Thursday, December 14, 2023
QuantaSing is a leading online service provider in China dedicated to improving people’s quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China’s online adult learning market and China’s adult personal interest learning market in terms of revenue, according to a report by Frost & Sullivan based on data from 2022. By leveraging its proprietary tools and technology, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners under a variety of brands, including QiNiu, JiangZhen and QianChi, empowering users to pursue personal development. Leveraging its extensive experience in individual online learning services, the Company has also expanded its services to corporate clients including, among others, marketing services and enterprise talent management services.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong fiscal Q1 revenue growth. The company reported fiscal 2024 Q1 revenue of RMB869.1 million, 11% better than our estimate and a 32% increase over the prior year period. Adj. EBITDA of RMB71.5 million was below our estimate of RMB90.5 million. Figure #1 Fiscal Q1 Results illustrates the company’s performance in the quarter.
Other Personal Interest Courses scaling. The impressive revenue growth was driven by the Other Personal Interest Courses category, which was up RMB292.5 million over the prior year period. Importantly, we expect the Other Personal Interest category to be the main revenue growth driver for the company over the short term.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.