The following is a summary of the ATA Creativity Global (AACG) Q4 2023 Earnings Call Transcript:
Financial Performance:
ATA Creativity Global reported full year 2023 revenue of RMB221.6 million, a 7.2% increase year over year.
For the fourth quarter of 2023, the increase in total student enrollment and delivered portfolio training credit hours resulted in a 6.5% increase in quarterly net revenues.
Gross margins for the full year and fourth quarter improved to 62.6% and 51.7% respectively, primarily driven by increased net revenue.
The company significantly reduced its net loss by 29.7% for the full year 2023 due to a decrease in operating expenses and increase in revenue.
The company ended the year with higher cash and cash equivalents compared to the end of 2022.
Business Progress:
For 2024, ATA Creativity Global will continue to focus on portfolio training services as the core of their business, expanding existing operations and seeking international partnerships.
New innovative programs were launched in 2023, including a four-year bachelor's program designed for junior high school graduates, offering services beyond traditional academic backgrounds.
The company successfully hosted multiple programs in the fourth quarter of 2023, including regular Master Class, the October Shanghai Fashion Week program, and the part-time assist program.
For the fiscal year 2024, the company expects a 5% to 15% increase in total net revenue, confirming their ambitious growth plans.
More details: ATA Creativity Global IR
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