DIDI - Gaotu Techedu gains on earnings easing regulations

Gaotu Techedu (NYSE:GOTU) shares soared on Monday after reporting sequential improvement on earnings while regulators reportedly reassessed heavy-handedness.  The Beijing-based online education company reported non-GAAP EPADS of RMB 0.36 and  RMB 724.62M in revenue. While each was a significant decline from 2021, stringent regulations over the course of the year cloud comparisons. From the fourth quarter, however, gross billings grew by about RMB 18M alongside a net income margin that nearly doubled from the quarter. “We believe that under the strong support of government policy, vocational education will have a better future with higher market demand,” CFO Shannon Shen said in a positive assessment of the quarter and the company’s push to sustained profitability. The government accommodation is indeed an important aspect for Chinese education tech companies, especially after the industry was driven to the brink by crackdowns in 2021. The positive inclination on regulation was added to on Monday

For further details see:

Gaotu Techedu gains on earnings, easing regulations