Employee training is a strategic investment that minimizes risks and maximizes benefits for enterprises. This viewpoint was expressed by the renowned management professor Warren Bennis, also known as the 'Bennis Theorem.'

In fact, the beneficiaries of training are not just the companies, as former GE CEO Jack Welch stated, if you hire excellent people, they all hope to grow. Outstanding individuals will never consider themselves to have reached the finish line; they always desire to move forward!

Whether it is outstanding employees or great companies, both profoundly understand the importance of continuous learning. In today’s era of information explosion and rapid knowledge iteration, only by constantly learning can one maintain competitiveness. Learning is not only a ladder for personal growth but also the driving force for enterprises to adapt to market changes and continuously innovate.

However, it is almost impossible for enterprises to establish a school; they must rely on external forces to address this core demand. It can be said that the era of lifelong learning calls for high-quality digital corporate learning solution providers, and related enterprises are entering a golden period of development.

Recently, domestic digital corporate learning pioneer yxt.com group holding released its latest financial report, serving as a good observational sample.

1. The large customer strategy enhances profitability.

The performance data directly reflects the continuous improvement in the development quality of yxt.com group holding.

In the first nine months of 2024, yxt.com group holding achieved total revenue of 0.2417 billion RMB (approximately 34.45 million USD), with a net loss of 14.88 million RMB (approximately 2.12 million USD), a year-on-year decline of 93.93%. During this period, the company's gross margin was 60.4%, an increase from 59.3% in the same period last year. Subscription-based solution revenue accounted for 91.7% of total revenue, an increase from 82.5% in the same period last year.

Looking at the entire internet plus-related industry, the strategy of "burning money for scale" is no longer popular, and the capital markets no longer recognize it. Achieving real profits is the focal point of market attention. YXT.com group holding's rapid return to profitability clearly indicates that it is on the right path.

It is believed that this is largely due to the company's focus on a major client strategy.

Generally speaking, large enterprises usually have fixed training budgets and needs, which helps YXT.com group holding to reduce sales and marketing costs. In the first nine months of 2024, YXT.com group holding's sales and marketing expenses were 0.1058 billion yuan, a decrease of 38.9% compared to 0.1732 billion yuan in the same period of 2023.

At the same time, the stability of large enterprise clients helps YXT.com group holding achieve revenue stability and predictability, thereby improving overall operation efficiency.

In addition, large enterprises tend to have higher requirements for training quality and related supporting services, naturally creating an industry entry barrier that is more favorable for leading competitive companies to gain development opportunities. YXT.com group holding provides customized solutions that address core client needs, enhance client stickiness, and subsequently create stable and continuous income through long-term cooperative relationships, while attracting more major clients through a good reputation.

As of the end of September 2024, YXT.com group holding has signed cooperation agreements with representative enterprises from various industries such as Schneider Electric, Shiseido Company, Limited sponsored adr, Sany Group, Yunnan Baiyao Group, JD.com, and Hailiang Group.

It is not difficult to see that the major client strategy is in line with the current "cost reduction and efficiency enhancement" trend of the internet plus-related industry, and unlike the simplistic approach of brutally cutting operational costs across departments, YXT.com group holding is promoting efficient business operations based on market demand characteristics from a strategic level, enhancing its profit-making ability, and is more conducive to obtaining lasting competitive strength.

Furthermore, as of September 30, 2024, YXT.com group holding has cash and cash equivalents, restricted cash, short-term investments, and long-term bank deposits totaling 0.4887 billion yuan (equivalent to 69.64 million USD), maintaining a stable cash flow level.

2. "Product strength + technical strength" forge core competitiveness.

The corporate training market presents a "large and scattered" reality, with no giant possessing absolute advantages having emerged yet. It remains uncertain which company or companies will stand out first in the future, but they will inevitably need to possess the following two characteristics.

Firstly, the product must be rich.

The market environment and technological development are changing rapidly, requiring corporate employees to continuously update their knowledge and skills to adapt to these changes. Always using a single template to address all issues is evidently insufficient to meet the core needs of businesses.

Additionally, businesses are at different stages of development; the core issues they need to address and the skills required of relevant personnel will naturally differ. How to provide targeted solutions is a significant test of the training service provider's "internal strength."

YXT.com group holding has built a rich content system through in-depth research, covering various industries such as medicine, dining, retail, finance, and manufacturing. As of the end of March 2024, YXT.com group holding has launched over 8,200 courses, covering approximately 20 industries, including positions in sales, operation, product, etc., with a total learning time exceeding 20,500 hours, including over 6,800 hours of proprietary courses.

Furthermore, the technology must be robust.

In the current context of rapid digitalization and AI development, the corporate training industry is also undergoing a series of technological transformations, shifting from traditional training organization models to intelligent, personalized, and tailored training approaches. In particular, the rise of AI technology has presented the training industry with unprecedented opportunities.

For example, yxt.com group holding utilizes ai technology to replicate many "expert capabilities" in the field of corporate training, allowing ai to partially replace human experts in their work. In activities such as training program design, course production, experience extraction, talent assessment, and simulation exercises, the ai agents constructed by yxt.com group holding can efficiently and autonomously complete many important tasks, greatly enhancing the productivity of training.

In addition, ai technology has also helped yxt.com group holding improve the learning experience for corporate trainees. Trainees can leverage ai recommendations and guidance to access the learning content they urgently need more quickly and accurately. Throughout the process, natural language interaction has replaced traditional navigation searches, making knowledge acquisition more convenient.

In terms of both revenue and customer volume, yxt.com group holding has received widespread market recognition for its product and technology capabilities, giving it the confidence to advance to a higher level as an industry leader.

III. Conclusion

Driven by the wave of digitalization, yxt.com group holding has established a position in the corporate training market with its rich product line and strong technological strength, also bringing new ideas for industry development.

With the in-depth implementation of its major client strategy, yxt.com group holding is gradually building an efficient, intelligent, and personalized corporate learning ecosystem, injecting continuous momentum into employee growth and corporate innovation, as well as serving as its own sustainable growth driving force.