In This Article:
-
Total Net Revenue (Q3 2024): RMB67.3 million, up 13.1% from RMB59.5 million in Q3 2023.
-
Gross Profit (Q3 2024): RMB30 million, up 2.6% from RMB29.2 million in Q3 2023.
-
Gross Margin (Q3 2024): 44.6%, down from 49.2% in Q3 2023.
-
Total Operating Expenses (Q3 2024): RMB47.7 million, up 28.4% from RMB37.1 million in Q3 2023.
-
Net Loss (Q3 2024): RMB14.7 million, compared to RMB7.3 million in Q3 2023.
-
Total Net Revenue (9 months 2024): RMB167.1 million, up 21.1% from RMB138 million in 9 months 2023.
-
Gross Profit (9 months 2024): RMB77.6 million, up 24.6% from RMB52.3 million in 9 months 2023.
-
Gross Margin (9 months 2024): 46.4%, up from 45.1% in 9 months 2023.
-
Total Operating Expenses (9 months 2024): RMB137.7 million, up 22% from RMB112.9 million in 9 months 2023.
-
Net Loss (9 months 2024): RMB49.4 million, compared to RMB42.2 million in 9 months 2023.
-
Cash and Cash Equivalents (as of September 30, 2024): RMB39.4 million.
-
Total Assets (as of September 30, 2024): RMB459.4 million.
-
Total Liabilities (as of September 30, 2024): RMB393.2 million.
-
Total Shareholders' Equity (as of September 30, 2024): RMB66.2 million.
-
Student Enrollment Increase (9 months 2024): 20% compared to 9 months 2023.
-
Portfolio Training Student Enrollment (9 months 2024): Increased by 20.7% to 2,220.
-
Other Program Student Enrollment (9 months 2024): Increased by 19.1% to 1,523.
-
Credit Hours Delivered Increase (9 months 2024): 28.5%.
-
Full-Year 2024 Revenue Guidance: RMB233 million to RMB255 million, representing a 5% to 15% increase from full year 2023.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
ATA Creativity Global (NASDAQ:AACG) reported double-digit growth in net revenues and overall student enrollment for the third quarter of 2024.
-
Portfolio training services remain the main revenue source, contributing over 70% of total revenues.
-
Student enrollments for research-based learning and overseas study counseling increased by more than 20% compared to the third quarter of 2023.
-
The company expanded its partnership network, including new strategic partnerships with Leeds Conservatoire and Star Educational Technology.
-
AACG's high-end projects, such as the United Nations Sustainable Development Goals Arts Boot Camp and various international camps, have been well-received, enhancing the company's service offerings.
Negative Points
-
Gross margin decreased to 44.6% in the third quarter of 2024 from 49.2% in the prior year period due to higher costs related to increased teaching staff and outsourcing.
-
Total operating expenses increased by 28.4% in the third quarter of 2024, driven by higher sales and administrative costs.
-
The company reported a net loss of RMB 14.7 million for the third quarter of 2024, compared to RMB 7.3 million in the prior year period.
-
Loss from operations increased to RMB 17.6 million in the third quarter of 2024 from RMB 7.9 million in the third quarter of 2023.
-
Despite revenue growth, the company continues to face challenges in achieving profitability, with a net loss of RMB 49.4 million for the nine months of 2024.