Q4 2024 Sunlands Technology Group Earnings Call
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Operator: Ladies and gentlemen, thank you for standing by and welcome to Sunlands' fourth quarter and full year 2024 earnings conference call. At this time, all participants are in the listen-only mode. Today's conference call is being recorded.
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to Sun <unk> fourth quarter and full year 'twenty 'twenty four earnings conference call.
Speaker Change: At this time all participants are in a listen only mode. Today's conference call is being recorded.
Yuhua Ye: I'll now turn the call over to your host today, Yuhua, Sunlands IR representative. Please go ahead.
Speaker Change: I'll now turn the call over to your host today you'd want Sundance IR Representative. Please go ahead.
Yuhua Ye: Hello, everyone, and thank you for joining Sunlands' fourth quarter and full year 2024 earnings conference call. The company's financial and operating results were issued in our press release by Newswire Services earlier today and are posted online. You could download the earnings press release and sign up for our distribution list by visiting our IR website.
Speaker Change: Hello, everyone and thank you for joining sounds fourth quarter and full year 'twenty 'twenty four earnings conference call. The company's financial and operating results were issued in our press release by Newswire services earlier today and are posted online you can download the earnings press release and sign up for our distribution list, but wasn't in our IR website.
Yuhua Ye: Participants on today's call will be our CEO, Mr. Tongbo Liu, and our financial director, Mr. Hangyu Li. Management will begin with prepared remarks, and the call will conclude with a Q&A session.
Speaker Change: Participants on today's call will be our CEO restart when will you and I were for initial dark current Mr. Hungary management will begin with prepared remarks on the call will conclude with excellent new session before I hand, it over to the management I'd like to remind you all from a safe Harbor agreement in relation to today's call is that for the historical information contained herein.
Yuhua Ye: Before I hand it over to the management, I'd like to remind you of Sunlands' safe harbor statement in relation to today's call. Except for the historical information contained herein, certain matters discussed in this conference call are forward-looking statements. These statements are based on current trends, estimates, and projections, and therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement.
Speaker Change: So that's not heard described in this conference call are forward looking statements. These statements are based on current trends estimates and projections and therefore, you should not place undue reliance on them forward looking statements involve inherent risks and uncertainties a number of important factors could cause actual results to differ materially from those contained in any forward looking stuff.
Yuhua Ye: For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.
Speaker Change: For more information about the potential risks and uncertainties. Please refer to the company's filings with the Securities and Exchange Commission with that I will now turn the call over to our CEO to move it.
Tongbo Liu: With that, I will now turn the call over to our CEO, Tongbo Liu. Thank you, Yuhua. Hello, everyone.
Speaker Change: Thank you.
Tongbo Liu: Welcome to Sunlands' fourth quarter and fourth year to do the deep work, earnings conference. Prior to commencing, I would like to kindly remind all attendees that the financial information referenced in this release are presented on a continuing operation basis. and all fingers are denominated in RMB unless explicitly specified otherwise. We wrapped up the fourth quarter with net revenue of $483.5 million and a net income of $157.8 million, marking our 15th consecutive quarter of profitability. For the full fiscal year, we recorded an annual revenue of $1.99 billion, with a net income of $342.1 million, extending our strike to four straight profitable years.
Speaker Change: Everyone will come to some of that in the fourth quarter and the full year diluted earnings conference call.
Speaker Change: Too crazy like GE capital to remain the same.
Speaker Change: Actual information referenced in this release.
Speaker Change: Present is really continuing operation basis.
Speaker Change: And the whole fingers are eliminated.
Speaker Change: Really explicitly specified otherwise.
Speaker Change: We wrapped up the fourth quarter with net revenue of full it is 325 million.
Speaker Change: Income of 57 8 million.
Speaker Change: Marking our 15th consecutive quarter of profitability.
Speaker Change: For the full fiscal year, we have recorded annual revenue of one point to 19 9 billion with a net income of 314 to your point a lot meeting is 10.
Speaker Change: The other straight to full stride.
Speaker Change: Paul.
Speaker Change: Profitable years.
Tongbo Liu: This concept of performance underscores the strengths of our business model and operational resilience to effectively navigate both industry dynamics and macroeconomic challenges. Despite a 7.8% decline in full year-end revenue, we also saw encouraging signs of growth, including a steady rise in enrollment, which reached a record high of about 675,000 student enrollments in 2024. The adult education market is inherently statical with other economic conditions influencing learners' willingness to invest in themselves. Recognizing this shift early, we have strategically refined our product mix over the past few years. transitioning from high-priced, long-duration courses to more accessible, short-term programs. This adjustment not only improves conversation rates, but also ensures we stay aligned with involving customer preference, enhancing both customer acquisition efficiency and overall operational resilience.
Speaker Change: So consider performers underscores the strength of our business model and operational resilience to effectively navigate the industry dynamics and the macro or even the economy challenges.
Speaker Change: Scott.
Speaker Change: 0.8% a decline in full year net revenue the ortho, so encouraging signs of growth, including a steady rise eight enrolment, which reached a record high of about 675 southern's ability skill to New Orleans interest therefore.
Speaker Change: The adult education market is inherently the historical ways or their economy conditions influencing than theirs, what he needs to invest he themselves.
Speaker Change: I think there's shifts already we have strategically refine our product mix over the past few years.
Speaker Change: Transitioning from <unk>.
Speaker Change: High priced long duration cause there's two more visible short term programs.
Speaker Change: This adjustment not only improves conversation rates, but also ensures we stay alive the ways evolving customer preference.
Speaker Change: Wholesale both customer acquisition efficiency and overall operational resilience.
Tongbo Liu: Our operating cash flow remains strong, marking the third consecutive year of positive income. This achievement reflects not only steady growth in student enrollment, but also our disciplined approach to financial management. More importantly, it gives us the flexibility to reinvest in key initiatives while maintaining resilience amid market fluctuations. Prudent cash management isn't just a safeguard against, it's a strategic advantage that enables us to invest with confidence. adapt swiftly and seize opportunities that drive long-term value. As China's economy recovers and the consumer confidence rebounds, we see growing momentum in our sector. As the early mover in online education, we have gained valuable insights into the evolving needs of our demographic, uncovering new growth opportunities with a maturing market and strong policy support.
Speaker Change: Other operation operating cash flow remained strong marking the third consecutive year a positive income.
Speaker Change: This achievement reflects not only stayed in girls instilled New Orleans, and also our disciplined approach to financial management more.
Speaker Change: More importantly, it gives us the flexibility.
Speaker Change: Flexibility to invest in key initiatives, while maintaining resilience mass market fluctuations.
Speaker Change: Prudent cash management.
Speaker Change: Is it just safe guard against it.
Speaker Change: It's strategic.
Speaker Change: Strategic advantages that enable us to invest with confidence.
Speaker Change: The depth of swiftly and opportunities that drive long term value.
Speaker Change: As China's economy recovers and the consumer confidence rebounds.
Speaker Change: The growing momentum in our sector.
Speaker Change: Early mover in <unk>.
Speaker Change: Application.
Speaker Change: Gained valuable insights into the evolving needs of our demographic.
Speaker Change: However, in new growth opportunities with a maturing market is drawn policies abroad, we are well positioned to leverage it as trained them to drive innovation.
Tongbo Liu: We are well-positioned to leverage these trends and drive innovation.
Tongbo Liu: We are confident that the foundation we have built coupled with new models we are exploring will lead to positive results and sustainable growth in the coming years.
Speaker Change: We're confident that as a foundation, we have built coupled with new models exploring will lead to positive results and sustainable growth in the coming year.
Tongbo Liu: Now let's turn to the performance of each of our major course programs. In 2024, degree or diploma-oriented post-secondary programs accounted for 10% of our total rate. This has long been an important part of our business, but as we have carefully evaluated the changing demographic trends and the evolving education landscape, we have decided to reduce our investment. and redirect our focus towards more permitting opportunities with greater potential for mountain growth. While the demand for this sector remains stable, we will continue to monitor consumer needs and adapt as necessary to stay aligned with the evolving market dynamics.
Speaker Change: Now, let's turn to the performance of each of our major cost programs internally for degree at abnormal oriented opposed to secretary programs accounted for 10% total.
Speaker Change: Revenue.
Speaker Change: This fact alone benign important part of our opinions, but as we have carefully.
Speaker Change: The changing demographic trade under the evolving education landscape, we have decided to reduce our investment in this segment.
Speaker Change: And redirect our focus towards more permitting authorities with greater potential announcing grows.
Speaker Change: While the demand for this sector remains stable, but we'll continue to monitor.
Speaker Change: Consumer needs and adapter in Missouri to stay aligned with the evolving market dynamics.
Tongbo Liu: The sector comprises the interest, professional skills, and the professional certification preparation program. collectively accounted for 75.3% of our total revenues in 2024. With interest-based programs emerging as a core pillar of our business, over the past few years, we have strategically prioritized this sector, directing more resources and attention to developing a comprehensive portfolio of interest-driven courses. focus aligned with the border, societal change, the shift toward personal fulfillment and growth that extends beyond the traditional work-related education. As more individuals seek opportunities to enrich their lives and pursue passions outside of their careers. We are uniquely positioned to meet them.
Speaker Change: The sector comprised of interest professional skills and professional certification preparation programs.
Speaker Change: Collectively accounted for 75, 3% of our total revenues the political before with interest the best programs emerging as a core pillar of our business over the past few years, we have strategically prioritize the sector directing more resources and attention.
Speaker Change: A comprehensive portfolio of great interest of Dragon courses.
Speaker Change: The full course of lateral with a broader societal trade the shifted towards <unk>.
Speaker Change: Personal fulfillment in the boroughs.
Speaker Change: Beyond the traditional work related to the application.
Speaker Change: As more individuals seek opportunities to enrich their lives and pursue passions outside of their careers.
Speaker Change: We are uniquely positioned to meet the demand.
Tongbo Liu: Our goal is not only to respond to current trends, but also to anticipate the future needs, fostering long-term value by enhancing engagement, strengthening loyalty, and delivering exceptional learning experience. Our emphasis on lifelong learning is particularly relevant given border demographic shifts, especially the rapid growth of senior population. The 2005 Government Work Report reaffirmed the state's commitment to addressing population aging and promoting the growth of the silver economy. China's demographic shifts present significant opportunities, particularly within the senior education. A sector that is poised to become a key driver of our future growth. Capture this potential by deepening our commitment to senior education by expanding our course offerings to better serve the evolving needs of senior learners.
Speaker Change: Our goal is not only to respond to current trade, but also to anticipate the future needs fostering long term value by enhancing engagement strengthening loyalty and delivering exceptional experiences.
Speaker Change: <unk> emphasis on lifelong learning is.
Kevin: Clearly relevant Kevin border.
Kevin: Labour graphics shifts, especially the raptor the curse of severe population.
Kevin: The new five government work report, we'll get reports affirming the state's commitment to the Tracy population aged.
Kevin: And promoting the curse of the silver economy.
Kevin: As demographic shifts presents significant opportunities, particularly within the similar indication a sector that is poised to become a key driver of our future growth.
Kevin: Capture this potential but deepening our commitment to send notification by expanding our course offerings to better serve the evolving needs of the midlanders. According to the forest and the soluble cellulose.
Tongbo Liu: According to the Forrest and Sullivan's 2024 China Silver Economic Development Report, China's senior interest education sector continues to expand rapidly with 17.8 million users in 2033 and a penetration rate of 24.5%. Between 2019 and 2033, the market grew a robust combined annual growth rate of 14.7%. underscoring the rising demand for lifelong learning among the elders. Recognizing this trend early, we have focused on enriching the lives of older adults through engaging educational and social experiences. By incorporating practical subjects such as arts, health, and wellness, areas that strongly appeal to this demographic will have fostered greater enthusiasm and participation.
Kevin: For China, China Silver economy Development report China's some interesting indications sector continues to expand rapidly with 17 2 million users into the Missouri and the penetration rates of 24, 5%.
Kevin: <unk> 2019, and attorney to Missouri, the market a girl robust compound annual growth rate of 14, 7% on.
Kevin: Underscoring the rising demand for lifelong monthly amount of the elderly.
Kevin: Recognizing this trend Arnie.
Kevin: Before.
Kevin: Right to the lives of older adults.
Kevin: We're engaging on vocational and the social experiences.
Kevin: Incorporating particle subjects such as ours.
Kevin: And well means errors that are strongly appeal to this demographic will have fostered greater enthusiasm and the.
Kevin: Penetration.
Kevin: Let me say patient.
Tongbo Liu: Beyond education, we are also exploring diversified business opportunities by leveraging our substantial senior user base, including e-commerce and study tours. Notably, our study tour programs have gained strong traction, combining interest-based learning with travel to create a unique value proposition. In 2024, we launched thousands of study tour routes, including music-forced tours in the United States, oil printing trades in Europe, and cultural heritage tours within China. These programs served tens of thousands of senior customers and received overwhelmingly positive feedback. The integration of specialized courses into the program has enhanced the value proposition, resulting in higher gross margins and contributing to overall revenue growth.
Kevin: Beyond application.
Kevin: Oh, well, we're still exploring diversified business opportunities by leveraging our subs.
Kevin: Substantial similar user base, including e-commerce, and other cures the poly overstudy.
Kevin: Starting to have programs have gained strong traction combating interest based learning will travel to Korea as a unique value proposition internally before we launched with islands of Spain. The study sure rules, including music Force <unk> in the United States oil continue trades in Europe, and the cultural hair.
Kevin: Page tours within China.
Kevin: Programs serve the tens of thousands of new customers and received the overwhelming positive feedback.
Kevin: The integration of specialized courses into.
Kevin: The program has enhanced.
Kevin: No.
Kevin: Ill population.
LTE higher gross margins and the country built into the overall revenue growth.
Tongbo Liu: According to the Forex Center's Cyvern, China's silver tourism market is projected to reach RMB 2.8 trillion by 2028, presenting substantial growth opportunities with a growing customer base and an expanding portfolio, while real positions can capitalize on this rising demand and further strengthening our market presence. Through years of direct engagement, we have gained invaluable insights into the general needs of this demographic, insights that go beyond the surface-level assumptions. This deeper understanding has guided us in refining our offerings, embedding social elements into courses and course interactions and designing educational experiences that are both engaging and accessible.
Kevin: According to the Florists, Dennis Sullivan, Southern China, Silver tourists tourism market is projected to reach RMB Chipotle training, but in the eight presenting substantial growth opportunities with a growing customer base and our expanding portfolio well will position us.
Kevin: And with rising demand and further strengthen our market presence.
Kevin: So years of directly judgment will have gained invaluable insights into the general the general needs of this demographic insights at a goat youngers surface level assumptions.
Kevin: This deeper understanding has guided us in refining of offerings embedding social elements into course at all costs.
Kevin: Actions under designing on patient experience that are close to engaging in a physical.
Kevin: Physical.
Kevin: Yeah.
Tongbo Liu: Looking ahead, we remain committed to strengthening our leadership in senior-focused education and cyber-economy services. We will continue to expand our cross-offerings, introduce new product categories, and explore innovation business models that align with evolving demographics and the market. Through this strategic approach, we are not only positioned to capture future growth opportunities, but also to create lasting value for our stakeholders and contribute to the broader development of the global economy. further enhance our educational offerings by also leveraging cutting-edge technology to drive innovation.
Kevin: Looking ahead, we remain committed to strengthening our leadership in the Nir forecast indication and a silver economy services. We will continue to expand our course offerings introduced new product categories and explore innovation business models that are aligned with evolving demographics and the market trend.
Kevin: Serious strategic approach, we're not only positioned to capture future perusal by authorities, but also too.
Kevin: H lasting value for our stakeholders and will contribute to the border development of the silver economy.
Kevin: Further enhanced our educational offerings, while also leveraging cutting edge technology to drive innovation.
Tongbo Liu: A key milestone was the integration of DeepSec in February 2005, which enhances our ability to deliver personalized learning experiences, optimize course content, and improve operational efficiency. Deep Six's advanced reasoning and autonomous learning capabilities enable us to address the diverse needs of adult learners with great precision, tethering to their varying backgrounds, goals, and learning styles. As AI continues to reshape education, we remain focused on staying at the forefront of this transformation.
Kevin: A key milestone was.
Kevin: Was the integrate integration of dipstick in February and the refi, which enhances our ability to deliver personalized the linear experience expert experiences.
Kevin: <unk> cost content and improve operational efficiency.
Kevin: <unk> got a lot of the reasoning and.
Kevin: <unk> lending capability capabilities enable us to address that.
Kevin: Diverse needs of adult lenders with great presentation catering to their varying backgrounds girls and learning styles.
Kevin: And <unk> continued to raise ship education, we remain focused on staring at the forefront of this transformation.
Tongbo Liu: As we move into 2025, we remain steadfast in our commitment to harnessing the power of technology, understanding the ever-changing needs of our customers and continually improving the products and services we offer. Our focus will continue to be on delivering value through insightful market observations and careful refinement of our approach. By doing so, we position ourselves to not only adapt to the future, but also to drive sustainable long-term growth. Our work is never done, but we are confident that our thoughtful strategies will lead us to continued success.
Kevin: As we move into 2005, we remain steadfast in our commitment or how do you think the power of technology understanding the ever changing needs of our customers and the continually improving the products and the services we offer our poker our focus will continue to be on delivery.
Kevin: Values through insightful market observations in a careful refinement of our approach.
Kevin: By doing this position ourselves to not only adapt to the future, but also to drive sustained long term growth.
Kevin: Although work is never done, but we are confident that our thoughtful strategies will lead us to continued success.
Kevin: Success.
Tongbo Liu: That concludes my prepared remarks.
Speaker Change: That concludes my prepared remarks with that I will turn the call over two hours financial director.
Hangyu Li: With that, I will turn the call over to our financial director, Hangyu, to run through our financial Thank you, Tongbo. Hello, everyone. I'm pleased to share our fourth quarter and the four-year results, which reflect our resilience and the discipline in executing our strategy. Over the past year, we have remained focused on sustainable growth, improving efficiency and strictly controlling costs. Our four-year gross profit margin and net profit margin remained at 84.2% and 17.2% respectively, and we maintained positive operating cash flow for the third consecutive year, which fully demonstrates the success of our business model.
Speaker Change: To run through our financials.
Speaker Change: Thank you <unk> Hello, everyone I'm pleased to share our fourth quarter and full year results, which reflects our resilience and discipline in executing our strategy.
Speaker Change: Over the past year, we have remained focused on sustainable growth improving efficiency on a strictly controlling costs.
Speaker Change: Our full year gross profit margin and net profit margin remained.
84% and 17, 2% respectively.
Speaker Change: And we've maintained positive operating cash flow for the third consecutive year, which fully demonstrate the success of our business model.
Hangyu Li: Also, revenue is under pressure in the short-term. Our new student enrollment in the fall year of 2024 increased by 9.5% year-over-year. This is mainly due to the expansion of the product portfolio, the addition of high value-added products such as study tours, and the positive feedback from the market. The growing student base provides us with a guarantee to expand our product portfolio and enhance the lifetime value of students.
Speaker Change: Oh, so revenue is under pressure in the short term.
Speaker Change: Our new student enrollments in the full year of 2024 increased by nine 5% year over year.
This is mainly due to the extension of the product portfolio. The addition of high value added products, such as study tours and the positive feedback from the market.
Speaker Change: Our growing student base provides us with a guarantee to expand our product portfolio and enhance the lifetime value of students.
Hangyu Li: This is the foundation for us to achieve sustainable development and maintain financial health. A healthy financial situation provides us with confidence to cope with market fluctuations and is also the cornerstone for us to manage risk and make strategic adjustments. With each successful hurdle, our team will become stronger, which gives us confidence and ability to seize future opportunities.
Speaker Change: This is the foundation for us to achieve sustainable development under maintenance for National House are.
Speaker Change: Our healthy financial situation per white.
Speaker Change: With confidence to cope with market fluctuations and also as a cornerstone for us to manage risk and the mix towards T J adjustments.
Speaker Change: With each successful hurdle, our team will become stronger, which give us confidence on our ability to assess future opportunities.
Hangyu Li: We believe that through resolute execution of our strategic initiatives we will further consolidate our competitive advantages, maintain our good development momentum, and deliver lasting value to our stakeholders.
Speaker Change: We believe that through rapid execution of our strategic initiatives will filter will further consolidate our RT advantages maintain our good development momentum and goodbye deliver lasting value to our stakeholders.
Hangyu Li: Now let me walk you through some of our key final results for the fourth quarter of 2024. All comparisons are year-over-year and all fingers are in RMB unless otherwise noted. In the fourth quarter of 2024, net revenues decreased by 10.8% to $483.5 million from $541.7 million in the fourth quarter of 2023. The decrease was primarily driven by the decline in group spilling from post-secondary courses over the recent quarter. partially offset by the year-over-year growth in revenues from sales of goods, such as books and learning materials. Cost of revenues increased by 10.8% to 81.7 million in the fourth quarter of 2024.
Speaker Change: Now, let me walk you through some of our key financial results for the fourth quarter of 2024.
Speaker Change: All comparisons are year over year and the old figures are RMB unless otherwise noted.
Speaker Change: In the fourth quarter of 2010.
Speaker Change: For net revenues decreased by 10.8% to 483.5 minute.
Speaker Change: 400, 541.7 minutes in the fourth quarter of 2023.
Speaker Change: The decrease was primarily driven by the decline in gross billings from the secondary causes over the recent quarters.
Speaker Change: Partially offset by the ear.
Speaker Change: Revenues from sales of goods, such as books and the learning materials.
Cost of revenues increased by 10.8% to 81 7 million in the first quarter of 2024.
Hangyu Li: from 73.8 million in the fourth quarter of 2023. The increase was primarily due to an increase in the cost of revenues from sales of goods such as books and learning materials. Growth profit decreased by 14.1% to 401.8 million in the fourth quarter of 2024. from 468 million in the fourth quarter of 2023. In the fourth quarter of 2024, operating expenses were $351.3 million, representing a 0.7 percent increase from $348.9 million in the first quarter of 2023. Sales and marketing expenses increased by 3% to 304.8 million in the fourth quarter of 2024. from 305.8 million in the fourth quarter of 2023.
Speaker Change: $73 8 million in the fourth quarter of 2023.
Speaker Change: The decrease was primarily due to an increase in the cost of revenues from sale of goods, such as books and the learning materials.
Speaker Change: Gross profit decreased by 14.1% to 400, and the 1.8 million in the fourth quarter of 'twenty 'twenty four.
Speaker Change: From 468 million in the fourth quarter of 2023.
Speaker Change: In the fourth quarter of 2020 for operating expenses was 351 3 million.
Speaker Change: Presenting on Europe on the 7% increase from 348 9 million in the first quarter of 2023.
Speaker Change: Sales and marketing expenses increased by 3% to 304.8 million in the fourth quarter of 2024.
Speaker Change: From 305.8 million in the fourth quarter of 2023.
Hangyu Li: general and administrative expenses decreased by 9.9%. to 32 million in the fourth quarter of 2024. from 35.5 minutes in the first quarter of 2023. The decrease was mainly due to declined compensation expenses of our general and administrative personnel. Product development expenses decreased by 41.2% to $4.5 million in Q4 2024. from 7.6 million in the fourth quarter of 2023. The decrease was mainly due to declined compensation expenses related to high-count reduction of our product development personnel. Net income for the fourth quarter of 2024 was $67.8 million, as compared to $155.2 million in the fourth quarter of 2023.
Speaker Change: General and administrative expenses decreased by nine 9% to 32 million in the first quarter of 'twenty 'twenty four from.
Speaker Change: <unk> 35.5 minutes in the first quarter of 2023.
Speaker Change: The decrease was mainly due to declines compensation expenses of our general and administrative personnel.
Speaker Change: Product development expenses decreased by 41, 2% to 4.5 minutes in the fourth quarter of 2024.
Speaker Change: Seven 6 million fourth quarter of 2023.
Speaker Change: The decrease was mainly due to declines compensation expenses.
Speaker Change: Way too hard cost reduction of our product development personnel.
Speaker Change: Net income for the fourth quarter of 2024.
Speaker Change: $57.8 million compared.
Speaker Change: Compared to $155 2 million in the fourth quarter of 2023.
Hangyu Li: basic and diluted night income per share was 8.55 in the fourth quarter of 2024. As of December 31, 2024, the company had 507.2 million of cash equivalents and 276 million of short-term investments. As of December 31, 2024, the company had a deferred revenue balance of $916.5 million as compared to $1,113.9 million as of December 31, 2023.
Speaker Change: Basic and diluted 19 income per share was 8.55 in the fourth full quarter plentiful.
Speaker Change: As of December 31st 30, 24, the company had $507 2 million of cash cash equivalents.
Speaker Change: 276 million of short term investments.
Speaker Change: As of December 31st 2020 for the.
Speaker Change: The company had a deferred revenue balance of 916.5 minute.
Speaker Change: As compared to 1100 on the $13.9 million.
Speaker Change: Of December 31st 2023.
Hangyu Li: now for our outlook. for the first quarter of 2025. Sunlands currently expects net revenues to be between $470 million to $490 million. which would represent a decrease of 6.4 percent. to 10.2% year-over-year. The above outlook is based on the current market conditions and reflects the company's current and preliminary estimates of market and operating conditions and the customer demand, which are all subject to substantial uncertainty.
Speaker Change: Now for our outlook for the first quarter of 2025.
Speaker Change: Sunlight currently expects net revenues to be between $417 million to two final 400 under $19 million, which would represent a decrease of six 4%.
Speaker Change: Grew 10, 2% year over year.
Speaker Change: The above outlook is based on the current market conditions.
Speaker Change: And they reflect the company's current and preliminary estimates of market and operating conditions and the customer demand, which are all subject to substantial uncertainty.
Hangyu Li: With that, I'd like to open up the call to the questions. Operator. Thank you.
Speaker Change: With that I'd like to open up the call to questions.
Speaker Change: Peter.
Operator: We will now begin the question and answer session. To ask a question, please press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Speaker Change: We will now begin the question and answer session to answer a question. Please press star one on your telephone and wait for your name to be announced.
Speaker Change: To withdraw your question. Please press star one again.
Operator: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Please stand by while we compile the Q&A roster. As a reminder, to ask a question, please press star 11 on your telephone keypad. Once again, that's star 11 for Crest.
Speaker Change: For the benefit of all participants on today's call. If you wish to ask your question to management in Chinese. Please immediately repeat your question in English.
Speaker Change: These stand by while we compile the Q&A roster.
Speaker Change: As a reminder to ask a question. Please press star one to one on your telephone keypad.
Speaker Change: Once again Thats star one one for questions.
Operator: At this time, we're showing no questions, so this will conclude our question and answer session.
Speaker Change: At this time, we're showing no questions. So this will conclude our question and answer session now I'd like to turn the conference back over to equal for any closing.
Yuhua Ye: Now I'd like to turn the conference back over to Yuhua for any closing remarks. Once again, thank you everyone for joining today's call. We look forward to speaking with you again soon.
Speaker Change: Remarks.
Speaker Change: Once again, thank you everyone for joining today's call. We look forward to speaking with you again soon good day and benign.
Operator: Good day and good night. This concludes this conference call. You may now disconnect your line. Thank you.
Speaker Change: This concludes this conference call you May now disconnect. Your line. Thank you.
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