China's 17 Education Q2 revenue drops 62.4%, gross margin improves

Reuters
09/04
China's 17 Education <a href="https://laohu8.com/S/QTWO">Q2</a> revenue drops 62.4%, gross margin improves

Overview

  • 17 Education Q2 revenue falls 62.4% yr/yr to RMB 25.4 mln ($3.5 mln) amid shift to school projects

  • Q2 gross margin rises to 57.5%

  • Announces US$10 mln share repurchase program

Outlook

  • 17EdTech did not provide specific financial guidance

  • Company emphasizes cost control and operational efficiency

  • 17EdTech leverages subscription model for sustainable growth

Result Drivers

  • REVENUE SHIFT - Revenue decline due to focus on school-based projects requiring longer revenue recognition periods

  • GROSS MARGIN IMPROVEMENT - Gross margin rose to 57.5% from 16.0% in Q2 2024, attributed to cost efficiency and project mix changes

  • COST CONTROL - Reduction in operating expenses driven by efficiency improvements and staff optimization

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

RMB 25.40 mln

Q2 Net Income

-RMB 26 mln

Q2 Gross Margin

57.5%

Q2 Gross Profit

RMB 14.60 mln

Q2 Income from Operations

-RMB 28.50 mln

Press Release: ID:nGNX4ZGNpf

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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