New Oriental Education & Technology Group Inc. (NYSE: EDU/ 9901.SEHK), one of China's leading providers of private educational services, has revealed a significant year-over-year increase in its Q1 2024 financial results. For the fiscal quarter ending August 31, 2023, the company demonstrated robust growth in both revenue and profit metrics.
New Oriental reported significant growth in its financial performance for the fiscal quarter. Total net revenues saw an impressive surge, growing by 47.7% year-over-year to reach US$1.1 billion. In addition, the company's operating income experienced a remarkable year-over-year spike of 163.0%, amounting to US$205.1 million. Furthermore, New Oriental's net income also witnessed a substantial rise, marking a 150.6% increase and totaling US$165.4 million. This robust financial growth underscores New Oriental's strong market position and its ability to generate revenue consistently.
According to the data, the increase in revenue and income was mainly driven by the contributions from New Oriental's new educational business ventures and its East Buy private label products, alongside its foray into the livestreaming e-commerce sector.
A significant highlight of the quarter was the expansion of New Oriental's educational facilities. As of August 31, 2023, the company had 793 schools and learning centers — an increase of 45 and 87 from May 31, 2023, and August 31, 2022, respectively.
Michael Yu, Executive Chairman of New Oriental, expressed satisfaction over the impressive top-line growth. The company's overseas test preparation and consulting businesses also registered promising growth rates of 51.7% and 26.6% year-over-year, respectively.
Furthermore, New Oriental's new educational business initiatives showed a promising 103.3% growth in revenue. Yu elaborated that these ventures, which now include non-academic tutoring in around 60 cities, have started contributing significantly to the company's revenue stream.
For Q2 of FY 2024, New Oriental projects its total net revenues to be between US$785.0 million to US$804.2 million, reflecting a year-over-year growth of 23% to 26%.