Gaotu Techedu Inc. (NYSE: GOTU) saw its stock price surge 5.26% in Thursday's trading session following the release of its impressive first-quarter 2025 financial results and the announcement of a new share repurchase program. The Chinese education technology company's performance exceeded market expectations, driving investor optimism.
The company reported quarterly earnings of $0.07 per share, with sales reaching $205.75 million, representing a substantial 56.89% increase compared to the same period last year. Gaotu's Q1 revenue hit RMB 1,493 million, while its adjusted net income stood at RMB 137.3 million. The adjusted gross profit for the quarter was RMB 1,042.7 million, with an impressive adjusted gross margin of 69.8%.
Adding to the positive sentiment, Gaotu Techedu provided an optimistic outlook for the second quarter, projecting revenue growth between 28.5% and 30.5%, with expected revenue ranging from RMB 1,298 million to RMB 1,318 million. The company's strong performance and forward-looking guidance, coupled with the announcement of a new share repurchase program, likely contributed to the significant stock price appreciation observed during the trading session.
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