Tarena Stock Slips After Q2 Results, Clocks 75% Revenue Growth

Tarena International Inc TEDU reported second-quarter FY21 revenue growth of 75.5% year-over-year to RMB582.3 million ($90.2 million).
Revenue from adult professional education business increased by 22.3% Y/Y to RMB292.9 million ($45.4 million). Revenue from childhood & adolescent quality education business surged by 213.2% Y/Y to RMB289.4 million ($44.8 million).
Deferred revenue totaled RMB2.06 billion ($319.5 million) as of June 30, 2021, up 3.2% Y/Y.
Gross profit increased by 211% Y/Y to RMB294.4 million ($45.6 million), and margin expanded to 50.6% from 28.5% a year ago.
Operating loss reduced to RMB(90.7) million from RMB(294.9) million in the same period of 2020. The adjusted operating loss was RMB(86.6) million versus RMB(282.7) million last year.
Loss per ADS was RMB(1.39) or $(0.22), compared to RMB(4.92) in 2Q20.
Tarena had cash and equivalents of RMB295.9 million ($45.8 million) as of June 30, 2021. Tarena's net cash outflow from operating activities in the quarter was RMB47.5 million ($7.4 million).
In the adult professional education business, total student enrollments decreased by 14.8% Y/Y to 31,100 in Q2, and the total number of learning centers decreased to 99 as of June 30, 2021.
In the childhood & adolescent quality education business, total student enrollments in Q2 increased by 40.2% Y/Y to 140,200, and learning centers increased to 235 as of June 30, 2021.
Q3 Outlook: Tarena expects net revenues of RMB600 million - RMB630 million.
Price Action: TEDU shares are trading lower by 4.70% at $1.42 on the last check Friday.

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Tarena Stock Slips After Q2 Results, Clocks 75% Revenue Growth