Chinese online tutoring company 17 Education & Technology Group posted widening losses in the fourth quarter of 2020, even though its revenue hit a record high during the period.
In the three months through December, 17 Education & Technology reported a net loss of 365.1 million yuan ($55.9 million), compared with a 177.7 million yuan loss in the same period of 2019, according to its latest financial report.
The widening losses came as the company’s spending on marketing, R&D and administration jumped 74.5%, 49.4% and 634.1% year-on-year respectively.
In the final quarter of last year, 17 Education & Technology’s revenue recorded 486.8 million yuan, up 153.1% year-on-year, about 96% of which came from sales of its online K-12 courses, which climbed 163.5% year-on-year to 467.5 million yuan.
The number of paid students enrolled in 17 Education & Technology’s courses grew 165.2% year-on-year in the fourth quarter to 849,000, the financial report showed.
For the current quarter, the company said that it expects its revenue to be between 458 million yuan and 470 billion yuan, representing a year-on-year increase of between 100% and 105.2%.
Contact reporter Ding Yi (firstname.lastname@example.org)