Sunlands Technology Group Q4 FY2024 earnings call

• Fourth quarter 2024 net revenue was RMB483.5 million, net income RMB57.8 million, 15th consecutive quarter of profitability. Full year 2024 revenue RMB1.99 billion, net income RMB342.1 million, 4th consecutive profitable year. • Full year net revenue down 7.8% but saw growth in enrollments (record high 675,000 student enrollments in 2024). • Refined product mix from high-priced long-duration courses to more accessible short-term programs, improving conversion rates and customer acquisition efficiency. • Operating cash flow strong for third consecutive year, reflecting steady student enrollments and disciplined financial management. • Focus on senior education: expanded course offerings for seniors, leveraged senior user base for e-commerce and study tours; study tours combined interest-based learning with travel, gaining strong traction. • Integrated DeepSeek in February 2025 to enhance personalized learning experiences, optimize course content, and improve operational efficiency.

Degree/diploma-oriented post-secondary programs accounted for 10% of total revenue in 2024. Interest, professional skills and professional certification preparation programs collectively made up 75.3% of total revenues in 2024. The senior education segment, including initiatives like study tours, is growing; study tour programs launched in 2024 had dozens of routes and served tens of thousands of senior customers with positive feedback.

• For the first quarter of 2025, Sunlands currently expects net revenues to be between RMB470 million to RMB490 million, representing a decrease of 6.4% to 10.2% year-over-year. The outlook is based on current market conditions and subject to substantial uncertainty.

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