On March 16, Tarena International, Inc. (NASDAQ: TEDU) released
its unaudited financial results for the fourth quarter and the
whole financial year of 2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220318005277/en/
Tarena Renewal in FY 2021 (Photo:
Business Wre)
According to the financial data, the net turnover of Tarena in
the fourth quarter of 2021 was RMB655 million, up 0.8%
year-on-year, exceeding the estimate given in the previous quarter.
In the whole year of 2021, the net revenue of Tarena was RMB2,387
million, up 25.7% year-on-year, a new high since its listing.
Q4 Operating Cash Flow Reaching RMB130 Million, Childhood
& Adolescent Quality Education Business Revenue Increasing by
62.3% for the Whole Year
In the fourth quarter of 2021, Tarena's cash receipts reached a
quarterly high during the year, which brought our operating cash
flow in the fourth quarter to approximately RMB130 million. By the
end of 2021, the balance of our cash reserve reached RMB430
million.
Looking back at the whole year of 2021, the two major business
segments of Tarena, adult professional education and childhood
& adolescent quality education, have achieved growth. Among
them, the adult professional education business achieved annual
revenue of RMB1,150 million, up 1.2% year-on-year; the annual
revenue of the childhood & adolescent quality education
business increased from RMB762 million in 2020 to RMB1,236 million,
an increase of 62.3% year-on-year.
Both Annual Net Revenue of RMB2,387 Million and Gross Profit
of RMB1,185 Million Setting New Records Since Listing
According to the financial data, the rapid growth of the revenue
of Tarena's childhood & adolescent quality education business
in 2021 has brought a year-on-year increase in gross profit of
285.3% for the business.
This helped the gross profit of Tarena reach RMB1,185 million in
2021, up 42.6% over 2020, stopping the continuation of the annual
gross profit downward trend since 2019 through 2020, and creating a
new record for gross profit since the listing, exceeding the
historical record of RMB1,167 million in 2018.
At the same time, the net revenue of RMB2,387 million in the
financial year 2021 also exceeded RMB2,085 million in 2018,
creating another new record since our listing.
Annual Operating Loss Down 54.2% with Operating Margin
Improving Significantly
In 2021, with growth in both revenue and gross profit, Tarena's
continuous effective control of costs and expenses is also reaping
results.
Tarena's operating loss in the fourth quarter fell to RMB60.36
million, down 29.1%, and our operating margin improved by 3.9
percentage points to -9.2% from -13.1% in the same period of
2020.
For 2021, Tarena's operating loss fell from RMB806 million in
2020 to RMB369 million, down 54.2% year-on-year. Operating margin
improved significantly from -42.5% in 2020 to -15.5% in 2021.
Optimizing Operational Efficiency to Increase Production
Capacity Per Single Learning Center: Adult Professional Education
Reaching RMB11.28 Million, and Childhood & Adolescent Quality
Education Up 55.4% Year-on-year
Through continuous optimization of operational efficiency and
organizational structure, Tarena's production capacity per single
learning center and per employee for both adult professional
education and childhood & adolescent quality education in 2021
have been improved.
Among them, the annual revenue of the adult professional
education per single learning center was about RMB11.28 million, up
16.1% year-on-year, and the annual revenue of the childhood &
adolescent quality education per single learning center reached
RMB5.22 million, up 55.4% year-on-year.
The increase in production capacity is not only single-center
revenue, On the financial report telephone conference, Tarena's CEO
SUN Ying said that the company's total number of headcounts fell by
1.7% from 10,181 at the end of the fourth quarter of 2020 to 10,009
at the end of the fourth quarter of 2021, while the productivity
per capita increased by 37.1% from about RMB172 thousand in the
same period of 2020 to about RMB236 thousand in 2021.
At the same time, post-tutoring students' satisfaction continues
to rise. In the fourth quarter of 2021, the employment rate of
trainees from Tarena's adult professional education six months upon
graduation remained above 90%, and the proportion of student
renewal and word-of-mouth promotional activities of our childhood
& adolescent quality education continued to increase, reaching
70.8%. In 2021, the renewal rate of students who have enrolled for
more than one year exceeded over 83.2%.
"Looking back on 2021, our abilities to develop and deliver
products based on the Online-Merge-Offline (OMO) model, strong
offline learning centers operation capabilities and customer
acquisition capabilities have continued to enhance our core
competitive advantages," said SUN Ying. "Meanwhile, our measures to
optimize business structure and uplift operational efficiency
enabled us to cope with the negative impacts arising from the
sporadic occurrence of COVID-19 cases."
SUN Ying said that, looking ahead, Tarena will continue to
uplift operational efficiency, improve profitability by increasing
productivity per single learning center, rather than depending on
newly opened centers as a driving force for revenue growth, and
achieve the goal of "turn from net loss to net profit" as soon as
possible.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220318005277/en/
Zisheng Song songzs1@tedu.cn
Tarena (NASDAQ:TEDU)
Historical Stock Chart
From Apr 2024 to May 2024
Tarena (NASDAQ:TEDU)
Historical Stock Chart
From May 2023 to May 2024