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.
High Marketing ExpensesMarketing expenses are projected to surge 138% YoY, accounting for 79% of revenue compared to just 46% in 2Q23.
Offline Expansion LossesThis aggressive growth trajectory is projected to yield losses of RMB360mn for the offline segment in FY2024, despite maintaining a 16–18-month store-level breakeven target.