I'm upgrading Gaotu Techedu to a Buy following an assessment of its results and prospects. GOTU outperformed peers with 58% YoY revenue growth in 1Q, driven by K-12 segment strength and effective cost controls; its quarterly earnings also came in above consensus forecasts. Management expects operating cash flow to triple in FY25, supporting both reinvestments and a new $100M buyback plan.
Gaotu Techedu Inc. (NYSE:GOTU ) Q1 2025 Earnings Conference Call May 15, 2025 8:00 AM ET Company Participants Catherine Chen - Head of Investor Relations Larry Chen - Founder, Chairman and Chief Executive Officer Shannon Shen - Chief Financial Officer Conference Call Participants Crystal Li - CMS Elsie Chang - CLSA Eunice Liu - Goldman Sachs Operator Hello, ladies and gentlemen, thank you for standing by, and welcome to the Gaotu Techedu First Quarter 2025 Earnings Conference Call. At this time all participants will be in listen-only mode.
Gaotu Techedu's strategic pivot to adult and vocational training amid disruptive policy changes in China's EdTech market has been a smart move. The company leverages AI-powered features to enhance learning engagement and operational efficiency. Recent financials show strong growth, with an 83% revenue jump and improved cash generation.
Education & Training Services Industry | Consumer Defensive Sector | Xiangdong Chen CEO | NYSE Exchange | 36257Y109 Cusip |
CN Country | 14,381 Employees | - Last Dividend | - Last Split | 6 Jun 2019 IPO Date |
Gaotu Techedu Inc. is a prominent technology-driven education company originally established under the name GSX Techedu Inc. The company transitioned to its current name in June 2021, marking a new chapter in its mission to deliver exceptional online educational content. With its headquarters situated in Beijing, People's Republic of China, Gaotu Techedu Inc. has anchored its reputation on providing comprehensive online K-12 after-school tutoring services across China. The organization stands at the forefront of educational innovation, offering an expansive range of courses and services tailored to meet the diverse needs of students at various levels of their academic and professional journeys.