Summary by Moomoo AI
Gaotu Techedu reported strong revenue growth but widening losses in Q2 2024. Net revenues increased 43.6% year-over-year to RMB1,009.8 million, while gross billings surged 87.4% to RMB1,653.7 million. However, the company swung to a net loss of RMB429.6 million, compared to a net income of RMB56.2 million in Q2 2023.The company attributed the revenue growth to increased gross billings and improved product recognition. However, higher costs from expanding workforce and increased marketing expenses led to the net loss. Operating expenses more than doubled to RMB1,161.1 million.Looking ahead, Gaotu expects Q3 2024 revenues between RMB1,188-1,208 million, representing 50.5-53.0% year-over-year growth. The company remains focused on core education businesses, product expansion, and operational efficiency to drive long-term growth.