Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2014

Commission File Number: 001-36363

 

 

TARENA INTERNATIONAL, INC.

 

 

Suite 10017, Building E

Zhongkun Plaza, A18 Bei San Huan West Road

Haidian District, Beijing 100098

People’s Republic of China

Tel: +86 10 6213-5687

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

TARENA INTERNATIONAL, INC.
By:  

/s/ Suhai Ji

Name:   Suhai Ji
Title:   Chief Financial Officer

Date: November 10, 2014


EXHIBIT INDEX

Exhibit 99.1 – Press Release

EX-99.1

Exhibit 99.1

Tarena International, Inc. Announces Third Quarter 2014 Results

Third Quarter Net Revenues Increased by 41.3% Year-Over-Year, Exceeding Guidance

Third Quarter Net Income Increased by 73.5% Year-Over-Year

Non-GAAP Third Quarter Net Income Increased by 86.8% Year-Over-Year

BEIJING, November 6, 2014–Tarena International, Inc. (NASDAQ: TEDU) (“Tarena” or the “Company”), a leading provider of professional education services in China today announced its unaudited financial results for the third quarter ended September 30, 2014.

Third Quarter 2014 Highlights

 

    Net revenues increased by 41.3% year-over-year to US$40.3 million from US$28.5 million in the same period in 2013, exceeding the high end of the Company’s previous guidance of US$38.5 million to US$39.5 million.

 

    Gross profit increased by 45.6% year-over-year to US$29.8 million from US$20.5 million in the same period in 2013. Gross margin increased to 74.0% for the Third Quarter 2014 as compared to 71.9% in the same period in 2013.

 

    Operating income increased by 47.3% year-over-year to US$9.8 million from US$6.7 million in the same period in 2013. Operating margin increased to 24.4% as compared to 23.4% in the same period in 2013.

 

    Non-GAAP operating income, which excluded share-based compensation expenses, increased by 60.1% year-over-year to US$11.0 million from US$6.8 million in the same period in 2013. Non-GAAP operating margin increased to 27.2% as compared to 24.0% in the same period in 2013.

 

    Net income increased by 73.5% year-over-year to US$10.5 million from US$6.0 million in the same period in 2013.

 

    Non-GAAP net income, which excluded share-based compensation expenses, increased by 86.8% year-over-year to US$11.6 million from US$6.2 million in the same period in 2013.

 

    Basic and diluted net income per American Depositary Share (“ADS”) were US$0.21 and US$0.18, respectively. Non-GAAP basic and Non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were US$0.23 and US$0.20, respectively. Each ADS represents one Class A ordinary share.

 

    Cash, cash equivalents and time deposits totaled US$163.1 million as of September 30, 2014, compared to US$38.3 million as of December 31, 2013.

 

    Deferred revenue totaled US$23.3 million as of September 30, 2014, compared to US$15.5 million as of December 31, 2013.

 

    Total student enrollments in the third quarter of 2014 increased by 30.0% year-over-year to 17,518.

 

    Total number of learning centers increased to 105 as of September 30, 2014, from 103 as of June 30, 2014.

“We are pleased to report another strong quarter in terms of both growth and profitability,” said Mr. Shaoyun Han, Tarena’s Chairman and Chief Executive Officer. “We continue to experience strong growth in student enrollments for both IT and non-IT courses and have seen positive tangible results in our strategy to penetrate additional verticals and extend our reach beyond our core strength in IT. Non-IT courses, comprised of digital art and online sales and marketing, accounted for 38.6% of the total student enrollments in the third quarter of 2014. More recently in late October, we also commenced our inaugural class in Beijing for our new course in accounting, which is the third non-IT course that Tarena offers. We will continue to execute on our strategy to diversify our course offerings and revenues to drive sustained growth.”

“In the third quarter of 2014, we again achieved significant margin expansion year-over-year and delivered even stronger growth in operating profit. Our overall center utilization rate in the third quarter increased to 77%, as compared to 72% in the same period in 2013. Also in the third quarter, we began to implement a series of initiatives to improve our employee productivity and operational efficiency. These include streamlining our organizational structure, upgrading our sales incentive and compensation schemes, setting up a centralized employee training system, as well as continuing to optimize our advertising spending. We believe these initiatives will further enhance our business operations and lay out a solid foundation for our future growth,” Mr. Han continued.

Mr. Suhai Ji, Tarena’s Chief Financial Officer, added, “with another record quarter of top- and bottom-line results, we continue to scale our business with improved center utilization and efficiency driven by strong enrollments. Gross margin in the third quarter increased by 215 basis points year-over-year to 74.0% and non-GAAP operating margin increased by 319 basis points year-over-year to 27.2%. We are confident that we will achieve the objective we set at the beginning of the year to improve center utilization and profitability, which will position us well for sustainable growth in 2015 and beyond.”


Third Quarter 2014 Results

Net Revenues

Net revenues increased by 41.3% to US$40.3 million in the third quarter of 2014, from US$28.5 million in the same period in 2013. The increase was primarily due to increased student enrollments and higher average revenue per student, as defined by net revenues divided by student enrollment.

Total student enrollments in the third quarter of 2014 increased by 30.0% to 17,518 from 13,476 in the same period in 2013, which was driven mainly by the number and the popularity of our course offerings. The number of our course offerings increased from 10 to 11 in the third quarter year-over-year while the number of our learning centers increased from 86 as of September 30, 2013 to 105 as of September 30, 2014 to cater to the increased demand for our courses.

Average revenue per student in the third quarter of 2014 increased by 8.7% to US$2,299 from US$2,114 in the same period in 2013. The growth in average revenue per student was mainly driven by the increase of standard tuition fees for our courses and the higher percentage of retail channel in our student enrollment channel mix. Beginning in the second quarter of 2014, we raised the standard tuition fees on some of our courses by RMB1,000 (US$163) per course. While we typically charge students enrolled through the retail channel the standard tuition fee, we generally offer students enrolled through the university channel a discount of approximately RMB4,000 (US$650) per person per course. Our student enrollment mix from retail and university channel was 81%/19% and 80%/20% in the third quarter of 2014 and 2013, respectively.

Cost of Revenues

Cost of revenues increased by 30.6% to US$10.5 million in the third quarter of 2014, from US$8.0 million in the same period in 2013. The increase was mainly due to higher personnel cost and welfare expenses resulting from increased number of teaching and advisory staff at our learning centers and higher average salary, higher rental cost resulting from increased number of learning centers and expansion of existing learning centers, as well as higher depreciation expenses for our learning centers.

Gross Profit and Gross Margin

Gross profit increased by 45.6% to US$29.8 million in the third quarter of 2014, from US$20.5 million in the same period in 2013. Gross margin increased to 74.0% in the third quarter of 2014 from 71.9% in the same period in 2013. The improvement in gross margin was mainly due to increased operational scale and efficiency for our learning centers. Personnel cost and welfare expenses decreased to 9.7% of total net revenues in the third quarter of 2014, from 10.1% in the same period in 2013. Rental expenses decreased to 6.9% of total net revenues in the third quarter of 2014, from 8.7% in the same period in 2013.

Operating Expenses

Total operating expenses increased by 44.7% to US$20.0 million in the third quarter of 2014, from US$13.8 million in the same period in 2013 as a result of increases in our selling and marketing, general and administrative and research and development expenses. Total non-GAAP operating expenses, which excluded share-based compensation expenses, increased by 38.3% to US$18.9 million in the third quarter of 2014, from US$13.6 million in the same period in 2013. Total share-based compensation expenses allocated to the related operating expenses increased by 531.2% to US$1.1 million in the third quarter of 2014, from US$0.2 million in the same period in 2013.

Selling and marketing expenses increased by 28.1% to US$11.1 million in the third quarter of 2014, from US$8.7 million in the same period in 2013. The increase was due to higher personnel cost and welfare expenses related to the growth in our selling and marketing headcount and higher average salary, and expanded marketing efforts primarily as a result of increased spending on advertising as we expanded our network of learning centers. Selling and marketing expenses in the third quarter of 2014 accounted for 27.6% of the total net revenues, compared to 30.4% in the same period in 2013.

General and administrative expenses increased by 83.5% to US$7.6 million in the third quarter of 2014, from US$4.1 million in the same period in 2013. The increase was mainly due to higher compensation cost for our increased number of general and administrative personnel to support our growing operations, higher bad debt allowance and higher share-based compensation expenses. General and administrative expenses in the third quarter of 2014 accounted for 18.9% of the total net revenues, compared to 14.5% in the same period in 2013. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 63.3% to US$6.5 million, from US$4.0 million in the same period in 2013. Non-GAAP general and administrative expenses in the third quarter of 2014 accounted for 16.2% of total net revenues, compared to 14.0% in the same period in 2013.

Research and development expenses increased by 27.9% to US$1.3 million in the third quarter of 2014, from US$1.0 million in the same period in 2013. The increase was mainly due to higher personnel cost and welfare expenses of our instructors allocated to their content development activities for our courses. Research and development expenses in the third quarter of 2014 accounted for 3.2% of total net revenues, compared to 3.5% in the same period in 2013.


Operating Income

Operating income increased by 47.3% to US$9.8 million in the third quarter of 2014, from US$6.7 million in the same period in 2013. Operating margin increased to 24.4% in the third quarter of 2014 as compared to 23.4% in the same period in 2013. Non-GAAP operating income, which excluded share-based compensation expenses, increased by 60.1% to US$11.0 million in the third quarter of 2014, from US$6.8 million in the same period in 2013. Non-GAAP operating margin increased to 27.2% in the third quarter of 2014 as compared to 24.0% in the same period in 2013.

Interest Income, Net

Net interest income was US$1.4 million in the third quarter of 2014, compared to US$0.6 million in the same period in 2013. Interest income in both periods consisted of interest earned on our cash and time deposits in commercial banks and interest income recognized in relation to our installment payment plan for students. The increase in net interest income was primarily due to higher deposit levels resulting from the Company’s IPO proceeds in April 2014.

Income Tax Expense

Income tax expense was US$1.1 million in the third quarter of 2014, compared to US$1.3 million in the same period in 2013.The decrease was mainly due to a decrease in the effective income tax rate to 9.6% in the third quarter of 2014 from 18.1% in the same period in 2013, partially offset by higher taxable income. The decrease in the effective income tax rate was primarily due to a tax holiday enjoyed by one of our wholly owned subsidiaries that is qualified as a “Newly Established Software Enterprise” under the PRC Enterprise Income Tax Law, which provides a two-year full exemption from enterprise income tax from 2014 to 2015 followed by a three-year 50% exemption from 2016 to 2018.

Net Income

As a result of the foregoing, net income increased by 73.5% to US$10.5 million in the third quarter of 2014, from US$6.0 million in the same period in 2013. Non-GAAP net income, which excluded share-based compensation expenses, increased by 86.8% year-over-year to US$11.6 million from US$6.2 million in the same period in 2013.

Basic and Diluted Net Income per ADS

Basic and diluted net income per ADS were US$0.21 and US$0.18 respectively in the third quarter of 2014. Non-GAAP basic and Non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were US$0.23 and US$0.20, respectively.

Business Outlook

Based on the Company’s current estimates, total net revenues for the fourth quarter of 2014 are expected to be between US$39.2 million and US$40.4 million, representing an increase of 38.2% to 42.4% on a year-over-year basis. For the full year of 2014, the Company raises its guidance from the previous range of US$134.5 million and US$136.0 million to US$135.8 million and US$137.0 million, representing an increase of 46.2% to 47.5% on a year-over-year basis.

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions, which are subject to change.

Conference Call

The Company will host a conference call and live webcast to discuss its financial results for the third quarter of 2014 ended September 30, 2014 at 8:00 a.m. Eastern Time on November 6, 2014 (9:00 p.m. Beijing time on November 6, 2014).

The dial-in details for the live conference call are as follows:

United States: 855 298 3404

Hong Kong: 800 905 927

China Mainland: 400 120 0539

Singapore: 800 616 3222

Taiwan: +886 2 7708 3282

United Kingdom: 800 015 9725

International: +1 631 514 2526

Conference ID: 2105381


A replay of the call will be available approximately 2 hours after the conclusion of the conference call through November 13, 2014. The dial-in details for the replay are:

United States: 1866 846 0868

Hong Kong: 800 966 697

China Mainland: 400 184 2240

Singapore: 800 616 2127

Taiwan: 801 232 352

United Kingdom: 800 169 7301

Conference ID: 2105381

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of Tarena’s website at http://ir.tarena.com.cn.

Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Tarena may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including the business outlook for the fourth quarter and full year of 2014 and statements about Tarena’s beliefs and expectations, are forward-looking statements. Many factors, risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Tarena’s goals and strategies; its future business development, financial condition and results of operations; its ability to continue to attract students to enroll in its courses; its ability to continue to recruit, train and retain qualified instructors and teaching assistants; its ability to continually tailor its curriculum to market demand and enhance its courses to adequately and promptly respond to developments in the professional job market; its ability to maintain or enhance its brand recognition, its ability to maintain high job placement rate for its students, and its ability to maintain cooperative relationships with financing service providers for student loans. Further information regarding these and other risks, uncertainties or factors is included in Tarena’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tarena does not undertake any obligation to update such information, except as required under applicable law.

About Tarena International, Inc.

Tarena International, Inc. (Nasdaq: TEDU) is a leading provider of professional education services in China. The Company is the largest provider of IT professional education services in China with a market share of 8.3% as measured by revenues in 2013 according to IDC, a third-party research firm. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers courses in nine IT subjects and three non-IT subjects. Its courses provide students with practical education to prepare them for jobs in industries with significant growth potential and strong hiring demand. Since its inception in 2002, Tarena has trained over 172,000 students, cooperated with more than 500 universities and colleges and placed students with approximately 48,000 corporate employers in a variety of industries. For further information, please visit http://ir.tarena.com.cn.

About Non-GAAP Financial Measures

To supplement Tarena’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Tarena’s management uses non-GAAP measures of cost of revenues, operating expenses, operating income, net income, and net income per share, which are adjusted from results based on GAAP to exclude the share-based compensation expenses.

Our non-GAAP financial information provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. These non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

A limitation of using non-GAAP cost of revenues, operating expenses, operating income and net income is that the share-based compensation charge has been and will continue to be a significant recurring expense in the Company’s business for the foreseeable future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.


For further information, please contact:

Christina Zhu

Investor Relations

Tarena International Inc.

Tel: +8610 56219451

Email: ir@tarena.com.cn


TARENA INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

     As of  
     September 30      December 31  
     2014      2013  
     US$      US$  

ASSETS

     

Current assets:

     

Cash and cash equivalents

     45,733,034         26,139,255   

Time deposits

     108,437,045         —     

Accounts receivable, net of allowance for doubtful accounts

     20,733,815         15,001,222   

Prepaid expenses and other current assets

     7,516,290         3,497,332   

Deferred income tax assets

     1,568,539         1,546,213   
  

 

 

    

 

 

 

Total current assets

     183,988,723         46,184,022   

Time deposits

     8,977,667         12,161,617   

Accounts receivable, net of allowance for doubtful accounts

     1,553,832         415,881   

Property and equipment, net

     13,386,223         12,805,567   

Other non-current assets

     1,828,388         2,105,832   
  

 

 

    

 

 

 

Total assets

     209,734,833         73,672,919   
  

 

 

    

 

 

 

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)

     

Current liabilities:

     

Accounts payable

     261,081         217,451   

Income taxes payable

     4,336,719         3,012,165   

Deferred revenue

     23,329,653         15,487,494   

Accrued expenses and other current liabilities

     7,911,986         6,617,558   
  

 

 

    

 

 

 

Total current liabilities

     35,839,439         25,334,668   
  

 

 

    

 

 

 

Other non-current liabilities

     241,354         243,555   
  

 

 

    

 

 

 

Total liabilities

     36,080,793         25,578,223   
  

 

 

    

 

 

 

Commitments and contingencies

     —           —     

Mezzanine equity:

     

Series A convertible redeemable preferred shares

     —           419,776   

Series B convertible redeemable preferred shares

     —           15,747,869   

Series C convertible redeemable preferred shares

     —           95,211,135   
  

 

 

    

 

 

 

Total mezzanine equity

     —           111,378,780   
  

 

 

    

 

 

 

Shareholders’ equity (deficit):

     

Ordinary shares

     50,657         12,226   

Additional paid-in capital

     134,657,933         —     

Accumulated other comprehensive income

     1,238,889         1,634,920   

Retained earnings (accumulated deficit) (a)

     37,706,561         (64,931,230
  

 

 

    

 

 

 

Total shareholders’ equity (deficit)

     173,654,040         (63,284,084
  

 

 

    

 

 

 

Total liabilities, mezzanine equity and shareholders’ equity (deficit)

     209,734,833         73,672,919   
  

 

 

    

 

 

 

Note:

 

(a) On August 19, 2014, the Board of Directors approved the Company to undertake a reclassification of the balances between additional paid-in capital and accumulated deficit of US$85,568, 016 beginning in the third quarter of 2014. The reclassification was primarily due to the accretion of convertible redeemable preferred shares, of which US$85,568,016 were charged against the balance in accumulated deficit in the absence of additional paid-in capital.


TARENA INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

     For the Three Months Ended September 30     For the Nine Months Ended September 30  
     2014     2013     2014     2013  
     US$     US$     US$     US$  

Net revenues

     40,272,906        28,491,991        96,553,656        64,459,095   

Cost of revenues(a)

     (10,468,385     (8,017,302     (28,265,040     (20,646,615
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     29,804,521        20,474,689        68,288,616        43,812,480   

Selling and marketing expenses(a)

     (11,110,732     (8,672,380     (30,237,855     (21,861,163

General and administrative expenses(a)

     (7,607,353     (4,145,316     (20,798,170     (11,008,531

Research and development expenses(a)

     (1,274,972     (996,695     (3,785,809     (2,619,935
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     9,811,464        6,660,298        13,466,782        8,322,851   

Interest income

     1,414,581        639,132        2,880,450        1,444,064   

Foreign exchange gain (loss)

     (2,681     (37,867     874,415        (199,205

Other income

     342,555        95,739        1,789,327        134,076   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     11,565,919        7,357,302        19,010,974        9,701,786   

Income tax expense

     (1,109,584     (1,331,056     (1,859,927     (1,747,555
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     10,456,335        6,026,246        17,151,047        7,954,231   

Accretion of convertible redeemable preferred shares

     —          (530,979     (576,431     (1,522,082
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to ordinary shareholders(b)

     10,456,335        5,495,267        16,574,616        6,432,149   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share(c):

        

Basic

     0.21        0.15        0.36        0.17   

Diluted

     0.18        0.09        0.30        0.11   

Weighted average number of ordinary shares outstanding:

        

Basic

     50,657,389        10,851,287        37,706,340        10,851,287   

Diluted

     58,629,717        16,837,380        44,948,562        16,535,844   

Net income

     10,456,335        6,026,246        17,151,047        7,954,231   

Other comprehensive income (loss)

        

Foreign currency translation adjustment, net of nil income taxes

     11,469        222,683        (396,031     751,326   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     10,467,804        6,248,929        16,755,016        8,705,557   
  

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

(a) Includes share-based compensation expense as follows:

 

     For the Three Months Ended September 30      For the Nine Months Ended September 30  
     2014      2013      2014      2013  
     US$      US$      US$      US$  

Cost of revenues

     7,251         4,295         40,425         12,885   

Selling and marketing expenses

     18,594         11,309         119,119         33,925   

General and administrative expenses

     1,093,505         157,612         2,773,457         456,139   

Research and development expenses

     29,944         12,003         147,688         36,009   

 

(b) Net income attributable to ordinary shareholders reflected the impact of non-cash accounting charges relating to the preferred shares. All outstanding preferred shares were automatically converted into ordinary shares upon the completion of the Company’s IPO on April 3, 2014. Thereafter, there will be no accretion to the preferred shares and all net income will be attributable to the ordinary shareholders.
(c) The Company uses the two-class method to calculate basic and diluted earnings per share. Under the two-class method, when calculating the basic and dilutive EPS, net income attributable to ordinary shareholders is adjusted to reflect the net income which is allocated to preferred shares.


TARENA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

 

     For the Three Months Ended
September 30
    For the Nine Months Ended
September 30
 
     2014      2013     2014     2013  
     US$      US$     US$     US$  

GAAP Cost of revenues

     10,468,385         8,017,302        28,265,040        20,646,615   

Share-based compensation expense in cost of revenues

     7,251         4,295        40,425        12,885   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP cost of revenues

     10,461,134         8,013,007        28,224,615        20,633,730   

GAAP Selling and marketing expenses

     11,110,732         8,672,380        30,237,855        21,861,163   

Share-based compensation expense in selling and marketing expenses

     18,594         11,309        119,119        33,925   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP selling and marketing expenses

     11,092,138         8,661,071        30,118,736        21,827,238   

GAAP General and administrative expenses

     7,607,353         4,145,316        20,798,170        11,008,531   

Share-based compensation expense in general and administrative expenses

     1,093,505         157,612        2,773,457        456,139   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP general and administrative expenses

     6,513,848         3,987,704        18,024,713        10,552,392   

GAAP Research and development expenses

     1,274,972         996,695        3,785,809        2,619,935   

Share-based compensation expense in research and development expenses

     29,944         12,003        147,688        36,009   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP research and development expenses

     1,245,028         984,692        3,638,121        2,583,926   

Operating income

     9,811,464         6,660,298        13,466,782        8,322,851   

Share-based compensation expenses

     1,149,294         185,219        3,080,689        538,958   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP operating income

     10,960,758         6,845,517        16,547,471        8,861,809   

Net income

     10,456,335         6,026,246        17,151,047        7,954,231   

Share-based compensation expense

     1,149,294         185,219        3,080,689        538,958   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP net income

     11,605,629         6,211,465        20,231,736        8,493,189   

Accretion of convertible redeemable preferred shares

     —           (530,979     (576,431     (1,522,082
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to ordinary shareholders

     11,605,629         5,680,486        19,655,305        6,971,107   
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP net income per share(a)

         

Basic

     0.23         0.15        0.42        0.19   

Diluted

     0.20         0.10        0.36        0.12   

Weighted average number of ordinary shares outstanding used in calculating Non-GAAP net income per share(b)

         

Basic

     50,657,389         10,851,287        37,706,340        10,851,287   

Diluted

     58,629,717         16,837,380        44,948,562        16,535,844   

Notes:

 

(a) The Company uses the two-class method to calculate basic and diluted earnings per share. Under the two-class method, when calculating the basic and dilutive EPS, net income attributable to ordinary shareholders is adjusted to reflect the net income which is allocated to preferred shares.
(b) The Non-GAAP net income per share is computed using Non-GAAP net income attributable to ordinary shareholders and the same number of ordinary shares used in GAAP basic and diluted net income per share calculation.