TAL Education Group (NYSE: TAL), a leading K-12 after-school tutoring services provider in China, today announced its unaudited financial results for the third quarter of the fiscal year 2021 ended November 30, 2020.
During the reporting period, the net revenues increased by 35.0% year-over-year to US$1,119.1 million from US$829.0 million in the same period of the prior year. And the net loss attributable to TAL was US$43.6 million, compared to net income attributable to TAL of US$19.6 million in the same period of the prior year.
The results showed that the loss from operations was US$127.4 million, compared to income from operations of US$69.4 million in the same period of the prior year. And the total student enrollments of normal priced long-term courses reached approximately 3,397,030, an increase of 46.5% year-on-year. It is mainly due to the growth of enrollments in the small class offerings and online courses.
In the third quarter of the fiscal year 2021, operating costs and expenses were US$1,255.9 million, representing a 65.1% increase year-on-year. The cost of revenues increased by 42.5% to US$515.6 million, which was mainly due to an increase in teacher compensation, rental costs, and learning materials.
Selling and marketing expenses increased by 120.3% to US$420.7 million, which was primarily a result of more marketing promotion activities to expand our customer base and brand enhancement, as well as a rise in the compensation to sales and marketing staff to support a greater number of programs and service offerings compared to the same period in the prior year.
Based on its current estimates, TAL expects its total net revenues for the fourth quarter of fiscal year 2021 to be between US$1,175.0 million and US$1,200.8 million, representing an increase of 37% to 40% on a year-over-year basis.