Gaotu Techedu Inc. (GOTU) stock soared 0.93% in the current market trading session at the price of $3.78 despite no fundamental reason. The last published news was its unaudited financial results for the second quarter of 2021. GOTU is a virtual technology-driven education company that provides tutoring services all across China.
GOTU Second Quarter 2021 Financial Results
On 22nd September 2021, GOTU published its financial results for the second quarter ended 30th June 2021.
Second Quarter 2021 Financial Summary
GOTU reported net revenue of RMB2,232.3 million. It represents a gain of 35.3% from RMB1,650.3 million in the second quarter of the previous year. The cost of revenue increased by 100.8% to RMB724.3 million. Revenue cost was RMB360.7 million in the same quarter of 2020. Gross profit raised 16.9% to RMB1,508.0 million in the second quarter of 2021. In the second quarter of 2020, gross profit is RMB1,289.7 million.
Operating expenses were RMB2,362.7 million in the second quarter ended on 30th June 2021. Operating expenses were RMB1,450.4 million in the second quarter ended on 30th June 2020. Research and development expenses raised 204.9% to RMB426.5 million during the second quarter of 2021. GOTU reported R&D expenses of RMB139.9 million in the second quarter of the previous year. General and administrative expenses (G&A) grew to RMB242.0 million from RMB105.7 million in the second quarter of the last year.
In the second quarter of 2021, the loss from operations was RMB854.7 million. The operating loss was RMB160.8 million in the second quarter of 2020. GOTU reported a net loss of RMB918.8 million in the second quarter of 2021. In the second quarter of 2020, net income was RMB18.6 million. As of 30th June 2021, Gaotu had approximately 170,935,557 ordinary shares outstanding. The company had total cash and cash equivalents of RMB5,486.9 million as of 30th June 2021. As of 31st December 2020, cash and cash equivalents were RMB8,217.2 million.
Chief Executive Officer of GOTU, Larry Xiangdong Chen, remarked that their second quarter of 2021 revenue had touched a record height of 2.232 billion RMB. They are happy to welcome Ms. Jin Cui as the AC Chairwoman of their Board of Directors. They look ahead to bringing Ms. Cui’s extensive expertise as their business continues to expand. He thanked Mr. Xin Fan for his commitment as Board Director for the past two years.