Q4 2024 TAL Education Group Earnings Call
Okay.
Operator: Ladies and gentlemen, good day, and thank you for standing by. Welcome to TAL Education Group's fourth quarter and fiscal year 2020 4Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be informed that today's conference is being recorded, and I'd like to hand the conference over to Mr. Jackson Ding, Investor Relations Director. Thank you. Please go ahead, sir.
Speaker Change: Ladies and gentlemen, good day and thank you for standing by welcome to tell education groups fourth quarter and fiscal year 2020 full earnings conference call.
Speaker Change: At this time all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session.
Please be informed that today's conference is being recorded.
Like to hand, the conference over to Mr. Jackson Day Investor Relations director. Thank you. Please go ahead Sir.
Jackson Ding: Thank you, operator, and thank you all for joining us today for TAL Education Group's Fourth Quarter Fiscal Year 2024 Earnings Conference. The earnings release was distributed earlier today, and you may find a copy on the company's IR website or through the Newsmark.
Jackson Ding: Thank you operator, and thank you all for joining us today for Tal Education group's fourth quarter fiscal year 'twenty 'twenty earnings Conference call.
Jackson Ding: The earnings release was distributed earlier today.
Jackson Ding: May find a copy on the company's IR website.
Jackson Ding: During this call, you will hear from Mr. Alex Poon, President and Chief Financial Officer, and myself, Investor Relations Director. Following the prepared remarks, Mr. Poon and I will be available to answer your questions. Before we continue, please note that today's discussions will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995.
Jackson Ding: Through the newswires.
Jackson Ding: During this call you'll hear from Mr. Alex Combs, President and Chief Financial Officer.
Speaker Change: And myself Investor Relations director.
Speaker Change: Following the prepared remarks, Mr Pung, and I will be available to answer your questions.
Speaker Change: Yeah.
Speaker Change: Before we continue please note that today's discussion will contain and will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act.
Speaker Change: Of 1990 fives.
Jackson Ding: Forward-looking statements are subject to risks and uncertainty that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC. For more information about these risks and uncertainties, please refer to our findings with the. Also, our earnings release and this call include discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconsideration of the non-GAAP measures to the most directly comparable GAAP measures. I would like to turn the call over now to Mr. Alex Poon. Alex, please go ahead. Thank you, Jackson.
Speaker Change: Forward looking statements are subject to risks and uncertainties.
Speaker Change: May cause actual results to differ materially from our current expectations.
Speaker Change: Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC.
Speaker Change: For more information about these risks and uncertainties. Please refer to our filings with the SEC.
Speaker Change: Also our earnings release and this call include discussions of certain non-GAAP financial measures.
Speaker Change: Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures.
Speaker Change: I would like to turn the call over now to Mr. Alex pump Alex. Please go ahead.
Alex Poon: I'd also like to thank all of you for participating in today's conference call. In this poll, we'll discuss our financial performance and business progress for the fourth quarter and review some of the key results from the full fiscal year 2024. Following that, I'll briefly update you on our fiscal strategy outline.
Alex Combs: Thank you Catherine.
Alex Combs: I'd also like to thank all of you for participating in today's conference.
And then Paul will discuss our financial performance and business progress for the quarter.
Alex Combs: We used some of the key results from the whole fiscal year Tobey told before.
Following that.
Paul: I'll briefly update you on our capital strategy.
Alex Poon: Throughout the fiscal quarter, we continue to manage our learning services program, serving users who seek engaging and effective learning experiences. RPU Small Class and Shares.com Enrichment Learning Program continue to receive positive feedback from users for the quality of their products and service. Our efforts to offer quality learning experiences, along with our Learning Center Network Expansion and increased enrollment, led to continued growth in our learning services. For learning devices, we extended our products and services to a broader user base.
Paul: Throughout the quarter, we continue to manage our.
Paul: Services programs to serve users.
Engaging and effective learning experiences.
Paul: Our pay your small class ensures the dotcom enrichment learning programs continue to receive positive feedback from users. So the quality of the products and services.
Paul: Our efforts to offer quality learning experience, along with our learning Center network expansion and the increased enrollment let to continue.
Paul: In our drilling services business.
Paul: For learning devices.
Paul: We extended our products and services to a broader user base, enabling more users to find the suitable.
Alex Poon: Enabling more users to find the suitable learning solutions for their needs. We aim to help users with their self-learning journey by leveraging the smart features and abundant resources integrated into our learning platform. With this objective in mind, we launched two new versions of learning devices in this fiscal quarter with enhanced hardware and software capabilities. XPot 2 Pro and XPot 2 Pro Max, Both have gained early market traction and received solid user engagement feedback since their launch. Going forward, we remain committed to developing both our product capabilities and our go-to-market capabilities.
Paul: Machines for their needs.
Paul: We aim to help users what theyre self Gordon journey.
Paul: Leveraging the smart features and abundant resources integrated into our <unk> devices.
Paul: This objective in mind.
Paul: We launched two new versions of learning devices in this fiscal quarter with enhanced artwork and software capabilities.
Paul: Part two pro an ex Pat to pullbacks.
Both again early market traction and we see solid user engagement.
Paul: Since their launch going forward, we remain committed since developing both our product capabilities and our go to market capabilities.
Alex Poon: We continue to pursue new technologies and refine our existing research and development endeavors. In a recent national collaborative initiative dedicated to comprehensively assessing large language models' mathematical abilities, our MathGBT large language model recently ranked number one in national rankings. From basic arithmetic to advanced theories of mathematics, the Maths GBT LLM delivers responses to a student's learning experience.
Speaker Change: So with that Ann.
Speaker Change: We continue to pursue new technologies, and refine our existing research and development endeavors.
Speaker Change: In a recent national collaborative unless it's a dedicated to comprehensively assessing large language models.
Speaker Change: Abilities are masked GBT large language model recently ranked number one in national ranking.
Speaker Change: From basic arithmetic to avere theories.
Speaker Change: Max the Max GBT.
Speaker Change: <unk> delivers responsive to as students learning experience.
Alex Poon: In terms of our financial performance, we recorded net revenues of $429.6 million, or $3.08 billion in R&D for the course, representing an increase of 59.7% and 66.9% year over year in U.S. dollars and RMB. With respect to profitability, our non-GAAP income from operations..., and non-GAAP net income attributable to TAL for the quarter were $9.4 million U.S. dollars and $4 We reported net revenues of 1.5 billion US dollars or 10.7 billion yuan, representing 46.2% and 53.7% year-over-year growth in US dollar and yuan terms, respectively.
Speaker Change: In terms of our financial performance, we reported net revenues of.
Speaker Change: 429, 6 million U S dollars.
Speaker Change: <unk> 3.8 billion R&D for the quarter.
Speaker Change: Representing an increase of 59, 7% and 66, 9% year over year in U S dollar.
And RMB terms.
Speaker Change: With respect to profitability, our non-GAAP income from operations and non-GAAP net income attributable to <unk> for the quarter or nine 4 million in U S dollars and 48.0 U S million U S dollars respectively.
Speaker Change: For the full fiscal year of 'twenty 'twenty four.
Speaker Change: We reported net revenues of $1 5 billion U S dollars.
Speaker Change: For $10 7 billion RMB, representing 46, 2% and 33, 7% year over year growth in U S dollar and RMB terms, respectively.
Alex Poon: Our non-GAAP income from operations and non-GAAP net income attributed to TAL for the quarter were $19.7 million and $85.3 million U.S. dollars, respectively. We also reported positive non-GAAP net profit during the whole year, which was 84.8 million yuan. With that, I will now hand the call back to Jackson. He will provide an update on the operational advancements within our four business lines and discuss our financial performance for the fourth fiscal quarter. Jackson, back to you.
Speaker Change: Our non-GAAP income from operations non-GAAP net income attributable to Tal for the quarter or $19 7 million.
Speaker Change: And $85 $3 million respectively.
Speaker Change: We also reported positive non-GAAP net profit during the whole year, which was $84 8 million U S dollars.
Speaker Change: With that I will now handover the call back to Jackson, who will provide an update on the operational advancements within our core business volumes and discuss our financial performance for the fourth fiscal quarter boxes back to you.
Speaker Change: Yes.
Jackson Ding: I'm pleased to share some details of the progress we made in the fourth quarter across all core businesses. Please note that all financial data for this quarter is in the office.
Jackson Ding: Thank you Alex.
Jackson Ding: I'm pleased to share some details of the progress we made in the fourth quarter across our core business lines.
Jackson Ding: Please note that all financial data for this quarter is unaudited.
Jackson Ding: Let me start with our learning services and others, which comprises a broad range of learning programs for consumers, amongst other things. In the fourth quarter of fiscal year 2024, we extended our learning services' year-over-year growth momentum through continued advancements across our various products. Online and Offline Enrichment Learning Programs You continue to serve as a primary revenue generator for Learning Service. Through our systematic teaching design, up-to-date learning content, and interactive classroom design, we help users develop multi-faceted capabilities and apply what they've learned in real-life situations.
Jackson Ding: Let me start with our learning services and others business.
Which comprises a broad range of learning programs will consumers amongst other things.
Jackson Ding: In the fourth quarter of fiscal year, 2024, we extended learning services and others year over year growth momentum through continued advancements across our various product lines.
Our online and offline enrichment learning programs and continued to serve as a primary revenue generator.
For our learning services.
Jackson Ding: Through our systematic teaching design up to date learning content and.
Jackson Ding: An interactive classroom designs, we help users develop multi faceted capabilities and apply what they've learned into real life situations.
Jackson Ding: Our enrichment learning programs enable students to build their own thoughts from diverse perspectives. Fostering Comprehensive Development with Engaging and Effective Learning Experiences. Our offline PAYO small class programs maintained their trajectory of year-over-year growth in this period. This was attributable to, among other factors, our learning-centered network expansion.
Jackson Ding: Our enrichment learning programs enable students to build their own thoughts from diverse perspectives.
Jackson Ding: Fostering comprehensive debottleneck with engaging and effective learning experience.
Jackson Ding: Okay.
Jackson Ding: Our offline <unk> small class programs maintained its trajectory of year over year growth in this period.
This was attributable to amongst other factors our learning Center network expansion.
Jackson Ding: Our decision to add learning centers during the quarter was supported by an assessment of market demand, as well as our operational capability and efficiency. Notably, efficiency indicators, such as retention rate, have been relatively stable as we expanded our capacity and enrolled more learners. We see a visible growth path for offline small class enrichment learning. In alignment with our strategic objectives, our online enrichment learning business has maintained its course of operation to enhance teaching effectiveness.
Jackson Ding: Our decision to add learning centers during the quarter was supported by an assessment of market demand.
Jackson Ding: As well as our operational capability and efficiency.
Jackson Ding: Notably <unk>.
Jackson Ding: The indicators such as retention rate had been relatively stable as we expanded our capacity and he wrote more learners.
Jackson Ding: We see a visible growth path for offline small class enrichment Bernie.
Jackson Ding: In alignment with our strategic objectives our.
Jackson Ding: Enrichment learning business has maintained its course of operations.
Jackson Ding: To enhance teaching effectiveness.
Jackson Ding: We tailored our online programs to differentiate them from offline offerings and applied smart interactive features to motivate users and enhance their engagement. These programs are designed not only to align with online learning habits but also fully leverage online education's unique advantage.
Jackson Ding: Tailored our online programs to date.
Jackson Ding: Appreciate them from offline offerings and applied Smart interactive features to motivate users and enhance their engagement.
Jackson Ding: These programs are designed not only to along with online learning habits, but also fully leverage online educations unique advantages.
Jackson Ding: Bringing scarce, high-quality educational resources to a broader audience. Looking ahead, we'll continue to innovate and iterate our products and services to meet evolving user demand. It's a digital learning experience.
Jackson Ding: <unk> scarce high quality educational resources to a broader audience.
Looking ahead, we will continue to innovate and iterate our products and services to meet evolving user demand so digital learning experiences.
Jackson Ding: Next is our content solution, which encompasses small books, print books, learning devices, and digital content. Our Product Portfolio and Go-To-Market Capability drove continued year-over-year growth momentum during this fiscal quarter. As in previous quarters, Shares to Expat stood out as a key contributor to our Confluence Solutions business revenue. Revenue generated from our learning devices continued on its path of growth in the fiscal fourth quarter thanks to our launch of a couple of new products in our expat series. XPAT 2 Pro and XPAT 2 Pro Max.
Jackson Ding: Next is our content solutions business.
Jackson Ding: Which encompasses smartbooks print book learning devices and digital content.
Our product portfolio and go to market capabilities.
Jackson Ding: Nov continued year over year growth momentum during this fiscal quarter.
Yes.
Jackson Ding: As in previous quarters curious to ask Pat stood out as a key contributor to our content solutions business revenue growth.
Jackson Ding: Revenue generated from our learning devices and continued on its path of growth in fiscal fourth quarter. Thanks to our launch of a couple of new products.
Jackson Ding: <unk> series.
Jackson Ding: Expect to pro and ask Pat to pro Max.
Jackson Ding: The latest AXPASS features enhanced hardware and software capabilities. Abandoned Embedded Learning Resources and AI Functions from a Self-Developed Large Language Model, MAP-GPT. For example, customers can use an AI-enabled learning platform for Math Problem Solving. Chinese or English essay review, step-by-step answer explanation, and much more. Together, these upgrades provide an improved human-machine interaction experience and more precise and efficient learning while delivering consistent user engagement. Meanwhile, we focus on managing our sales channels and optimizing our marketing strategy. While we're closely monitoring the efficiency of our online channels, we have also started to explore opportunities in offline channels to extend our product market. With that overview...
Jackson Ding: The latest ex Pats.
Jackson Ding: Feature enhanced hardware and software capabilities.
Jackson Ding: Abundant embedded learning resources and.
Jackson Ding: And AI functions from our self developed launch language model mask GPT.
For example customers can use.
Jackson Ding: AI enabled learning tools for math problem solving.
Jackson Ding: Chinese or English essay review.
Jackson Ding: Step by step and so explanation and much more.
Jackson Ding: Together these upgrades provide an improved human machine interaction experience and.
Jackson Ding: And more precise and efficient learning solutions.
Jackson Ding: While delivering consistent user engagement level.
Jackson Ding: Meanwhile, we focus on managing our sales channels and optimizing our marketing strategies.
Jackson Ding: While we are closely monitoring the efficiency of our online channels. We also started to explore opportunities in offline channels to expand our products market.
Yeah.
Jackson Ding: I would now like to share our key financial results for the course. We recorded net revenue of 429.6 million U.S. dollars.
Jackson Ding: With that overview.
Jackson Ding: I would now like to share our key financial results for the quarter.
Speaker Change: We recorded net revenues of.
Speaker Change: $429 6 million U S dollars.
Jackson Ding: 3.08 billion RMB, an increase of 59.7% and 66.9% year over year in the US dollar and RMB terms, respectively. The increase was attributable to the growth in both our learning services business and our content solutions. Cost of revenues increased by 58.4% to 202.2 million U.S. dollars from 127.7 million U.S. dollars in the fourth quarter of fiscal year 2023. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 59.8% to 199.6 million U.S. dollars from 124.9 million U.S. dollars in the fourth quarter of fiscal year 2023.
Speaker Change: Or.
Speaker Change: $3 8 billion RMB.
Speaker Change: And the increase of 59, 7% and 66, 9% year over year in the U S dollar and RMB terms, respectively.
Speaker Change: The increase was attributable to the growth in both our learning services business and our content solutions business.
Speaker Change: Cost of revenues increased by 58, 4% to $202 2 million U S dollars from $127 7 million U S dollars in the fourth quarter of fiscal year 2023.
Speaker Change: non-GAAP cost of revenues, which included which excluded share based compensation expenses.
Speaker Change: <unk> increased by 59, 8% to $199 six many U S dollars from $124 9 million U S dollars in the fourth quarter of fiscal year 2023.
Jackson Ding: Gross profit also increased in the fourth quarter of fiscal 2024, rising by 60.9% from $141.3 million for the same period last year to $227.3 million for this quarter. Gross margin also increased to 52.9% from 52.5% for the same pay period last year. Selling and marketing expenses for the quarter were $125.9 million, representing an increase of 69% from $74.5 million for the same period last year. Non-gap selling and marketing expenses, which excluded share-based compensation expenses, increased by 80.1% to $120.4 million from $66.9 million for the same period last year. The uptick in selling and marketing expenses was primarily driven by increased selling and marketing activity.
Speaker Change: Gross profit also increased in the fourth quarter of fiscal 2020 for rising.
Speaker Change: By 69% from $141 $3 million for the same period last year to $227 3 million U S dollars for this quarter.
Speaker Change: Gross margin increased to 52, 9% from 52, 5%.
Speaker Change: For the same period last year.
Selling and marketing expenses for the quarter were $125 $9 million representing.
Speaker Change: An increase of 69% from $74 $5 million for the same period last year.
non-GAAP, selling and marketing expenses, which excluded share based compensation expenses increased by 81% to $120 for many years.
Speaker Change: From $66 $9 million for the same period last year.
Speaker Change: The uptick in selling and marketing expenses was primarily driven by increased selling and marketing activities.
Jackson Ding: Selling and marketing expenses as a percentage of total net revenues increase from 27.7% to 29.3% year-over-year. General and administrative expenses increased by 4.5 percent, to 117.2 million U.S. dollars, from $112.2 million in the same period of last year, non-GAAP general and administrative expenses, which excludes which excludes share based compensation costs, increased by 8.9% year-over-year to 104.9 million U.S. dollars from 96.3 million U.S. dollars for the same period of last year, non-GAAP general and administrative expenses as a percentage of total net revenues decreased from 35.8% to 24.4% year-over-year.
Selling and marketing expenses as a percentage of total net revenues increased from 27, 7% to 29, 3% year over year.
Speaker Change: General and administrative expenses increased by four 5% to 100.
Speaker Change: 17, Q2, many of U S dollars.
Speaker Change: $112 2 million in U S dollars in the same period of last year.
Speaker Change: non-GAAP general and administrative expenses, which exclude which excludes share based compensation costs.
Speaker Change: Increased by eight 9% year over year to $104 9 million U S dollars from $96 $3 million for the same period of last year.
Speaker Change: non-GAAP general and administrative expenses as a percentage of total net revenues decreased from 35, 8% to 24, 4% year over year.
Jackson Ding: Total share-based compensation expense allocated to the related operating costs and expenses decreased by 22.1% to 20.5 million U.S. dollars in the fourth quarter of fiscal year 2024 from 26.3 million U.S. dollars in the same period of last year. Loss from operations was $11.1 million in the fourth quarter of fiscal year 2024, compared to a loss from operations of 44.4 million U.S. dollars in the same period of last year. Non-GAAP income from operations, which excluded share-based compensation expenses, was $9.4 million, compared to a non-GAAP loss from operations of $18.1 million in the same period of last year.
Speaker Change: Yes.
Speaker Change: Total share based compensation expenses allocated to related operating costs and expenses decreased by 23, 1% to 25 many of U S dollars in the fourth quarter of fiscal year 2024 from $26 $3 million to the same period last year.
Speaker Change: Okay.
Speaker Change: Loss from operations was.
Speaker Change: $11 1 million U S dollars in the fourth quarter of fiscal year 2024, compared to a loss from operations.
Speaker Change: $44 $4 million in the same period of last year.
Speaker Change: non-GAAP income from operations, which excluded share based compensation expenses was $9 $4 million compared to non-GAAP loss from operations.
Speaker Change: $818 1 million U S dollars in the same period last year.
Jackson Ding: Net income attributable to TAL was $27.5 million in the fourth quarter of fiscal year 2024, compared to net loss attributable to TAL of $39.4 million in the same period of last year. Non-GAAP net income attributable to TAL, which excludes share-based compensation expenses, was $48.0 million, compared to non-GAAP net loss attributable to TAL of $13.1 million U.S. dollars in the same Moving on to abolishing it, as of February 29, 2024.
Speaker Change: Yes.
Speaker Change: Net income attributable to call was $27 5 million in the fourth quarter of fiscal year 2024, compared to net loss attributable to Tal of.
Speaker Change: $39 4 million U S dollars in the same period of last year.
Speaker Change: non-GAAP net income attributable to Tao was which excluded share based compensation expenses was 48.0.
Speaker Change: <unk> in U S dollars.
Speaker Change: Compared to non-GAAP net loss attributable to Tal.
$13 $1 million in the same period of last year.
Speaker Change: Yeah.
Speaker Change: Moving onto our balance sheet.
Speaker Change: As of February 29.
Speaker Change: 2024.
Jackson Ding: $2,208,700,000 U.S. dollars of cash-in-cash equivalents, $1 billion and $94.6 million U.S. dollars, a short-term investment, and $248.7 million U.S. dollars in current and non-current restricted cash. Our deferred revenue balance was 428.3 million U.S. dollars as of the end of the fourth fiscal quarter. Now, turning to Ocasio-Cortez
We had.
<unk> $208 $7 million of cash and cash equivalents 1 billion and $4 6 million.
Speaker Change: U S dollars and short term investments.
Speaker Change: $248 $7 million and current and non current restricted cash.
Speaker Change: Our deferred revenue balance was $428 $3 million as of the end of the fourth fiscal quarter.
Speaker Change: Now turning to our cash flow statement.
Jackson Ding: Net cash used in operating activities for the fourth quarter of fiscal year 2024 was $23.7 million. Now let's switch gears and move on to... Full Fiscal Year 2024. Let me briefly review some key financials as follows. Fiscal year net revenue increased to $1,490,004,000,000, or 10.7 billion RMB, representing a 46.2% and 53.7% year-over-year increase in U.S. dollar and RMB terms, respectively. Gross profit increased by 38.2% to 806.1 million US dollars. Law Firm Operations with 69.2 million US dollars in the fiscal year 2024, compared to a loss of operations of $90.7 million in the prior year. Non-GAAP income from operations, which excluded share-based compensation, was $19.7 million for the fiscal year 2024, compared to non-GAAP income from operations of $17.8 million for the fiscal year 2023.
Speaker Change: Net cash used in operating activities for the fourth quarter of fiscal year, 2024 was $23 $7 million.
Speaker Change: Now, let's switch gears and move on to.
Speaker Change: Full fiscal year 2024 financial results.
Speaker Change: Let me briefly review some key financials as follows.
Speaker Change: Fiscal year net revenue increased two.
Speaker Change: $1.494 billion.
For $10 7 billion RMB.
Speaker Change: Representing a 46, 2% and 53, 7% year over year increase.
Speaker Change: In U S dollar and RMB terms, respectively.
Speaker Change: Gross profit increased by.
Speaker Change: 38, 2% to <unk>.
Speaker Change: $806, one many of yours.
Yeah.
Speaker Change: Loss from operations was.
Speaker Change: Six to $9 $2 million.
Speaker Change: In our fiscal year 2024.
Speaker Change: <unk> to loss of operations of $19 7 million in the prior year.
Speaker Change: Okay.
Speaker Change: non-GAAP income from operations, which excluded share based compensation expenses.
Speaker Change: $19 7 million for the fiscal year 2024.
Compared to non-GAAP income from operations of <unk>.
$17 8 million for the third.
Speaker Change: Fiscal year 2023.
Jackson Ding: Net loss attributable to TAL was 3.6 million U.S. dollars in the fiscal year 2024, compared to net loss attributable to TAL of $135.6 million in the previous fiscal year. Non-GAAP net income material to TAO, which excluded share-based compensation expenses, was 85.3 million U.S. dollars, compared to non-GAAP net loss attributable to TAL of $27 million in fiscal year 2023.
Speaker Change: Net loss attributable to cow was.
Speaker Change: $3 $6 million in the fiscal year 2024.
Speaker Change: Paired to net loss attributable to Tal.
Speaker Change: $135 6 million in the previous fiscal year.
non-GAAP net income attributable to Tau, which excluded share based compensation expenses was.
Speaker Change: $85 3 million U S dollars.
Speaker Change: Compared to non-GAAP net loss attributable to Tal.
Speaker Change: $27 million in fiscal year 2023.
Jackson Ding: That concludes the financial highlights section. In April 2023, the company's board of directors authorized a 12-month extension of the company's share repurchase program launched in April 2021. Pursuant to the expanded sugar purchase program, the company may purchase up to approximately 737.4 million U.S. dollars of its common shares through April 30, 2024. As of August 31st, 2023, the company had repurchased 13.4 million common shares and an aggregate consideration of approximately 233.6 million U.S. dollars under the Share Your Purchase Program.
That concludes the financial highlights section.
Speaker Change: In April 2023, the company Board of Directors authorized a 12 month extension of the company's share repurchase program launched in April 2021.
Speaker Change: Pursuant to the extended share repurchase program the company may purchase up to approximately.
Speaker Change: $737 $4 million of its common shares through April 32024.
Speaker Change: Okay.
Speaker Change: As of August 31, 2023, the company had repurchased.
Speaker Change: 13 point 13 point.
Speaker Change: 4 million common shares at an aggregate consideration of approximately <unk>.
Speaker Change: $233 6 million U S dollars.
Speaker Change: Under the share repurchase program.
Jackson Ding: We did not make any additional purchases in the fourth quarter of fiscal year 2024. In April 2024, TAL's Board of Directors authorized to extend its share repurchase program by 12 months. That concludes the financial side. I'll now hand the call back to Alex to briefly update you on our business outlook. Alex, please go ahead. Thanks, Chuck.
Speaker Change: We cannot make any additional purchases in the fourth quarter of fiscal year 2024.
Speaker Change: In April 2024.
Speaker Change: Board of directors.
As authorized to extend its share <unk> share repurchase program by 12 months.
Speaker Change: Yeah.
That concludes the financial section.
Speaker Change: I'll now hand, the call back to Alex to briefly update you on our business outlook. Alex. Please go ahead.
Alex Poon: Thanks, Jackson. As highlighted throughout this call, during Fiscal Year 2024 for Learning Services, we extended our Learning Center footprint to develop additional learning programs catering to various user groups' specific needs and also managed our operational efficiency. As a result, the business experienced year-over-year growth in the last few quarters. Our content solutions also made progress by offering high-quality learning devices and engaging in conversations with our target customers through various go-to-market chats. We believe Fiscal 2024 laid a foundation for our future development.
Thanks Jackson.
Alex Combs: As highlighted throughout this call Q1 fiscal year 2204, four learning services.
Alex Combs: Expanded our learning center footprints.
Alex Combs: Developed additional learning parallel catering to various user groups specifically.
Alex Combs: And also managed our operational efficiency.
Alex Combs: So as a result, the business experienced year over year growth in the last few quarters.
Alex Combs: Our console solution also made progress through offering high quality learning devices and engaging in conversations with our target customers through various go to market channels.
Alex Combs: We believe fiscal 2024 lay the foundation for our future development.
Alex Poon: So now I would like to share some insights on the company's strategy and objectives for fiscal year 2025. First of all, we remain focused on further refining our mature business. We will continue to uphold high quality standards for our offline and online learning products and services. Our goal is to make our learning experience engaging and effective by applying technology and improving teaching content as students interact. Among our mature businesses, we expect our various learning services programs to continue to serve as our largest revenue contributor in the new fiscal year, will also continue to innovate and explore during Physical Year 2025, to keep up with our customers' ever-evolving needs, will explore and design differentiated products and services, will also continue to invest in artificial intelligence, to optimize our model, improving its response speed and accuracy, and working to integrate artificial intelligence with our existing products and services.
Alex Combs: Now I would like to share some insight on the company's strategy and objectives for fiscal year 2025.
Speaker Change: So first of all.
Speaker Change: We remain focused on further refining our mature before.
We will continue to uphold high quality standards.
Our offline.
Speaker Change: While learning products and services.
Speaker Change: Our goal is to make our learnings.
Gauging and effective by applying technology and improving teaching content as student interaction.
Speaker Change: Among our mature businesses, we expect our various learning services programs to continue to serve as our largest revenue contributor in the new fiscal year.
Speaker Change: We will also continue to elevate and explore during fiscal year 2025.
Speaker Change: To keep up with our customers' ever evolving.
Speaker Change: We'll explore into volume differentiated products and services.
Speaker Change: We will also continue to embark in artificial intelligence.
Speaker Change: To optimize our model improving response speed and accuracy.
Speaker Change: Working to integrate artificial intelligence with our existing product.
Alex Poon: We keep a close eye on industry trends and how education is transforming in the AI era, staying keenly attuned to how we can interact with other players and identify potential areas where we can seize new opportunities. We remain open to exploring collaboration and sharing our findings with the hope of contributing some valuable insights to the global education community. Finally, we'll focus on refining the details of our operations to enhance overall efficiency and profitability. We believe our dedication to providing learning services in Prom will create value for our users and our society while driving our business forward.
Speaker Change: Sure.
Speaker Change: We keep a close by our industry trend and how education, that's transforming in the AI era.
Speaker Change: Staying keenly attuned to how we can interact with other players and identify potential areas, where we can see real opportunity.
Speaker Change: We remain open to explore.
Speaker Change: Operation.
Speaker Change: And share our findings with the hope of contributing some valuable aerophyte, so the global education community.
Speaker Change: Finally.
We're focused on refining the details of our operations to enhance alfaro officialty and profitability would.
Speaker Change: We believe our dedication to providing learning services and products will create value for our users and our society, while driving our business forward.
Alex Poon: We'll also closely monitor our efficiency metrics across different factors and make timely adjustments to optimize each step in our operation, including content generation, product R&D, sales and marketing, and more. Operator, I think we're now ready to open the call for questions.
Speaker Change: We're also closely monitor our efficiency metrics and all different factors and make timely adjustments to optimize each step in our operations, including content generation product R&D sales and marketing and more.
Speaker Change: So that concludes my prepared remarks, operator, I think we're now ready to open the call for questions.
Operator: Thank you. We will now begin the question and answer session. To ask a question, please press star 1 1 on your telephone keypad. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 1 1 again. Our first question comes from Candis Chan on behalf of Daiwa. Please ask your question, Candis.
Thank you we will now begin the question and answer session.
Speaker Change: To ask a question. Please press star one one on your telephone keypad.
Speaker Change: He will automated message advising yohan this race to.
Speaker Change: To withdraw your question please.
Speaker Change: Please press star one again.
Our first question comes from the line of Kansas Chen from <unk>. Please ask your question Candace.
Kansas Chen: Hi, guys.
And Alex Thanks for taking my question and also congratulations on the very strong set of results.
Alex Poon: Thanks, Candis. This is Alex. Let me take this one.
Kansas Chen: I'll start achieving a robust 26% revenue growth. This year can you share some colors on the revenue growth target for the.
Alex Poon: So, I think at a very high level, I would say, you know, growth is really the output of investment input. I think that investment input is going to span from product and services innovation, technology, channel, and network. And last but not least, our people in our organization. So, at a very high level, I think I'll just sort of answer both of your questions in that one go.
Kansas Chen: The new fiscal year and also what are the key investments okay.
Speaker Change: Thank you.
Speaker Change: Yes.
Thanks, Candace, Alex let me take this one.
Speaker Change: So I think at a very high level I would say growth is really the output.
Alex Combs: Of investment employee.
Speaker Change: I think thats, even vastly important it's going to span.
Alex Combs: Product and service innovation.
Alex Combs: Technology.
Alex Combs: Channel network and last but not least RP.
Alex Combs: Our people in our organization.
Alex Combs: So.
Alex Combs: Very high level, I think I'll, just sort of answered both of your questions in that one one go and if I would unpack that a little bit further.
Alex Poon: And if I would unpack it a little bit further, I think, you know, obviously we'll remain focused on further revitalizing and refining our mature businesses. I would really expect our various learning services programs to continue to serve as our largest revenue contributor in the new fiscal year and continue to show robust growth, will obviously continue to innovate to explore and design differentiated products and services that really fit all segments of our customers and all learning scenarios and provide them with an integrated experience and an integrated learning journey, and will obviously continue to invest in artificial intelligence.
Alex Combs: I think obviously, we'll remain focused on.
Further revitalizing and refining our more mature businesses.
Alex Combs: I would really expect our various learning services programs to.
Alex Combs: Continue.
Alex Combs: To serve as our largest revenue contributor.
Alex Combs: In the new fiscal year and continue to show robust growth.
Alex Combs: We'll obviously continue to innovate.
Alex Combs: Explore design differentiated product and services that really sets.
All segments.
Alex Combs: If our customers.
Alex Combs: And all learning scenarios.
Alex Combs: To provide what's up what's an integrated.
Alex Combs: <unk>, and then integrated and learning journey.
Obviously continue to invest in artificial intelligence.
Alex Combs: I think I've mentioned earlier on the call.
Alex Poon: I think I mentioned earlier in the call that it's an area that we pay a huge amount of attention to. And we believe that the AI era and its transformative impact on education are just starting. Um, you know, we'll continue to refine the details of our operations to enhance overall efficiency and profitability. And this really, I think, goes, uh, across the entire, uh, chain of operations. You go from, you know, content generation to product R&D to sales and marketing. Um, so Candis, I hope that answers your question.
Alex Combs: So it's an area that we.
Alex Combs: We pay a huge amount of attention to.
Alex Combs: We believe that the AI era and its transformative impact education is just starting.
Alex Combs: We'll continue to refine the details of our operations.
Alex Combs: To enhance overall efficiency profitability.
Alex Combs: And those really I think it goes.
Across the entire chain of operation you go from content generation.
Alex Combs: R&D too.
Alex Combs: Sales and marketing.
Operator: All right, thank you, Candis. Our next question comes from the line of Linda Huang from Macquarie. Please ask your question, Linda.
Speaker Change: So Ken as I hope that answers your question.
Alex Combs: Okay.
Ken: Alright, Thank you Candice.
Ken: Our next question comes from the line of Linda Huang from Macquarie. Please ask your question Linda.
Linda Huang: Thank you very much. Hi management. So, my question is regarding the Learning Center expansion. I remember that on the previous conference call, our Learning Center number was between 250 and 300. So, can you share with us more color regarding your Learning Center expansion at the end of the previous quarter? And then for FY25, how do you gauge the market demand and the expansion plan? Thank you very much.
Linda Huang: Thank you very much Hi management. So my question is regarding for the learning Center expansion.
Ken: Remember that in the previous.
Linda Huang: Our conference call.
Linda Huang: And number 200.
Linda Huang: Thank you Sandy.
Linda Huang: Can you share with us.
Sandy: Any color regarding for the.
Sandy: Learning Center expansion.
Sandy: At the end of the previous quarter, and then for FY 'twenty, but how do you look at demand and the expansion plan. Thank you very much.
Alex Poon: Thanks, Linda. This is Alex.
Sandy: Thanks, Linda This is Alex let me take this one as well.
Alex Poon: Let me take this one as well. Um, so first of all, we expanded our capacity in the past quarter, which was in line with our expectations, and you know, with retention rates being relatively stable, as we expanded our capacity and involved more students, I think we're increasingly feeling good about that line of growth for the future. Now, just to share a bit more color on how we look at this for the upcoming year, I think this is a theme that, you know, I've addressed Like, you know, enrichment learning has got a new product market fit, and we would always adopt a balanced approach. We'll look at the demand. We'll look at the geographical distribution of that demand.
Alex Combs: So first of all.
Alex Combs: We expanded for capacity in the past quarter.
Alex Combs: Which was in line with our expectation.
Alex Combs: And what's the retention rate.
Speaker Change: Being relatively stable.
Speaker Change: As we expanded our capacity.
Speaker Change: In Baltimore students I think we are.
Speaker Change: Increasingly feel good about.
Speaker Change: That lineup.
Speaker Change: Future.
Speaker Change: No.
Speaker Change: To share a bit more color.
Speaker Change: How we look at those for the upcoming year.
Speaker Change: This is a theme that.
Speaker Change: I've addressed in the past.
Speaker Change: Couple of years.
Speaker Change: <unk> enrichment learning.
Speaker Change: It's Scott.
Speaker Change: New product market fit.
Speaker Change: We always.
Speaker Change: Adopt a balanced approach.
Speaker Change: The demand.
Speaker Change: We'll look at the geographical density affecting the ads or look at user response to our product services, whether it's positive.
Alex Poon: We'll look at user response to our product and services, whether it's positive. And, you know, obviously, there are metrics such as user retention, which will tell us whether it's hitting our expectations. We'll also obviously be very mindful of the operational metrics, such as classroom utilization rate and teacher utilization rate. And these are all the things that we consider together, right?
Speaker Change: Obviously, the metrics such as user.
Speaker Change: Retention.
Speaker Change: Which will tell us whether it is heading our expectation.
Speaker Change: Also obviously be very mindful of the operational metrics, such as classroom utilization rate a teacher utility utilization rate.
Speaker Change: These are all the things that we consider together right.
Alex Poon: So, I would say, you know, when I look at our pay-per-view enrichment learning programs, they're really designed to help users develop a multifaceted set of capabilities. They need to apply what they've learned in real life situations. They need to, you know, develop their own thoughts from different perspectives and really foster a full person development approach.
Speaker Change: So I would say.
Speaker Change: When I look at our pay you enrichment learning programs, but really designed to help us develop a multifaceted set of capabilities.
Speaker Change: They need to apply what they've learned to real life situations.
Speaker Change: Ltd.
Speaker Change: Are there thoughts from different perspectives.
Speaker Change: Really foster a full person.
Speaker Change: Development.
Alex Poon: So, so far, I think we've observed really positive user feedback related to this enhancement in the capabilities mentioned above. And, you know, we believe our dedication, quality, and effectiveness will continue to drive our sustained growth.
Speaker Change: Approach.
Speaker Change: So far I think we've observed really positive user feedback.
Speaker Change: Related to that.
Speaker Change: Enhancement in the capabilities mentioned at all.
Speaker Change: And we believe our dedication to quality and effectiveness will continue to drive our sustained growth.
Alex Poon: For the next year, you know, I think we're seeing signs, very good signs, of a visible road path. We'll continue to expand our Learning Center network to meet user demand in the upcoming year. I think we'll start with a dynamic and balanced approach, right? Really taking market demand in a particular area, in a particular city or district, how customers are responding to our products and services, you know, our own operating capabilities, especially our teams on the ground, the front line capabilities that they're building and enhancing, and also those operational metrics, efficiency metrics that I mentioned above.
Speaker Change: So.
Speaker Change: For the next year.
Speaker Change: We are seeing signs.
Speaker Change: Signs of visible growth path.
Speaker Change: We'll continue to expand our learning center network to meet user demand.
Speaker Change: The upcoming year.
Speaker Change: I think we will start to dynamic.
Speaker Change: Dynamic and balanced approach right.
Speaker Change: <unk> really taking market demand in that particular area in particular February or district.
Speaker Change: Customers are responding to our products and servicer.
Speaker Change: Our own operating capabilities, especially our teams on the ground the frontline capable which is that they are building and enhancing.
Speaker Change: And also those operational metrics.
Alex Poon: We'll take all of those into consideration. So, you know, just to summarize it, we expect to further expand our network, and we'll continue to manage it in a dynamic and balanced approach. So Linda, I hope that answers your question.
Speaker Change: Efficiency metrics that I have mentioned above will take all of those into consideration.
Speaker Change: So I think so.
Speaker Change: To summarize it.
Speaker Change: <unk> expect to further expand our network.
Speaker Change: And we'll continue to manage that in a dynamic and balanced approach.
Speaker Change: So I hope that answers your question.
Operator: Our next question comes from the line of Felix Liu from UBS. Please ask your question, Felix.
Speaker Change: Thank you Linda.
Speaker Change: Our next question comes from the line of Alex Liu from UBS. Please ask your questions Alex.
Felix Liu: Hi, good evening, management. Thank you for taking my question and congratulations on the strong fourth quarter results.
Felix Liu: Hi, Good evening management.
Felix Liu: For taking my question and congratulations on the strong first quarter results.
Felix Liu: You just talked about our offline strategy, our offline expansion strategy. May I just shift the focus to online? How do you think of your strategy for online enrichment learning? Do you plan to, similar to your commitment to offline expansion, increase your investments in the online enrichment learning segment? Thank you.
Felix Liu: Can you just talk about our offline strategy offline expansion strategy may just shift the focus to online.
Felix Liu: How do you think that your strategy.
Felix Liu: Online and they spend their money.
Felix Liu: Do you plan to similar to our commitment to offline expansion do you plan to increase our investments in the online inventory enrichment learning segment. Thank you.
Jackson Ding: Thanks for the question, and this is Jackson. I'll take this one.
Speaker Change: Thank you.
Speaker Change: Thanks for your question and this is Jackson I'll take this one.
Jackson Ding: You know, when we look at the online enrichment learning business, or the industry, really, we see this as a dynamic market landscape. Especially over the last couple years, we see user experiences gradually evolve in this particular Now, before I get into the future, maybe I just want to talk a little bit about what happened in this quarter with our online enrichment business. You know, in this past fiscal Q4, our online enrichment learning business maintained its course of operation.
Jackson Ding: When we look at the online enrichment learning business or the industry really we see this as a.
Jackson Ding: Dynamic market landscape.
Jackson Ding: Especially over the last couple of years, we see user experiences gradually evolve in this particular landscape.
Speaker Change: Now before I get into the future, maybe let me just talk a little bit about kind of what happened in this quarter was a lot of my enrichment business.
Speaker Change: In the past.
Speaker Change: Fiscal Q4.
Speaker Change: Our online Richmond learning business maintained its course of operations.
Jackson Ding: We also refined our operational efficiency while at the same time exploring new SKUs as well. Online enrichment learning remains a strategic area for us, not only because of the market opportunity itself, but also because we see it as a unique opportunity to leverage interactive online features to provide an engaging and effective digital learning experience to a broader audience. You asked about, you know, investment plans. I would say it's less about, you know, increase or decrease in...
Speaker Change: We also refined our operation operational efficiency.
Speaker Change: While at the same time.
Speaker Change: Explored.
Speaker Change: New Skus as well.
Speaker Change: All our enrichment Arnie remains a strategic area for us.
Speaker Change: Not only because of the market opportunity itself, but also because we see that we see as a unique opportunity to leverage interactive online features to provide an engaging and effective digital learning experience to a broader.
Speaker Change: Audience right.
Speaker Change: You asked about.
Speaker Change: That's the plan.
Speaker Change: I would say.
Speaker Change: That's about increase or decrease in basketball.
Jackson Ding: It's more about, you know, making sure that we deploy the resources needed to provide our customers with high quality learning experiences. So, looking forward, you know, we, online enrichment learning remains a strategic area for us. We'll focus on delivering quality products and services to our customers while leveraging the benefits of online learning. And we'll continue to bring scarce, high-quality educational resources to a broader audience while enhancing user value and social benefit. I hope that answers your question. (inaudible)
Speaker Change: It's more about.
Speaker Change: Making sure that we deploy.
Speaker Change: Resources needed to provide our customers with high quality learning experience.
Speaker Change: So looking forward.
Speaker Change: Online virtual learning remains a strategic area for us.
Speaker Change: Our focus on delivering quality products and services to our customers, while leveraging the benefits of online learning.
Speaker Change: And we will continue to bring scarce high quality educational resources.
Speaker Change: To a broader audience.
Speaker Change: While enhancing user social benefits I.
Operator: Thank you, Felix. Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please ask your question, Timothy.
Speaker Change: I hope that answers your question.
Felix Liu: Thank you Felix.
Felix Liu: Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please ask your question Timothy.
Timothy Zhao: Great. Hi Alex. Hi Jackson.
Timothy Zhao: Great Hey, Alex Hi, Techs and thank you for taking my question and congrats on the very strong result.
Timothy Zhao: Thank you for taking my question and congratulations on the very strong results. So my question is about the content solutions business line. Could you share some color on the sales and user engagement of the latest hardware that you launched during the quarter? And what is your plan to further make the business line more sustainable in the longer term? Thank you.
Timothy Zhao: Without so.
Timothy Zhao: So my question is on the kind of solutions business line just wondering.
Timothy Zhao: Sure some cutters on the sales and the user engagement of the latest hardware that you've launched over the quarter and what.
Timothy Zhao: I think your plan for further.
Timothy Zhao: <unk> most of tenable into longer term.
Timothy Zhao: Okay.
Alex Poon: Thanks, Timothy. This is Alex. Let me take this one.
Speaker Change: Thanks, Timothy versus Alex Let me take this one.
Alex Poon: So, first of all, just to address this past quarter. As you mentioned, and as I alluded to earlier on the call, we launched two new products this quarter, XPAT 2 Pro and XPAT 2 Pro Max. So, in this quarter, I really look at growth being driven by increasing volume and higher ASP. But in reality, there is another set of metrics which I keep a very close eye on, which is engagement. So, in general, we look at the average weekly usage time.
Alex: So first of all just to address this past quarter.
Timothy Zhao: You mentioned annualized.
Speaker Change: Alluded to earlier on the call we lost.
Speaker Change: Two new products in this quarter ex parte to pro and.
Speaker Change: To probe Max.
Speaker Change: So in this quarter I really look at growth being driven by increasing volume and higher ASP.
Timothy Zhao: But in reality there is another set of metrics, which I.
Timothy Zhao: Keep a very close I too.
Timothy Zhao: That engagement.
Timothy Zhao: In General we will look at the average weekly usage time.
Alex Poon: It remains relatively stable despite the ever-larger user base, and that's critical. And I think another interesting thing that we're observing is the new set of products that we launched in the quarter because they came with enhancements in the hardware and enhancements in artificial intelligence learning tools. We're really seeing an uptick in the usage of those tools, and, you know, I think it's showing early signs that these tools will actually become great companions for students as they learn on their own, in their homes, according to their own style and learning profile. So going forward, I really look at sort of two main directions.
Timothy Zhao: It remains relatively stable despite.
Timothy Zhao: Larger user base.
Timothy Zhao: Yes.
Timothy Zhao: Critical.
Timothy Zhao: And I think another.
Timothy Zhao: Interesting thing that we are observing.
Timothy Zhao: Yes.
Timothy Zhao: New set of.
Timothy Zhao: Products that we launched in the quarter.
Timothy Zhao: Because they came with.
Timothy Zhao: Enhancements in the hardware.
Timothy Zhao: And enhancement.
Timothy Zhao: Artificial intelligence learning tools.
Timothy Zhao: We're really seeing an uptick.
Timothy Zhao: And the usage of those tools and I think that shows early signs that these tools actually become great Comparables first.
Timothy Zhao: Students as they learn on their all in their homes.
Timothy Zhao: According to their own style and learning profile.
Timothy Zhao: So going forward.
Timothy Zhao: We look at sort of two main directions.
Alex Poon: I think obviously the first one is to, you know, continue to improve our products. We just launched a new hardware, a new hardware. This is coming on about 10 months since we first launched XPAT-1, but actually, the software and the content continue to be upgraded on these devices.
Timothy Zhao: Obviously, the first one is too.
Timothy Zhao: Continue to improve our products.
Timothy Zhao: We just launched the hardware.
Timothy Zhao: New hardware this is coming.
Timothy Zhao: Coming on about 10 months since we first launched.
Timothy Zhao: One.
Timothy Zhao: But actually the software and the content continue to.
Timothy Zhao: <unk> upgraded all of these devices.
Alex Poon: And I think what really drives us, the North Star, is that engagement, learning engagement, and learning impact, right? So we look at, you know, further improvement on the hardware design, additional high-quality content, and those artificial intelligence learning tools to continue to enhance the learning engagement, the human-machine interaction, and provide a much more effective and impactful learning journey for our customers. And, you know, if I may add, I think this journey has just begun.
Timothy Zhao: I think what really drives us north star is that engagement learning engagement and learning impact right.
Timothy Zhao: So we look at.
Timothy Zhao: Further improvement in all the hardware design additional high quality content.
Timothy Zhao: And those artificial intelligence learning tools too.
Timothy Zhao: To continue to.
Timothy Zhao: And the hands.
Timothy Zhao: <unk> learning engagements.
Timothy Zhao: Human machine interaction.
Timothy Zhao: And provide a.
Speaker Change: Much more effective and impactful learning journey for our customers and if I may add I think this journey has just begun.
Alex Poon: I think there's a huge amount of additional potential as we make further investment into, you know, artificial intelligence, our large language model. It's going to become, you know, better and better in the future. The other main direction I will look at is, obviously, we need to continue to build our brand. RCR is a brand that's a very strong and well-known brand, but we're new to hardware, so we'll continue to drive brand building and also expand our sales channels.
Timothy Zhao: There's a huge amount of additional potential as we make further.
Timothy Zhao: <unk> into artificial intelligence are large language model, it's going to become better and better for the future.
Timothy Zhao: The other main direction I'll look at it obviously, we need to continue to build our brand. Our <unk> brand is very strong and while the brand, but we're neutral hardware. So we will continue to drive.
Timothy Zhao: Brand building and also too.
Timothy Zhao: Expand our sales channels.
Alex Poon: We'll, you know, obviously continue to monitor closely the efficiency of our online sales channels, which really go from, you know, live streaming to the mainstream e-commerce platforms. But we'll also start to explore opportunities in more offline channels. We believe these channels will actually bring opportunities for, you know, more customers to engage in a conversation with us, right, to, you know, look at what the possible impacts that this device could bring to their kids.
Timothy Zhao: Paul.
Timothy Zhao: Obviously continue to monitor closely the efficiency of our online sales channels, which really goes from live streaming to the.
Timothy Zhao: Our mainstream e-commerce platforms.
Timothy Zhao: All will start to.
Timothy Zhao: Explore opportunities.
Timothy Zhao: In more offline channels.
Timothy Zhao: Believe these channels will actually bring opportunity for more customers.
Timothy Zhao: To engage in a conversation with us right too.
Timothy Zhao: What are the possible impact.
Alex Poon: And, you know, I think we'll also be able to reach a larger set of customer segments with this. So, Timothy, I hope that answers your question. All right, thank you, Timothy. Our next question comes from the line of Caini Wang from CICC. Please ask your question, Caini.
Timothy Zhao: This device to bring to fill their cats and I think we will also be able to reach a larger set of customers documents in the future.
Speaker Change: Timothy I hope that answers your question.
Speaker Change: Great. Thank you.
Timothy Zhao: Our next question comes from the line of shiny Wang from <unk>.
Caini Wang: ICC. Please ask your question Tony.
Caini Wang: Thanks.
Operator: All right, thank you, Timothy. Our next question comes from the line of Caini Wang from CICC. Please ask your question, Caini.
Caini Wang: Good evening, Alex injection and thank you for taking my question actually My question is the company still has a big amount of cash.
Caini Wang: So how are we considering our cash usage.
Caini Wang: Caini, thanks for the question. And this is Jackson. I'll take this one.
Caini Wang: There isn't any.
Jackson Ding: Today, including Michelle.
Caini Wang: The shareholder returns.
Jackson Ding: Thanks for the question this is Jack on Arctic.
Jackson Ding: Look, like you said, the company has almost 3.6 billion US dollars in cash and cash equivalents Short-Term Investments and Restricted Cash as of February 29th, 2024. When we think about the potential use of cash, there are several factors. When we think about it, we try to balance it, right?
Jackson Ding: I'll take this one.
Jackson Ding: Look like.
Jackson Ding: The company has almost three 6 billion in U S dollars in cash and cash equivalents.
Jackson Ding: Short term investments and restricted cash as of February 29, 2024.
Jackson Ding: When we think about potential use of cash there are several factors.
Jackson Ding: We think about it we try to balance right.
Jackson Ding: One is that we try to kind of balance between short term and long term development. And second, we try to balance reinvesting into the business and generation. As of now, a few areas of cash usage that are on our mind are, one, that we'll maintain a kind of steady investment pace in a core business segment to deliver high-quality products and create value for customers and their learning curve, and second, we'll follow the new businesses that are still, you know, some of them I talked about on the call or during our previous conversation.
Jackson Ding: One is we try to kind of balance per tree.
Jackson Ding: Short term and long term development.
Jackson Ding: Second is that we try to reinvest.
Caini Wang: Reinvest into the business and generating shareholder returns.
Jackson Ding: As of now a few areas.
Alex Poon: Cash usage that all our mines are one is that.
Jackson Ding: We'll maintain a kind of steady investment pace into core business segments.
Jackson Ding: To deliver high quality products.
Jackson Ding: <unk> value for customers and their learning journey.
Jackson Ding: Second is we're proud.
Jackson Ding: The new business initiatives.
Jackson Ding: There are still some of them I talked about on the call or during our previous conversations we.
Jackson Ding: We want to fund these new business initiatives that are still in the exploratory phase, and we'll continue to explore new opportunities as the industry evolves. And lastly, we always seek, you know, diversified means to generate shareholder returns, one of which could be stock repurchase. I talked about the buyback program that the board authorized, which was extended for another year and allowed us to purchase up to 500, roughly 504 million U.S. dollars in consideration. So, that's kind of how we think about cash usage for now. I hope that answers your question.
Jackson Ding: We want to support these new business initiatives that are still in the exploratory phases.
Jackson Ding: And.
Jackson Ding: We will continue to explore new opportunities.
Jackson Ding: As the industry.
Jackson Ding: Bob's comp.
Jackson Ding: And lastly.
Jackson Ding: We always seek diversified suite generate.
Jackson Ding: Shareholder returns.
Jackson Ding: One of which could be stock repurchase I talked about the buyback program that the board authorized which was extended for another year and allow us to.
Jackson Ding: Purchase up to 500, roughly $504 million.
Jackson Ding: And considerations.
Jackson Ding: So that's kind of how we think about cash.
Jackson Ding: Cash usage for now I hope that answers your question.
Operator: We have now reached the end of the question and answer session. I'd now like to turn the conference back to the management team for closing comments.
Speaker Change: Thank you Tony.
Jackson Ding: We have just now.
Operator: The question and answer session.
Operator: I'd now like to turn the conference back to the management team for closing comments.
Alex Poon: So, this is Alex again. Thank you everybody for participating in today's call, and we'll see you next quarter. Thanks and buh-bye.
Operator: Yes.
Alex Poon: So this is Alex again, thanks, everybody for participating in todays call and well see you next quarter, thanks and provide.
Operator: That concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: That concludes today's conference call. Thank you for participating you may now disconnect.
Operator: Okay.
Operator: [music].