The stock in Ambow Education Holding Ltd. (NYSE: AMBO) plummeted nearly 8% to $1.90 per American depositary share on it reporting weak revenue in the first quarter.
The Beijing-based education provider said in a statement today that in the three months through March that its revenue tanked to $12.7 million, down 28% year-over-year. Ambow attributed the decrease in the period to “fewer” services provided at its K-12 tutoring services and schools, as the pandemic caused a shutdown.
However, it did manage to turn profitable, posting a net income of $800,000, in contrast to a net loss of $3.5 million in the period in the preceding year.
"The outbreak of COVID-19 since the beginning of this year has adversely impacted the entire education industry,” Jin Huang, the president, and chief executive officer of Ambow, said in a statement today.
He added, “Our first quarter 2020 revenue performance was negatively impacted as a result of the suspension of our K-12 schools and offline tutoring services due to quarantine measures.
In some positive light, Ambow said its schools reopened in April, but did not provide guidance for the second quarter. In the first quarter, Ambow added a San Diego-headquartered “higher learning” institution, called the NewSchool of Architecture and Design, LLC to its international pipeline.
“We are confident in our ability to navigate through the dynamic markets and capitalize on the elevated opportunities presented by the accelerated adoption of online education around the world,” Huang said today.
Established in 2001, Ambow provides K-12 education services, including online and internationally. According to Ambow, it operates tutoring centers in Beijing, Jiangsu, Gansu, Hunan, and other provinces in China.
Shares of Ambow are down nearly 10% year-to-date.