Tarena International, Inc. Announces the Unaudited Results for the Fourth Quarter and Fiscal Year of 2022.

BEIJING: Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of IT professional education and IT-focused supplementary STEAM education services in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2022.

Highlights for the Fourth Quarter of 2022

Total student enrollment in IT-focused supplementary STEAM education increased by 17.0% to 177,000 in the fourth quarter of 2022, compared to student enrollment of 151,300 in the same period of 2021.

Net revenues decreased by 15.7% year-over-year to RMB552.4 million (US$80.1 million), from RMB655.3 million in the same period of 2021.

Gross profit decreased by 1.6% year-over-year to RMB322.4 million (US$46.7 million), from RMB327.6 million in the same period of 2021.

Gross profit margin increased by 8.4% year-over-year to 58.4%, from 50.0% in the same period of 2021.

Operating loss decreased to RMB4.6 million (US$0.7 million), from a loss of RMB60.4 million in the same period of 2021.

Non-GAAP operating income, which excluded share-based compensation expenses, was RMB0.2 million (US$0.03 million), compared to a non-GAAP operating loss of RMB56.5 million in the same period of 2021.

Net loss was RMB17.7 million (US$2.6 million), compared to a net loss of RMB182.5 million in the same period of 2021.

Non-GAAP net loss, which excluded share-based compensation expenses, was RMB12.9 million (US$1.9 million), compared to a non-GAAP net loss of RMB178.6 million in the same period of 2021.

Basic and diluted loss per American Depositary Share ("ADS"), each representing five Class A ordinary shares with an effective date of December 23, 2021, was RMB1.72 (US$0.25), compared to a loss per ADS of RMB16.12 in the fourth quarter of 2021.

Operating cash inflow for the quarter was RMB24.0 million (US$3.5 million).

Cash, cash equivalents, and time deposits, including current and non-current, and restricted cash totaled RMB380.5 million (US$55.2 million) as of December 31, 2022.

Highlights for Fiscal Year of 2022

Total student enrollment in our IT-focused supplementary STEAM education for fiscal year 2022 reached 209,400, increasing by 17.4%, compared to student enrollment of 178,400 in the same period in 2021.

Net revenues increased by 3.4% year-over-year to RMB2,468.1 million (US$357.8 million), from RMB2,386.5 million in the same period in 2021.

Gross profit increased by 19.1% year-over-year to RMB1,412.0 million (US$204.7 million), from RMB1,185.1 million in the same period in 2021.

Gross profit margin increased by 7.5% year-over-year to 57.2%, from 49.7% in the same period in 2021.

Operating income was RMB93.0 million (US$13.5 million), compared to an operating loss of RMB369.1 million in the same period in 2021.

Non-GAAP operating income, which excluded share-based compensation expenses, was RMB109.6 million (US$15.9 million), compared to a non-GAAP operating loss of RMB350.0 million in the same period in 2021.

Net income was RMB85.2 million (US$12.4 million), compared to a net loss of RMB475.8 million in the same period in 2021.

Non-GAAP net income, which excluded share-based compensation expenses, was RMB101.8 million (US$14.8 million), compared to a non-GAAP net loss of RMB456.7 million in the same period in 2021.

Basic income per American Depositary Share ("ADS"), each representing five Class A ordinary shares with an effective date of December 23, 2021, was RMB7.64 (US$1.11). Diluted income per American Depositary Share ("ADS") was RMB7.23 (US$1.05).

Key Financial Results

For the Three Months Ended

December 31,

Variance

% of

change

Fiscal Year Ended

December 31,

Variance

% of

change

2021

2022

2021

2022

RMB

RMB

RMB

RMB

RMB

RMB

(in thousands, except for percentages)

Net revenues

655,301

552,444

(102,857)

-15.7

2,386,520

2,468,074

81,554

3.4

Cost of revenues(a)

(327,689)

(230,067)

97,622

-29.8

(1,201,419)

(1,056,043)

145,376

-12.1

Gross profit

327,612

322,377

(5,235)

-1.6

1,185,101

1,412,031

226,930

19.1

Gross margin

50.0 %

58.4 %

8.4 %

49.7 %

57.2 %

7.5 %

Selling and marketing

expenses(a)

(221,847)

(145,301)

76,546

-34.5

(878,130)

(642,937)

235,193

-26.8

General and administrative

expenses(a)

(132,465)

(153,556)

(21,091)

1...

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