Mustard heap Vendane Education (NASDAQ.TEDU) on August 16 released its unaudited financial report for the second quarter ended June 30, 2022.

According to the financial report data, in the second quarter of 2022, the net revenue of Dana Education was 649 million yuan, a year-on-year increase of 11.4%, exceeding the forecast given in the previous quarter. In terms of profitability, the company achieved a net profit of 47.92 million yuan, making profits for two consecutive quarters.

Revenue exceeded expectations and adult business grew steadily

In the second quarter of 2022, Dane’s education revenue increased from 582 million yuan in the same period last year to 649 million yuan, an increase of 11.4% year-on-year, and exceeded the previous performance guidance limit given by the company.

Among them, the adult business continued the previous steady growth. In the second quarter of 2022, Danai’s adult business revenue was 303 million yuan, a year-on-year increase of 3.3%. In terms of quality education for young people, the number of students enrolled in the second quarter increased from 140,200 in the same period last year to 176,500, a year-on-year increase of 25.9%.

From the perspective of the entire first half of the year, the company’s revenue was 1.272 billion yuan, a year-on-year increase of 14%.

Sales expenses have dropped significantly, focusing on teaching and research quality and delivery effects

In the second quarter of 2022, the company’s gross profit margin increased from 50.6% to 58.0%, an increase of 7.4 percentage points, thanks to Dana Education’s cost management initiatives. At the same time, the improvement of operating efficiency has led to the decline of operating expenses, especially the sales expenses dropped from 219 million yuan in the same period last year to 157 million yuan, a decrease of 28.3%.

Sun Ying, CEO of DANE Education, revealed on the earnings conference call that the total cost and operating expenses of the company’s adult business in the second quarter decreased by 15.6% compared with the same period in 2021, of which the investment in customer acquisition decreased by 13.2% compared with the same period last year.

At the same time, the number of students in the youth quality education business through renewal increased by 81.6% compared with the same period last year, and the proportion of word-of-mouth and renewal students increased by 14.9 percentage points from 65.0% in the second quarter of 2021 to 79.9% in the second quarter of 2022. Among the paying students in this quarter, the renewal ratio of students who have enrolled for more than one year reached 78.8%.

In addition, the company continued to optimize the OMO online and offline integration of customer acquisition methods, and enhanced the customer acquisition conversion rate of front-end recruiters, which improved the customer acquisition efficiency and effectively controlled the investment in customer acquisition. At the same time, we will continue to focus on the quality and delivery of teaching research and development, and focus on creating core values ​​for students through an integrated teaching and research system.

Looking forward to the future, Sun Ying said that the company will continue and optimize OMO’s online and offline integration of customer acquisition and product delivery system, so as to better provide students with high-quality courses and services. Dane Education’s performance outlook for the third quarter of 2022 is expected to be between 620 million and 650 million yuan.

On the day of the release of the financial report, Dana Education announced that the board of directors of the group appointed Wei Ping as the company’s chief financial officer, effective immediately. Ms. Wei Ping has extensive experience in the capital market and education industry. As a CPA in the United States, she has worked for Arthur Andersen, Deloitte, and New Oriental . Since 2008, she has served as the chief financial officer of Meilishuo, Zhengbao Distance Education, and Qijin Education.

Source: Mustard Pile

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