Higher One (ONE) Reports Slight Beat on Revenues; FY18 Revenue Guidance In-Line

Higher One (NYSE: ONE) reported Q2 revenue for the quarter came in at $104.8 million versus the consensus estimate of $103.8 million.

Highlights for the Second Fiscal Quarter Ended February 28, 2018

• Total net revenues increased by 34.1% year-over-year to RMB663.5 million (US$104.8 million), of which net revenues from premium tutoring services (OneSmart VIP Programs) increased by 30.0% year-over-year to RMB561.6 million (US$88.7 million) and net revenues from premium young children education services including both HappyMath and FasTrack English increased by 82.1% year-over-year to RMB89.2 million (US$14.1 million).
• Operating income increased by 85.6% year-over-year to RMB78.1 million (US$12.3 million). Operating profit margin increased from 8.5% in the same period of fiscal year 2017 to 11.8%.
• Non-GAAP operating income increased by 73.5% year-over-year to RMB82.0 million (US$13.0 million). Non-GAAP operating profit margin increased from 9.6% in the same period of fiscal year 2017 to 12.4%.
• Net income attributable to OneSmart increased by 107.3% year-over-year to RMB77.4 million (US$12.2 million) from RMB37.3 million in the same period of fiscal year 2017.
• Non-GAAP net income attributable to OneSmart increased by 91.2% year-over-year to RMB81.3 million (US$12.9 million) from RMB42.5 million in the same period of fiscal year 2017.
• Monthly average student enrollments[1] increased by 38.4% year-over-year to 102,613, of which monthly average student enrollments from premium young children education services including HappyMath and FasTrack English increased by 100.7% from the same period of fiscal year 2017.
• Prepayments from customers balance recorded RMB1,793.0 million (US$283.3 million) as of February 28, 2018, up 44.0% year-over-year.

Outlook for Fiscal Year 2018

For fiscal year 2018, OneSmart expects net revenues to be between RMB2,750 million (US$434.6 million) and RMB2,880 million (US$455.1 million), an increase of 33.6% to 40.0% from fiscal year 2017. This forecast reflects OneSmart\'s current and preliminary view, which is subject to uncertainty.

GUIDANCE:

Higher One sees FY2016 revenue of $434.6-455.1 million, versus the consensus of $441.99 million.

For earnings history and earnings-related data on Higher One (ONE) click here.

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