also significantly accelerates our efforts to enhance learning effectiveness and boost organizational performance. At this once-in-a-thousand-years opportunity at the intersection of technology and education, we are proactively and vigorously pursuing the deep integration of AI within educational frameworks. We are steadfast in commitment to the core educational principles of providing personalized and adaptive learning experiences for every learner. Our fourth quarter financial results underscore this positive momentum and dynamic growth, as well as strong resilience of our business. Revenue increased by 82.5% year-over-year to nearly $1.4 billion. with gross billions significantly exceeding our expectations up by 69.0% to over 2.1 billion, loss from operations narrowed by 20.6% with operating margin improving by 13.9 percentage points, demonstrating our continued progress in profitability and tangible impact of our efficiency-driven initiatives. Additionally, we generated a net operating cash inflow of $783.6 million this quarter, bringing our cash, cash equivalents, restricted cash, short- and long-term investments to $4.1 billion as of December 31, 2024. This robust cash position provides a solid foundation for our further strategic initiatives and long-term sustainable growth. Now I will introduce our strategic progress and key highlights for this quarter from three perspectives. First and foremost, fully in Fully embracing our AI strategy, we are dedicated to creating a personalized, efficient, and scalable system for learner growth and support. As a persistent innovation and a pioneer in the field of education, we firmly believe that the next generation of AI technology will thoroughly transform the learning experience and significantly enhance learning efficiency. Our years of focused efforts in the education sector and hands-on teaching experience have enabled us to accurately grasp the diverse needs of students and parents, deeply understand their pain points in the learning process, and develop keen insights into the fundamental principles of education. These invaluable real-world insights from the foundation of our innovation development enable us to offer students more tailored and targeted learning support, making the learning process more precise, intelligent, and personalized. Moving forward, we will continue to invest in key areas such as technological development, talent cultivation, and resource integration. We remain committed to exploring diverse AI-driven solutions in education and fostering more personalized learning environments that help students learn in ways that best suit their needs, unlock their full potential, and support their personal growth. As we continue to optimize the user learning experience, we are simultaneously translating our technological prowess into tangible educational outcomes, achieving mutual reinforcement through Through systematic implementation, our AI-driven co-pilot intelligent teaching platform is methodically upgrading the entire educational services value chain. In certain user acquisition scenarios, our intelligent customer service system dramatically reduces response time and elevates efficiency by nine-fold. leveraging keen insights into user needs and generating dynamic content. Regarding homework, AI-assisted engines are boosting teacher grading efficiency by over 50%. In study planning, the deep-seq-powered cross-selection model is providing students with tailored data-driven decision-making support. This technological penetration now extends to core aspects, including research and development and curriculum design, creating a precise, intelligent and personalized educational service loop. Second, we remain committed to the essence of education, driving sustained growth through teaching excellence. We firmly believe that refining educational products, enhancing teaching quality, and optimizing learning services are fundamental to building a lasting competitive edge. To this end, we continue to invest in product development, fine-tuning content and fostering close collaboration between instructors and tutors to ensure seamless integration of curriculum and teaching services. In terms of curriculum development, we have built a diverse portfolio encompassing online large classes, one-on-one sessions, study aids, and books, among others. Supported by AI-driven recommendations and adaptive learning technology, we are able to deliver personalized learning solutions that cater to each student's unique needs. This quarter, The retention rates for new enrollments in both our non-academic tutoring and traditional learning services showed steady improvement, highlighting the effectiveness of our efforts in enhancing educational products and learning services and the strong recognition of our teaching outcomes by users. Third, we actively uphold social responsibilities, aligning long-term shareholder value with broader societal impact. Staying true to our original aspirations, we remain dedicated to promoting educational equality. As part of this effort, we have established the Beijing GoTo Foundation. leveraging our advanced technology and high-quality educational resources to support the holistic development of rural students, broadening their perspectives, and elevating the overall teaching capabilities of rural educators. We have also made solid progress in enhancing long-term shareholder value. As of February 21, 2025, we have allocated nearly $47.5 million in aggregate-for-share buybacks, including over 8.1 million ADS bought back for $28.8 million in 2024. This represents 3.2% of our total outstanding shares at the end of 2024, reflecting a further improvement from 2023. These actions highlight our unwavering commitment to shareholder returns and reinforce our strong confidence in the company's future. Looking ahead to 2025, guided by our Healthy Growth Strategy, we will further advance our AI initiatives, driving innovation across the education industry while creating long-term value for our shareholders, users, and society at large. 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.