OneSmart International Education Group (ONE) Reports Q1 Revenues of RMB685M

OneSmart International Education Group (NYSE: ONE) reported Q1 revenue for the quarter came in at RMB685 million, versus RMB797.2 million reported last year.

First Fiscal Quarter of Fiscal Year 2021 results:

• Cash sales totaled RMB962 million
• Net revenues totaled RMB685 million, at the high-end of the guided range of RMB600 million to RMB700 million
• Average monthly student enrollments totaled 148,134
• 470 learning centers as of November 30,2020, increasing from 434 learning centers a year ago

Mr. Steve Zhang, Chairman and Chief Executive Officer of OneSmart, commented, "We are delighted to report a good start in fiscal 2021. All the key metrics are recovering, and the year-over-year comparison gaps are further narrowing. Our Go Premium Strategy is executed well on track with significant enhancements were made on products, teachers profiles, learning centers and premium brand awareness. Our recently launched Elite VIP product has achieved strong cash sales thanks to its distinguished value-added premium offerings in power learning ability and school admission planning, on top of the basic score improvement feature. Our teachers' profiles are continuously improving, and they are highly-selected and well-trained to satisfy students and parents' evolving needs for academic achievements. By the end of January 2021, we have refurbished 83% learning centers. The upgraded center study environments will provide a superb experience to our students. In addition, we are making great efforts on premium brand building and local marketing to reach our target customers more effectively. OneSmart's brand position of Premium Tutoring is rooted in target families mind evidenced by improved brand awareness in select cities.

With the consumption upgrade in China's education sector, the premium K-12 after-school education sector is an enormous underserved market. We will continue to leverage our resourceful platform and our innovative products and services to capture the growth opportunities. As a leading premium tutoring service provider, we are confident to expand our market share in this fast-growing sector and to achieve RMB10 billion in cash sales by 2023."

Outlook for the Second Fiscal Quarter of Fiscal Year 2021

Based on the latest estimates, we expect to generate net revenues of RMB850 million to RMB950 million for the second quarter of fiscal year 2021, representing 24% to 39% increase from the first quarter of fiscal year 2021. We expect the full year net revenues to reach above the pre-COVID FY19 level. However, this outlook represents OneSmart's current view, which is subject to change.

For earnings history and earnings-related data on OneSmart International Education Group (ONE) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Optimum Communications gets NYSE non-compliance notice over stock price
• Sinda raises $331M in IPO, reports Q2 net loss of $16.6M