Yijia Education 2020 financial report: net income is 1.29 billion yuan, an increase of 219% year-on-year; marketing expenses are nearly 1.1 billion, operating loss is 1.3 billion, an increase of 33%

K12 tutoring income contributes 91%, and the proportion is increasing. The sales of online courses that year were 1.65 billion yuan, an increase of 203% year-on-year. \x0a But in the profit model (cost compared with net income) is still in a high loss state.

Editor’s note: This article is from the micro-channel public number “Edu Guide” (ID: EduZhiNan), Author: Edu Guide.

On March 8, online education company Together Education announced its 2020 financial results. This is the first fiscal year report of an education company after it went public on NASDAQ in December 2020.

The financial report shows a net income of 1.29 billion yuan in 2020. This net income data is a horizontal comparison of industry “competitions”. It is 20.8% of another listed online education company, GSX, and 40.6% of NetEase Youdao.

Vertical comparison of the net income of the education company in 2019, 410 million yuan, a year-on-year increase of 219%. The growth rate has also changed significantly compared with the growth rate of 2019 year-on-year in 2018, from double digits to 3 digits. This is the accelerated progress of an education company from online learning free tools to the commercialization of k12 online schools.

Yiyi Education’s current income structure mainly contributes to the k12 online school. In 2020, the k12 tutoring service income is 1.22 billion yuan, accounting for 94% of the net income. Other education services contributed 76 million yuan, accounting for 6% of net income. In 2019, together education k12 online tutoring contributed 360 million yuan in net income, accounting for 89%. It can be seen that k12 online tutoring has become the core business of Yi Education, and its proportion is still increasing.

In addition to the net income included in the current year’s financial report, let’s look at the actual sales of k12 online courses in 2020. In 2020, the total bill for k12 tutoring services of an education company was 1.65 billion yuan, a year-on-year sales of 550 million yuan in online courses, an increase of 203%.

In addition to revenue data, let’s look at cost performance. In 2020, the operating cost of education is 496 million yuan, and the gross profit is 799 million yuan.

Thanks to the improving operating cost structure, the gross profit margin of Yiedu Education Co., Ltd. in 2020 is 61.7%, which is a certain increase compared to 57.3% in 2019.

In addition to the optimization of the operating cost structure, operating costs with marketing, sales, and administration as the main expenditures have also improved, and the proportion of costs in the net income of the year has decreased.

In terms of marketing expenses, the data of Yi Education in 2020 is 1.1 billion yuan, accounting for 85% of net income. Marketing expenses accounted for 144% of net income for the year in 2019, a decrease. Compared with similar data of NetEase Youdao in 2020 (NetEase Youdao 2020: marketing expenses/net income = 84.3%).

In terms of research and development costs, the cost of research and development in 2020 will account for 48% of the net income of the year, which is 121% compared with the same period in 2019, which is a significant contraction.

From the overall point of view of operating profit loss, Yicheng Education’s operating loss in 2020 is 1.3 billion yuan, accounting for 103% of net income. In absolute terms, operating loss has increased by 33% year-on-year.

In 2019, the operating loss of an education company accounted for 246% of the net income of the year, and the net income of the year was 410 million.Yuan and an operating loss of 1 billion yuan. To a certain extent, the education company has reduced its loss in 2020. But it is still in a model with significant losses.

If the company can still maintain the current revenue growth rate, but cannot continue to reduce marketing and sales costs and other operating and operating costs, and get rid of (compared to revenue at this stage) “high cost expenditure, much higher than revenue loss model”, Or something that is not easy.

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