Sunlands Technology (STG)

Yuhua Ye Investor Relations
Tongbo Liu Chief Executive Officer
Selena Lu Lv Chief Financial Officer
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to Sunlands’ Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After prepared remarks by the management team, there will be a question-and-answer session. Today’s conference is being recorded.

If you have any objections, you may disconnect at this time. turn Sunlands’ over IR to today, your like Ye, Yuhua Representative. now the to call host I’d Please go ahead.

Yuhua Ye

financial were Hello, everyone, via online. earnings company's XXXX Sunlands' newswire second operating and thank and you conference for services earlier call. are press in our issued joining today quarter and release results posted The

Mr. our download can list release call visiting with Selena IR our press have by with Management on we up will today’s and we'll Q&A a sign in prepared You and earnings Tongbo our Lv. Lu remarks. session. CEO, conclude website. CFO, the the distribution for Liu Participants begin our call, And

today's hand of call the based estimates historical call. to them. over it of on management, the information remind contained reliance I herein, trends, and Sunlands' I'd undue matters conference not statements therefore, you Harbor statements this certain discussed in like These are place current to you projections, on should Except Before Safe the are for to relation statements. forward-looking and in

Forward-looking and any number could factors forward-looking important contained to uncertainties. from actual risks results statement. statements of cause differ in A materially involve inherent those

filings and Exchange like about more potential For CEO, Liu. the Securities our the Tongbo call please turn Commission. to the risks the to refer company's With information that, now with and uncertainties, I’d over to

Tongbo Liu

and Hello, you joining quarter for everyone, Yuhua. thank call. Thank earnings you, conference Sunlands' second XXXX

performance. our quarter with pleased second are We

programs programs XX.X% a of revenue professional net year-over-year Our XX.X% skills respectively. RMBXXX.X XXX.X% master's year-over-year grew achieving [ph] and and with to certification and million, degree-oriented increase

increase professional increase which XX,XXX, over our certification at and a was XXX.X% stable year-over-year by programs. relatively X.X% remained enrollments New skills primarily driven from year-over-year representing

compared cost taking product XXXX. RMBXXX.X adjustment to of with were and million million strategic RMBXXX.X and balancing a our mix the for period our gross billings same profitability, Following while optimize growth

efforts China of skills becoming in the lives within skills certification reduction increased and higher seek the also With with which and year-over-year. their certification such We XXXX. loss other XX.X% second adjustment with the their offerings global programs million while experienced regions. industrial interest enrich wake improve Employment degree-oriented programs ongoing quarter cost and in the and education and This to quality by skills our programs cost generate master's and our to their as workers improve as through during million programs. degree-oriented higher is driven professional higher or second competitiveness compared institutions momentum quarter education steady record helped demand growing Many courses. our skills enrich efforts professionals occupational programs. and successful our increased growth well net and motivating degree our pursue professional of sustain we of master's cooperation of programs profit our a of with RMBXX.X of career programs, often tailwinds, degree-oriented RMBXXX.X to strategic increased exceptional STE market billings for competitive delivered in professional was performance for education by Gross XXXX. in our working restructuring enhance Our due net COVID-XX the through increasingly education pandemic, master's adults to

institutions. simultaneously are Most pay to entrance China tailored We for students by MBA continue and courses with senior-level footprint We of or stable for to prepare education higher by enlarged financially our managers who further high-quality expanding professionals foreign promoting middle provide overseas our education. working to examinations. cooperation are supported in the willing

a meet grow to our soft in increase skills post-secondary technology certification vigorously, the extensive overseas gross diversified MBA year-over-year in year-over-year offerings, resource human was coupled also including cultivate evidenced increase a enrollments enhance allow programs We growth demand across XXX.X% and our or XXX.X% by and of with competitiveness billing skills and increasing and range This by management. to for driven professional primarily Meanwhile, demand new career offerings, degree wide also courses education, quarter. a hobbies. for us cost subjects which our

in also degree-oriented framing While and exceptional cultivated strengthened different to effective students, better education, and XX teaching brand targets. certification our improvement a frameworks, competitiveness upgrade many is the teaching programs have learning easily adults provide in and accessible courses and programs To also delivering course our learning work our to committed other courses of pertaining developed to a courses Sunlands efforts, programs, skills method wide continue students. STE to variety to experience of course professional to have years' master's we and needs. we in high full Overall, high-quality we our awareness we time or developing are online more make platform time whom courses complement constraints. the experience students' adult working to leading most premium to our occupational more

providing depth variety of and by wide to our believe training a penetration highly professional expanded further companies, industries. staff teaching effective and resources, framework our our will Additionally, this staff set course cost. learning our our quality have We of we and refreshed apart increase and that the of services acquisition course, user our competitors. us customer We reduce from learning platform base believe market our rates

their regarded reflected second the quarter. excited by in by are satisfaction that of our our see XX.XX% is brand highly students rate to as We

in a We additional quality first-class our service industry will subjects strengthen by enhancing – more of continue our teachers. while to broader refined area with services in developing courses leading the position

we guidelines by for an give process. applicable industry given standards these to advantage, July, business have comprehensive such in internal strict industry education turning the lifelong promoting entities our committed some Now recent the of guidelines always been by in as laws Followed Sunlands believe standardization, on a played adult Education leaders industry society. and And with circular has and the and learning regulations. and review Ministry existing training social education complying to will private published adult organizations XXth stated positive role which to Sunlands pertaining

remain our team research we and courses to Internet and Going in best teaching effective creating committed staff. the academic will and for high-quality plan outstanding designing collaboration forward, learning tools innovative, with

Sunlands pure we and to for well over degree-oriented and our skills positioned programs business, Given can offer call professional space. our concludes confident that, remarks. STE in the we are in in review to call financials. our and premium you, the That the continue will deliver to continue Selena, CFO, strong With market future we master's please. results Thank program turn of quarters. adult solidify to my – courses share education in are prepared Selena, further to I foothold

Selena Lu Lv

conference for second everyone. quarter And attending Sunlands call. you Thank you, Tongbo Hello, Liu. thank

last and to results, at profit with loss quarter’s of master's We second degree for solid skills programs same coming year, net compared excited professional are with report the million in with RMBXX.X period and our consistently million performing RMBXXX.X well.

and measures X.X% lower with During costs operating G&A X% the reasonably and we improve quarter, multiple expenses year-over-year, respectively. to and efficiency, sales decreasing took

continued our our also We to as users. efforts strive better to experiences categories course to we deliver learning expand

enhance we management, will courses in optimization. we profitability. the efficient track our operation to and grow incrementally persist ahead, cultivated for and further highly occupational and cost-efficient marketing in business we education believe Looking better are With on of adults, existing advantage

XXXX, quarter security exemption second package RMBXX.X by XXXX Cost offered by administrative was RMBXXX.X outbreak from RMBX.X XX.X% XX.X% on XXXX national were in to quarter in the insurance-related the online value-added to first of personnel. X.X% was income XXXX the in by decrease the marketing of the of by relevant expenses quarter an the students. Net in Now, Gross detail. and million RMBXX.X was from was with the education quarter expenses million second of Product the X.X% XX.X% because quarter quarter year-over-year I million COVID-XX second XXXX. half mainly lower XXXX RMBXX.X marketing costs due XXXX in our came to million driven of million, of by a growth in the the by quarter the XXXX. X.X% of In for primarily end the was of XXXX. from the second the RMBXXX.X The General authorities increase a to XXXX, and representing million XXXX, quarter decreased in authorities million XXXX an compared of of XXXX. XXXX million to to second the second X% second in relief million quarter quarter million came in would marketing second branding quarter The social in expenses activities service of Sales RMBXXX.X second mainly loss second primarily second the of XXXX. quarter April the quarter the in compared for second part during financial The second second in of due to In million of of was XXXX. decrease RMBXXX.X by to as expenses of to the RMBXXX.X by RMBXX.X like primarily RMBXXX.X tax second from expenses in offered to our purchased second in results million increase the compensation by spending COVID-XX relevant and quarter XXXX. million XXXX. the was profit decreased for the gross RMBXXX.X our operating due quarter XXXX. declined of from in million XXXX. increased decrease Other to was of XXXX end million and of and reduced revenues development effort quarter net in sales in RMBXX.X second quarter million the from RMBXXX.X of XXXX. of exemption compensation second of because quarter from income share decrease RMBXX.X XXXX. to billings to mainly in by second net increased million in The second quarter quarter the decrease RMBXX since expenses expenses. integrated decrease related through The decreased of of RMBXX.X in incurred RMBXXX increased million, The the the revenues

of million and XXXX, million and As investments. had of XX, equivalents RMBXX.X short-term RMBXXX.X June of cash the company cash

the million XXXX, second XXXX, Capital Capital support connection had RMBX,XXX.X of in As the were of to company's RMBX.X compared equipment incurred XXXX. expenditures necessary operations. deferred of and the of XX, million RMBX revenue a quarter improvements quarter in the leasehold second were million. June IT the in with company expenditures with infrastructure balance primarily

please earnings press For And our details. for more half first our our to further for now, outlook. financial XXXX of results, release refer

outlook I'd that, RMBXXX estimates For current of up the would currently the and to of With on to revenues between all market, preliminary represent be XXXX, million market X.X% based reflects which of to This management's year-over-year. like RMBXXX million, conditions Operator? which an X.X% the open increase the operating Sunlands of is third quarter net expects and to to company's questions. are call and subject demand, customer the and conditions change. current


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question-and-answer We session. now the will Instructions] begin [Operator


further This time, for to no this have question-and-answer Yuhua like session. At over any closing to will conference conclude our remarks. back We turn questions. IR representative, the Ye, I'd

Yuhua Ye

joining We again, to soon. call. for look Good and you Once goodnight. today's with again you forward day thank everyone speaking


earnings This concludes the conference call.

You disconnect line. much may great Thank and very you have now your a day.