LAIX Inc. (NYSE: LAIX), an AI-based English learning company, recently announced its unaudited financial results for the second quarter ended June 30, 2021.
According to the report, net income for the quarter was RMB14.0 million (US$2.2 million), compared with RMB12.2 million for the previous quarter and RMB92.5 million for the same quarter last year.
Net revenues for the second quarter were RMB179.5 million (US$27.8 million), a 9.6% decrease from RMB198.5 million for the previous quarter and a 33.4% decrease from RMB269.4 million for the same quarter last year.
Gross profit was RMB144.3 million (US$22.3 million), a 6.4% decrease from RMB154.1 million for the previous quarter and a 25.5% decrease from RMB193.8 million for the same quarter last year.
Sales and marketing expenses were RMB88.9 million (US$13.8 million), a 4.3% decrease from RMB92.9 million for the previous quarter and a 55.7% decrease from RMB200.7 million for the same quarter last year.
"During the second quarter, our new growth initiatives, including enterprise learning services and international expansion, continued to make solid progress and are expected to drive meaningful user traffic and new revenue streams,” Dr. Yi Wang, Chairman and Chief Executive Officer of LAIX, said.
The company will explore more opportunities in the non-language learning sector such as quality education and vocational education, added he.
When talking about regulations regarding after-school tutoring in China, the company said it is a company for all-age groups, with the majority of its products and services, such as English Liulishuo and Liuli Reading, are designed to target adults, mostly college students and professionals, while only a limited portion target K-12 students.
It added that products it delivers to K-12 Students primarily aim to enhancing their reading, hearing and speaking abilities instead of providing English tutoring services on content contained in national curriculum standards.
However, it also expressed concerns on uncertainties as to how the high-level regulations will be interpreted and implemented, as well as to what extent these regulations would be applicable to itself.