Tarena Announces the Results for the Second Quarter of 2023

BEIJING, Aug. 28, 2023

Highlights for the Second Quarter of 2023

• Total student enrollment in IT-focused supplementary STEAM education increased by 0.6% to 177,500 in the second quarter of 2023, compared to student enrollment of 176,500 in the same period of 2022.
• Net revenues decreased by 16.0% year-over-year to RMB545.0 million (US$75.2 million) from RMB648.8 million in the same period of 2022.
• Gross profit decreased by 26.0% year-over-year to RMB278.7 million (US$38.4 million) from RMB376.5 million in the same period of 2022.
• Gross profit margin decreased by 6.9% year-over-year to 51.1% from 58.0% in the same period of 2022.
• Operating loss was RMB6.8 million (US$0.9 million), compared to operating income of RMB48.0 million in the same period of 2022.
• Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB5.9 million (US$0.8 million), compared to non-GAAP operating income of RMB49.2 million in the same period of 2022. 
• Net income was RMB8.3 million (US$1.2 million), compared to RMB47.9 million in the same period of 2022.
• Non-GAAP net income, which excluded share-based compensation expenses, was RMB9.2 million (US$1.3 million), compared to non-GAAP net income of RMB49.1 million in the same period of 2022.
• Basic income per American Depositary Share ("ADS"), each representing five Class A ordinary shares with an effective date of December 23, 2021, was RMB0.70 (US$0.10) in the second quarter of 2023. Diluted income per ADS was RMB0.67 (US$0.09) in the second quarter of 2023. Non-GAAP basic income per ADS, which excluded share-based compensation expenses, was RMB0.78 (US$0.11) in the second quarter of 2023. Non-GAAP diluted income per ADS, which excluded share-based compensation expenses, was RMB0.75 (US$0.10) in the second quarter of 2023.

Highlights for the Six Months Ended June 30, 2023

• Total student enrollment in our IT-focused supplementary STEAM education decreased by 0.7% to 185,400 in the first half of 2023, compared to student enrollment of 186,700 in the same period in 2022.
• Net revenues decreased by 26.9% year-over-year to RMB930.1 million (US$128.3 million), from RMB1,272.3 million in the same period in 2022.
• Gross profit decreased by 34.8% year-over-year to RMB479.7 million (US$66.2 million), from RMB735.4 million in the same period in 2022.
• Gross profit margin decreased by 6.2% year-over-year to 51.6%, from 57.8% in the same period in 2022.
• Operating loss was RMB65.6 million (US$9.1 million), compared to an operating income of RMB76.6 million in the same period in 2022.
• Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB63.7 million (US$8.8 million), compared to a non-GAAP operating income of RMB79.1 million in the same period in 2022.
• Net loss was RMB41.6 million (US$5.7 million), compared to a net income of RMB75.0 million in the same period in 2022.
• Non-GAAP net loss, which excluded share-based compensation expenses, was RMB39.6 million (US$5.5 million), compared to a non-GAAP net income of RMB77.5 million in the same period in 2022.
• Basic and diluted loss per ADS was RMB3.97 (US$0.55) in the first half of 2023. Non-GAAP basic and diluted loss per ADS, which excluded share-based compensation expenses, was RMB3.79 (US$0.52) in the first half of 2023.

Key Financial Results