- 17EdTech or 17 Education & Technology Group Inc (NASDAQ: YQ) reported second-quarter FY21 sales growth of 147.2% year-on-year, to RMB670.9 million ($103.9 million).
- Revenues from online K-12 tutoring services rose 163.9% Y/Y.
- Gross billings of online K-12 tutoring services increased 121.9% Y/Y, and paid course enrollments of 1,183 thousand jumped 131.1% Y/Y.
- The gross margin for the quarter fell 90 basis points Y/Y to 63%. Loss from operations for Q2 was RMB(279.8) million or $(43.3) million.
- 17EdTech held RMB2.2 billion ($334.5 million) in cash and equivalents as of June 30, 2021.
- It reported a loss per ADS of RMB(1.38) or $(0.23) for the quarter.
- 17EdTech’s co-founder Dun Xiao has resigned from his position as a director due to personal reasons, effective September 23, 2021.
- The company decides not to issue guidance in the near term, citing uncertainty related to the recent regulatory and operating environment.
- Price action: YQ shares are trading lower by 3.81% at $1.01 on the last check Thursday.
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