{"id":6823,"date":"2024-08-01T16:18:49","date_gmt":"2024-08-01T09:18:49","guid":{"rendered":"https:\/\/thaipropertynews.com\/feeds\/?p=6823"},"modified":"2024-08-01T16:18:49","modified_gmt":"2024-08-01T09:18:49","slug":"tal-education-group-announces-unaudited-financial-results-for-the-first-fiscal-quarter-ended-may-31-2024","status":"publish","type":"post","link":"https:\/\/thaipropertynews.com\/feeds\/?p=6823","title":{"rendered":"TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2024"},"content":{"rendered":"

BEIJING<\/span><\/span>, Aug. 1, 2024<\/span><\/span> \/PRNewswire\/ — TAL Education Group (NYSE: TAL) (“TAL” or the “Company”), a smart learning solutions provider in China<\/span>, today announced its unaudited financial results for the first quarter of fiscal year 2025 ended May 31, 2024<\/span>.<\/p>\n

Highlights for the First Quarter of Fiscal Year 2025<\/p>\n

Net revenues were US$414.2 million<\/span>, compared to net revenues of US$275.4 million<\/span> in the same period of the prior year. Loss from operations was US$17.3 million<\/span>, compared to loss from operations of US$57.8 million<\/span> in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$0.9 million<\/span>, compared to non-GAAP loss from operations of US$32.3 million<\/span> in the same period of the prior year. Net income attributable to TAL was US$11.4 million<\/span>, compared to net loss attributable to TAL of US$45.0 million<\/span> in the same period of the prior year. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$29.6 million<\/span>, compared to non-GAAP net loss attributable to TAL of US$19.5 million<\/span> in the same period of the prior year. Basic and diluted net income per American Depositary Share (“ADS”) were both US$0.02<\/span>. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.05<\/span>. Three ADSs represent one Class A common share. Cash, cash equivalents and short-term investments totaled US$3,418.6 million<\/span> as of May 31, 2024<\/span>, compared to US$3,303.3 million<\/span> as of February 29, 2024<\/span>. <\/p>\n

\u00a0<\/p>\n

Financial Data\u2014\u2014First Quarter of Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)<\/p>\n

\n

Three Months Ended
May 31,<\/span><\/p>\n

<\/p>\n

2023<\/span><\/p>\n

2024<\/span><\/p>\n

Pct.\u00a0Change<\/span><\/p>\n

Net revenues<\/span><\/p>\n

275,440<\/span><\/p>\n

414,187<\/span><\/p>\n

50.4\u00a0%<\/span><\/p>\n

Loss from operations<\/span><\/p>\n

(57,773)<\/span><\/p>\n

(17,330)<\/span><\/p>\n

(70.0\u00a0%)<\/span><\/p>\n

Non-GAAP (loss)\/income from operations<\/span><\/p>\n

(32,260)<\/span><\/p>\n

876<\/span><\/p>\n

(102.7\u00a0%)<\/span><\/p>\n

Net (loss)\/income attributable to TAL<\/span><\/p>\n

(45,037)<\/span><\/p>\n

11,402<\/span><\/p>\n

(125.3\u00a0%)<\/span><\/p>\n

Non-GAAP net (loss)\/income attributable to
TAL<\/span><\/p>\n

(19,524)<\/span><\/p>\n

29,608<\/span><\/p>\n

(251.6\u00a0%)<\/span><\/p>\n

Net (loss)\/income per ADS attributable to
TAL \u2013 basic<\/span><\/p>\n

(0.07)<\/span><\/p>\n

0.02<\/span><\/p>\n

(126.5\u00a0%)<\/span><\/p>\n

Net (loss)\/income per ADS attributable to
TAL \u2013 diluted<\/span><\/p>\n

(0.07)<\/span><\/p>\n

0.02<\/span><\/p>\n

(126.0\u00a0%)<\/span><\/p>\n

Non-GAAP net (loss)\/income per ADS
attributable to TAL \u2013 basic<\/span><\/p>\n

(0.03)<\/span><\/p>\n

0.05<\/span><\/p>\n

(259.0\u00a0%)<\/span><\/p>\n

Non-GAAP net (loss)\/income per ADS
attributable to TAL \u2013 diluted<\/span><\/p>\n

(0.03)<\/span><\/p>\n

0.05<\/span><\/p>\n

(256.0\u00a0%)<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

“In this quarter, our core focus remains on delivering quality products and managing our online and offline operational efficiency to serve learners effectively,” said Alex\u00a0Peng, TAL’s President and Chief Financial Officer.<\/p>\n

Mr. Peng added, “Looking forward, we will make ongoing investments to provide our users with quality learning experiences. Our product capabilities, combined with our operational efficiency, positions us to capitalize on market opportunities and deliver long-term value to our customers.”<\/p>\n

Financial Results for the First Quarter of Fiscal Year 2025<\/p>\n

Net Revenues<\/p>\n

In the first quarter of fiscal year 2025, TAL reported net revenues of US$414.2 million<\/span>, representing a 50.4% increase from US$275.4 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Operating Costs and Expenses<\/p>\n

In the first quarter of fiscal year 2025, operating costs and expenses were US$432.1 million<\/span>, representing a 26.3% increase from US$342.1 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$413.9 million<\/span>, representing a 30.7% increase from US$316.6 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Cost of revenues increased by 43.4% to US$200.0 million<\/span> from US$139.5 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 44.2% to US$197.6 million<\/span>, from US$137.1 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Selling and marketing expenses increased by 25.4% to US$122.4 million<\/span> from US$97.7 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 30.8% to US$118.1 million<\/span>, from US$90.2 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

General and administrative expenses increased by 4.5% to US$109.7 million<\/span> from US$104.9 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 10.0% to US$98.2 million<\/span>, from US$89.2 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 28.6% to US$18.2 million<\/span> in the first quarter of fiscal year 2025 from US$25.5 million<\/span> in the same period of fiscal year 2024.<\/p>\n

Gross Profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/p>\n

Gross profit increased by 57.6% to US$214.2 million<\/span> from US$135.9 million<\/span> in the first quarter of fiscal year 2024. The gross margin for the first quarter of fiscal year 2025 was 51.7%, compared to 49.3% in the same period of the prior year.<\/p>\n

Loss from Operations<\/p>\n

Loss from operations was US$17.3 million<\/span> in the first quarter of fiscal year 2025, compared to loss from operations of US$57.8 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP income\u00a0from operations, which excluded share-based compensation expenses, was US$0.9 million<\/span>, compared to Non-GAAP loss from operations of US$32.3 million<\/span> in the same period of the prior year.<\/p>\n

Other (Expense)\/Income <\/p>\n

Other income\u00a0was US$13.2 million<\/span> for the first quarter of fiscal year 2025, compared to other expense\u00a0of US$6.8 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Impairment Loss on Long-term Investments<\/p>\n

Impairment loss on long-term investment was US$3.8 million<\/span> for the first quarter of fiscal year 2025, compared to nil for the first quarter of fiscal year 2024.<\/p>\n

Income Tax Expense<\/p>\n

Income tax expense was US$2.3 million<\/span> in the first quarter of fiscal year 2025, compared to US$3.5 million<\/span> of income tax expense in the first quarter of fiscal year 2024.<\/p>\n

Net (Loss)\/Income Attributable to TAL Education Group<\/p>\n

Net income attributable to TAL was US$11.4 million<\/span> in the first quarter of fiscal year 2025, compared to net loss attributable to TAL of US$45.0 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$29.6 million<\/span>, compared to Non-GAAP net loss attributable to TAL of US$19.5 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Basic and Diluted Net (Loss)\/Income per ADS<\/p>\n

Basic and diluted net income per ADS were both US$0.02<\/span> in the first quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.05<\/span> in the first quarter of fiscal year 2025.<\/p>\n

Cash Flow\u00a0 <\/p>\n

Net cash provided by operating activities for the first quarter of fiscal year 2025 was US$246.8 million<\/span>.<\/p>\n

Cash, Cash Equivalents, and Short-Term Investments<\/p>\n

As of May 31, 2024<\/span>, the Company had US$2,222.6 million<\/span> of cash and cash equivalents and US$1,196.0 million<\/span> of short-term investments, compared to US$2,208.7 million<\/span> of cash and cash equivalents and US$1,094.6 million<\/span> of short-term investments as of February 29, 2024<\/span>.<\/p>\n

Deferred Revenue<\/p>\n

As of May 31, 2024<\/span>, the Company’s deferred revenue balance was US$641.9 million<\/span>, compared to US$428.3 million<\/span> as of February 29, 2024<\/span>.<\/p>\n

Conference Call<\/p>\n

The Company will host a conference call and live webcast to discuss its financial results for the first fiscal quarter of fiscal year 2025 ended May 31, 2024<\/span> at 8:00 a.m. Eastern Time<\/span> on August 1, 2024<\/span> (8:00 p.m.<\/span> Beijing<\/span> time on August 1, 2024<\/span>).<\/p>\n

Please note that you will need to pre-register for conference call participation at https:\/\/register.vevent.com\/register\/BI0948a7548cbb4383b037c2d80666f8ec<\/a>.<\/p>\n

Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.<\/p>\n

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL’s website at https:\/\/ir.100tal.com\/<\/a>.<\/p>\n

Safe Harbor Statement<\/p>\n

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, TAL Education Group’s strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to continue to provide competitive learning services and products; the Company’s ability to continue to recruit, train and retain talents; the Company’s ability to improve the content of current course offerings and develop new courses; the Company’s ability to maintain and enhance its brand; the Company’s ability to maintain and continue to improve its teaching results; and the Company’s ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company’s reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.<\/p>\n

About TAL Education Group<\/p>\n

TAL Education Group\u00a0is a smart learning solutions provider in China<\/span>. The acronym “TAL” stands for “Tomorrow Advancing Life”, which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience.\u00a0TAL Education Group\u00a0offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China<\/span>. Our ADSs trade on the\u00a0New York Stock Exchange\u00a0under the symbol “TAL”.<\/p>\n

About Non-GAAP Financial Measures<\/p>\n

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP (loss)\/income from operations, non-GAAP net (loss)\/income attributable to TAL, non-GAAP basic and non-GAAP diluted net (loss)\/income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.<\/p>\n

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to TAL’s historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.<\/p>\n

For further information, please contact:<\/p>\n

Jackson Ding<\/span>
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com<\/a><\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION GROUP<\/span><\/p>\n

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS<\/span><\/p>\n

(In thousands of\u00a0U.S. dollars)<\/span><\/p>\n

As of<\/span><\/p>\n

February 29,
2024<\/span><\/p>\n

<\/p>\n

As of<\/span><\/p>\n

May 31,
2024<\/span><\/p>\n

ASSETS<\/span><\/p>\n

<\/p>\n

Current assets<\/span><\/p>\n

<\/p>\n

\u00a0 \u00a0Cash and cash equivalents<\/span><\/p>\n

$ 2,208,756<\/span><\/p>\n

<\/p>\n

$ 2,222,591<\/span><\/p>\n

Restricted cash-current<\/span><\/p>\n

167,656<\/span><\/p>\n

<\/p>\n

275,966<\/span><\/p>\n

Short-term investments<\/span><\/p>\n

1,094,593<\/span><\/p>\n

<\/p>\n

1,195,981<\/span><\/p>\n

\u00a0 \u00a0 Inventory<\/span><\/p>\n

68,328<\/span><\/p>\n

<\/p>\n

80,984<\/span><\/p>\n

Amounts due from related parties-current<\/span><\/p>\n

343<\/span><\/p>\n

<\/p>\n

376<\/span><\/p>\n

\u00a0 \u00a0 Income tax receivables<\/span><\/p>\n

–<\/span><\/p>\n

<\/p>\n

1,543<\/span><\/p>\n

\u00a0 \u00a0 Prepaid expenses and other current assets<\/span><\/p>\n

159,498<\/span><\/p>\n

<\/p>\n

153,159<\/span><\/p>\n

Total current assets<\/span><\/p>\n

3,699,174<\/span><\/p>\n

<\/p>\n

3,930,600<\/span><\/p>\n

\u00a0 \u00a0 Restricted cash-non-current<\/span><\/p>\n

81,064<\/span><\/p>\n

<\/p>\n

79,865<\/span><\/p>\n

\u00a0 \u00a0 Property and equipment, net<\/span><\/p>\n

405,319<\/span><\/p>\n

<\/p>\n

438,670<\/span><\/p>\n

\u00a0 \u00a0 Deferred tax assets<\/span><\/p>\n

4,620<\/span><\/p>\n

<\/p>\n

4,938<\/span><\/p>\n

\u00a0 \u00a0 Rental deposits<\/span><\/p>\n

16,947<\/span><\/p>\n

<\/p>\n

18,523<\/span><\/p>\n

\u00a0 \u00a0 Intangible assets, net<\/span><\/p>\n

1,988<\/span><\/p>\n

<\/p>\n

1,637<\/span><\/p>\n

\u00a0 \u00a0 Land use right, net<\/span><\/p>\n

189,049<\/span><\/p>\n

<\/p>\n

186,862<\/span><\/p>\n

\u00a0 \u00a0 Amounts due from related parties-non-current<\/span><\/p>\n

59<\/span><\/p>\n

<\/p>\n

59<\/span><\/p>\n

Long-term investments<\/span><\/p>\n

284,266<\/span><\/p>\n

<\/p>\n

279,852<\/span><\/p>\n

Long-term prepayments and other non-current assets<\/span><\/p>\n

14,359<\/span><\/p>\n

<\/p>\n

21,600<\/span><\/p>\n

Operating lease right-of-use assets<\/span><\/p>\n

231,104<\/span><\/p>\n

<\/p>\n

340,231<\/span><\/p>\n

Total assets<\/span><\/p>\n

$ 4,927,949<\/span><\/p>\n

<\/p>\n

$ 5,302,837<\/span><\/p>\n

LIABILITIES AND EQUITY<\/span><\/p>\n

<\/p>\n

Current liabilities<\/span><\/p>\n

<\/p>\n

Accounts payable<\/span><\/p>\n

$ 127,321<\/span><\/p>\n

<\/p>\n

$ 132,267<\/span><\/p>\n

Deferred revenue-current<\/span><\/p>\n

400,286<\/span><\/p>\n

<\/p>\n

613,470<\/span><\/p>\n

Amounts due to related parties-current<\/span><\/p>\n

96<\/span><\/p>\n

<\/p>\n

95<\/span><\/p>\n

Accrued expenses and other current liabilities<\/span><\/p>\n

491,911<\/span><\/p>\n

<\/p>\n

519,899<\/span><\/p>\n

Operating lease liabilities, current portion<\/span><\/p>\n

62,604<\/span><\/p>\n

<\/p>\n

72,269<\/span><\/p>\n

Total current liabilities<\/span><\/p>\n

1,082,218<\/span><\/p>\n

<\/p>\n

1,338,000<\/span><\/p>\n

Deferred revenue-non-current<\/span><\/p>\n

27,993<\/span><\/p>\n

<\/p>\n

28,438<\/span><\/p>\n

Deferred tax liabilities<\/span><\/p>\n

2,360<\/span><\/p>\n

<\/p>\n

2,254<\/span><\/p>\n

Operating lease liabilities, non-current portion<\/span><\/p>\n

176,614<\/span><\/p>\n

<\/p>\n

273,461<\/span><\/p>\n

Total liabilities<\/span><\/p>\n

1,289,185<\/span><\/p>\n

<\/p>\n

1,642,153<\/span><\/p>\n

Equity<\/span><\/p>\n

<\/p>\n

Class A common shares<\/span><\/p>\n

152<\/span><\/p>\n

<\/p>\n

153<\/span><\/p>\n

Class B common shares<\/span><\/p>\n

49<\/span><\/p>\n

<\/p>\n

49<\/span><\/p>\n

Additional paid-in capital<\/span><\/p>\n

4,256,957<\/span><\/p>\n

<\/p>\n

4,275,160<\/span><\/p>\n

Statutory reserve<\/span><\/p>\n

165,138<\/span><\/p>\n

<\/p>\n

165,033<\/span><\/p>\n

Accumulated deficit<\/span><\/p>\n

(694,270)<\/span><\/p>\n

<\/p>\n

(682,763)<\/span><\/p>\n

Accumulated other comprehensive loss <\/span><\/p>\n

(65,928)<\/span><\/p>\n

<\/p>\n

(73,659)<\/span><\/p>\n

Total TAL Education Group’s equity<\/span><\/p>\n

3,662,098<\/span><\/p>\n

<\/p>\n

3,683,973<\/span><\/p>\n

Noncontrolling interests<\/span><\/p>\n

(23,334)<\/span><\/p>\n

<\/p>\n

(23,289)<\/span><\/p>\n

Total equity<\/span><\/p>\n

3,638,764<\/span><\/p>\n

<\/p>\n

3,660,684<\/span><\/p>\n

Total liabilities and equity<\/span><\/p>\n

$ 4,927,949<\/span><\/p>\n

<\/p>\n

$ 5,302,837<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION GROUP<\/span><\/p>\n

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<\/span><\/p>\n

(In thousands of\u00a0U.S. dollars, except share, ADS, per share and per ADS data)\u00a0<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For the Three Months Ended<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 May 31,<\/span><\/p>\n

2023<\/span><\/p>\n

<\/p>\n

2024<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Net\u00a0revenues<\/span><\/p>\n

<\/p>\n

\u00a0<\/p>\n

$ 275,440<\/span><\/p>\n

<\/p>\n

\u00a0<\/p>\n

$ 414,187<\/span><\/p>\n

Cost of revenues (note 1)<\/span><\/p>\n

<\/p>\n

139,513<\/span><\/p>\n

<\/p>\n

200,008<\/span><\/p>\n

Gross profit<\/span><\/p>\n

<\/p>\n

135,927<\/span><\/p>\n

<\/p>\n

214,179<\/span><\/p>\n

Operating\u00a0expenses\u00a0(note\u00a01)<\/span><\/p>\n

\u00a0 Selling and marketing<\/span><\/p>\n

<\/p>\n

97,657<\/span><\/p>\n

<\/p>\n

122,428<\/span><\/p>\n

\u00a0 General and administrative<\/span><\/p>\n

<\/p>\n

104,923<\/span><\/p>\n

<\/p>\n

109,682<\/span><\/p>\n

Total operating expenses<\/span><\/p>\n

<\/p>\n

202,580<\/span><\/p>\n

<\/p>\n

232,110<\/span><\/p>\n

Government subsidies<\/span><\/p>\n

<\/p>\n

8,880<\/span><\/p>\n

<\/p>\n

601<\/span><\/p>\n

Loss from operations<\/span><\/p>\n

<\/p>\n

(57,773)<\/span><\/p>\n

<\/p>\n

(17,330)<\/span><\/p>\n

Interest income<\/span><\/p>\n

<\/p>\n

22,981<\/span><\/p>\n

<\/p>\n

22,522<\/span><\/p>\n

Other (expense)\/income<\/span><\/p>\n

<\/p>\n

(6,845)<\/span><\/p>\n

<\/p>\n

13,151<\/span><\/p>\n

Impairment loss on long-term investments<\/span><\/p>\n

<\/p>\n

–<\/span><\/p>\n

<\/p>\n

(3,767)<\/span><\/p>\n

(Loss)\/Income before income tax expense and<\/span><\/p>\n

loss from equity method investments<\/span><\/p>\n

<\/p>\n

(41,637)<\/span><\/p>\n

<\/p>\n

14,576<\/span><\/p>\n

Income tax expense<\/span><\/p>\n

<\/p>\n

(3,519)<\/span><\/p>\n

<\/p>\n

(2,295)<\/span><\/p>\n

Loss from equity method investments<\/span><\/p>\n

<\/p>\n

(71)<\/span><\/p>\n

<\/p>\n

(985)<\/span><\/p>\n

Net\u00a0(loss)\/income<\/span><\/p>\n

<\/p>\n

$ (45,227)<\/span><\/p>\n

<\/p>\n

$ 11,296<\/span><\/p>\n

Add: Net loss attributable to noncontrolling interests<\/span><\/p>\n

<\/p>\n

190<\/span><\/p>\n

<\/p>\n

106<\/span><\/p>\n

Total\u00a0net\u00a0(loss)\/income attributable\u00a0to\u00a0TAL
\u00a0 \u00a0 Education Group<\/span><\/p>\n

<\/p>\n

$ (45,037)<\/span><\/p>\n

<\/p>\n

$ 11,402<\/span><\/p>\n

Net\u00a0(loss)\/income per\u00a0common\u00a0share<\/span><\/p>\n

Basic<\/span><\/p>\n

<\/p>\n

$ (0.21)<\/span><\/p>\n

<\/p>\n

$ 0.06<\/span><\/p>\n

Diluted<\/span><\/p>\n

<\/p>\n

(0.21)<\/span><\/p>\n

<\/p>\n

0.06<\/span><\/p>\n

Net (loss)\/income\u00a0per\u00a0ADS\u00a0(note\u00a02)<\/span><\/p>\n

Basic<\/span><\/p>\n

<\/p>\n

$ (0.07)<\/span><\/p>\n

<\/p>\n

$ 0.02<\/span><\/p>\n

Diluted<\/span><\/p>\n

<\/p>\n

(0.07)<\/span><\/p>\n

<\/p>\n

0.02<\/span><\/p>\n

\u00a0<\/p>\n

Weighted average shares used in calculating net
\u00a0 \u00a0 (loss)\/income per common share<\/span><\/p>\n

\u00a0 \u00a0Basic<\/span><\/p>\n

<\/p>\n

211,319,973<\/span><\/p>\n

<\/p>\n

201,567,132<\/span><\/p>\n

\u00a0 \u00a0Diluted<\/span><\/p>\n

<\/p>\n

211,319,973<\/span><\/p>\n

<\/p>\n

205,382,443<\/span><\/p>\n

<\/p>\n

Note1:\u00a0Share-based\u00a0compensation\u00a0expenses\u00a0are\u00a0included\u00a0in\u00a0the\u00a0operating\u00a0costs\u00a0and\u00a0expenses\u00a0as\u00a0follows:<\/span><\/p>\n

For\u00a0the\u00a0Three\u00a0Months<\/span><\/p>\n

<\/p>\n

Ended\u00a0May\u00a031,<\/span><\/p>\n

2023<\/span><\/p>\n

<\/p>\n

2024<\/span><\/p>\n

Cost of revenues<\/span><\/p>\n

<\/p>\n

$ 2,409<\/span><\/p>\n

<\/p>\n

$ 2,362<\/span><\/p>\n

Selling and marketing expenses<\/span><\/p>\n

<\/p>\n

7,428<\/span><\/p>\n

<\/p>\n

4,375<\/span><\/p>\n

General and administrative expenses<\/span><\/p>\n

<\/p>\n

15,676<\/span><\/p>\n

<\/p>\n

11,469<\/span><\/p>\n

Total<\/span><\/p>\n

<\/p>\n

$ 25,513<\/span><\/p>\n

<\/p>\n

$ 18,206<\/span><\/p>\n

<\/p>\n

Note\u00a02:\u00a0Three\u00a0ADSs\u00a0represent\u00a0one\u00a0Class\u00a0A\u00a0common\u00a0Share.\u00a0
<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION\u00a0GROUP<\/span><\/p>\n

UNAUDITED\u00a0CONDENSED\u00a0CONSOLIDATED STATEMENTS OF<\/span><\/p>\n

COMPREHENSIVE (LOSS)\/INCOME\u00a0\u00a0<\/span><\/p>\n

(In\u00a0thousands\u00a0of\u00a0U.S.\u00a0dollars)<\/span><\/p>\n

For\u00a0the\u00a0Three\u00a0Months\u00a0Ended<\/span><\/p>\n

\u00a0May\u00a031,<\/span><\/p>\n

2023<\/span><\/p>\n

<\/p>\n

2024<\/span><\/p>\n

Net\u00a0(loss)\/income<\/span><\/p>\n

$ (45,227)<\/span><\/p>\n

<\/p>\n

$ 11,296<\/span><\/p>\n

<\/p>\n

Other comprehensive loss, net of tax<\/span><\/p>\n

(23,813)<\/span><\/p>\n

<\/p>\n

(7,580)<\/span><\/p>\n

<\/p>\n

Comprehensive\u00a0(loss)\/income<\/span><\/p>\n

(69,040)<\/span><\/p>\n

<\/p>\n

3,716<\/span><\/p>\n

<\/p>\n

Add: Comprehensive income attributable to
\u00a0 \u00a0noncontrolling interests<\/span><\/p>\n

(461)<\/span><\/p>\n

<\/p>\n

(45)<\/span><\/p>\n

<\/p>\n

Comprehensive\u00a0(loss)\/income\u00a0attributable\u00a0to\u00a0<\/span><\/p>\n

TAL\u00a0Education\u00a0Group<\/span><\/p>\n

$ (69,501)<\/span><\/p>\n

<\/p>\n

$ 3,671<\/span><\/p>\n

<\/p><\/div>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION GROUP<\/span><\/p>\n

UNAUDITED CONDENSED CONSOLIDATED\u00a0STATEMENTS OF<\/span><\/p>\n

CASH FLOWS<\/span><\/p>\n

(In thousands of\u00a0U.S. dollars)<\/span><\/p>\n

For the Three Months
Ended<\/span><\/p>\n

May 31,<\/span><\/p>\n

<\/p>\n

2023<\/span><\/p>\n

<\/p>\n

2024<\/span><\/p>\n

Net cash provided by operating activities<\/span><\/p>\n

$ 125,516<\/span><\/p>\n

<\/p>\n

$ 246,793<\/span><\/p>\n

Net cash provided by\/(used in) investing activities<\/span><\/p>\n

160,915<\/span><\/p>\n

<\/p>\n

(124,635)<\/span><\/p>\n

Net cash (used in)\/provided by financing activities<\/span><\/p>\n

(151,237)<\/span><\/p>\n

<\/p>\n

5<\/span><\/p>\n

Effect of exchange rate changes<\/span><\/p>\n

(4,510)<\/span><\/p>\n

<\/p>\n

(1,217)<\/span><\/p>\n

Net increase in cash, cash equivalents and restricted cash <\/span><\/p>\n

130,684<\/span><\/p>\n

<\/p>\n

120,946<\/span><\/p>\n

Cash, cash equivalents and restricted cash at the beginning of
\u00a0 \u00a0period<\/span><\/p>\n

2,294,907<\/span><\/p>\n

<\/p>\n

2,457,476<\/span><\/p>\n

Cash, cash equivalents and restricted cash at the end of period<\/span><\/p>\n

$ 2,425,591<\/span><\/p>\n

<\/p>\n

$ 2,578,422<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION\u00a0GROUP<\/span><\/p>\n

Reconciliation\u00a0of\u00a0Non-GAAP\u00a0Measures\u00a0to\u00a0the\u00a0Most\u00a0Comparable\u00a0GAAP\u00a0Measures<\/span><\/p>\n

(In\u00a0thousands\u00a0of\u00a0U.S.\u00a0dollars,\u00a0except\u00a0share,\u00a0ADS,\u00a0per\u00a0share\u00a0and\u00a0per\u00a0ADS\u00a0data)<\/span><\/p>\n

\u00a0 For\u00a0the\u00a0Three\u00a0Months\u00a0<\/span><\/p>\n

\u00a0\u00a0 Ended\u00a0May\u00a031,<\/span><\/p>\n

2023<\/span><\/p>\n

<\/p>\n

2024<\/span><\/p>\n

Cost\u00a0of\u00a0revenues<\/span><\/p>\n

$ 139,513<\/span><\/p>\n

<\/p>\n

$ 200,008<\/span><\/p>\n

<\/p>\n

Share-based compensation expenses in cost of<\/span><\/p>\n

\u00a0 revenues<\/span><\/p>\n

2,409<\/span><\/p>\n

<\/p>\n

2,362<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0cost\u00a0of\u00a0revenues<\/span><\/p>\n

137,104<\/span><\/p>\n

<\/p>\n

197,646<\/span><\/p>\n

Selling\u00a0and\u00a0marketing\u00a0expenses<\/span><\/p>\n

97,657<\/span><\/p>\n

<\/p>\n

122,428<\/span><\/p>\n

<\/p>\n

Share-based compensation expenses in selling and<\/span><\/p>\n

\u00a0 marketing expenses<\/span><\/p>\n

7,428<\/span><\/p>\n

<\/p>\n

4,375<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0selling\u00a0and\u00a0marketing\u00a0expenses<\/span><\/p>\n

90,229<\/span><\/p>\n

<\/p>\n

118,053<\/span><\/p>\n

<\/p>\n

\u00a0<\/span><\/p>\n

General\u00a0and\u00a0administrative\u00a0expenses<\/span><\/p>\n

\u00a0<\/p>\n

104,923<\/span><\/p>\n

<\/p>\n

\u00a0<\/p>\n

109,682<\/span><\/p>\n

<\/p>\n

Share-based compensation expenses in general and<\/span><\/p>\n

\u00a0 administrative expenses<\/span><\/p>\n

15,676<\/span><\/p>\n

<\/p>\n

11,469<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0general\u00a0and\u00a0administrative\u00a0expenses<\/span><\/p>\n

89,247<\/span><\/p>\n

<\/p>\n

98,213<\/span><\/p>\n

Operating\u00a0costs\u00a0and\u00a0expenses<\/span><\/p>\n

342,093<\/span><\/p>\n

<\/p>\n

432,118<\/span><\/p>\n

<\/p>\n

Share-based compensation expenses in operating<\/span><\/p>\n

\u00a0 costs and expenses<\/span><\/p>\n

25,513<\/span><\/p>\n

<\/p>\n

18,206<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0operating\u00a0costs\u00a0and\u00a0expenses<\/span><\/p>\n

316,580<\/span><\/p>\n

<\/p>\n

413,912<\/span><\/p>\n

Loss\u00a0from\u00a0operations<\/span><\/p>\n

(57,773)<\/span><\/p>\n

<\/p>\n

(17,330)<\/span><\/p>\n

<\/p>\n

Share based compensation expenses<\/span><\/p>\n

25,513<\/span><\/p>\n

<\/p>\n

18,206<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0(loss)\/income\u00a0from\u00a0operations\u00a0(note\u00a03)<\/span><\/p>\n

(32,260)<\/span><\/p>\n

<\/p>\n

876<\/span><\/p>\n

Net\u00a0(loss)\/income\u00a0attributable\u00a0to\u00a0TAL\u00a0Education\u00a0
Group<\/span><\/p>\n

(45,037)<\/span><\/p>\n

<\/p>\n

11,402<\/span><\/p>\n

<\/p>\n

Share based compensation expenses<\/span><\/p>\n

25,513<\/span><\/p>\n

<\/p>\n

18,206<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0net\u00a0(loss)\/income\u00a0attributable\u00a0to\u00a0
TAL\u00a0Education\u00a0Group\u00a0(note 3)<\/span><\/p>\n

$ (19,524)<\/span><\/p>\n

<\/p>\n

$ 29,608<\/span><\/p>\n

<\/p>\n

\u00a0<\/span><\/p>\n

Net\u00a0(loss)\/income\u00a0per\u00a0ADS<\/span><\/p>\n

<\/p>\n

Basic<\/span><\/p>\n

$ (0.07)<\/span><\/p>\n

<\/p>\n

$ 0.02<\/span><\/p>\n

<\/p>\n

Diluted <\/span><\/p>\n

(0.07)<\/span><\/p>\n

<\/p>\n

0.02<\/span><\/p>\n

<\/p>\n

Non-GAAP\u00a0Net\u00a0(loss)\/income\u00a0per\u00a0ADS\u00a0<\/span><\/p>\n

Basic<\/span><\/p>\n

$ (0.03)<\/span><\/p>\n

<\/p>\n

$ 0.05<\/span><\/p>\n

<\/p>\n

Diluted <\/span><\/p>\n

(0.03)<\/span><\/p>\n

<\/p>\n

0.05<\/span><\/p>\n

<\/p>\n

ADSs\u00a0used\u00a0in\u00a0calculating\u00a0net\u00a0(loss)\/income\u00a0per\u00a0
ADS<\/span><\/p>\n

Basic<\/span><\/p>\n

633,959,919<\/span><\/p>\n

<\/p>\n

604,701,396<\/span><\/p>\n

<\/p>\n

Diluted <\/span><\/p>\n

633,959,919<\/span><\/p>\n

<\/p>\n

616,147,329<\/span><\/p>\n

<\/p>\n

ADSs\u00a0used\u00a0in\u00a0calculating\u00a0Non-GAAP\u00a0net
(loss)\/income per\u00a0ADS<\/span><\/p>\n

\u00a0Basic<\/span><\/p>\n

633,959,919<\/span><\/p>\n

<\/p>\n

604,701,396<\/span><\/p>\n

<\/p>\n

\u00a0Diluted<\/span><\/p>\n

633,959,919<\/span><\/p>\n

<\/p>\n

616,147,329<\/span><\/p>\n

Note 3: The tax effect of share-based compensation expenses was immaterial in the first quarter of\u00a0fiscal year 2025.<\/span><\/p>\n

<\/p><\/div>\n

\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

BEIJING<\/span><\/span>, Aug. 1, 2024<\/span><\/span> \/PRNewswire\/ — TAL Education Group (NYSE: TAL) (“TAL” or the “Company”), a smart learning solutions provider in China<\/span>, today announced its unaudited financial results for the first quarter of fiscal year 2025 ended May 31, 2024<\/span>.<\/p>\n

Highlights for the First Quarter of Fiscal Year 2025<\/p>\n

Net revenues were US$414.2 million<\/span>, compared to net revenues of US$275.4 million<\/span> in the same period of the prior year. Loss from operations was US$17.3 million<\/span>, compared to loss from operations of US$57.8 million<\/span> in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$0.9 million<\/span>, compared to non-GAAP loss from operations of US$32.3 million<\/span> in the same period of the prior year. Net income attributable to TAL was US$11.4 million<\/span>, compared to net loss attributable to TAL of US$45.0 million<\/span> in the same period of the prior year. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$29.6 million<\/span>, compared to non-GAAP net loss attributable to TAL of US$19.5 million<\/span> in the same period of the prior year. Basic and diluted net income per American Depositary Share (“ADS”) were both US$0.02<\/span>. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.05<\/span>. Three ADSs represent one Class A common share. Cash, cash equivalents and short-term investments totaled US$3,418.6 million<\/span> as of May 31, 2024<\/span>, compared to US$3,303.3 million<\/span> as of February 29, 2024<\/span>. <\/p>\n

\u00a0<\/p>\n

Financial Data\u2014\u2014First Quarter of Fiscal Year 2025
(In US$ thousands, except per ADS data and percentages)<\/p>\n

\n

Three Months Ended
May 31,<\/span><\/p>\n<\/p>\n

2023<\/span><\/p>\n

2024<\/span><\/p>\n

Pct.\u00a0Change<\/span><\/p>\n

Net revenues<\/span><\/p>\n

275,440<\/span><\/p>\n

414,187<\/span><\/p>\n

50.4\u00a0%<\/span><\/p>\n

Loss from operations<\/span><\/p>\n

(57,773)<\/span><\/p>\n

(17,330)<\/span><\/p>\n

(70.0\u00a0%)<\/span><\/p>\n

Non-GAAP (loss)\/income from operations<\/span><\/p>\n

(32,260)<\/span><\/p>\n

876<\/span><\/p>\n

(102.7\u00a0%)<\/span><\/p>\n

Net (loss)\/income attributable to TAL<\/span><\/p>\n

(45,037)<\/span><\/p>\n

11,402<\/span><\/p>\n

(125.3\u00a0%)<\/span><\/p>\n

Non-GAAP net (loss)\/income attributable to
TAL<\/span><\/p>\n

(19,524)<\/span><\/p>\n

29,608<\/span><\/p>\n

(251.6\u00a0%)<\/span><\/p>\n

Net (loss)\/income per ADS attributable to
TAL \u2013 basic<\/span><\/p>\n

(0.07)<\/span><\/p>\n

0.02<\/span><\/p>\n

(126.5\u00a0%)<\/span><\/p>\n

Net (loss)\/income per ADS attributable to
TAL \u2013 diluted<\/span><\/p>\n

(0.07)<\/span><\/p>\n

0.02<\/span><\/p>\n

(126.0\u00a0%)<\/span><\/p>\n

Non-GAAP net (loss)\/income per ADS
attributable to TAL \u2013 basic<\/span><\/p>\n

(0.03)<\/span><\/p>\n

0.05<\/span><\/p>\n

(259.0\u00a0%)<\/span><\/p>\n

Non-GAAP net (loss)\/income per ADS
attributable to TAL \u2013 diluted<\/span><\/p>\n

(0.03)<\/span><\/p>\n

0.05<\/span><\/p>\n

(256.0\u00a0%)<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

“In this quarter, our core focus remains on delivering quality products and managing our online and offline operational efficiency to serve learners effectively,” said Alex\u00a0Peng, TAL’s President and Chief Financial Officer.<\/p>\n

Mr. Peng added, “Looking forward, we will make ongoing investments to provide our users with quality learning experiences. Our product capabilities, combined with our operational efficiency, positions us to capitalize on market opportunities and deliver long-term value to our customers.”<\/p>\n

Financial Results for the First Quarter of Fiscal Year 2025<\/p>\n

Net Revenues<\/p>\n

In the first quarter of fiscal year 2025, TAL reported net revenues of US$414.2 million<\/span>, representing a 50.4% increase from US$275.4 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Operating Costs and Expenses<\/p>\n

In the first quarter of fiscal year 2025, operating costs and expenses were US$432.1 million<\/span>, representing a 26.3% increase from US$342.1 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$413.9 million<\/span>, representing a 30.7% increase from US$316.6 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Cost of revenues increased by 43.4% to US$200.0 million<\/span> from US$139.5 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 44.2% to US$197.6 million<\/span>, from US$137.1 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Selling and marketing expenses increased by 25.4% to US$122.4 million<\/span> from US$97.7 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 30.8% to US$118.1 million<\/span>, from US$90.2 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

General and administrative expenses increased by 4.5% to US$109.7 million<\/span> from US$104.9 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 10.0% to US$98.2 million<\/span>, from US$89.2 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 28.6% to US$18.2 million<\/span> in the first quarter of fiscal year 2025 from US$25.5 million<\/span> in the same period of fiscal year 2024.<\/p>\n

Gross Profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/p>\n

Gross profit increased by 57.6% to US$214.2 million<\/span> from US$135.9 million<\/span> in the first quarter of fiscal year 2024. The gross margin for the first quarter of fiscal year 2025 was 51.7%, compared to 49.3% in the same period of the prior year.<\/p>\n

Loss from Operations<\/p>\n

Loss from operations was US$17.3 million<\/span> in the first quarter of fiscal year 2025, compared to loss from operations of US$57.8 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP income\u00a0from operations, which excluded share-based compensation expenses, was US$0.9 million<\/span>, compared to Non-GAAP loss from operations of US$32.3 million<\/span> in the same period of the prior year.<\/p>\n

Other (Expense)\/Income <\/p>\n

Other income\u00a0was US$13.2 million<\/span> for the first quarter of fiscal year 2025, compared to other expense\u00a0of US$6.8 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Impairment Loss on Long-term Investments<\/p>\n

Impairment loss on long-term investment was US$3.8 million<\/span> for the first quarter of fiscal year 2025, compared to nil for the first quarter of fiscal year 2024.<\/p>\n

Income Tax Expense<\/p>\n

Income tax expense was US$2.3 million<\/span> in the first quarter of fiscal year 2025, compared to US$3.5 million<\/span> of income tax expense in the first quarter of fiscal year 2024.<\/p>\n

Net (Loss)\/Income Attributable to TAL Education Group<\/p>\n

Net income attributable to TAL was US$11.4 million<\/span> in the first quarter of fiscal year 2025, compared to net loss attributable to TAL of US$45.0 million<\/span> in the first quarter of fiscal year 2024. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$29.6 million<\/span>, compared to Non-GAAP net loss attributable to TAL of US$19.5 million<\/span> in the first quarter of fiscal year 2024.<\/p>\n

Basic and Diluted Net (Loss)\/Income per ADS<\/p>\n

Basic and diluted net income per ADS were both US$0.02<\/span> in the first quarter of fiscal year 2025. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were both US$0.05<\/span> in the first quarter of fiscal year 2025.<\/p>\n

Cash Flow\u00a0 <\/p>\n

Net cash provided by operating activities for the first quarter of fiscal year 2025 was US$246.8 million<\/span>.<\/p>\n

Cash, Cash Equivalents, and Short-Term Investments<\/p>\n

As of May 31, 2024<\/span>, the Company had US$2,222.6 million<\/span> of cash and cash equivalents and US$1,196.0 million<\/span> of short-term investments, compared to US$2,208.7 million<\/span> of cash and cash equivalents and US$1,094.6 million<\/span> of short-term investments as of February 29, 2024<\/span>.<\/p>\n

Deferred Revenue<\/p>\n

As of May 31, 2024<\/span>, the Company’s deferred revenue balance was US$641.9 million<\/span>, compared to US$428.3 million<\/span> as of February 29, 2024<\/span>.<\/p>\n

Conference Call<\/p>\n

The Company will host a conference call and live webcast to discuss its financial results for the first fiscal quarter of fiscal year 2025 ended May 31, 2024<\/span> at 8:00 a.m. Eastern Time<\/span> on August 1, 2024<\/span> (8:00 p.m.<\/span> Beijing<\/span> time on August 1, 2024<\/span>).<\/p>\n

Please note that you will need to pre-register for conference call participation at https:\/\/register.vevent.com\/register\/BI0948a7548cbb4383b037c2d80666f8ec<\/a>.<\/p>\n

Upon registration, you will receive an email containing participant dial-in numbers and unique Direct Event Passcode. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.<\/p>\n

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL’s website at https:\/\/ir.100tal.com\/<\/a>.<\/p>\n

Safe Harbor Statement<\/p>\n

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, TAL Education Group’s strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to continue to provide competitive learning services and products; the Company’s ability to continue to recruit, train and retain talents; the Company’s ability to improve the content of current course offerings and develop new courses; the Company’s ability to maintain and enhance its brand; the Company’s ability to maintain and continue to improve its teaching results; and the Company’s ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company’s reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.<\/p>\n

About TAL Education Group<\/p>\n

TAL Education Group\u00a0is a smart learning solutions provider in China<\/span>. The acronym “TAL” stands for “Tomorrow Advancing Life”, which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience.\u00a0TAL Education Group\u00a0offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China<\/span>. Our ADSs trade on the\u00a0New York Stock Exchange\u00a0under the symbol “TAL”.<\/p>\n

About Non-GAAP Financial Measures<\/p>\n

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP operating costs and expenses, non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP (loss)\/income from operations, non-GAAP net (loss)\/income attributable to TAL, non-GAAP basic and non-GAAP diluted net (loss)\/income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.<\/p>\n

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to TAL’s historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company’s business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.<\/p>\n

For further information, please contact:<\/p>\n

Jackson Ding<\/span>
Investor Relations
TAL Education Group
Tel: +86 10 5292 6669-8809
Email: ir@tal.com<\/a><\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION GROUP<\/span><\/p>\n

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS<\/span><\/p>\n

(In thousands of\u00a0U.S. dollars)<\/span><\/p>\n

As of<\/span><\/p>\n

February 29,
2024<\/span><\/p>\n<\/p>\n

As of<\/span><\/p>\n

May 31,
2024<\/span><\/p>\n

ASSETS<\/span><\/p>\n<\/p>\n

Current assets<\/span><\/p>\n<\/p>\n

\u00a0 \u00a0Cash and cash equivalents<\/span><\/p>\n

$ 2,208,756<\/span><\/p>\n<\/p>\n

$ 2,222,591<\/span><\/p>\n

Restricted cash-current<\/span><\/p>\n

167,656<\/span><\/p>\n<\/p>\n

275,966<\/span><\/p>\n

Short-term investments<\/span><\/p>\n

1,094,593<\/span><\/p>\n<\/p>\n

1,195,981<\/span><\/p>\n

\u00a0 \u00a0 Inventory<\/span><\/p>\n

68,328<\/span><\/p>\n<\/p>\n

80,984<\/span><\/p>\n

Amounts due from related parties-current<\/span><\/p>\n

343<\/span><\/p>\n<\/p>\n

376<\/span><\/p>\n

\u00a0 \u00a0 Income tax receivables<\/span><\/p>\n

–<\/span><\/p>\n<\/p>\n

1,543<\/span><\/p>\n

\u00a0 \u00a0 Prepaid expenses and other current assets<\/span><\/p>\n

159,498<\/span><\/p>\n<\/p>\n

153,159<\/span><\/p>\n

Total current assets<\/span><\/p>\n

3,699,174<\/span><\/p>\n<\/p>\n

3,930,600<\/span><\/p>\n

\u00a0 \u00a0 Restricted cash-non-current<\/span><\/p>\n

81,064<\/span><\/p>\n<\/p>\n

79,865<\/span><\/p>\n

\u00a0 \u00a0 Property and equipment, net<\/span><\/p>\n

405,319<\/span><\/p>\n<\/p>\n

438,670<\/span><\/p>\n

\u00a0 \u00a0 Deferred tax assets<\/span><\/p>\n

4,620<\/span><\/p>\n<\/p>\n

4,938<\/span><\/p>\n

\u00a0 \u00a0 Rental deposits<\/span><\/p>\n

16,947<\/span><\/p>\n<\/p>\n

18,523<\/span><\/p>\n

\u00a0 \u00a0 Intangible assets, net<\/span><\/p>\n

1,988<\/span><\/p>\n<\/p>\n

1,637<\/span><\/p>\n

\u00a0 \u00a0 Land use right, net<\/span><\/p>\n

189,049<\/span><\/p>\n<\/p>\n

186,862<\/span><\/p>\n

\u00a0 \u00a0 Amounts due from related parties-non-current<\/span><\/p>\n

59<\/span><\/p>\n<\/p>\n

59<\/span><\/p>\n

Long-term investments<\/span><\/p>\n

284,266<\/span><\/p>\n<\/p>\n

279,852<\/span><\/p>\n

Long-term prepayments and other non-current assets<\/span><\/p>\n

14,359<\/span><\/p>\n<\/p>\n

21,600<\/span><\/p>\n

Operating lease right-of-use assets<\/span><\/p>\n

231,104<\/span><\/p>\n<\/p>\n

340,231<\/span><\/p>\n

Total assets<\/span><\/p>\n

$ 4,927,949<\/span><\/p>\n<\/p>\n

$ 5,302,837<\/span><\/p>\n

LIABILITIES AND EQUITY<\/span><\/p>\n<\/p>\n

Current liabilities<\/span><\/p>\n<\/p>\n

Accounts payable<\/span><\/p>\n

$ 127,321<\/span><\/p>\n<\/p>\n

$ 132,267<\/span><\/p>\n

Deferred revenue-current<\/span><\/p>\n

400,286<\/span><\/p>\n<\/p>\n

613,470<\/span><\/p>\n

Amounts due to related parties-current<\/span><\/p>\n

96<\/span><\/p>\n<\/p>\n

95<\/span><\/p>\n

Accrued expenses and other current liabilities<\/span><\/p>\n

491,911<\/span><\/p>\n<\/p>\n

519,899<\/span><\/p>\n

Operating lease liabilities, current portion<\/span><\/p>\n

62,604<\/span><\/p>\n<\/p>\n

72,269<\/span><\/p>\n

Total current liabilities<\/span><\/p>\n

1,082,218<\/span><\/p>\n<\/p>\n

1,338,000<\/span><\/p>\n

Deferred revenue-non-current<\/span><\/p>\n

27,993<\/span><\/p>\n<\/p>\n

28,438<\/span><\/p>\n

Deferred tax liabilities<\/span><\/p>\n

2,360<\/span><\/p>\n<\/p>\n

2,254<\/span><\/p>\n

Operating lease liabilities, non-current portion<\/span><\/p>\n

176,614<\/span><\/p>\n<\/p>\n

273,461<\/span><\/p>\n

Total liabilities<\/span><\/p>\n

1,289,185<\/span><\/p>\n<\/p>\n

1,642,153<\/span><\/p>\n

Equity<\/span><\/p>\n<\/p>\n

Class A common shares<\/span><\/p>\n

152<\/span><\/p>\n<\/p>\n

153<\/span><\/p>\n

Class B common shares<\/span><\/p>\n

49<\/span><\/p>\n<\/p>\n

49<\/span><\/p>\n

Additional paid-in capital<\/span><\/p>\n

4,256,957<\/span><\/p>\n<\/p>\n

4,275,160<\/span><\/p>\n

Statutory reserve<\/span><\/p>\n

165,138<\/span><\/p>\n<\/p>\n

165,033<\/span><\/p>\n

Accumulated deficit<\/span><\/p>\n

(694,270)<\/span><\/p>\n<\/p>\n

(682,763)<\/span><\/p>\n

Accumulated other comprehensive loss <\/span><\/p>\n

(65,928)<\/span><\/p>\n<\/p>\n

(73,659)<\/span><\/p>\n

Total TAL Education Group’s equity<\/span><\/p>\n

3,662,098<\/span><\/p>\n<\/p>\n

3,683,973<\/span><\/p>\n

Noncontrolling interests<\/span><\/p>\n

(23,334)<\/span><\/p>\n<\/p>\n

(23,289)<\/span><\/p>\n

Total equity<\/span><\/p>\n

3,638,764<\/span><\/p>\n<\/p>\n

3,660,684<\/span><\/p>\n

Total liabilities and equity<\/span><\/p>\n

$ 4,927,949<\/span><\/p>\n<\/p>\n

$ 5,302,837<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION GROUP<\/span><\/p>\n

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<\/span><\/p>\n

(In thousands of\u00a0U.S. dollars, except share, ADS, per share and per ADS data)\u00a0<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For the Three Months Ended<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 May 31,<\/span><\/p>\n

2023<\/span><\/p>\n<\/p>\n

2024<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Net\u00a0revenues<\/span><\/p>\n<\/p>\n

\u00a0<\/p>\n

$ 275,440<\/span><\/p>\n<\/p>\n

\u00a0<\/p>\n

$ 414,187<\/span><\/p>\n

Cost of revenues (note 1)<\/span><\/p>\n<\/p>\n

139,513<\/span><\/p>\n<\/p>\n

200,008<\/span><\/p>\n

Gross profit<\/span><\/p>\n<\/p>\n

135,927<\/span><\/p>\n<\/p>\n

214,179<\/span><\/p>\n

Operating\u00a0expenses\u00a0(note\u00a01)<\/span><\/p>\n

\u00a0 Selling and marketing<\/span><\/p>\n<\/p>\n

97,657<\/span><\/p>\n<\/p>\n

122,428<\/span><\/p>\n

\u00a0 General and administrative<\/span><\/p>\n<\/p>\n

104,923<\/span><\/p>\n<\/p>\n

109,682<\/span><\/p>\n

Total operating expenses<\/span><\/p>\n<\/p>\n

202,580<\/span><\/p>\n<\/p>\n

232,110<\/span><\/p>\n

Government subsidies<\/span><\/p>\n<\/p>\n

8,880<\/span><\/p>\n<\/p>\n

601<\/span><\/p>\n

Loss from operations<\/span><\/p>\n<\/p>\n

(57,773)<\/span><\/p>\n<\/p>\n

(17,330)<\/span><\/p>\n

Interest income<\/span><\/p>\n<\/p>\n

22,981<\/span><\/p>\n<\/p>\n

22,522<\/span><\/p>\n

Other (expense)\/income<\/span><\/p>\n<\/p>\n

(6,845)<\/span><\/p>\n<\/p>\n

13,151<\/span><\/p>\n

Impairment loss on long-term investments<\/span><\/p>\n<\/p>\n

–<\/span><\/p>\n<\/p>\n

(3,767)<\/span><\/p>\n

(Loss)\/Income before income tax expense and<\/span><\/p>\n

loss from equity method investments<\/span><\/p>\n<\/p>\n

(41,637)<\/span><\/p>\n<\/p>\n

14,576<\/span><\/p>\n

Income tax expense<\/span><\/p>\n<\/p>\n

(3,519)<\/span><\/p>\n<\/p>\n

(2,295)<\/span><\/p>\n

Loss from equity method investments<\/span><\/p>\n<\/p>\n

(71)<\/span><\/p>\n<\/p>\n

(985)<\/span><\/p>\n

Net\u00a0(loss)\/income<\/span><\/p>\n<\/p>\n

$ (45,227)<\/span><\/p>\n<\/p>\n

$ 11,296<\/span><\/p>\n

Add: Net loss attributable to noncontrolling interests<\/span><\/p>\n<\/p>\n

190<\/span><\/p>\n<\/p>\n

106<\/span><\/p>\n

Total\u00a0net\u00a0(loss)\/income attributable\u00a0to\u00a0TAL
\u00a0 \u00a0 Education Group<\/span><\/p>\n<\/p>\n

$ (45,037)<\/span><\/p>\n<\/p>\n

$ 11,402<\/span><\/p>\n

Net\u00a0(loss)\/income per\u00a0common\u00a0share<\/span><\/p>\n

Basic<\/span><\/p>\n<\/p>\n

$ (0.21)<\/span><\/p>\n<\/p>\n

$ 0.06<\/span><\/p>\n

Diluted<\/span><\/p>\n<\/p>\n

(0.21)<\/span><\/p>\n<\/p>\n

0.06<\/span><\/p>\n

Net (loss)\/income\u00a0per\u00a0ADS\u00a0(note\u00a02)<\/span><\/p>\n

Basic<\/span><\/p>\n<\/p>\n

$ (0.07)<\/span><\/p>\n<\/p>\n

$ 0.02<\/span><\/p>\n

Diluted<\/span><\/p>\n<\/p>\n

(0.07)<\/span><\/p>\n<\/p>\n

0.02<\/span><\/p>\n

\u00a0<\/p>\n

Weighted average shares used in calculating net
\u00a0 \u00a0 (loss)\/income per common share<\/span><\/p>\n

\u00a0 \u00a0Basic<\/span><\/p>\n<\/p>\n

211,319,973<\/span><\/p>\n<\/p>\n

201,567,132<\/span><\/p>\n

\u00a0 \u00a0Diluted<\/span><\/p>\n<\/p>\n

211,319,973<\/span><\/p>\n<\/p>\n

205,382,443<\/span><\/p>\n<\/p>\n

Note1:\u00a0Share-based\u00a0compensation\u00a0expenses\u00a0are\u00a0included\u00a0in\u00a0the\u00a0operating\u00a0costs\u00a0and\u00a0expenses\u00a0as\u00a0follows:<\/span><\/p>\n

For\u00a0the\u00a0Three\u00a0Months<\/span><\/p>\n<\/p>\n

Ended\u00a0May\u00a031,<\/span><\/p>\n

2023<\/span><\/p>\n<\/p>\n

2024<\/span><\/p>\n

Cost of revenues<\/span><\/p>\n<\/p>\n

$ 2,409<\/span><\/p>\n<\/p>\n

$ 2,362<\/span><\/p>\n

Selling and marketing expenses<\/span><\/p>\n<\/p>\n

7,428<\/span><\/p>\n<\/p>\n

4,375<\/span><\/p>\n

General and administrative expenses<\/span><\/p>\n<\/p>\n

15,676<\/span><\/p>\n<\/p>\n

11,469<\/span><\/p>\n

Total<\/span><\/p>\n<\/p>\n

$ 25,513<\/span><\/p>\n<\/p>\n

$ 18,206<\/span><\/p>\n<\/p>\n

Note\u00a02:\u00a0Three\u00a0ADSs\u00a0represent\u00a0one\u00a0Class\u00a0A\u00a0common\u00a0Share.\u00a0
<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION\u00a0GROUP<\/span><\/p>\n

UNAUDITED\u00a0CONDENSED\u00a0CONSOLIDATED STATEMENTS OF<\/span><\/p>\n

COMPREHENSIVE (LOSS)\/INCOME\u00a0\u00a0<\/span><\/p>\n

(In\u00a0thousands\u00a0of\u00a0U.S.\u00a0dollars)<\/span><\/p>\n

For\u00a0the\u00a0Three\u00a0Months\u00a0Ended<\/span><\/p>\n

\u00a0May\u00a031,<\/span><\/p>\n

2023<\/span><\/p>\n<\/p>\n

2024<\/span><\/p>\n

Net\u00a0(loss)\/income<\/span><\/p>\n

$ (45,227)<\/span><\/p>\n<\/p>\n

$ 11,296<\/span><\/p>\n<\/p>\n

Other comprehensive loss, net of tax<\/span><\/p>\n

(23,813)<\/span><\/p>\n<\/p>\n

(7,580)<\/span><\/p>\n<\/p>\n

Comprehensive\u00a0(loss)\/income<\/span><\/p>\n

(69,040)<\/span><\/p>\n<\/p>\n

3,716<\/span><\/p>\n<\/p>\n

Add: Comprehensive income attributable to
\u00a0 \u00a0noncontrolling interests<\/span><\/p>\n

(461)<\/span><\/p>\n<\/p>\n

(45)<\/span><\/p>\n<\/p>\n

Comprehensive\u00a0(loss)\/income\u00a0attributable\u00a0to\u00a0<\/span><\/p>\n

TAL\u00a0Education\u00a0Group<\/span><\/p>\n

$ (69,501)<\/span><\/p>\n<\/p>\n

$ 3,671<\/span><\/p>\n<\/p>\n<\/div>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION GROUP<\/span><\/p>\n

UNAUDITED CONDENSED CONSOLIDATED\u00a0STATEMENTS OF<\/span><\/p>\n

CASH FLOWS<\/span><\/p>\n

(In thousands of\u00a0U.S. dollars)<\/span><\/p>\n

For the Three Months
Ended<\/span><\/p>\n

May 31,<\/span><\/p>\n<\/p>\n

2023<\/span><\/p>\n<\/p>\n

2024<\/span><\/p>\n

Net cash provided by operating activities<\/span><\/p>\n

$ 125,516<\/span><\/p>\n<\/p>\n

$ 246,793<\/span><\/p>\n

Net cash provided by\/(used in) investing activities<\/span><\/p>\n

160,915<\/span><\/p>\n<\/p>\n

(124,635)<\/span><\/p>\n

Net cash (used in)\/provided by financing activities<\/span><\/p>\n

(151,237)<\/span><\/p>\n<\/p>\n

5<\/span><\/p>\n

Effect of exchange rate changes<\/span><\/p>\n

(4,510)<\/span><\/p>\n<\/p>\n

(1,217)<\/span><\/p>\n

Net increase in cash, cash equivalents and restricted cash <\/span><\/p>\n

130,684<\/span><\/p>\n<\/p>\n

120,946<\/span><\/p>\n

Cash, cash equivalents and restricted cash at the beginning of
\u00a0 \u00a0period<\/span><\/p>\n

2,294,907<\/span><\/p>\n<\/p>\n

2,457,476<\/span><\/p>\n

Cash, cash equivalents and restricted cash at the end of period<\/span><\/p>\n

$ 2,425,591<\/span><\/p>\n<\/p>\n

$ 2,578,422<\/span><\/p>\n<\/div>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\n

TAL\u00a0EDUCATION\u00a0GROUP<\/span><\/p>\n

Reconciliation\u00a0of\u00a0Non-GAAP\u00a0Measures\u00a0to\u00a0the\u00a0Most\u00a0Comparable\u00a0GAAP\u00a0Measures<\/span><\/p>\n

(In\u00a0thousands\u00a0of\u00a0U.S.\u00a0dollars,\u00a0except\u00a0share,\u00a0ADS,\u00a0per\u00a0share\u00a0and\u00a0per\u00a0ADS\u00a0data)<\/span><\/p>\n

\u00a0 For\u00a0the\u00a0Three\u00a0Months\u00a0<\/span><\/p>\n

\u00a0\u00a0 Ended\u00a0May\u00a031,<\/span><\/p>\n

2023<\/span><\/p>\n<\/p>\n

2024<\/span><\/p>\n

Cost\u00a0of\u00a0revenues<\/span><\/p>\n

$ 139,513<\/span><\/p>\n<\/p>\n

$ 200,008<\/span><\/p>\n<\/p>\n

Share-based compensation expenses in cost of<\/span><\/p>\n

\u00a0 revenues<\/span><\/p>\n

2,409<\/span><\/p>\n<\/p>\n

2,362<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0cost\u00a0of\u00a0revenues<\/span><\/p>\n

137,104<\/span><\/p>\n<\/p>\n

197,646<\/span><\/p>\n

Selling\u00a0and\u00a0marketing\u00a0expenses<\/span><\/p>\n

97,657<\/span><\/p>\n<\/p>\n

122,428<\/span><\/p>\n<\/p>\n

Share-based compensation expenses in selling and<\/span><\/p>\n

\u00a0 marketing expenses<\/span><\/p>\n

7,428<\/span><\/p>\n<\/p>\n

4,375<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0selling\u00a0and\u00a0marketing\u00a0expenses<\/span><\/p>\n

90,229<\/span><\/p>\n<\/p>\n

118,053<\/span><\/p>\n<\/p>\n

\u00a0<\/span><\/p>\n

General\u00a0and\u00a0administrative\u00a0expenses<\/span><\/p>\n

\u00a0<\/p>\n

104,923<\/span><\/p>\n<\/p>\n

\u00a0<\/p>\n

109,682<\/span><\/p>\n<\/p>\n

Share-based compensation expenses in general and<\/span><\/p>\n

\u00a0 administrative expenses<\/span><\/p>\n

15,676<\/span><\/p>\n<\/p>\n

11,469<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0general\u00a0and\u00a0administrative\u00a0expenses<\/span><\/p>\n

89,247<\/span><\/p>\n<\/p>\n

98,213<\/span><\/p>\n

Operating\u00a0costs\u00a0and\u00a0expenses<\/span><\/p>\n

342,093<\/span><\/p>\n<\/p>\n

432,118<\/span><\/p>\n<\/p>\n

Share-based compensation expenses in operating<\/span><\/p>\n

\u00a0 costs and expenses<\/span><\/p>\n

25,513<\/span><\/p>\n<\/p>\n

18,206<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0operating\u00a0costs\u00a0and\u00a0expenses<\/span><\/p>\n

316,580<\/span><\/p>\n<\/p>\n

413,912<\/span><\/p>\n

Loss\u00a0from\u00a0operations<\/span><\/p>\n

(57,773)<\/span><\/p>\n<\/p>\n

(17,330)<\/span><\/p>\n<\/p>\n

Share based compensation expenses<\/span><\/p>\n

25,513<\/span><\/p>\n<\/p>\n

18,206<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0(loss)\/income\u00a0from\u00a0operations\u00a0(note\u00a03)<\/span><\/p>\n

(32,260)<\/span><\/p>\n<\/p>\n

876<\/span><\/p>\n

Net\u00a0(loss)\/income\u00a0attributable\u00a0to\u00a0TAL\u00a0Education\u00a0
Group<\/span><\/p>\n

(45,037)<\/span><\/p>\n<\/p>\n

11,402<\/span><\/p>\n<\/p>\n

Share based compensation expenses<\/span><\/p>\n

25,513<\/span><\/p>\n<\/p>\n

18,206<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0net\u00a0(loss)\/income\u00a0attributable\u00a0to\u00a0
TAL\u00a0Education\u00a0Group\u00a0(note 3)<\/span><\/p>\n

$ (19,524)<\/span><\/p>\n<\/p>\n

$ 29,608<\/span><\/p>\n<\/p>\n

\u00a0<\/span><\/p>\n

Net\u00a0(loss)\/income\u00a0per\u00a0ADS<\/span><\/p>\n<\/p>\n

Basic<\/span><\/p>\n

$ (0.07)<\/span><\/p>\n<\/p>\n

$ 0.02<\/span><\/p>\n<\/p>\n

Diluted <\/span><\/p>\n

(0.07)<\/span><\/p>\n<\/p>\n

0.02<\/span><\/p>\n<\/p>\n

Non-GAAP\u00a0Net\u00a0(loss)\/income\u00a0per\u00a0ADS\u00a0<\/span><\/p>\n

Basic<\/span><\/p>\n

$ (0.03)<\/span><\/p>\n<\/p>\n

$ 0.05<\/span><\/p>\n<\/p>\n

Diluted <\/span><\/p>\n

(0.03)<\/span><\/p>\n<\/p>\n

0.05<\/span><\/p>\n<\/p>\n

ADSs\u00a0used\u00a0in\u00a0calculating\u00a0net\u00a0(loss)\/income\u00a0per\u00a0
ADS<\/span><\/p>\n

Basic<\/span><\/p>\n

633,959,919<\/span><\/p>\n<\/p>\n

604,701,396<\/span><\/p>\n<\/p>\n

Diluted <\/span><\/p>\n

633,959,919<\/span><\/p>\n<\/p>\n

616,147,329<\/span><\/p>\n<\/p>\n

ADSs\u00a0used\u00a0in\u00a0calculating\u00a0Non-GAAP\u00a0net
(loss)\/income per\u00a0ADS<\/span><\/p>\n

\u00a0Basic<\/span><\/p>\n

633,959,919<\/span><\/p>\n<\/p>\n

604,701,396<\/span><\/p>\n<\/p>\n

\u00a0Diluted<\/span><\/p>\n

633,959,919<\/span><\/p>\n<\/p>\n

616,147,329<\/span><\/p>\n

Note 3: The tax effect of share-based compensation expenses was immaterial in the first quarter of\u00a0fiscal year 2025.<\/span><\/p>\n<\/p>\n<\/div>\n

\u00a0<\/p>\n

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