On March 21, 2024, YQ. US Education Technology released its financial report for the fourth quarter of 2023.
Revenue increased by 19.7% year-on-year in the fourth quarter
In the fourth quarter of 2023, the SaaS business of Education Technology Education Teaching maintained an overall healthy and stable development trend, with stable growth in revenue year-on-year and month on month. The operating revenue reached 47.35 million yuan, a year-on-year increase of 19.7% and a month on month increase of 5%.
After the financial report was issued, as of the close of March 20th Eastern Time, the stock price of Tongyi Education rose 3.83% to close at $2.98 per share.
Previously, Education Technology disclosed in its performance report for the third quarter of 2023 that the company's net revenue for the third quarter was RMB 45.1 million (USD 6.2 million), compared to RMB 124.6 million in the same period of 2022, a year-on-year decrease of 63.8%. In the third quarter of 2023, the net loss was RMB 72.9 million (US $10 million), compared to a net loss of RMB 23.5 million in the same period last year, which more than doubled in magnitude.
Regarding the decline in performance in the third quarter, Education Technology stated that due to the concentration of resources on SaaS business, the net revenue from other education services decreased, while the SaaS billing model recognized revenue at a slower rate over a longer period of time.
Therefore, with the continuous promotion of the SaaS billing model, in the fourth quarter, the core business of Education Technology on campus steadily advanced, and the main projects achieved delivery acceptance and revenue recognition. As of December 31, 2023, the annual operating revenue has reached 170 million yuan, of which the proportion of projects charged through SaaS renewal mode continues to increase.
Continuously promoting the digital transformation of education
At the 2023 Global Smart Education Conference, Shanghai Minhang District, Changning District, and Xicheng District of Beijing, supported by the "One Education, One Learning" platform technology, were successfully selected for the list of outstanding smart education cases by the Ministry of Education in 2023. The technology driven solution for high-quality education development, represented by the normalized use of smart pens and smart pen boxes in the region, has been further recognized. Digital education is driving profound changes in the "teaching and learning" of schools, with changes in education and teaching models and talent cultivation models driven by big data.
At the beginning of 2024, the World Digital Education Conference was successfully held, and together with educational technology, advanced digital solutions were presented at the conference, bringing more excellent practical experience to the digital transformation of district schools. The China Smart Education Development Report 2023, officially released at the conference, includes in detail the practical exploration of promoting digital transformation of education in the entire district of Changning, Shanghai. Through in-depth education technology services, we aim to assist Changning District in taking regional education as a whole, integrating education digitization, and achieving the development of education from quantitative to qualitative changes driven by regional digital technology.
Recently, the list of innovative application cases of education big data in Beijing was announced, and the Beijing Education Commission selected 37 innovative application cases of education big data. It is worth noting that one urban case and three school cases supported by educational technology were successfully selected.
Digitalization of education is an important breakthrough for China to open up new avenues for educational development and shape new advantages in educational development. The 2024 government work report also proposes to vigorously develop digital education. In the future, in the field of educational informatization, together with Education Technology, we will adhere to the long-term strategic principle of digital transformation business in campus education, and steadily promote the landing of digital transformation business in the national market.