Can school users be successfully converted into paying users of online schools, and whether there is still a chance to explore a feasible business model in the school entry model.
It was learned that an educational technology company submitted a prospectus to the US SEC last night, intending to be listed on the Nasdaq. The stock code is “YQ”, and the underwriters are Morgan Stanley, Goldman Sachs and Bank of America Securities.
The prospectus shows that in the first three quarters of 2020, Yiyi Education Technology will have a revenue of 807 million yuan and a net loss of 975 million yuan; 2019 revenue of 406 million yuan and a net loss of 964 million yuan; 2018 revenue of 311 million yuan and a net loss of 6.56 In terms of cash flow, the net outflow of cash flow from operating activities in 2018 was 419 million yuan, the net outflow in 2019 was 631 million yuan, and the net outflow in the first three quarters of 2020 was 526 million yuan.
Among them, K12 online school is the fastest growing segment of education technology revenue. In 2018, 2019, and the first three quarters of 2020, online school revenue was 93.883 million, 360 million, and 751 million, respectively, accounting for total revenue Increased from 30% to 93%.
Yiyi Education Technology was established in 2011 and is one of the first companies to provide online education learning tools, positioning learning products that complement public school education scenarios. According to the data provided by Yiyi Education Technology: Yijiajie provides teaching, learning and evaluation applications to more than 900,000 teachers, 54.3 million students, and 45.2 million parents nationwide. It currently serves 7 nationwide Ten thousand schools, covering one-third of public primary and secondary schools in the country.
Although there are enough users accumulated, in the past 10 years when the awareness of paying for the product was low, the educational content and tools that worked together did not generate considerable income; However, after the ban on the “Notice on Prohibiting Harmful Apps from Entering Primary and Secondary Schools” in 2018, the entry threshold and monetization methods of APP have been squeezed.
After the preliminary verification of the double-normal large class model in 2017, educational technology has also joined the battle for market value of 100 billion large classes. This year, the competition in the online school industry has become increasingly fierce. The fund reserves of the first echelon exceed 10 billion, and the number of regular-price classes exceeds 2 million. The second echelon companies have a slim chance of overtaking under the premise of serious homogeneity. .
The question to test educational technology is whether school users can be successfully converted into online school paying users, and,Is there any chance to explore a viable business model in the school entering model?