Sunlands Technology Sees Fourth Quarter Revenue Increase 65% To $82.7 Million
Sunlands Technology Group (NYSE: STG), a leader in China's online post-secondary and professional education, reported today that fourth quarter revenue jumped 65 percent year-over-year to $82.7 million.
The Beijing-based company, which offers post-secondary courses as well as online professional courses to help students prepare for professional certification exams, said its net loss was $26.7 million, or $3.88 per American depositary share. That represented a decrease of 57.1 percent from a loss of $63.7 million, or $14.98 per ADS, in the same period of 2017.
Revenue growth was primarily thanks to a greater number of students enrolled in Sunlands compared to the fourth quarter of 2017. Overall enrollment, which has continued to grow in recent years, reached 119,746 new students in the fourth quarter.
The drop in the company's net loss was due to a 15.5 percent decrease in general and administrative expenses to $20.7 million at the fourth quarter from $25.1 million in the same period of 2017. The drop came largely because of a significant decline in share-based compensation expenses from the fourth quarter of 2017.
Tongbo Liu, chief executive officer of Sunlands said, "Last year, we completed our IPO, launched our AI-powered personalized study program, and broadened our graduate and post-graduate program offerings. We ended the year at the top end of our fourth quarter revenue guidance and narrowed our net loss margin."
The shares of Sunlands dropped nearly 5 percent to $4.10 per share today in New York.
The company said it expects net revenues to be between $81.87 million and $84.85 million, representing a year-over-year increase of 35.3 percent to 40.3 percent.
"In 2019, we will look to further expand our business and gain market share. Empowered by our one-to-many live streaming model, we plan to broaden our course offerings to serve a larger student base and leverage our premier AI-technology and industry leading online education platform to create additional value for our students, teachers, partners and investors," Liu said.
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