The following is a summary of the ATA Creativity Global (AACG) Q3 2024 Earnings Call Transcript:
Financial Performance:
ATA Creativity Global reported a third-quarter net revenue of RMB 67.3 million, which is a 13.1% increase from RMB 59.5 million in the same quarter of the previous year.
Gross profit for the third quarter was RMB 30 million, marking a 2.6% increase from RMB 29.2 million in the third quarter of 2023.
Despite increased revenues, gross margin decreased to 44.6% in the third quarter of 2024 from 49.2% in 2023, primarily due to higher costs from an increase in teaching staff and outsourcing costs.Net loss for the third quarter was RMB 14.7 million, compared to RMB7.3 million in the previous year.
Total net revenues for the first nine months of 2024 increased by 21.1%, reaching RMB167.1 million.
Business Progress:
ATA Creativity Global continues to expand its services, including the portfolio training program which remains a major revenue source,
Launched new strategic partnerships with Leeds Conservatoire in the UK and Oasis Star Educational Technology to integrate art and AI.
Hosted various international educational programs and expanded its geographical presence with the new London Center.
Opportunities:
Engaged in expanding services and operational efficiencies with the introduction of new strategic partnerships and integrating technology in program offerings.
Continued growth in student enrollment and diversifying services points to an expanding market reach.
Risks:
Higher operational costs due to increased staff and outsourcing, impacting the gross margin.
Increased marketing and administrative expenses reflect growing operational risks associated with expansion.
More details: ATA Creativity Global IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
