Sunlands Cuts Q2 Revenue Guidance by Up to 23.9% After Q1 Results
STG•Sunlands reported Q1 adjusted EPS of RMB11.48 and revenue of RMB440.7 million, down 9.6% year-over-year, while net income rose to RMB76.8 million, marking its 20th consecutive profitable quarter. The company forecast Q2 net revenue of RMB410 million–430 million, implying a 20.2%–23.9% decline and triggering a 6.1% premarket share drop.
1. First-Quarter Financial Results
Sunlands reported adjusted earnings per share of RMB11.48 and revenue of RMB440.7 million, down 9.6% year-over-year. Net income increased to RMB76.8 million, delivering a 17.4% net margin and marking the company’s 20th straight profitable quarter.
2. Soft Second-Quarter Guidance
The company forecast Q2 net revenue between RMB410 million and RMB430 million, implying a year-over-year decline of 20.2%–23.9%. Shares slid 6.11% in premarket trading following the release of the softer outlook.
3. Cost Reductions and Operational Metrics
Operating expenses fell 16.7% to RMB284.3 million, led by a 19.5% drop in sales and marketing costs to RMB241.9 million. Gross billings declined to RMB304.8 million with enrollments falling to 102,127, while cash and short-term investments totaled RMB781.7 million and deferred revenue stood at RMB500.5 million.
