QuantaSing Group Limited (QSG) Q1 2025 Earnings Call Transcript

Total Revenues RMB810.4 million, representing a 6.8% decrease year-over-year due to strategic repositioning towards the silver economy market.

Individual Online Learning Services Revenue RMB709 million, accounting for 87.5% of total revenues, reflecting a focus on the silver economy.

Gross Billings from Individual Online Learning Services RMB713.7 million, showing a modest decline of 6.3% year-over-year, viewed as a natural progression during the strategy transformation.

Revenues from Enterprise Services RMB47.8 million, a change of 30.2% from a year ago, reflecting an evolving business mix.

Gross Profit RMB676 million with a gross margin of 83.4%, down from 86.4% year-over-year due to strategic shifts towards more product-focused offerings.

Total Operating Expenses RMB573.7 million, a decrease of 18.8% from RMB706.7 million in the same period last year, due to optimized marketing spend and improved operational efficiency.

Sales and Marketing Expenses RMB550 million, decreased by 17%, primarily due to optimized marketing spend.

Research and Development Expenses RMB28.1 million, a decline of 35.9%, reflecting a focused approach to product development.

General and Administrative Expenses RMB30.6 million, decreased by 28.4%, mainly due to a decline in share-based compensation expenses.

Net Income RMB80.7 million, representing a net margin of 10%, despite the decline in revenues.

Adjusted Net Income RMB88 million, representing a healthy adjusted net margin of 10.9%.

Basic and Diluted Net Income per Share RMB0.52 and RMB0.50 respectively.

Cash Position RMB1,193.7 million, up from RMB1,026.3 million, representing an increase of RMB167.4 million, demonstrating strong cash generation.