Ata Creativity Global ( (AACG) ) has released its Q3 earnings. Here is a breakdown of the information Ata Creativity Global presented to its investors.
ATA Creativity Global (ACG) is an international educational services company that focuses on providing quality learning experiences to enhance students’ creativity through portfolio training, research-based learning, and overseas study counseling services.
In its latest financial report for the third quarter of 2024, ACG announced a 13.1% increase in net revenues compared to the same period in 2023, totaling RMB67.3 million ($9.6 million). The company also saw a significant rise in student enrollment and credit hours delivered, reflecting the growing demand for its educational offerings.
Key financial highlights include a 2.6% increase in gross profit to RMB30.0 million ($4.3 million) for Q3 2024, although the gross margin decreased to 44.6% from 49.2% in the previous year due to higher staffing and outsourcing costs. Despite the revenue growth, ACG reported a net loss of RMB14.7 million ($2.1 million) for the quarter, which was larger than the loss in the same quarter of the prior year. Operationally, student enrollment rose by 17.9%, and the delivery of credit hours increased by 19.6%, driven by the company’s expanded service offerings.
Looking ahead, ACG maintains its guidance for fiscal year 2024, expecting net revenues between RMB233 million and RMB255 million. The company plans to continue expanding its portfolio training services and increase partnerships to support long-term growth. Management is optimistic about achieving its revenue targets and is committed to innovation and expansion in both domestic and international markets.
