GSX Techedu Inc. net revenues reached RMB 1,965.8 million, up 252.9% year-over-year, according to the company’s press release. The revenue was driven by the growth in paid course enrollments for K-12 courses. The company’s stock fell 23% despite revenue increases. with phenomenal figures SEC opens investigation. “Either GSX is a better business than Facebook or Google ever was or the SEC is going to find a fraud”.
Here are the key data from “unrealistic” report and guidance:
- GSX expects revenues in Q4 to range from RMB 2,076 million to RMB 2,116 million, representing an increase of 122.0%-126.3%
- Net revenues from online K-12 courses rose 282.7% year-over-year to RMB 1,757.2 million.
- Gross billings was RMB 2,086.2 million, up 137.1% year-over-year.
- Paid course enrollments rose 133.5% year-over-year to 1,256,000.
- Net loss was RMB 932.5 million, compared with a net income of RMB 1.9 million in the same period of 2019.
- Non-GAAP net loss was RMB 863.6 million, compared with the non-GAAP net income of RMB 20.1 million in the same period of 2019.
- Deferred revenue was RMB 1,964.8 million, compared with RMB 1,337.6 million as of December 31, 2019
- Net operating cash outflow was RMB 678.8 million.
GSX stock is currently declining. GSX: NYSE is down 19.37%