New Oriental (EDU) Q1 2025 Earnings Transcript

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Wed, April 22, 2026 astatine 10:55 AM CDT 28 min read

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Wednesday, October 23, 2024 astatine 8:00 a.m. ET

• Executive President and Chief Financial Officer — Stephen Yang

• Vice President of Finance — Sisi Zhao

Stephen Yang: Thank you, Sisi. Hello, everyone, and convey you for joining america connected the call. We're pleased to denote that the institution has forged a steadfast maturation crossed our cardinal concern lines successful alignment with the expectations, with the top-line maturation of 30.5% this quarter. Total nett revenues, excluding revenues generated from East Buy backstage statement products and livestreaming business, accrued by 33.5% year-over-year. In particular, we're impressed by the highly encouraging maturation that the caller endeavors person anchored, which has importantly contributed to the halfway gathering blocks of the company. At the aforesaid time, New Oriental's bottom-line show for our halfway acquisition concern has besides achieved steadfast yields.

Operating borderline wise, we person excluded operating margins generated from East Buy for this 4th for a amended reflection of the show of New Oriental's halfway acquisition business. The operating borderline and non-GAAP operating borderline for this 4th person reached 23.7% and 24.4%, representing 370-basis-point and 220-basis-point betterment year-over-year, respectively. We're pleased to spot the tremendous efforts that we devoted into our offerings and platforms, sparking affirmative maturation crossed our concern lines. Our committedness to maintaining a steadfast profitability and marketplace stock stands steadfast arsenic we strive to make sustainable worth for our customers and shareholders successful the agelong term.

Now, I would similar to walk immoderate clip to speech astir the quarter's show crossed our existing concern lines and caller initiatives to you successful detail. Our cardinal remaining concern continued to unafraid encouraging trends this quarter. Breaking it down, the overseas trial prep concern recorded a gross summation of 19% year-over-year for the fiscal -- archetypal fiscal 4th of 2025. The overseas survey consulting concern recorded gross summation of astir 21% year-over-year for this quarter. The adults and assemblage students concern recorded a gross summation of 30% year-over-year for this quarter.

The ongoing investments, our caller acquisition concern initiatives, which mostly revolve astir facilitating students' all-round development, person propelled the company's motor to innovation, having secured beardown momentum successful their respective ventures. Firstly, the non-academic tutoring courses, which we person offers successful astir 60 existing cities, focuses connected cultivating students' innovative quality and broad quality. We're pleased to person coagulated involvement with a full of astir 484,000 pupil enrollments recorded successful this quarter. The apical 10 cities successful China lend implicit 60% of this business. Secondly, the intelligent learning strategy and instrumentality concern has been adopted successful astir 60 cities. We're blessed to spot elevated lawsuit retention and scalability with astir 323,000 progressive paid users reported successful this quarter.