TAL Vision China data map
On October 24, TAL Education (NYSE: TAL), a Chinese intelligent learning solutions provider, released its unaudited financial results for the second quarter of fiscal year 2025 ending on August 31, 2024.
In the second quarter of fiscal year 2025, TAL's net income was US$619.4 million, a year-on-year increase of 50.37%. The net income in the same period last year was US$411.9 million; gross profit increased by 43.8% year-on-year to US$348.7 million. yuan, which was US$242.5 million in the same period last year; gross profit margin dropped to 56.3% from 58.9% in the same period last year; net profit was US$57.431 million, and net profit attributable to TAL in the same period last year was US$37.902 million. Non-US accounting standards net profit attributable to TAL (excluding equity incentive expenses) was US$74.329 million, compared with US$58.785 million in the same period last year, a year-on-year increase of 26.4%.
On the other hand, in the second quarter of fiscal year 2025, TAL's operating income was US$47.6 million, compared with US$31.8 million in the same period last year; net cash used in operating activities was US$0.6 million.
TAL's revenue in both quarters of fiscal 2025 has maintained a growth of more than 50%. In the last fiscal quarter, TAL’s net income was US$414 million, a year-on-year increase of 50.54%. In the first six months of fiscal year 2025, TAL's net income increased from US$687 million in the same period last year to US$1.034 billion in this quarter; net profit attributable to TAL was US$68.833 million, and net income attributable to TAL in the same period last year was US$68.833 million. The loss was $7.135 million. Basic and diluted net income per ADS were both $0.11. Non-GAAP basic and diluted net income per ADS (excluding share-based compensation expenses) were both $0.17.
"Artificial intelligence learning devices are one of the fastest-growing business lines." said Peng Zhuangzhuang, President and Chief Financial Officer of TAL. "We are excited to have the opportunity to provide our customers with more access to high-quality learning content through these artificial intelligence-powered devices." "For learning services, we will carefully manage our teaching point network and balance operational efficiency and growth speed. The main goal of the learning services business is to provide high-quality learning experience for both online and offline users."
Peng Zhuangzhuang previously mentioned at the first quarter performance exchange meeting, "The second financial quarter is traditionally a peak season, and seasonal factors are beneficial to us. Driven by the increase in e-commerce activities during the summer vacation and the '618' festival, our The growth momentum will continue.”
Despite the rapid growth in sales of artificial intelligence learning equipment, in a conference call that evening, TAL's management also bluntly said, "The learning equipment business is currently losing money. The main costs are product research and development, sales expenses and bill of materials. We really "
As of August 31, 2024, the total balance of TAL's cash, cash equivalents and short-term investments was US$3.454 billion. Among them, short-term investments were US$1.3684 billion, and current and non-current restricted cash were US$29.51 million.
Additionally, in April 2024, the company's board of directors authorized the extension of its share repurchase program. Under the extended share repurchase program, the company may spend up to approximately $503.8 million to purchase shares of its common stock through April 30, 2025. As of August 31, 2024, the Company has purchased approximately 500,000 shares of common stock under a stock repurchase program for total consideration of approximately $13.1 million.