Sunlands Technology Group Announces Unaudited Fourth Quarter and Full Year 2022 Financial Results.

BEIJING: Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced its unaudited financial results for the fourth quarter ended December 31, 2022.

Fourth Quarter 2022 Financial and Operational Snapshots

Net revenues were RMB578.6 million (US$83.9 million), representing a 1.7% decrease year-over-year.

Gross billings (non-GAAP) were RMB370.8 million (US$53.8 million), representing a 23.3% decrease year-over-year.

Gross profit was RMB503.3 million (US$73.0 million), representing a 0.8% increase year-over-year.

Net income was RMB181.0 million (US$26.2 million), compared with net income of RMB150.8 million in the fourth quarter of 2021.

Net income margin, defined as net income as a percentage of net revenues, increased to 31.3% from 25.6% in the fourth quarter of 2021.

New student enrollments[1] were 161,348, representing a 48.2% increase year-over-year.

As of December 31, 2022, the Company's deferred revenue balance was RMB1,690.9 million (US$245.2 million).

[1] New student enrollments for a given period refers to the total number of orders placed by students that newly enroll in at least one course during that period,including those students that enroll and then terminate their enrollment with us, excluding orders of our low-price courses. (In June 2019, we introduced low-price courses, including "mini courses" and "RMB1 courses," to strengthen our competitiveness and improve customer experience. We offer such low-price courses mainly in the formats of recorded videos or short live streaming.)

Full Year 2022 Financial and Operational Snapshots

Net revenues were RMB2,323.1 million (US$336.8 million), compared with RMB2,507.8 million in 2021.

Gross billings (non-GAAP) were RMB1,496.7 million (US$217.0 million), compared with RMB1,970.0 million in 2021.

Gross profit was RMB1,975.0 million (US$286.3 million), compared with RMB2,131.6 million in 2021.

Net income was RMB643.0 million (US$93.2 million), compared with net income of RMB212.4 million in 2021.

Net income margin, defined as net income as a percentage of net revenues, increased to 27.7% from 8.5% in the year 2021.

New student enrollments were 534,280, compared with 434,228 in 2021.

"Thanks to unwavering execution of our balanced growth and profitability strategy, we concluded 2022 with sustained growth in both new student enrollments and our bottom line in the fourth quarter," said Mr. Tongbo Liu, Chief Executive Officer of Sunlands. "We maintained our disciplined cost management...