Tarena International, Inc. Announces the Results for the Fourth Quarter and Fiscal Year of 2021
BEIJING,
Fourth Quarter 2021 Highlights
- Net revenues increased by 0.8% year-over-year to
RMB655.3 million (US$102.8 million ), fromRMB650.3 million in the same period of 2020. - Net revenue from childhood & adolescent quality education business, which represented 51.3% of the total net revenues, increased by 12.8% year-over-year to
RMB336.0 million (US$52.7 million ), fromRMB297.9 million in the same period of 2020. - Net revenue from adult professional education business, which represented 48.7% of the total net revenues, decreased by 9.4% year-over-year to
RMB319.3 million (US$50.1 million ), fromRMB352.4 million in the same period of 2020. - Gross profit decreased by 8.7% year-over-year to
RMB327.6 million (US$51.4 million ), fromRMB358.8 million in the same period of 2020. - Gross profit margin decreased by 5.2% points year-over-year to 50.0%, from 55.2% in the same period of 2020.
- Operating loss decreased by 29.1% to a loss of
RMB60 .4 million (US$9.5 million ), from a loss ofRMB85.1 million in the same period of 2020. Operating margin improved year-over-year to -9.2% from -13.1% in the same period of 2020. - Non-GAAP operating loss, which excluded share-based compensation expenses, was
RMB56 .5 million (US$8.9 million ), compared to non-GAAP operating loss ofRMB77.5 million in the same period of 2020. - Income tax expense increased year-over year to
RMB125.7 million (US$19.7 million ) fromRMB7.0 million in the same period of 2020. - Net loss was
RMB182.5 million (US$28.6 million ), compared to net loss ofRMB94.7 million in the same period of 2020. - Non-GAAP net loss, which excluded share-based compensation expenses, was
RMB178.6 million (US$28.0 million ), compared to non-GAAP net loss ofRMB87.1 million in the same period of 2020. - Basic and diluted loss per ordinary share was
RMB3 .22 (US$0.51 ), compared to loss per ordinary share ofRMB1.72 in the fourth quarter of 2020. - Cash, cash equivalents and time deposits, including current and non-current, and restricted cash totaled
RMB430.4 million (US$67.5 million ) as ofDecember 31, 2021 , compared toRMB364.8 million as ofDecember 31, 2020 . - Net cash inflow from operating activities in the fourth quarter of 2021 was
RMB129.5 million (US$20.3 million ). Capital expenditures in the fourth quarter of 2021 wereRMB21.4 million (US$3.4 million ). - Deferred revenue totaled
RMB2,024.9 million (US$317.8 million ) as ofDecember 31, 2021 , compared toRMB1,998.2 million as ofDecember 31, 2020 , representing an increase of 1.3%. - Total student enrollments in childhood & adolescent quality education business, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, in the fourth quarter of 2021 reached 151,300, increased by 17.9%, compared to the student enrollments of 128,300 in the same period of 2020.
- Total number of learning centers in childhood & adolescent quality education increased to 238 as of
December 31, 2021 , from 236 as ofDecember 31, 2020 . - Total student enrollments in adult professional education business, defined as the total number of courses enrolled by students during that period, including multiple courses enrolled by the same student, in the fourth quarter of 2021 decreased by 14.0% year-over-year to 30,200.
- Total number of learning centers in adult professional education decreased to 100 as of
December 31, 2021 , from 104 as ofDecember 31, 2020 .
Fiscal Year 2021 Highlights
- Net revenues increased by 25.7% year-over-year to
RMB2,386.5 million (US$374.5 million ), fromRMB 1,897.9 million in the same period of 2020. - Net revenue from childhood & adolescent quality education business, which represented 51.8% of the total net revenues increased by 62.3% year-over-year to
RMB1,236.3 million (US$194.0 million ), fromRMB761.8 million in the same period of 2020. - Net revenue from adult professional education business, which represented 48.2% of the total net revenues, increased by 1.2% year-over-year to
RMB1,150.2 million (US$180.5 million ), fromRMB1,136.1 million in the same period of 2020. - Gross profit increased by 42.6% year-over-year to
RMB1,185.1 million (US$186.0 million ), fromRMB831.0 million in the same period of 2020. - Gross profit margin increased by 5.9% points year-over-year to 49.7%, from 43.8% in the same period of 2020.
- Operating loss decreased by 54.2% to a loss of
RMB369.1 million (US$57.9 million ), from a loss ofRMB806.4 million in the same period of 2020. Operating margin improved year-over-year to -15.5% from -42.5% in the same period of 2020. - Non-GAAP operating loss, which excluded share-based compensation expenses, was
RMB350.0 million (US$54.9 million ), compared to non-GAAP operating loss ofRMB770.1 million in the same period of 2020. - Income tax expense was
RMB114.1 million (US$17.9 million ), compared to income tax benefit ofRMB35.0 million in the same period of 2020. - Net loss was
RMB475.8 million (US$74.7 million ), compared to net loss ofRMB 771.2 million in the same period of 2020. - Non-GAAP net loss, which excluded share-based compensation expenses, was
RMB456.7 million (US$71.7 million ), compared to non-GAAP net loss ofRMB734.9 million in the same period of 2020. - Basic and diluted loss per ordinary share was
RMB8.43 (US$1.32 ), compared to loss per ordinary share ofRMB14.11 in 2020. - Total student enrollments in childhood & adolescent quality education programs, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, for fiscal year 2021 reached 178,400, increased by 26.0%, compared to the student enrollments of 141,600 in the same period of 2020.
- Total student enrollments in adult professional education business, defined as the total number of courses enrolled by students during that period, including multiple courses enrolled by the same student, for fiscal year 2021 decreased by 13.5% year-over-year to 72,100.
Key Financial Results
For the Three Months Ended |
Variance |
% of |
Fiscal Year Ended |
Variance |
% of |
|||||||||
2020 Unaudited |
2021 Unaudited |
RMB |
2020 Audited |
2021 Unaudited |
RMB |
|||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||
(in thousands, except for percentages) |
||||||||||||||
Net revenues |
650,254 |
655,301 |
5,047 |
0.8 |
1,897,883 |
2,386,520 |
488,637 |
25.7 |
||||||
Cost of revenues(a) |
(291,474) |
(327,689) |
(36,215) |
12.4 |
(1,066,842) |
(1,201,419) |
(134,577) |
12.6 |
||||||
Gross profit |
358,780 |
327,612 |
(31,168) |
-8.7 |
831,041 |
1,185,101 |
354,060 |
42.6 |
||||||
Gross margin |
55.2% |
50.0% |
-5.2% |
43.8% |
49.7% |
5.9% |
||||||||
Selling and marketing |
(223,342) |
(221,847) |
1,495 |
-0.7 |
(906,337) |
(878,130) |
28,207 |
-3.1 |
||||||
General and administrative |
(195,322) |
(132,465) |
62,857 |
-32.2 |
(630,618) |
(569,985) |
60,633 |
-9.6 |
||||||
Research and development |
(25,247) |
(33,664) |
(8,417) |
33.3 |
(100,466) |
(106,098) |
(5,632) |
5.6 |
||||||
Total operating expenses |
(443,911) |
(387,976) |
55,935 |
-12.6 |
(1,637,421) |
(1,554,213) |
83,208 |
-5.1 |
||||||
Operating loss |
(85,131) |
(60,364) |
24,767 |
-29.1 |
(806,380) |
(369,112) |
437,268 |
-54.2 |
Notes:
(a) Includes share-based compensation expenses.
"We are delighted to see that, in the fourth quarter of 2021, both our childhood & adolescent quality education and adult professional education businesses reached their highest amounts of quarterly cash collection during the year of 2021. This resulted in our net cash provided by operating activities in the fourth quarter of 2021 achieved
In 2021, by adopting the Online-Merge-Offline (OMO) model to develop and deliver our comprehensive products, and by optimizing our offline learning centers' operational efficiency and user acquisition capability, we believe that we have further strengthened our core competitive advantages in the market. Moreover, we have been adhering to our strategies of optimizing business structure and uplifting operational efficiency so as to cope with the negative impacts arising from the sporadic occurrence of COVID-19 cases, and to ensure that we can achieve a sustainable growth in our business." remarked Ms.
"Looking ahead, we will continuously enhance our overall operational efficiency and grow our revenues by increasing the productivity of each learning center rather than relying on the expansion of the learning center network. Our target is to improve our profitability.
Additionally, we are pleased to welcome Mr.
Fourth Quarter 2021 Results
Net Revenues
Total net revenues increased by 0.8% to
Net revenue from childhood & adolescent quality education business increased by 12.8% to
Net revenue from adult professional education business decreased by 9.4% to
Cost of Revenues
Cost of revenues increased by 12.4% to
Gross Profit and Gross Margin
Gross profit decreased by 8.7% to
Operating Expenses
Total operating expenses decreased by 12.6% to
Selling and marketing expenses decreased by 0.7% to
General and administrative expenses decreased by 32.2% to
Research and development expenses increased by 33.3% to
Operating Loss
Operating loss was
Interest Income/(Expense)
Net interest income was
Other Income
Other income was
Foreign Exchange Loss
Foreign exchange loss was
Income Tax Expense
The Company recorded an income tax expense of
Net Loss
As a result of the foregoing, net loss was
Basic and Diluted Loss per ordinary share
Loss per ordinary share was
Cash Flow
Net cash inflow from operating activities in the fourth quarter of 2021 was
Fiscal Year 2021 Results
Net Revenues
Net revenues increased by 25.7% to
Net revenue from childhood & adolescent quality education increased by 62.3% from
Net revenue from adult professional education business increased by 1.2% from
Cost of Revenues
Cost of revenues increased by 12.6% to
Gross Profit and Gross Margin
Gross profit increased by 42.6% to
Operating Expenses
Total operating expenses decreased by 5.1% to
Selling and marketing expenses decreased by 3.1% to
General and administrative expenses decreased by 9.6% to
Research and development expenses increased by 5.6% to
Operating Loss
Operating loss was
Interest Income/(Expense)
Net interest income was
Other Income
Other income was
Foreign Exchange Loss
Foreign exchange loss was
Income Tax Benefit/(Expense)
The Company recorded an income tax expense of
Net Loss
As a result of the foregoing, net loss was
Basic and Diluted Loss per ordinary share
Loss per ordinary share was
Cash Flow
Net cash inflow from operating activities in 2021 was
The financial statements for the fourth quarter and full year ended
Termination of the Going Private Transaction
On
Business Outlook
Based on the Company's current estimates, total net revenues for the first quarter of 2022 are expected to be in the range of
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, particularly as to the potential impact of COVID-19 on the economy in
Exchange Rate Information
All translations made in the financial statements or elsewhere in this press release made from RMB into
Conference Call
Company management will hold an earnings conference call and live webcast to discuss the Company's results at
Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique registrant ID.
Conference call registration link: http://apac.directeventreg.com/registration/event/7940929. It will automatically direct you to the registration page of "
In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s), direct event passcode and registrant ID) provided in the confirmation email received at the point of registering.
A replay of the conference call may be accessed by phone at the following number until
|
+1 855 452 5696 |
INTERNATIONAL: |
+61 2 8199 0299 |
Conference ID: |
7940929 |
Additionally, a live and archived webcast of this call will be available on the Investor Relations section of
About
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
Further information regarding these and other risks, uncertainties or factors is included in
About Non-GAAP Financial Measures
Beginning in the second quarter of 2016, the Company revised its non-GAAP financial measures to exclude gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact, in addition to its historical practice of excluding share-based compensation expenses for non-GAAP results.
To supplement
The non-GAAP financial measures are provided to enhance investors' overall understanding of
|
||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands, except share data and per share data) |
||||||
As of |
||||||
|
|
|
||||
2020 |
2021 |
2021 |
||||
Audited |
Unaudited |
Unaudited |
||||
RMB |
RMB |
USD |
||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
320,179 |
423,766 |
66,498 |
|||
Time deposits |
6,257 |
6,257 |
982 |
|||
Restricted cash |
38,369 |
255 |
40 |
|||
Accounts receivable, net of allowance for doubtful accounts |
32,790 |
48,458 |
7,604 |
|||
Amounts due from related parties |
305 |
839 |
132 |
|||
Prepaid expenses and other current assets |
138,353 |
139,757 |
21,931 |
|||
Total current assets |
536,253 |
619,332 |
97,187 |
|||
Time deposits-non current |
- |
123 |
19 |
|||
Accounts receivable, net of allowance for doubtful accounts-non current |
192 |
90 |
14 |
|||
Amount due from related parties-non current |
- |
683 |
107 |
|||
Property and equipment, net |
464,490 |
299,441 |
46,989 |
|||
Intangible assets, net |
13,444 |
9,906 |
1,554 |
|||
|
52,782 |
52,782 |
8,283 |
|||
Right-of-use assets |
586,451 |
495,936 |
77,823 |
|||
Long-term investments, net |
67,592 |
46,449 |
7,289 |
|||
Deferred income tax assets |
142,220 |
41,000 |
6,434 |
|||
Other non-current assets, net |
95,825 |
76,040 |
11,932 |
|||
Total assets |
1,959,249 |
1,641,782 |
257,631 |
|||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Short-term bank loans |
10,710 |
30,000 |
4,708 |
|||
Accounts payable |
10,293 |
8,914 |
1,399 |
|||
Amounts due to related parties |
180 |
554 |
87 |
|||
Operating lease liabilities-current |
199,083 |
239,937 |
37,651 |
|||
Income taxes payable |
76,817 |
89,000 |
13,966 |
|||
Deferred revenue-current |
1,980,138 |
2,008,078 |
315,111 |
|||
Accrued expenses and other current liabilities |
391,904 |
563,603 |
88,442 |
|||
Total current liabilities |
2,669,125 |
2,940,086 |
461,364 |
|||
Deferred revenue-non current |
18,060 |
16,774 |
2,632 |
|||
Operating lease liabilities-non current |
406,251 |
272,575 |
42,773 |
|||
Other non-current liabilities |
5,082 |
4,767 |
748 |
|||
Total liabilities |
3,098,518 |
3,234,202 |
507,517 |
|||
Commitments and contingencies |
- |
- |
- |
|||
Shareholders' equity: |
||||||
Class A ordinary shares |
349 |
355 |
56 |
|||
Class B ordinary shares |
74 |
74 |
12 |
|||
|
(459,815) |
(459,815) |
(72,155) |
|||
Additional paid-in capital |
1,324,161 |
1,347,205 |
211,406 |
|||
Accumulated other comprehensive income |
49,120 |
48,699 |
7,641 |
|||
Accumulated deficit |
(2,045,891) |
(2,520,438) |
(395,512) |
|||
Total deficit attributable to the shareholders of |
(1,132,002) |
(1,583,920) |
(248,552) |
|||
Non-controlling interest |
(7,267) |
(8,500) |
(1,334) |
|||
Total liabilities and equity |
1,959,249 |
1,641,782 |
257,631 |
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
||||||||||||
(in thousands, except share data and per share data) |
||||||||||||
For the Three Months Ended |
Fiscal Year Ended |
|||||||||||
2020 |
2021 |
2021 |
2020 |
2021 |
2021 |
|||||||
Unaudited |
Unaudited |
Unaudited |
Audited |
Unaudited |
Unaudited |
|||||||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|||||||
Net revenues |
650,254 |
655,301 |
102,831 |
1,897,883 |
2,386,520 |
374,497 |
||||||
Cost of revenues(a) |
(291,474) |
(327,689) |
(51,422) |
(1,066,842) |
(1,201,419) |
(188,529) |
||||||
Gross profit |
358,780 |
327,612 |
51,409 |
831,041 |
1,185,101 |
185,968 |
||||||
Selling and marketing |
(223,342) |
(221,847) |
(34,813) |
(906,337) |
(878,130) |
(137,798) |
||||||
General and administrative |
(195,322) |
(132,465) |
(20,787) |
(630,618) |
(569,985) |
(89,443) |
||||||
Research and development |
(25,247) |
(33,664) |
(5,283) |
(100,466) |
(106,098) |
(16,649) |
||||||
Operating loss |
(85,131) |
(60,364) |
(9,474) |
(806,380) |
(369,112) |
(57,922) |
||||||
Interest income/ (expense) |
(1,473) |
774 |
121 |
(199) |
2,335 |
366 |
||||||
Other income |
2,031 |
2,749 |
431 |
5,201 |
5,572 |
875 |
||||||
Foreign exchange loss |
(3,105) |
(12) |
(2) |
(4,849) |
(518) |
(81) |
||||||
Loss before income taxes |
(87,678) |
(56,853) |
(8,924) |
(806,227) |
(361,723) |
(56,762) |
||||||
Income tax benefit/ (expense) |
(7,027) |
(125,696) |
(19,724) |
35,034 |
(114,057) |
(17,898) |
||||||
Net loss |
(94,705) |
(182,549) |
(28,648) |
(771,193) |
(475,780) |
(74,660) |
||||||
Less: Net loss attributable to |
(471) |
(75) |
(12) |
(4,550) |
(1,233) |
(193) |
||||||
Net loss attributable to Class |
(94,234) |
(182,474) |
(28,636) |
(766,643) |
(474,547) |
(74,467) |
||||||
Net loss per Class A and |
||||||||||||
Basic and diluted |
(1.72) |
(3.22) |
(0.51) |
(14.11) |
(8.43) |
(1.32) |
||||||
Weighted average number of |
||||||||||||
Basic and diluted |
54,904,956 |
56,587,227 |
56,587,227 |
54,341,213 |
56,260,925 |
56,260,925 |
||||||
Net loss |
(94,705) |
(182,549) |
(28,648) |
(771,193) |
(475,780) |
(74,660) |
||||||
Other comprehensive |
||||||||||||
Foreign currency translation |
(609) |
(285) |
(45) |
(2,266) |
(421) |
(66) |
||||||
Comprehensive loss |
(95,314) |
(182,834) |
(28,693) |
(773,459) |
(476,201) |
(74,726) |
||||||
Notes:
(a) Includes share-based compensation expenses as follows:
For the Three Months Ended |
Fiscal Year Ended |
||||||||||||
2020 Unaudited |
2021 Unaudited |
2021 Unaudited |
2020 Audited |
2021 Unaudited |
2021 Unaudited |
||||||||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||||||||
Cost of revenues |
57 |
(485) |
(76) |
379 |
70 |
11 |
|||||||
Selling and marketing expenses |
460 |
(189) |
(30) |
1,842 |
2,785 |
437 |
|||||||
General and administrative expenses |
6,381 |
4,245 |
666 |
26,242 |
14,840 |
2,329 |
|||||||
Research and development expenses |
691 |
341 |
54 |
7,783 |
1,408 |
221 |
|||||||
|
||||||||||||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES |
||||||||||||
(in thousands, except share data and per share data) |
||||||||||||
For the Three Months Ended |
Fiscal Year Ended |
|||||||||||
2020 Unaudited |
2021 Unaudited |
2021 Unaudited |
2020 Unaudited |
2021 Unaudited |
2021 Unaudited |
|||||||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|||||||
GAAP Cost of revenues |
291,474 |
327,689 |
51,422 |
1,066,842 |
1,201,419 |
188,529 |
||||||
Share-based compensation expense in |
57 |
(485) |
(76) |
379 |
70 |
11 |
||||||
Non-GAAP Cost of revenues |
291,417 |
328,174 |
51,498 |
1,066,463 |
1,201,349 |
188,518 |
||||||
GAAP Selling and marketing expenses |
223,342 |
221,847 |
34,813 |
906,337 |
878,130 |
137,798 |
||||||
Share-based compensation expense in |
460 |
(189) |
(30) |
1,842 |
2,785 |
437 |
||||||
Non-GAAP Selling and marketing |
222,882 |
222,036 |
34,843 |
904,495 |
875,345 |
137,361 |
||||||
GAAP General and administrative |
195,322 |
132,465 |
20,787 |
630,618 |
569,985 |
89,443 |
||||||
Share-based compensation expense in |
6,381 |
4,245 |
666 |
26,242 |
14,840 |
2,329 |
||||||
Non-GAAP General and |
188,941 |
128,220 |
20,121 |
604,376 |
555,145 |
87,114 |
||||||
|
25,247 |
33,664 |
5,283 |
100,466 |
106,098 |
16,649 |
||||||
Share-based compensation expense in |
691 |
341 |
54 |
7,783 |
1,408 |
221 |
||||||
|
24,556 |
33,323 |
5,229 |
92,683 |
104,690 |
16,428 |
||||||
Operating loss |
(85,131) |
(60,364) |
(9,474) |
(806,380) |
(369,112) |
(57,922) |
||||||
Share-based compensation expenses |
7,589 |
3,912 |
614 |
36,246 |
19,103 |
2,998 |
||||||
Non-GAAP Operating loss |
(77,542) |
(56,452) |
(8,860) |
(770,134) |
(350,009) |
(54,924) |
||||||
Net loss |
(94,705) |
(182,549) |
(28,648) |
(771,193) |
(475,780) |
(74,660) |
||||||
Share-based compensation expenses |
7,589 |
3,912 |
614 |
36,246 |
19,103 |
2,998 |
||||||
Non-GAAP Net loss |
(87,116) |
(178,637) |
(28,034) |
(734,947) |
(456,677) |
(71,662) |
||||||
Less: Net loss attributable to non- |
(471) |
(75) |
(12) |
(4,550) |
(1,233) |
(193) |
||||||
Non-GAAP net loss attributable to |
(86,645) |
(178,562) |
(28,022) |
(730,397) |
(455,444) |
(71,469) |
||||||
Non-GAAP net loss per Class A and |
||||||||||||
Basic and diluted |
(1.58) |
(3.16) |
(0.50) |
(13.44) |
(8.10) |
(1.27) |
||||||
Weighted average number of ordinary |
||||||||||||
Basic and diluted |
54,904,956 |
56,587,227 |
56,587,227 |
54,341,213 |
56,260,925 |
56,260,925 |
Notes:
(a) The Non-GAAP net loss per ordinary share is computed using Non-GAAP net loss attributable to ordinary shareholders and the same number of ordinary shares used in GAAP basic and diluted net loss per ordinary share calculation.
(b) There was no tax impact of share-based compensation expenses for the fourth quarter and full year of 2021 and 2020, respectively.
(c) Include adjustments of reclassifying share-based compensation expenses between different categories of operating expenses.
View original content:https://www.prnewswire.com/news-releases/tarena-international-inc-announces-the-results-for-the-fourth-quarter-and-fiscal-year-of-2021-301503924.html
SOURCE
For further information, please contact: Investor Relations Contact, Tarena International, Inc., Email: ir@tedu.cn