Tarena International (NASDAQ: TEDU) – Tarena stock retreats after second quarter results and posts 75% revenue growth

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  • Tarena International Inc (NASDAQ: TEDU) reported 75.5% year-on-year revenue growth in the second quarter of FY21 to 582.3 million RMB ($ 90.2 million).
  • Income from vocational training activities for adults increased 22.3% year-on-year to 292.9 million RMB ($ 45.4 million). Revenues from quality education activities for children and adolescents jumped 213.2 percent year-on-year to 289.4 million RMB ($ 44.8 million).
  • Deferred revenue stood at 2.06 billion RMB ($ 319.5 million) as of June 30, 2021, up 3.2% year-on-year.
  • Gross profit increased 211% year-on-year to 294.4 million RMB ($ 45.6 million), and the margin increased to 50.6% from 28.5% a year ago.
  • Operating loss reduced to RMB (90.7) million RMB (294.9) million in the same period of 2020. Adjusted operating loss was RMB (86.6) million against RMB (282, 7) million last year.
  • The loss by ADS was RMB (1.39) or ($ 0.22) compared to RMB (4.92) in 2Q20.
  • Tarena had 295.9 million RMB ($ 45.8 million) in cash and cash equivalents as of June 30, 2021. Tarena’s net cash outflows from operating activities during the quarter were to 47.5 million RMB ($ 7.4 million).
  • In the adult vocational training sector, the total number of student enrollments fell 14.8% year-on-year to 31,100 in the second quarter, and the total number of learning centers rose to 99 as of June 30, 2021.
  • In the quality education sector for children and adolescents, the total number of second-quarter student enrollments increased 40.2% year-on-year to 140,200, and learning centers are increased to 235 on June 30, 2021.
  • Outlook for the 3rd quarter: Tarena expects net income of RMB 600 million to RMB 630 million.
  • Price action: Shares of TEDU are trading down 4.70% to $ 1.42 on Friday’s last check.
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