Tarena Technology, Inc. (NASDAQ: TEDU), a leading provider of professional education services in China, recently announces its unaudited financial results for the full year ended December 31, 2019, showing a net revenue of 2.05 million yuan and a net loss of 1.04 billion yuan. Besides, as of December 31, 2019, the deferred revenue is about 1.59 billion yuan, an increase of 760 million yuan compared with 2018.
Tarena Technology's main business includes adult IT education services and IT61(童程童美) for K-12 students. For adult IT professional education services, the number of learning centers has decreased from 180 to 130, and student number has reduced from approximately 116,500 to around 108,800. The number of students enrolled in 2019 was 109,000, a 6.6% year-over-year decrease. The report also pointed out that the company has closed some adults learning centers with poor performances, and some of its adult IT training business has been adjusted to improve operational efficiency.
As for K-12 education services, its net revenues increased by 208.5% from 169.9 million yuan in 2018 to 524.2 million yuan. Additionally, in 2019, there were 217 IT61 learning centers, 69 of which were newly established. Student enrollment in K-12 education programs reached 99,000, an increase of 117.5% year-on-year. The K-12 coding business's net revenue was 524 million yuan, accounting for 25.6% of Tarena Technology's total revenue and representing an increase of 208.5%. Besides, IT61's online courses and offline courses contributed to 6.7% and 93.3% of revenues.
On April 29, Tarena Technology issued an announcement saying that the COVID-19 pandemic has adversely affected its business running. The company also regarded the financial results for the first quarter, and the second quarter of 2020 will be affected. Potential negative impacts will continue for an extended period.