Gaotu loses 3.1 billion after transformation

Gaotu loses 3.1 billion after transformation

Online tutoring service provider Gaotu posted revenue of 6.6 billion yuan (US$990 million) last year, down 7.9 percent. The net loss was 3.1 billion yuan, well over double the losses made in 2020.

In 2021, K12 online subject training was the main revenue source for Gaotu, bringing in 6 billion yuan, down 3.8 percent, and 91 percent of the total. The drop was due to a 49.7 percent decrease in student numbers.

At the end of 2021, Gaotu stopped K9 off-campus tutoring. Two months later, off-campus tutoring for high-school subjects also stopped. Adult and vocational classes then became the main direction of Gaotu, with revenue of only 561 million yuan. Enrollments declined from 442,000 in 2020 to 302,000 last year.

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