New Oriental Education & Technology Group Inc. (New Oriental), a leading provider of private educational services in China, reported its unaudited financial results for the fourth fiscal quarter and the fiscal year ended May 31, 2024. The company saw a significant increase in total net revenues, which rose by 32.1% year over year to $1.136 billion for the quarter. However, operating income saw a sharp decline of 78.1% to $10.5 million, and net income attributable to New Oriental decreased by 6.9% to $27 million for the same period. For the full fiscal year, net revenues increased by 43.9% to $4.314 billion, with operating income and net income attributable to New Oriental rising by 84.4% and 74.6%, respectively. The company also highlighted the expansion of its schools and learning centers, which totaled 1,025 as of...Show More

New Oriental Education & Technology Group Inc. (New Oriental), a leading provider of private educational services in China, reported its unaudited financial results for the fourth fiscal quarter and the fiscal year ended May 31, 2024. The company saw a significant increase in total net revenues, which rose by 32.1% year over year to $1.136 billion for the quarter. However, operating income saw a sharp decline of 78.1% to $10.5 million, and net income attributable to New Oriental decreased by 6.9% to $27 million for the same period. For the full fiscal year, net revenues increased by 43.9% to $4.314 billion, with operating income and net income attributable to New Oriental rising by 84.4% and 74.6%, respectively. The company also highlighted the expansion of its schools and learning centers, which totaled 1,025 as of May 31, 2024. New Oriental's Executive Chairman, Michael Yu, expressed satisfaction with the company's top-line growth and the performance of its overseas test preparation, study consulting businesses, and new educational initiatives. CEO Chenggang Zhou noted the company's strategic capacity expansion and the adoption of new technologies. CFO Stephen Zhihui Yang acknowledged the short-term impact on operating margin due to investments and expansion but remained optimistic about future margin improvements. Additionally, New Oriental completed the acquisition of East Buy's online education business for RMB 1.5 billion, which is now recorded under educational services. The company's board of directors extended its share repurchase program to May 31, 2025, with approximately $296.1 million worth of ADSs repurchased as of July 30, 2024. Looking ahead, New Oriental expects a 31% to 34% year-over-year increase in net revenues for the first quarter of fiscal year 2025, excluding revenues from East Buy private label products and livestreaming business.