24/7 Market News Snapshot 26 February, 2025 – Gaotu Techedu Inc. American Depositary Shares, three of which representing two Class A Ordinary Shares (NYSE:GOTU)
DENVER, Colo., 26 February, 2025 (247marketnews.com) – (NYSE:GOTU) are discussed in this article.
Gaotu Techedu Inc. (GOTU) is currently experiencing a significant surge in its stock performance, opening at $2.80 and climbing to $3.16, marking a remarkable 24.98% increase. This sharp upward movement follows a previous close of $2.53, showcasing enhanced investor interest with a trading volume of 3.41 million shares. Analysts are closely monitoring this breakout above key resistance levels, indicating that the stock may continue on this bullish trajectory, making it an intriguing option for investors.
In conjunction with this impressive market performance, Gaotu has also reported notable financial results for the fourth quarter and full fiscal year ending December 31, 2024. The company achieved an 82.5% year-over-year increase in net revenues, totaling RMB 1,388.6 million compared to RMB 761.0 million in the prior year’s quarter. Moreover, gross billings reached RMB 2,160.2 million, representing a substantial 69.0% growth.
Larry Xiangdong Chen, the Founder and CEO, attributed these achievements to the company’s focus on enhancing its organizational capabilities, thereby generating significant value for customers. He highlighted a reduced operating loss by 20.6%, emphasizing Gaotu’s commitment to profitability amidst investments in artificial intelligence and workforce expansion. Although the company reported a net loss of RMB 135.8 million for the quarter, it also recorded a robust net operating cash inflow of RMB 783.6 million, up 59.4% year-over-year, which supports its strategic initiatives.
For the fiscal year 2024, total net revenues rose 53.8% to RMB 4,553.6 million, even as net losses increased to RMB 1,049.0 million due to elevated operational expenditures. Looking ahead, Gaotu anticipates first-quarter revenues for 2025 to range between RMB 1,408 million and RMB 1,428 million—indicative of a year-over-year increase of 48.7% to 50.8%, solidifying its position in the evolving education technology landscape.