The stock in Four Seasons Education (Cayman) Inc. (NYSE: FEDU) down 9.97% to $1 per American depositary share on Tuesday after the company announced weaker revenue for the third quarter fiscal year 2021.
The Shanghai-based after-school education provider said in a statement today that revenue in the three months through November reached $10.3 million, a decrease of 34.69% year-over-year. Net loss was $1.3 million compared with a net income at $1.75 million for the corresponding period in the previous year.
Four Seasons attributed the revenue decline to regulatory policy and the extended impact of Covid-19.
“During the third quarter of fiscal 2021, we continued to optimize our operations to provide a superior learning experience for our students in their pursuit of both academic excellence and personal development,” Yi Zuo, the chief executive officer and director of Four Seasons said in a statement today.
She added, “we will continue strengthening our brand educational products and teaching approaches to further drive student enrollment and engagement, paving the way for a future of profitable growth. We are confident that our ability to provide state-of-the-art courses and services has positioned us to capture new opportunities in a recovering market and create a sustainable business in the long run.”
Going forward, the company expects to generate revenue in the range of 64 million yuan to 67.5 million yuan in the fourth quarter of fiscal 2021.
Though focused primarily on mathematics, Four Seasons also provides courses in subjects such as physics, chemistry and language learning to K-12 students.
As of August, the company had 53,493 students enrolled in its programs.