Financial PerformanceGaotu's 2QFY24 results underscore the company's struggle to reconcile aggressive expansion with financial viability, projecting a full-year net loss of approximately RMB1bn.
Marketing And ExpensesMarketing expenses are projected to surge 138% YoY, accounting for 79% of revenue compared to just 46% in 2Q23.
ProfitabilityThe high school division faces margin pressure, with profitability expected to contract to ~15% from the previous 15-20% range, partly attributable to strategic discounting for new cohorts impacting near-term revenue.