Bright Scholar Education (BEDU) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 revenue was RMB 1,755.2 million, nearly flat year-over-year, with Overseas Schools revenue up 17.5% and gross profit up 7.7%.

• Adjusted net income turned positive at RMB 1.1 million, compared to an adjusted net loss of RMB 192.6 million last year.

• Strategic focus on expanding overseas business, global recruitment, and optimizing cost structure, including a 16% reduction in overseas headquarters headcount.

• Completed divestiture of all non-core business in Complementary Education Services and continued strategic divestment in Domestic Kindergartens & K-12.

• Enhanced senior leadership team to support expansion and curriculum reform in key overseas schools.

Financial highlights

• Total revenue for fiscal year 2024 was RMB 1,755.2 million, nearly flat year-over-year; gross profit increased by 7.7% to RMB 503.6 million.

• Overseas Schools' revenue grew 17.5% year-over-year to RMB 951.2 million, accounting for 54.2% of total revenue.

• Gross margin improved by 2.3 percentage points to 28.7%; adjusted EBITDA rose 44.1% to RMB 80.7 million.

• Adjusted net income was RMB 1.1 million for the fiscal year, compared to an adjusted net loss of RMB 192.6 million last year.

• Cash and cash equivalents and restricted cash increased by 20% to RMB 505.8 million as of August 31, 2024.

Outlook and guidance

• Plans to reinforce the "dual-engine" growth strategy by expanding overseas school business and global recruitment initiatives.

• Aims to further enhance operational efficiency and profitability in fiscal year 2025.

• Confident in capturing growth opportunities in overseas markets and strengthening market share.