OneSmart International Education Group Limited (NASDAQ:ONE) Q2 2020 Earnings Conference Call - Final Transcript
May 19, 2020 • 08:00 am ET
you more updates on the Company performance. Now, Greg, please go ahead.
Thank you, Steve, and thank you, all, for joining us.
Now let me start by giving you an update on the impact on our business by unprecedented COVID-19 pandemic and share with you our strong execution and the positive results so far. As you are aware, as part of government's measures against the pandemic, all public schools were closed since January 2020 in China, and at that time reopen schedules were unclear. Neither school and entrance exam schedule were confirmed. All of our learning centers have been temporarily closed. Therefore, all of our classes and customer acquisition were conducted through our online platform which we have never experienced before.
To make it worse, given the situation, all of our employees had to work from home till late April, which added extra challenge. However, the Company has reacted promptly and actively to manage the situation. For example, we migrated majority of our students to our online platform within just a couple of weeks since the outbreak. Thanks to our years' investment and development online, our online platform has been serving over 160,000 students enrollments as of February 2020.
Our employees have quickly adapted to the new environment and made tremendous efforts in executing our plan. As a result, for the second fiscal quarter 2020 from December to February, we managed to retain almost the same level of revenue compared with the same period last year. In addition, we booked RMB785 million cash sales in Q2, which represents a 20% increase from the same period last year, a large portion of which was generated in our online platform. Meanwhile, we also maintained a high customer satisfaction rate on online platform of over 90%, resulting in low refund rates and high renewal rates. This all demonstrates our ability to strategically manage and operate a premium online business.
We would also like to share with you our assessment of the situation. We see the impacts of the coronavirus as a one-off and as a swift pattern. We also recognize the duration of the impact may vary between core VIP business and the young children education businesses. For our premium K-12 1-on-1 business, i.e., our VIP business, there is a swift performance drop in an environment when public schools are closed and there is massive supply of free or low priced online classes. It is therefore temporarily challenging for us to deliver the distinguished value of our premium education services when the score improvement demand is not as urgent when all the students stay at home.
As the leading premium K-12 education company in China, we may experience such one-off impacts in a bit more swift fashion than other big class education sector. We expect the demand to our business, however, will bounce back shortly as back-to-school dates and exam schedules are now announced and confirmed. Our month-over-month enrollments trend also reflects the impact, as you can see on the chart here. So