ATA Creativity Global's Q1 2025: Key Contradictions in Revenue Strategy, AI Integration, and Student Enrollment

Revenue growth strategy and service expansion, AI integration and operational efficiency, revenue growth drivers, operating expenses growth, and student demand/enrollment growth are the key contradictions discussed in ATA Creativity Global's latest 2025Q1 earnings call.



Revenue and Profitability Increase:
- ATA Creativity Global reported RMB55.8 million in net revenues for Q1 2025, up 15.9% from the prior year, with a gross profit increase of 15.9% to RMB25.4 million.
- The growth was driven by increased contributions from portfolio training and research-based learning services, which delivered more services and hosted an increased number of research-based learning experiences.

Portfolio Training and Research-Based Learning Growth:
- Portfolio training programs accounted for 11.5% growth in revenue, with total credit hours delivered increasing by 5.8%.
- Combined revenues from research-based learning and other educational services increased by more than 28%, contributing nearly 30% of total net revenues.
- This was due to increased demand and the expansion of services, such as in-person and online research-based learning projects and portfolio training programs.

Operating Expense Reduction:
- Total operating expenses decreased slightly to RMB42.2 million, representing 75.6% of net revenue, down from 90.6% in the prior year.
- This reduction was attributed to a decrease in selling and research and development expenses, as well as increased general and administrative expenses related to new project development.

Student Admissions and Awards:
- ACG students received numerous admissions from prestigious overseas institutions, including major Ivy League schools and top art schools.
- In March 2025, ACG was awarded the 2025 Forbes China Studying Abroad leading brand, recognized for generating positive outcomes for students studying arts abroad.
- This success was due to the quality of the company's programs and services, which resulted in high admission rates and positive industry recognition.