RYB Reports Results Below Guidance During Low Season
The early education provider posted increased revenue and narrowed losses for the third quarter, but the results were still lower than expected.
RYB Education Inc. (NYSE: RYB), which provides early education in China, announced its unaudited financial results for the third quarter, sending its stock 4 cents lower on Wednesday, to $6.07 per American depositary share.
RYB reported its revenue rose 24% to $43.7 million in the three months through September, compared with $35.3 million for the third quarter of 2018. The company attributed the growth to the increase in tuition fees, as well as the growing number of students enrolled, which was 30,184 as of September 30, 2019, compared with 23,010 a year ago.
Typically, the third quarter is a low season for China's education providers. So, despite the strong performance of RYB's kindergartens, the company's net revenue in the third quarter was still slightly lower than expected, as reported by BJ News.
Net loss attributable to ordinary shareholders of RYB for the third quarter was $3.3 million compared with $4.3 million a year ago.
The company said its operating expenses for the first nine months of 2019 were $20 million compared with $20.6 million for the same period last year.
Hao Gu, the chief financial officer of RYB Education said in a statement today, "Looking ahead, we will continue to strike a balance between stable growth and improved profitability, by practicing disciplined cost management while still making sound investments that will lead the way to our long-term vision."