Net revenue

Net revenue up 25.7% for the full year, positive cash flow of 130 million in the fourth quarter

New York, United States:

On March 16, Tarena International, Inc. (NASDAQ: TEDU) released its unaudited financial results for the fourth quarter and full year 2021.


This press release is multimedia. View the full press release here:


Tarena renewal in fiscal year 2021 (Photo: Business Wre)

According to financial data, Tarena’s net revenue in the fourth quarter of 2021 was RMB 655 million, up 0.8% year-on-year, beating the estimate given in the prior quarter. For the full year 2021, Tarena’s net sales amounted to RMB 2,387 million, up 25.7% year-on-year, a new high since its quoting.


Fourth Quarter Operating Cash Flow Reaches RMB 130 Million, Quality Education for Children and Youth Revenue Increases 62.3% for the Full Year


In the fourth quarter of 2021, Tarena’s cash inflow reached a quarterly high in the year, which brought our operating cash flow in the fourth quarter to approximately RMB 130 million. At the end of 2021, our cash reserve balance reached RMB 430 million.


Looking at 2021 as a whole, Tarena’s two main business segments, professional adult education and quality childhood and adolescent education, recorded growth. . Among them, the adult vocational training industry achieved annual revenue of RMB 1,150 million, up 1.2% year-on-year; the annual revenue of the quality education business for children and adolescents increased from RMB 762 million in 2020 to RMB 1,236 million, an increase of 62.3% year-on-year the other.


Annual net sales of RMB 2,387 million and gross profit of RMB 1,185 million set new records since listing


According to financial data, the rapid revenue growth of Tarena’s quality education business for children and adolescents in 2021 led to a year-over-year increase in gross profit of 285.3% for the company.


This helped Tarena’s gross profit reach RMB 1185 million in 2021, up 42.6% from 2020, halting the continuation of the annual downward trend in gross profit from 2019 to 2020 and creating a new gross profit record since listing, surpassing the all-time high of RMB 1,167 million in 2018.


At the same time, the net revenue of RMB 2,387 million in fiscal 2021 also exceeded RMB 2,085 million in 2018, setting a new record since our listing.


Annual operating loss down 54.2% with a marked improvement in operating margin


In 2021, with growth in both revenue and gross margin, Tarena’s effective and continuous cost and expense control is also paying off.


Tarena’s operating loss in the fourth quarter fell to RMB 60.36 million, down 29.1%, and our operating margin improved by 3.9 percentage points to -9.2. % against -13.1% in the same period of 2020.


For 2021, Tarena’s operating loss decreased from RMB 806 million in 2020 to RMB 369 million, down 54.2% year-on-year. The operating margin improved significantly from -42.5% in 2020 to -15.5% in 2021.


Optimization of operational efficiency to increase production capacity by one-stop learning center: professional education for adults reaching RMB 11.28 million and quality education for children and teenagers up 55.4% from a year on year


Through the continuous optimization of operational efficiency and organizational structure, Tarena’s production capacity per unique learning center and per employee for adult vocational training and quality education for children and adolescents in 2021 has been improved.


Among them, the annual adult vocational education income per single learning center was about RMB 11.28 million, up 16.1% year on year, and the annual education income of quality for children and teenagers by unique learning center reached 5.22 RMB. million, up 55.4% year-on-year.


The increase in production capacity is not only the turnover of the single center, during the financial report conference call, Tarena CEO SUN Ying said that the total number of employees of the business had shrunk by 1.7% from 10,181 at the end of Q4 2020 to 10,009 at the end of Q4 2021, while per capita productivity increased by 37.1% from from around 172,000 RMB in the same period of 2020 to around 236,000 RMB in 2021.


At the same time, post-tutoring student satisfaction continues to rise. As of the fourth quarter of 2021, the employment rate of Tarena’s adult vocational training interns six months after graduation remained above 90%, and the proportion of student renewal and mouth-to-mouth promotion activities -to-ear of our quality education for children and adolescents continued to increase. , reaching 70.8%. In 2021, the renewal rate for students registered for more than one year exceeds 83.2%.


“Looking back to 2021, our capabilities to develop and deliver products based on the Online-Merge-Offline (OMO) model, strong offline learning center operating capabilities and customers continued to enhance our core competitive advantages,” SUN Ying said. “Meanwhile, our measures to optimize the business structure and improve operational efficiency have enabled us to cope with the negative impacts resulting from the sporadic appearance of COVID-19 cases.”


SUN Ying said that looking ahead, Tarena will continue to improve operational efficiency, improve profitability by increasing productivity per unique learning center, rather than depending on newly opened centers as the engine of growth. revenue, and achieve the goal of “turning away from net loss to net profit” as soon as possible.