“The K12 market is an important driving force for us in 2020.”
After the US stock market on March 12, “AI + Education” listed company Fluent said (LAIX.US) announced the fourth quarter of 2019 And annual financial results.
According to the financial report, as of December 31, 2019, Fluent said that net revenue in the fourth quarter was 231.4 million yuan (RMB, the same below), an increase of 3.1% year-on-year, and the market is expected to be 252 million yuan. It is said that it recorded a net revenue of 1.0232 billion yuan, 60.6% year-on-year; the net revenue for the full year of 2018 was 637.2 million yuan.
Data source: Financial report Mapping:
In the fourth quarter of 2019, Fluent said that the net loss was 205.6 million yuan, compared with 163.4 million yuan in the same period last year; the adjusted net loss was 202.3 million yuan, compared with 157 million yuan in the same period last year. At the same time, for the full year of 2019, Fluent said that the net loss reached 574.8 million yuan, and the net loss for the full year of 2018 was 488.1 million yuan. .
In terms of operating expenses, in the fourth quarter of 2019, Luolis’ overall operating expenses amounted to 367.7 million yuan, an increase of 17.6% year-on-year, and 312.5 million yuan in the same period last year. Looking at the whole year, the overall operating expenses of Fluent said amounted to 1.368 billion yuan, a year-on-year increase of 444.4%. Liuli said in the financial report that the increase in operating expenses was mainly due to business growth, the development and introduction of new products, and the costs associated with expanding the company’s user base.
Of the operating expenses fluently mentioned, sales and marketing expenses, as well as research and development expenses, account for the majority. In the fourth quarter of 2019, its sales and marketing expenses were 266.9 million yuan, an increase of 10.4% year-on-year, and 241.7 million yuan in the same period of 2018. However, Fluent said that it has shown a trend towards greater efficiency in sales and marketing expenses.
At present, the main products of fluent speaking include fluent speaking English, fluent reading, fluent speaking IELTS, fluent speaking children’s English and so on. The financial report shows that in the fourth quarter of 2019, about 700,000 paying users purchased the company’s courses and services, compared with 1 million in the same period last year. As of December 31, 2019, the total number of registered users was 161.6 million, compared with 110.3 million in the same period last year.
While cultivating adult English learning and education, Fluent said that it will further extend its business reach to the K12 market. In the financial report, it stated that “K12 market is an important driving force for us in 2020”.
Unlike most other industries, the online education industry has maintained strong growth during the epidemic. In this regard, Fluent said that thanks to the online business model, the impact of the epidemic on operational and financial performance will be very limited.
For the first quarter of 2020, Fluent said that it expects net revenue to be between 190 million yuan and 210 million yuan, a decrease of approximately 17.1% from the same period last year of 253.3 million to 25.0% .