17 Education & Technology Group Inc. Q1 FY2025 earnings call

• Successful trial and implementation of AI-powered product upgrades to enhance teaching and learning efficiency, providing personalized learning experiences. - Successfully supported Shanghai Minhang District to launch a specialized generative intelligent agent cluster and demonstrated it at the Shanghai Education Expo. - School-based subscription business sustained steady growth with higher retention and adoption of value-added services. - Product and service offerings continuously upgraded with AI integration in core teaching and learning scenarios, trials in over 50 schools. - Market channel marketing efforts and strategic partnerships solidified presence in high-growth markets. - Welcomed Mr. Gui Jia as independent Director and announced Ms. Sishi Zhou as Acting Chief Financial Officer.

In the first quarter of 2025, 17EdTech recorded net revenues of RMB 21.7 million, a 15% decrease from the previous year. This was mainly due to the reduction in net revenues from district-level projects as the company prioritized school-based projects on a subscription model with longer revenue recognition. The district-level teaching and learning business remained steady, contributing to revenue recognition. The school-based subscription business saw steady growth with a year-over-year increase in newly subscribed students, over 90% of renewal customers continued their subscriptions, and there was higher adoption of value-added services. Operating expenses reduced by 42.6% compared to the same quarter last year, leading to a 44.8% reduction in net loss on a GAAP basis.

• Will remain vigilant in monitoring financial performance and making strategic decisions to ensure long-term success and sustainability of the business. - Continue to focus on AI-driven educational innovation, aligning with national strategy for educational digital transformation.

Q: A: Q: A: Operator indicated no questions during the Q&A session