Tarena International, Inc. (NASDAQ:TEDU) Q3 2018 Earnings Conference Call - Final Transcript
Nov 19, 2018 • 08:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to Tarena International, Incorporated Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at any time.
I would now like to turn the call over to your host for today's conference, Mr. Lei Song, Tarena's Reporting Director.
Thank you, operator. Hello, everyone, and welcome to Tarena's third quarter 2018 earnings conference call. The company's earnings results were released earlier today and are available on our IR website, ir.tedu.cn, as well as on Newswire services. Today, you will hear opening remarks from Tarena's founder, Chairman and CEO, Mr. Shaoyun Han; followed by our Chief Financial Officer, Dennis Yang, who will take you through the company's operational and financial results for the third quarter 2018 and give guidance for the fourth quarter. After their prepared remarks, Mr. Han and Mr. Yang will be available to answer your questions.
(Forward-Looking Cautionary Statements)
Also, please note that some of the information to be discussed includes non-GAAP financial measures as defined in Regulation G. The U.S. GAAP financial measures and information reconciling these non-GAAP financial measures to Tarena's financial results prepared in accordance with U.S. GAAP are included in Tarena's earnings release, which has been posted on the company's IR website, at ir.tedu.cn. Finally as a remainder, this conference is being recorded. In addition, a webcast of this conference call is available on Tarena's Investor Relations website.
I will now turn the call over to Mr. Shaoyun Han, Tarena's Founder, Chairman and CEO. Mr. Han will speak in Mandarin, and Mr. Yang will translate.
Thank you, Lei. Welcome everyone to our third quarter 2018 earnings conference call.
I'm very pleased to report that our net revenues in the third quarter increased year-over-year by 23.2%, to reach RMB700 million, meeting our previously issued guidance. During this quarter, for our adult education business, we saw a rapid year-over-year growth in student enrollment with our university partnerships, which contributed the recovery of our overall adult education business enrollment. Meanwhile, we focus on resources, optimization and cost control, which led to improvement in many efficiency indicators. In addition, our kids programming education business has once more achieved rapid growth in both student enrollment and tuition cash receipt. We enrolled 14,670 students during this quarter and the total K-12 cash receipts of this quarter was approximately RMB139 million, achieving a year-over-year increase of more than 300%.
First of all, I'm very happy to see the exciting progress in our key education business. We believe that kid technology education will become more and more well known in China, forming a huge market with significant potential, and see high-speed growth. In this quarter, Tarena's kid education business delivered outstanding results in student enrollment, center layout, course development, revenue contribution and profitability growth of older centers.