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Did Ata Creativity beat or miss consensus estimates last quarter?

- **Revenue Stability with Growth Drivers**: Q3 2025 net revenue held steady at RMB 67.3 million, while 9-month revenue rose 7.1% to RMB 179 million, fueled by research-based learning and overseas study counseling.
- **Margin Pressure and Cost Control**: Gross margin dipped to 39.2% (from 44.6%), but operating expenses fell 22.4% to RMB 37 million, narrowing the net loss to RMB 2.4 million.
- **Strategic Expansion**: Project-based programs saw 22.9% credit hour growth, with new online Master Classes and fashion week partnerships enhancing student engagement and outcomes.
- **Operational Efficiency**: Streamlined operations and campus consolidation in slower markets are balancing expansion with cost management for sustainable growth.

**【CFO Financial Commentary】**
- **Q3 2025 Financial Highlights**: Total net revenue was RMB 67.3 million, stable compared to Q3 2024, with a 7.1% year-over-year increase in 9-month 2025 revenue to RMB 179 million. Gross profit was RMB 26.4 million (39.2% gross margin), down from 44.6% in Q3 2024 due to higher outsourcing and part-time teacher costs. Operating expenses decreased 22.4% to RMB 37 million, driven by lower sales and administrative costs. Net loss narrowed to RMB 2.4 million (vs. RMB 14.7 million in Q3 2024), with a 10.6 million operating loss improvement.

**【CEO (Jun Zhang) Strategy Update】**
- **Project-Based Growth**: Credit hours for project-based programs increased 22.9% year-over-year, accounting for 80% of total credit hours. New initiatives include online Master Classes with Carnegie Mellon, Harvard, and Royal College of Art, focusing on emerging art topics like digital media and user experience design. Strategic campus consolidation in less active markets is underway, alongside online classroom expansion to support digital-first learning trends.

**【Operational & Financial Outlook】**
- Full-year 2025 revenue guidance: RMB 2276-281 million (3-5% YoY growth), driven by portfolio training and new program introductions. Gross margin challenges persist due to cost pressures, but operating efficiency improvements (e.g., 34.9% expense-to-revenue ratio in Q3 2025 vs. 7.9% in Q3 2024) highlight cost control progress.

ATA Creativity Global(AACG)-20251113-2025 Q3 Earnings call transcript

- **Revenue Surges 8% YoY**: Driven by overseas study counseling and research-based learning services.
- **Gross Margin Expansion**: Improved to 50.6%, with operating expenses down 9.4% YoY.
- **Student Success**: 4,000+ university offers, including top art schools globally.
- **Strategic Growth**: Expanding project-based programs and international partnerships in South Korea, Europe, and Singapore.
- **Profitability**: Net loss narrowed by 35% YoY, with cost management initiatives reducing expenses.

**【CFO Financial Highlights】**
- **Revenue Growth**: Q2 2025 net revenues reached RMB 55.9 million, up 8% YoY, driven by 54.2% growth in overseas study counseling and research-based learning services.
- **Gross Profit**: Improved to RMB 28.3 million (10.2% YoY increase), with gross margin rising to 50.6% from 49.6%.
- **Cost Efficiency**: Operating expenses decreased 9.4% YoY to RMB 42.1 million, with sales incentives and R&D costs reduced by RMB 2.6 million and RMB 0.3 million, respectively.
- **Net Loss Narrowing**: Q2 net loss narrowed to RMB 10.8 million (from RMB 16.8 million YoY), reflecting improved revenue-cost dynamics.

**【President Jun Zhang's Strategic Update】**
- **Project-Based Growth**: Project-based programs now account for 76.7% of credit hours, up 25.7% YoY, due to flexible, customizable tracks meeting diverse student needs.
- **International Expansion**: Expanded partnerships in South Korea, Northern Europe, and Singapore, with new programs like the Harvard University Studio for Electroacoustic Composition.
- **Cost Management**: Implemented lean sales teams and online group classes, reducing operating expenses while maintaining quality.
- **Student Outcomes**: 4,000+ university offers secured, including top-tier institutions like Cornell, RISD, and Royal College of Art.

**【2025 Full-Year Outlook】**
- **Revenue Guidance**: RMB 276-281 million (3-5% YoY growth), driven by portfolio training and new interdisciplinary programs.
- **Operational Focus**: Continued investment in research-based learning, international partnerships, and cost-efficient marketing channels.

ATA Creativity Global (AACG) Q2 2025 Earnings Call Transcript

- **15.9% Revenue Growth**: Driven by 11.5% rise in portfolio training and 28% expansion in research-based services.
- **Student Success**: 100+ students participated in premium projects, securing top art school admissions.
- **Financial Efficiency**: 45.5% gross margin maintained, 26% YoY reduction in net loss.
- **Strategic Expansion**: 2025 pipeline includes global projects in Europe, Japan, and Southeast Asia.
- **FY2025 Outlook**: 3-5% revenue growth with focus on operational efficiency and margin stability.

**【CEO Key Highlights】**
- **Revenue Growth**: Q1 2025 net revenue increased 15.9% YoY to RMB55.8 million, driven by portfolio training (11.5% growth) and research-based learning services (+28%).
- **Student Outcomes**: 100+ students participated in in-person projects like Hainan camps and Milan Fashion Week. Notable admissions include Ivy League schools and top art institutions.
- **Industry Recognition**: Awarded 2025 Forbes China 'Studying Abroad Leading Brand' for second consecutive year.

**【CFO Financial Summary】**
- **Gross Profit**: RMB25.4 million (+15.9% YoY), maintaining 45.5% gross margin.
- **Cost Efficiency**: Operating expenses decreased 3.2% YoY to RMB42.2 million, with 75.6% of revenue allocated to expenses vs. 90.6% prior year.
- **Net Loss**: RMB13.3 million (-26% YoY), reflecting improved profitability.
- **Balance Sheet**: RMB39.4 million cash, total assets RMB457.3 million.

**【President’s Growth Strategy】**
- **2025 Pipeline**: Q2 projects include Cannes Film Festival tours and online Master Classes in digital media and jewelry design.
- **Market Expansion**: Strengthening partnerships in Europe, Japan, and Southeast Asia to diversify study abroad destinations.
- **Operational Focus**: Allocating marketing to high-performing campuses and optimizing project-based programs for efficiency.

**【FY2025 Guidance】**
- **Revenue Outlook**: RMB276-281 million (+3-5% YoY), driven by portfolio training and research-based services.
- **Margin Target**: Aiming for stable gross margin with improved expense management.


ATA Creativity Global (AACG) Q1 2025 Earnings Call Transcript

- **Q4 Revenue Boom**: 20.7% YoY jump to RMB109 million, fueled by portfolio training and overseas study services.
- **2025 Growth Outlook**: 3-5% revenue growth target, with focus on high-demand portfolio training and new market expansion.
- **Strategic Initiatives**: Opening Japan and London centers, launching AI training camps, and exploring M&A to enhance service offerings.
- **Operational Efficiency**: Discontinuation of junior art services reduced costs, improving gross margin to 63.1% in Q4.

**【CEO Key Highlights】**
- Q4 2024 net revenue surged 20.7% YoY to RMB109 million, driven by portfolio training and research-based learning services.
- Full year 2024 net revenue grew 21% to RMB268.1 million, exceeding high-end of guidance, with gross profit up 23.2%.
- Student enrollment rose 15.8% YoY, with portfolio training enrollment up 12.9% and other programs up 20.2%.
- Discontinued junior art services to optimize operational efficiency, reducing GM&A expenses.

**【CFO Financial Breakdown】**
- Q4 2024 gross margin improved to 63.1% (vs. 62.6% prior year), despite higher teaching staff costs.
- Operating expenses grew 8% YoY to RMB46.8 million, driven by 6.8% increase in sales & marketing.
- Full year 2025 revenue guidance: RMB276-281 million (3-5% YoY growth), focused on portfolio training expansion.

**【President’s Growth Strategy】**
- Launching high-margin project-based programs (e.g., Japan Center, London Center) to diversify revenue streams.
- Introducing innovative research-based learning experiences (e.g., AI training camps, environmental art camps).
- Exploring M&A opportunities to expand creative arts education product portfolio.
- Expanding geographic footprint in China, Japan, UK, and US with localized services (e.g., language training, portfolio preparation).

ATA Creativity Global (AACG) Q4 2024 Earnings Call Transcript

ATA Creativity Global (AACG)-8 Nov 24-2024 Q3 Earnings call transcript

ATA Creativity Global (AACG)-8 Aug 24-2024 Q2 Earnings call transcript

ATA Creativity Global (AACG)-15 May 24-2024 Q1 Earnings call transcript

ATA Creativity Global (AACG)-27 Mar 24-2023 Q4 Earnings call transcript

ATA Creativity Global (AACG)-14 Nov 23-2023 Q3 Earnings call transcript

ATA Creativity Global (AACG)-10 Aug 23-2023 Q2 Earnings call transcript

ATA Creativity Global (AACG)-30 Mar 23-2022 Q4 Earnings call transcript

ATA Creativity Global (AACG)-1 Dec 22-2022 Q3 Earnings call transcript

ATA Creativity Global (AACG)-13 Aug 22-2022 Q2 Earnings call transcript

ATA Creativity Global (AACG)-14 May 22-2022 Q1 Earnings call transcript

ATA Creativity Global (AACG)-18 Mar 22-2021 Q4 Earnings call transcript

ATA Creativity Global (AACG)-13 Aug 21-2021 Q2 Earnings call transcript

ATA Creativity Global (AACG)-14 May 21-2021 Q1 Earnings call transcript

ATA Creativity Global (AACG)-30 Mar 21-2020 Q4 Earnings call transcript

- **Financial Recovery**: Q3 2020 net income turned positive at RMB19.3 million, up from a net loss in Q3 2019, supported by strategic investment gains.
- **Operational Flexibility**: 58.2% sequential growth in credit hours, leveraging a hybrid online/in-person model to maintain student enrollment despite pandemic.
- **Digital Expansion**: Launched new online programs, including internships with global firms, to diversify revenue streams amid travel restrictions.
- **Financial Stability**: $16.5 million cash reserves and active share buyback program reflect strong liquidity and investor confidence.

**【CFO Financial Commentary】**
- **Net Revenues**: Q3 2020: RMB42.2 million (YoY +3.9%), including a PPA adjustment decrease of RMB6 million. Excluding PPA, gross margin was 45.2% vs. 35.9% YoY.
- **Net Income**: Q3 2020: RMB19.3 million (vs. Q3 2019 net loss of RMB25.2 million), driven by a one-time gain of RMB34.1 million from a strategic investment.
- **Cash Position**: RMB16.5 million in cash and cash equivalents as of Sep 30, 2020. Share buyback program repurchased 450,337 ADS at an average price of $1.2631.

**【CEO Summary Section】**
- **Operational Resilience**: 58.2% sequential increase in portfolio training credit hours (Q3 vs. Q2), reflecting resumption of in-person classes and strong online engagement.
- **Digital Transformation**: Expanded online offerings, including short-term boot camps and internships with global firms, to adapt to pandemic restrictions.
- **Financial Strength**: Solid cash reserves and improved operational efficiency, positioning for future growth despite ongoing pandemic challenges.

**【President's Remarks】**
- **Enrollment Growth**: Portfolio training enrollment increased 50% sequentially, with credit hours up 58.2%, driven by hybrid learning model.
- **Market Adaptation**: Shifted focus to online marketing and resource sharing between campuses, maintaining student engagement amid travel restrictions.
- **Partnership Expansion**: Collaborated with overseas institutions to offer alternatives to traditional travel programs, such as online courses and virtual internships.

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