Puxin Reports Wider Losses, Stronger Revenue
Puxin said it saw a 40 percent jump in student enrollments to 725,000 in the second quarter.
Puxin Ltd. (NYSE: NEW) reported a widened net loss and improved revenue for the second quarter before its shares closed at $6.41 apiece Tuesday, the same price as on the day before.
The company, which seeks to consolidate after-school education in China, said in a statement today that its revenue in the three months through June reached $92.2 million, up 19 percent from the same period a year ago. The increase was thanks to a 40 percent rise in student enrollments, Puxin said.
Net loss in the second quarter increased 3.3 percent year-over-year to $28.4 million, according to the report.
Puxin's chairman and chief executive officer, Yunlong Sha, said in the statement, "We believe the solid growth demonstrates the effective implementation of our PBS system in lower-tier cities. We dedicated our efforts particularly to class retention rate, with a notable rise in the quality of classroom content and a strong team of teachers. This productive approach helped us grow market shares in lower-tiered cities."
Looking forward, Sha added, "We will stay focused on our plans to further develop Puxin Online School and continue acquiring new schools. Overall, we are particularly pleased to have narrowed our loss while achieving such solid top-line growth in the first half of 2019. We are excited and confident about our future growth in the education market in China."
In the third quarter, the company said it expects to generate revenue of between 937.5 million yuan and 971.0 million yuan, which represents an increase of between 40 and 45 percent year-over-year.