17 Education & Technology Group Inc. (YQ) has experienced an incline of 8.12% in the premarket. However, the last trading session closed at $0.91 with a decrease of 7.14%.
US$10 Million Share Repurchase Program
On 2nd November 2021, YQ reported that its board of directors has approved a share repurchase program under which the company can buy back up to US$10 million in ordinary shares during the following 12 months. Depending on market circumstances and relevant rules and regulations, the Company’s planned repurchases may be done in the open market at current market prices, in privately negotiated transactions, in block trades, and/or through other legally permitted mechanisms.
The Company’s board of directors will evaluate the share buyback program on a regular basis and may approve changes to the terms and amount of the program. Lastly, the repurchases will be funded from the Company’s operating capital.
Second Quarter 2021 financial results
YQ reported second-quarter 2021 financial results on 23rd September 2021. According to the report, net revenues came out to be $103.9 million while the net revenues from online K-12 tutoring services recorded were approximately $102.5 million. It is more than 163.9 percent year over year from RMB250.8 million in the second quarter of 2020 and accounted for 98.7% of total net revenues. An increase in paid course enrollments fueled the year-over-year growth in net income from online K-12 tutoring services. Paid course enrollments in the second quarter of 2021 totaled over 1,183 thousand, up 131.1 percent from the second quarter of 2020 (around 512 thousand). Lastly, but the net loss was $41.3 million.
First Quarter 2021 Financial Results
YQ reported First Quarter 2021 Financial Results on 24th May 2021. Net sales for the first quarter of 2021 were RMB474.2 million (US$72.4 million), exceeding the Company’s high-end target by RMB4.2 million. This also represents a 107.1 percent growth year over year from RMB229.0 million in the first quarter of 2020. A rise in net income from online K-12 tutoring services was the main reason that drove the increase. Moreover, online K-12 tutoring services accounted for 97.6% of total net sales in the first quarter of 2021.
The cost of revenues in the first quarter of 2021 was RMB187.6 million (US$28.6 million), more than 128.3 percent year over year. The rise was primarily attributable to increases in instructor and tutor salary expenses, as well as teaching material costs. The increase was substantially in line with the Company’s net revenues from online K-12 tutoring services during the same period. Lastly, the company also hired extra tutors to prepare for the predicted rise in enrollments in the spring semester of 2021.