Mr. Andy Liu, Founder, Chairman and Chief Executive Officer of the Company, commented, “The previous COVID outbreak caused delays in the bidding and delivery processes of our major projects which adversely affected our financial performance. However, our in-school SaaS business continues to advance beyond the financial results might indicate. Year to date, our teaching and learning SaaS business has won multiple landmark projects across China.”
17 Education & Technology Group Inc. (hereinafter referred to as "17EdTech", Chinese: 一起教育科技, NASDAQ: YQ), headquartered in Beijing, recently announced its unaudited financial results for the first quarter ended March 31, 2023. The financial results show that 17EdTech reported net revenues of CNY 9.27 million, down 96% year-over-year, and net loss of CNY 92.54 million, compared to net loss of CNY 24.766 million for the same period last year.
In terms of expenses, the total operating expenses for the first quarter of 2023 were CNY 106.3 million, representing a year-over-year decrease of 37.8% from CNY 170.8 million in the first quarter of 2022. Specifically, in Q1 2023, sales and marketing expenses were CNY 21.8 million, down 0.8% year on year. Research and development expenses were CNY 44.3 million, a decrease of 54.6% from the same period last year. General and administrative expenses were CNY 40.2 million, 21.7% lower than in the previous year.
17EdTech is a leading education technology company in China. The company provides a smart in-school classroom solution that delivers data-driven teaching, learning and assessment products to teachers, students and parents. Leveraging its extensive knowledge and expertise obtained from in-school business over the past decade, the Company provides teaching and learning SaaS offerings to facilitate the digital transformation and upgrade at Chinese schools, with a focus on improving the efficiency and effectiveness of core teaching and learning scenarios such as homework assignments and in-class teaching. In December 2020, 17EdTech was officially listed on NASDAQ.
In terms of SaaS business, 17EdTech’s teaching and learning SaaS business has won multiple landmark projects across China, including the CNY 116 million Shanghai Minhang District smart-pen and intelligent homework project and the CNY 20 million Beijing Xicheng District cloud classroom evaluation system project. These winnings demonstrate our competitive advantages in the space and the market’s recognition of our offerings, all rooted in our deep insights into classroom and homework scenarios, accumulated AI capability technology and data insights, and exceptional ability to achieve large-scale regular use by teachers and students.
The major competitors of 17EdTech include Chinese companies such as TAL (Chinese: 好未来), and New Oriental Education & Technology Group (Chinese: 新东方教育科技集团), as well as international players such as EdTech from the US and Brightwave from the UK.
As of press time, 17EdTech closed at USD 0.96 apiece, with a market cap of USD 46.71 million.