17 Education & Technology Group Inc. Q4 FY2024 earnings call

• Business updates: Achieved 11% year-over-year top-line growth for the full year 2024 driven by strategic market expansion and new contract acquisitions. Fourth quarter net revenues decreased by 23% due to reduction in district-level flagship project revenues as resources were prioritized on school-based subscription model projects. SaaS subscription business had three-digit growth. Operating expenses decreased by 34% from the same quarter last year, resulting in a 35% reduction in net loss on a GAAP basis.
• Original flagship project delivery and new contract acquisitions: District-level teaching and learning SaaS business made steady progress with successful delivery and new contract acquisitions, expanding services to more schools and enhancing regional education quality and efficiency.
• Accelerated growth in school-based subscription model: School-based subscription model witnessed triple-digit growth in newly subscribed students year-over-year, with an extensive opportunity pipeline to expand school coverage. More than 90% of renewing contracts decided to continue subscribing.
• Synergies across business lines: Synergies between regional flagship projects and school-based subscription model drove product innovations. Flagship district projects built use cases for school-based subscription model and vice versa, enhancing operational agility.
• Product improvements: Advanced unified data ecosystems through cross-domain data integration. Scaled product portfolio with various teaching and learning SaaS solutions. Enhanced data value with automated accumulation and intelligent distribution. Initiated internal pilot of AI-powered learning diagnostic agent to improve teaching efficiency and learning outcomes.

For the full year of 2024, the company achieved year-over-year top-line growth of 11% to RMB189.2 million. Net revenues for the fourth quarter were RMB36.6 million, a 23% decrease from the same quarter of the previous year. The SaaS subscription business model showed a three-digit growth compared to the same quarter last year. In terms of revenue contribution, the full-year revenue of RMB189.2 million is the overall figure, with the fourth quarter's RMB36.6 million being a part of it. The SaaS subscription business, although a part, contributed significantly with its upward trend, and the district-level flagship projects' revenue reduction affected the fourth quarter's overall revenue.

• The company is well positioned to deliver sustainable growth and industry-leading innovations in the future with a strong pipeline of AI-enhanced products and a customer-centric roadmap.
• The school-based subscription model has an extensive opportunity pipeline and is expected to continue expanding school coverage, contributing significantly to overall revenue.
• By focusing on AI-driven solutions and a customer-centric approach, the company aims to redefine personalized education and achieve sustainable and healthy growth.

• The conference call contains forward-looking statements based on management's current expectations and market and operating conditions, which involve known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond the company's control. These risks may cause the company's actual results, performance, or achievements to differ materially. Further information regarding these and other risks, uncertainties, and factors is included in the company's filings with the US SEC.

Q: A: Q: A: Dear speakers, there are no questions at this time.