Blue Whale Education, December 7, 2022, a few days ago, the US listed vocational education company Wang Dao Technology released its 2022 fiscal year semi-annual report for September 30, 2021.
In the six months during the reporting period, Wang Dao Technology recorded revenue of $11.9 million, compared with $15.3 million in the same period last year, down 23%, mainly due to the decline in the training demand of workers in rural areas, which led to a decline in the total number of paid members.
Profit also fell year-on-year. During the reporting period, Wangdao Technology's gross profit was US$3.6 million, compared to US$8.5 million in the same period last year, a decrease of 58%. This was primarily due to the combined impact of the company's shift of target customers to vocational school students, increasing the cost of courseware, software copyrights, and virtual simulations, resulting in reduced revenue and increased revenue costs.
Gross margin was 30%, compared to 55% in the year-ago quarter. The main reason is that the cost of platform upgrades and curriculum enrichment has not achieved the expected expansion of the customer base.
During the reporting period, Wang Dao Technology achieved a net loss of US$43,300, compared with a net profit of US$4.4 million in the same period last year. According to the financial report, the conversion from profit to loss was mainly due to lower income, higher cost of income and higher general and administrative expenses.
Operating expenses increased 27% to $3 million from $2.4 million in the year-ago quarter. Its basic and diluted earnings per share were $0.00, compared to $0.44 for the year-ago quarter.
During the reporting period, the total number of paid members of WangDao Technology was 1.1 million, compared with 3.3 million in the same period last year, down 68%. The decrease is mainly due to the reduced training needs of the rural workforce as a result of urbanization and the unsatisfactory acquisition of new clients for vocational school students. Members are more interested in mobile live and short video training courses than the PC courses offered by the company.
This article originated from Blue Whale Finance
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