On July 29 TAL Education Group (NYSE: TAL)), a smart learning solutions provider in China, announced its unaudited financial results for the first quarter of fiscal year 2023 ended May 31, 2022.
Net revenues was US$224.0 million, compared to net revenues of US$1,384.9 million in the same period of the prior year. Net loss attributable to TAL was US$43.8 million, representing a 57.1% decrease year-on-year.
Net revenues was US$224.0 million, compared to net revenues of US$1,384.9 million in the same period of the prior year.
Loss from operations was US$28.3 million, compared to loss from operations of US$126.9 million in the same period of the prior year.
Non-GAAP loss from operations, which excluded share-based compensation expenses, was US$1.8 million, compared to non-GAAP loss from operations of US$59.4 million in the same period of the prior year.
Net loss attributable to TAL was US$43.8 million, compared to net loss attributable to TAL of US$102.1 million in the same period of the prior year.
Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was US$17.4 million, compared to non-GAAP net loss attributable to TAL of US$34.6 million in the same period of the prior year.
Basic and diluted net loss per American Depositary Share ("ADS") were both US$0.07. Non-GAAP basic and diluted net loss per ADS, which excluded share-based compensation expenses, were both US$0.03. Three ADSs represent one Class A common share.
Cash, cash equivalents and short-term investments totaled US$2,892.1 million as of May 31, 2022, compared to US$2,708.7 million as of February 28, 2022.
“Our performance this quarter demonstrates the combined efforts of our experienced management team, innovative employees, and our extensive business partners. In the process of our transformation, we are focused on developing new initiatives that match the mega trends in our industry and the broader ecosystem." said Alex Peng, TAL's President & Chief Financial Officer.
In the first quarter of fiscal year 2023, TAL disclosed its progress in transformation:
On April 13th, when TAL disclosed the progress of going overseas, it said that in 2022, TAL will make more efforts to develop its overseas business, and the branch schools under preparation will focus on Southeast Asia, North America, New Zealand, Australia, and India. The Chinese courses in the Silicon Valley campuses that have been opened will be adjusted and upgraded, and TAL will re-integrate the overseas Chinese business at the group level.
In addition, TAL's overseas team began to cooperate with local colleges and universities, inviting graduate students who recognize and love Chinese culture to join Xueersi.
On March 18th, the company said that it has ushered into a comprehensive transformation and entered the second stage of entrepreneurship. Non-educational training businesses such as technology services, intelligent hardware and life sciences will be its key businesses in the future.
On March 10th, TAL established a new company in Shenzhen named Xingtong Technology, whose business scope includes the sales of smart devices. The company is wholly-owned by TAL, with a registered capital of 500,000 yuan.