(TEDU) research, news, and more from GeoInvesting

Company description

Wed, 02 Apr 2014 04:00:00 GMT

Tarena International (TEDU) is a leading provider of professional education services headquartered in Beijing, China - See more at: http://www.equities.com/editors-desk/investing-strategies/ipo/ipo-report-tarena-international-tedu#sthash.Dzy5b5lg.dpuf

Tarena International (TEDU) is a leading provider of professional education services headquartered in Beijing, China. - See more at: http://www.equities.com/editors-desk/investing-strategies/ipo/ipo-report-tarena-international-tedu#sthash.Dzy5b5lg.dpuf

Tarena International (TEDU) is a leading provider of professional education services headquartered in Beijing, China.

Comments & Business Outlook

Tue, 05 May 2020 04:00:00 GMT

BEIJING, May 5, 2020 /PRNewswire/ -- Tarena International, Inc. (Nasdaq: TEDU) ("Tarena" or the "Company"), today announced that it has received a letter from The Nasdaq Stock Market ("Nasdaq"), dated May 4, 2020, notifying the Company that it has regained compliance with Nasdaq Listing Rules 5250(c)(1), as required by the decision of the Nasdaq Hearing Panel (the "Panel") dated December 16, 2019. Accordingly, the Panel determined to continue the listing of the Company's securities on Nasdaq and has closed the matter.

Comments & Business Outlook

Fri, 01 May 2020 04:00:00 GMT

BEIJING, May 1, 2020 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced its unaudited financial results for the six months ended June 30, 2019.

First Half Fiscal Year 2019 Highlights

Net revenues increased by 3.3% year-over-year to RMB882. 6 million (US$128.6 million), from RMB854.2 million in the same period in 2018.

Gross profit decreased by 30.4% year-over-year to RMB312.8 million (US$45.6 million), from RMB449.2 million in the same period in 2018.

Operating loss was RMB646.9 million (US$94.2 million), compared to an operating loss of RMB345.9 million in the same period in 2018.

Net loss was RMB625.1 million (US$91.1 million), compared to a net loss of RMB338.0 million in the same period in 2018.

Basic and diluted loss per American Depositary Share ("ADS") was RMB11.36 (US$1.65).

Cash, cash equivalents, time deposits, including current and non-current, and restricted cash totaled RMB728.7 million (US$106.1 million) as of June 30, 2019, compared to a balance of RMB704.8 million as of December 31, 2018.

Deferred revenue totaled RMB1,398.4 million (US$203.7 million) as of June 30, 2019, compared to a balance of RMB830.0 million as of December 31, 2018, representing an increase of 68.5%.

Total student enrollments in adult education in the first half of 2019 decreased by 4.8% year-over-year to approximately 62,900.

Total number of learning centers in adult education decreased to 142 as of June 30, 2019, from 180 as of December 31, 2018.

Total student enrollments in K-12 education in the first half of 2019 increased by 214.0% year-over-year to approximately 58,400.

Total number of learning centers in K-12 education increased to 177 as of June 30, 2019, from 148 as of December 31, 2018.

The Company's Interim Financial Statements are prepared and presented in accordance with U.S. GAAP. However, the Interim Financial Statements have not been audited or reviewed by the Company's independent registered accounting firm.

Comments & Business Outlook

Thu, 27 Feb 2020 14:57:16 GMT

BEIJING, Feb. 27, 2020 /PRNewswire/ -- Tarena International, Inc. (Nasdaq: TEDU) ("Tarena" or the "Company"), today announced that it has appointed Mr. Kelvin Wing Kee Lau as the Company's chief financial officer, effective on March 1, 2020. Mr. Lau succeeds Mr. Dennis Yuduo Yang, who has resigned from the Company and will assist with the transition for a short period of time.

Prior to joining us, Mr. Lau was the chief financial officer of Square Panda Inc., a U.S.-based AI education start-up company, between July 2018 and August 2019. Between March 2007 and June 2018, Mr. Lau first served as the chief financial officer of Perfect World Co., Ltd., a China-based online game company ("Perfect World") listed on Nasdaq between 2007 and 2015, and later as the chief financial officer of Perfect World Holding Co., Ltd., the holding company of Perfect World. Between November 2004 and February 2007, Mr. Lau was the chief financial officer of Beijing Media Corporation Limited, a company listed on the Stock Exchange of Hong Kong Limited. From 2000 to 2004, Mr. Lau was a group finance director of Shanghai Ogilvy & Mather Advertising Limited Beijing Branch. From 1990 to 2000, Mr. Lau worked at Hong Kong, Shanghai and Beijing offices of PricewaterhouseCoopers, lastly as a senior manager in Beijing. Mr. Lau received his bachelor's degree in business administration from Hong Kong Baptist University in 1990. He received his EMBA degree in 2011 from Cheung Kong Graduate School of Business in China. Mr. Lau is a member of Association of Chartered Certified Accountants and Hong Kong Institute of Certified Public Accountants.

In addition to the new chief financial officer appointment, Mr. Arthur Wong has been appointed as an independent director of the Company. Mr. Wong has also been appointed as the chairman of the audit committee of the board, as well as members of the compensation committee and the nominating and corporate governance committee. Mr. Jonathan Xiaosong Zhang has resigned from the board for personal reasons. Mr. Zhang's resignation did not result from any disagreement with the Company. These changes will be effective on March 1, 2020.

Mr. Wong currently serves as an independent director and chairperson of the audit committees of the following public companies: Daqo New Energy Corp. (NYSE: DQ), China Maple Leaf Educational Systems Limited (HKSE:1317) and Canadian Solar Inc. (Nasdaq: CSIQ). Between January 2013 and November 2018, Mr. Wong served as the chief financial officer of Radio Cultural Transmission Co., Ltd. an early stage music production company in Beijing, China. From 2008 to 2012, Mr. Wong served as Chief Financial Officer for Asia New-Energy, Nobao Renewable Energy and GreenTree Inns Hotel Management Group sequentially. From 1982 to 2008, Mr. Wong worked for Deloitte Touche Tohmatsu, in Hong Kong, San Jose and Beijing over various periods of time, most recently as a partner in the Beijing office. Mr. Wong received a bachelor's degree in applied economics from the University of San Francisco and a higher diploma of accountancy from Hong Kong Polytechnic University. He is a member of the American Institute of Certified Public Accountants and the Hong Kong Institute of Certified Public Accountants.

Comments & Business Outlook

Wed, 18 Dec 2019 14:53:15 GMT

BEIJING, Dec. 18, 2019 /PRNewswire/ -- Tarena International, Inc. (Nasdaq: TEDU) ("Tarena" or the "Company"), today announced that the Company has received a letter from the Nasdaq Hearings Panel (the "Panel") indicating that the Panel had granted the Company until the Company's requested date of April 24, 2020 to regain compliance with its reporting obligations, and requesting that the Company provide the Panel with updates regarding, among other things, the completion of the Company's audit and filing of the Company's Annual Report on Form 20-F for the year ended December 31, 2018, by no later than April 24, 2020.

Comments & Business Outlook

Fri, 06 Dec 2019 14:44:26 GMT

BEIJING, Dec. 5, 2019 /PRNewswire/ -- Tarena International, Inc. (Nasdaq: TEDU) ("Tarena" or the "Company") announced today that it has engaged Marcum Bernstein Pinchuk LLP ("MBP") as its independent registered public accountant with respect to the fiscal years from 2016 to 2018. The engagement of MBP as the independent registered public accountant was approved by the Audit Committee and the Board of Directors of the Company on December 5, 2019. The Company's Audit Committee has dismissed KPMG Huazhen LLP ("KPMG") as the Company's independent registered public accountant.

During the Company's two most recent fiscal years and through the subsequent interim period on or prior to December 5, 2019, neither the Company nor anyone on its behalf has consulted with MBP on either (a) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report nor oral advice was provided to the Company by MBP that MBP concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, or (b) any matter that was the subject of a disagreement, as that term is defined in Item 16F(a)(1)(iv) of Form 20-F (and the related instructions thereto) or a reportable event as set forth in Item 16F(a)(1)(v)(A) through (D) of Form 20-F.

Legal Insights

Tue, 26 Nov 2019 14:18:29 GMT

BEIJING, Nov. 26, 2019 /PRNewswire/ -- Tarena International, Inc. (Nasdaq: TEDU) ("Tarena" or the "Company") announced today that it received written notification from the Staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") dated November 25, 2019, indicating that because the closing bid price of the Company's American Depositary Shares ("ADS") for the last 30 consecutive business days was below US$1.00 per share, the Company no longer meets the minimum bid price requirement for the Nasdaq Global Select Market, set forth in Nasdaq Listing Rule 5450(a)(1). Pursuant to the Nasdaq Listing Rules, the applicable grace period to regain compliance is 180 days, or until May 25, 2020. The Company intends to monitor the closing bid price of its ADS between now and May 25, 2020 and is considering its options, including an adjustment of its ADS-to-Class A ordinary share ratio, in order to regain compliance with the Nasdaq Global Select Market minimum bid price requirement. The Company can cure this deficiency if the closing bid price of its ADS is $1.00 per share or higher for at least ten consecutive business days during the grace period. The Company intends to cure the deficiency within the prescribed grace period.

Legal Insights

Wed, 20 Nov 2019 14:49:39 GMT

BEIJING, Nov. 20, 2019 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company") announced today that the Nasdaq Hearings Panel (the "Panel") has granted the Company's request for an extended stay of any suspension of trading pending the ultimate conclusion of the Nasdaq hearing process.

On November 15, 2019, the Company timely requested a hearing before the Panel, at which hearing the Company will present its plan to evidence compliance with the Nasdaq filing requirement and an extension within which to do so. In accordance with the Nasdaq Listing Rules, the Company's hearing request automatically stayed any suspension action by Nasdaq for 15 calendar days, or until November 20, 2019; however, the Company also requested a further extension of the stay beyond the 15-day period, which was granted by the Panel and will enable continued trading of the Company's American Depositary Shares on Nasdaq at least pending the ultimate conclusion of the hearing process.

Legal Insights

Mon, 04 Nov 2019 14:33:11 GMT

BEIJING, Nov. 1, 2019 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), today announced the results of the previously announced independent investigation conducted by the independent audit committee of its board of directors (the "Audit Committee") regarding certain accounting and other matters, and provided an update on its financial statements review and Nasdaq listing.

The Independent Investigation

As previously announced by the Company in its May 17, 2019 press release, the Audit Committee commenced an independent investigation in April 2019 regarding, among other things, certain issues identified during the course of the audit of the Company's financial statements for the year ended December 31, 2018, including issues related to the Company's revenue recognition (the "Investigation"). The Audit Committee retained Kirkland & Ellis International LLP ("K&E") as independent legal counsel to advise the Audit Committee in conducting the Investigation. K&E was assisted by Deloitte & Touche Financial Advisory Services Limited as forensic accounting expert (together, the "Independent Advisors").

The Investigation is now substantially complete. The Investigation entailed review of documents and data from multiple Company employees, including review of approximately 260,000 emails and other electronic files and communications, 58 interviews of Company employees and relevant third parties, and analysis and testing of the Company's financial data, books and records. The Company provided substantial cooperation with the Investigation.

Summary of Findings

The following is a summary of the principal findings of the Investigation as of the date hereof. Unless otherwise indicated, the Investigation findings generally cover the fiscal years 2014 through 2018.

Revenue Inaccuracies: The Audit Committee's independent review found that the Company's reported revenues for fiscal years 2014, 2015, 2016 and 2017 and previously announced unaudited revenues for each quarter of and full year 2018 were not accurate. Factors contributing to the misstatement of revenue included intentional revenue inflation, inaccurate student account, status and loan data recorded in the Company's customer relationship management (CRM) system, premature recognition of revenue from certain students, and inaccurate accounting treatment of tuition refunds.
Expense Inaccuracies and Irregularities: The Audit Committee discovered instances of improper charges against accounts receivable and/or bad debts through payment to third parties, as well as guarantee payments to certain financial institutions or peer-to-peer financial tools for certain overdue student loans. The Audit Committee also identified certain expenses that were not supported by appropriate documentation and indications that funds or other benefits were provided to third parties contrary to Company policy.
Conflicts of Interest and Related Party Transactions: The Audit Committee found evidence that the Company engaged in business transactions with organizations owned, invested in or controlled by Company employees or their family members which in some instances were not properly disclosed by the Company.
Interference With External Audit Process: It was found that certain employees interfered with the external audit of the Company's financial statements for certain periods.

The Company is assessing the overall financial impact of these findings on its financial statements. The management team of the Company anticipates that the total amount of revenue misstatement between fiscal years 2014 through 2018 to be less than RMB900 million, representing approximately 11.5% of the total revenue previously reported by the Company for such period. This figure represents the estimate of the management team based on currently available information. The actual amount of revenue misstatement may be higher.

Remedial Measures in Response to Investigation

The Audit Committee has recommended that the Company take a number of remedial measures in response to the Investigation, including enhancement of the Company's internal policies and controls, enhancement of the Company's financial reporting function, provision of additional training to Company employees regarding the issues implicated in the Investigation findings, adjustment of the Company's internal structure and reporting lines where appropriate, disciplinary measures for employees engaged in misconduct, and addition of new resources and personnel where needed. The Company has accepted these recommendations and is in the process of implementing them.

To date, the Company has already taken certain remedial measures to address the issues identified in the Investigation, including (i) adjusting Company internal audit reporting structures to provide enhanced oversight over the Company's financial reporting function, (ii) suspending payments to third party vendors implicated in the Investigation findings, (iii) providing training to Company employees on issues implicated in the Investigation findings, and (iv) placing certain employees found to have engaged in misconduct on administrative leave pending further deliberation by the board of directors regarding appropriate employee discipline and remedial measures.

Financial Statement Review

In light of the Audit Committee's findings, management of the Company is evaluating the necessity, nature and scope of any restatements to any of its previously filed financial statements. Due to the ongoing nature of this evaluation, the Company cannot at this time provide an estimate of the timing, extent, or effect of any such restatements and the timing of completing the financial statements for fiscal year 2018.

In addition, management is considering the Company's prior conclusion of the adequacy of its internal control over financial reporting and disclosure controls and procedures, and related material weaknesses in such controls. The Company intends to amend certain prior disclosures pertaining to its evaluation of such controls and procedures, and material weaknesses, as appropriate in connection with any amended filings, and will consider whether any further remedial measures may be advisable.

Nasdaq Listing

On October 29, 2019, the Company received a letter from the Staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that since it remains delinquent in filing its Annual Report on Form 20-F for the fiscal year ended December 31, 2018 (the "2018 Annual Report"), it has not regained compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic reports with the Securities and Exchange Commission. Previously, Nasdaq granted the Company an extension until October 28, 2019 to file all delinquent periodic reports. As described in the letter, as a result of the continued delinquency, the Company's American depositary shares are subject to delisting unless the Company timely requests a hearing before a Nasdaq Hearings Panel ("Panel").

The Company intends to timely request a hearing before the Panel to present its plan for regaining compliance and request continued listing pending its return to compliance. The hearing request will automatically stay the delisting for a period of 15 calendar days from the date of the request, and the hearing will typically occur approximately 30 to 45 days after the date of the hearing request. The Company will provide information to the Panel, which will then make a decision regarding whether to grant the Company an extension to regain compliance.

Comments & Business Outlook

Fri, 17 May 2019 13:49:05 GMT

BEIJING, May 17, 2019 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it received a notification letter from Nasdaq Listing Qualifications ("Nasdaq") stating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) due to its failure to timely file its Annual Report on Form 20-F for the year ended December 31, 2018 (the "2018 Form 20-F").

The Company had previously filed Form 12b-25 to extend the filing deadline for its 2018 Form 20-F. The Company was not able to file its annual report on Form 20-F for the year ended December 31, 2018 by the prescribed filing deadline of April 30, 2019 without unreasonable effort or expense because (i) the Company was unable to finish preparing its financial statements for the periods to be included in the annual report by the prescribed filing deadline; and (ii) the independent audit committee of the Company's board of directors is conducting a review of certain issues identified during the course of the audit of the Company's financial statements for the year ended December 31, 2018, including issues related to the Company's revenue recognition. The Company expects that its historical disclosure of unaudited financial results for each quarter and full year of the fiscal year ended December 31, 2018 may need to be restated and should not be relied upon, pending the completion of its audited financial statements and the review conducted by its independent audit committee. The Company expects to file its annual report on Form 20-F once the financial statements for inclusion therein become available and the independent audit committee's review is completed.

The Nasdaq notification letter provides the Company 60 calendar days from the date of the notification, or until July 15, 2019, to submit a plan to Nasdaq to regain compliance with the Nasdaq's continued listing requirements. If the plan is accepted, Nasdaq can grant an exception of up to 180 calendar days, or until October 28, 2019, for the Company to regain compliance. The Company may regain compliance at any time during this 180-day period by filing its 2018 Form 20-F. If Nasdaq does not accept the Company's compliance plan, the Company will have the opportunity to appeal that decision to a Hearing Panel under Listing Rule 5815(a). The Nasdaq notification letter has no immediate effect on the listing of the Company's American depositary shares on the Nasdaq Stock Market.

Comments & Business Outlook

Tue, 12 Mar 2019 13:48:46 GMT

Fourth Quarter 2018 Financial Results

Net revenues decreased by 0.3% year-over-year to RMB615.3 million, from RMB617.0 million in the same period in 2017.
As a result of the foregoing, net loss was RMB164.7 million in the fourth quarter of 2018, compared to net income of RMB74.6 million in the same period in 2017. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB135.2 million, compared to a non-GAAP net income of RMB101.3 million in the same period in 2017.

"We are pleased with the rapid growth from our kid education business during 2018. More than 100 learnings centers were added to our kid education business, including 21 from acquisition in early 2018. By the end of 2018, we have expanded to a total of 148 kid learnings centers, covering 53 cities. In this quarter, Tarena's kid education business delivered outstanding results in student enrollment, centers layout, course development, and revenue contribution. The student enrollment of kid education business continued its rapid growth of over 360% year over year increase to reach 15,233 students. Furthermore, kid education net revenues reached at RMB67.2 million this quarter, representing 11% of our total net revenues." Said Mr. Shaoyun Han, Tarena's Chairman and Chief Executive Officer.

"I am also very pleased to see the enrollment of adult education business during this quarter was 36,394, achieving a year over year growth of 6.3%. The State Council recently issued the Implementation Plan for the National Vocational Education Reform, reflecting government's emphasize on the teaching quality in vocational training area and the determination to promote cooperation between schools and enterprises. In 2018, we successfully explored a Featured Program business model targeted at university students through partnerships with universities. Such a new enrollment model will become one of important drivers of our adult business growth in the future. By closing about 40 under-performing adult centers in 2018, we effectively controlled the operating costs. Looking forward into 2019, we expect our adult business to achieve significant improvement in profitability along with a steady student enrollment, and kid business to continue its momentum to grow robustly and make greater contribution to the company." Mr. Han concluded.

Mr. Yuduo Yang, Tarena's Chief Financial Officer, said, "During this quarter, we continued to emphasize on resources distribution, as the Company closed or merged a total of 12 adult learning centers and opened only one center in the city of Baoding. By the end of this quarter, company operated 184 adult learning centers in 70 cities. By optimizing seating layout, our seat utilization rate improved to 71.6%, as compared to the utilization rate of 69.6% in the same period last year. In 2018, our bottom line was negatively impacted by a larger number of students enrolled through university partnership where revenue is recognized over longer period and by the fact that most of the kid education learning centers are still in the ramp up period. With great market potential and company's unique strength in IT training area, we believe that our kid education business and our university partnerships will provide a strong foundation for the Company to grow in the coming years."

Business Outlook

Based on the Company's current estimates, total net revenues for the first quarter of 2019 are expected to be between RMB395.0 million and RMB415.0 million, representing a decrease of 2.9% to an increase of 2.1% on a year-over-year basis.

The Company also expects its total net revenues for the full year of 2019 to be between RMB2,430.0 million and RMB2,580.0 million, representing an increase of 8.5% to 15.2% on a year-over-year basis.

This guidance is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions, which are subject to change.

Comments & Business Outlook

Tue, 21 Aug 2018 13:22:18 GMT

Second Quarter 2018 Financial Results

Net revenues increased by 13.6% year-over-year to RMB517.8 million, from RMB455.8 million in the same period in 2017.
Basic and diluted loss per American Depositary Share ("ADS") was RMB2.94. Non-GAAP basic and non-GAAP diluted loss per ADS, which excluded share-based compensation expenses, was RMB2.47. Each ADS represents one Class A ordinary share.

"We are delighted to see a recovery of retail channel student enrollment in the adult education business, achieving 12% year over year growth, and a positive trend in both enrollment efficiency and students acquisition cost compared to the past three quarters. These improvements benefited from our successful resources integration, course upgrading, and optimization of the students acquisition model. We believe this trend will continue in the second half of the year. At the same time, the number of students enrolled in joint major programs almost doubled compared to the same period last year. Because our joint major programs typically last between three and four years, tuition generated from such programs is only partially recognized during this quarter, with the remaining portions to be recognized in future quarters and years. During the first half of 2018, student enrollment through university channel contributed approximately 18% of total student enrollment in adult education business, while the net revenue contribution was only approximately 8%. Although relatively faster increase in student enrollment through university channel has a short-term negative impact on our net revenues, the long-term partnership with universities will bring us rapid growth in student enrollment, which will lay a solid foundation for our adult education business in the future. We are confident in the long-term growth in the professional education market." said Mr. Shaoyun Han, Tarena's Chairman and Chief Executive Officer.

"In addition, we are pleased to see continuous rapid growth in kid education business with student enrollment of 10,570 during the second quarter, representing a 512.8% year over year growth and a 171.4% growth compared to the first quarter of this year. By the end of the second quarter, our kid education business covered 39 cities with 99 learning centers. We believe that the recent change in government regulation related to the kid education industry will have a positive impact on quality-oriented courses including children IT programming education. Our core competitiveness to rapidly expand K12 education business significantly in a short time are our strong IT courses development ability uniquely originated from our adult education business, our dual-teacher teaching ability, our exceptional skills to recruit IT teaching faculties and to train them, as well as our operating management teams in 67 cities. With the increasing importance of information technology and AI skills, programming courses are becoming increasingly important. We expect our kid education business to maintain a robust growth in the coming two to three years, and we believe that Tarena will be the leader in the market." Mr. Han added.

Mr. Yuduo Yang, Tarena's Chief Financial Officer, said, "Focusing on the enhancement of operating efficiency of our traditional professional education business, we closed 16 non-performing centers, and reasonably controlled total operating cost. Our seat capacity increased to 62,153 as of June 30, 2018, representing a year over year increase of 9.0%. By optimizing seating layout, our seat utilization rate was 73.2% in the second quarter of 2018, slightly lower than the utilization rate of 73.6% during the same period last year. However, we are closing the gap between the utilization rates achieved in 2018 compared with those in 2017. Average selling and advertising expenses spent per student for adult education business also improved during the second quarter as compared with the three previous quarters. Such improvement in enrollment and seat utilization proves the effectiveness of our learning center resource optimization strategy, which will provide continuous positive impact in the coming quarters. Meanwhile, we will continue to accelerate investments in kid education business and joint major programs with universities, as well as developing new courses. Considering that the kid education business and joint major programs are in a fast growing phase, these two types of businesses resulted in a loss during this quarter with its partially recognized revenue due to longer services periods. However, we observed a decreasing average acquisition cost per student and a steady improvement of seat utilization, both of which are good indicators of future profits. We believe in a gradual recovery of our profitability with increased business maturity in both the kid education business and joint major programs."

Business Outlook

Based on the Company's current estimates, total net revenues for the third quarter of 2018 are expected to be between RMB675.0 million and RMB705.0 million, representing an increase of 18.8% to 24.1% on a year-over-year basis.

The Company also expects its total net revenues for the full year of 2018 to be between RMB2,300.0 million and RMB2,450.0 million, representing an increase of 16.5% to 24.1% on a year-over-year basis.

This guidance is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions, which are subject to change.

Notable Share Transactions

Fri, 22 Jun 2018 13:15:49 GMT

BEIJING, June 22, 2018 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that its board of directors has authorized an increase to the size of the share repurchase plan it adopted on August 21, 2017 from US$30 million to US$70 million and an extension of the term of the plan to June 20, 2019. Under the revised plan, the Company is authorized to repurchase up to an aggregate value of US$70 million of the Company's shares until June 20, 2019. The other terms of the share repurchase plan remain unchanged. The share repurchases may be made from time to time in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. Tarena's board of directors will review the share repurchase plan periodically, and may further authorize adjustment of its terms and size. The Company expects to fund repurchases made under this plan from its existing cash balance and/or future cash provided by operating activities.

Comments & Business Outlook

Tue, 06 Mar 2018 14:05:55 GMT

Fourth Quarter 2017 Financial Results

Net revenues increased by 33.0% year-over-year to RMB617.0 million from RMB464.0 million in the same period in 2016.
Basic and diluted net income per American Depositary Share ("ADS") were RMB1.33 and RMB1.28, respectively. Non-GAAP basic and non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were RMB1.80 and RMB1.74, respectively. Each ADS represents one Class A ordinary share.

Mr. Shaoyun Han, Chairman and Chief Executive Officer of Tarena, said, "We are pleased to finish fiscal year 2017 with a strong momentum and record-high results in net revenues as well as total number of student enrollments in both professional education and kid education business. It is encouraging to see an accelerated revenue growth of 33.0% year-over-year in the fourth quarter of 2017, which exceed our previously issued guidance. The solid topline growth was primarily driven by our growing student base in professional education, with a 27.2% enrollment growth in the quarter. Additionally, student enrollment in kid education programs continued to achieve robust momentum, up by 270.4% year over year in the fourth quarter."

"Despite challenging market conditions in the year, fiscal year 2017 as a whole was a year of successful business expansion and enlarged market presence. We added a net of 39 learning centers and rolled out to thirteen new cities during the year. At the same time, we undertook new content initiatives to enhance our core competency as a top level comprehensive education services provider. Our course portfolio has been further extended and upgraded to best cater to the market demand for new technology through our proprietary curriculum development platform, strategic alliances with well-known international enterprises and joint major programs with universities and colleges. In particular, Python and other AI related courses are gaining popularity, which we believe will gradually become the new driver for future enrollment growth." Mr. Han continued.

"We are also proud to see that our investments in Tongcheng and Tongmei started to bear fruit. Leveraging on the teaching resources and facilities with professional education business, our k-12 business has quickly expanded into 24 cities, with 30 separate centers and 28 shared centers nationwide by the end of 2017. As a result, total number of kid student enrollments more than tripled in 2017. Looking ahead, we will continue the well-paced expansion plan and further optimize center network with more refined assessment metrics at each level of organization to quicken the mature period of new centers. We believe our growth strategy will strengthen the solid foundation for our long term growth for both topline and bottom line." Mr. Han concluded.

Mr. Yuduo Yang, Tarena's Chief Financial Officer added, "Fourth quarter recovered enrollment growth in professional education business and exciting performance in k-12 education reflected our ability to harvest from capacity expansion and new course development efforts in recent quarters. We allocated more advertisement and marketing resources at the end of fourth quarter to improve utilization of facilities. The year-over-year decline of utilization rate narrowed to approximately 210 basis points from 340 basis points in the previous quarter. Despite the fact that our costs associated with the marketing efforts were incurred ahead of the revenue ramp and most of the tuition fees from new student enrollment in the fourth quarter will be recognized next quarter, we will increasingly benefit from economies of scale and margin pressure will gradually lessen over the coming quarters. With solid business execution and strong market demand, we are confident to deliver long-term value for all our stakeholders."

Business Outlook

Based on the Company's current estimates, total net revenues for the first quarter of 2018 are expected to be between RMB370.0 million and RMB390.0 million, representing an increase of 11.2% to 17.2% on a year-over-year basis.

Acquisitions

Thu, 01 Mar 2018 14:22:07 GMT

BEIJING, March 1, 2018 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has entered into a definitive agreement to acquire Wuhan Haoxiaozi Robot Technology Co., Ltd, ("Rtec"), which is one of the largest K-12 robotics programming education service providers in Hunan and Hubei provinces in China.

Founded in 2009, Rtec is a pioneer teaching institution that provides robotics education services in China to children aged from 3 to 12 years old. It now serves nearly 4,000 students through over 20 directly operating learning centers.

"Tarena's investment in Rtec is an important step to consolidate the market in kid STEAM education in China. We have achieved strong organic growth in our own business through network expansion and new course offerings," said Shaoyun Han, Founder, CEO and Chairman of Tarena. "We believe the acquisition will further complement and extend our service and help us gain more insight into childhood development and learning as well as offline sales and marketing. We are confident to further strengthen our leading position in kid education through sharing proprietary system, teaching content and management experience between Tarena and Rtec. "

The total consideration for this acquisition is not disclosed for reasons of commercial sensitivity.

Joint Venture

Thu, 01 Feb 2018 14:02:02 GMT

BEIJING, Feb. 1, 2018 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has been selected by the National Center for Schooling Development Programme (the "NCSDP") of the PRC Ministry of Education as the only strategic partner for its Artificial Intelligence + ("AI+") Smart Learning joint major education program in China.

Pursuant to the agreement, Tarena will be the official partner to work with the NCSDP to provide AI training and certification services to universities and colleges in China. Both parties will jointly establish the Tarena AI+ Smart Learning Education Institute to promote the learning and understanding of AI technology by the young generation. Furthering to such efforts, Tarena will work together with Baidu, Microsoft, Amazon or other well-known international enterprises to develop integrated solution for university curriculum in the AI field, including academic major design and content offering through joint major program cooperation, teacher training, as well as the establishment of application innovation labs and teaching resources databases.

"China will face a growing shortage of supply in AI talents with the robust development of IT industry." said an official of the NCSDP, Ministry of Education. "We believe Tarena, as a leading professional education services provider in China, will help inspire more students to enter AI sector and promote innovation of AI application. We hope to stimulate universities to introduce AI training programs through school-enterprise cooperation and industry-education integration, thus gradually establish a talent supply mechanism to support our national economic development."

"Being selected as the only partner of "AI+ Smart Learning" joint major program is a strong endorsement from the NCSDP on Tarena's contribution to incubate highly qualified talents in the Chinese IT industry," said Shaoyun Han, Founder, CEO and Chairman of Tarena. "We are confident that Tarena's AI+ Smart Learning joint major education program will not only encourage universities to participate in the research and development of AI but also improve college students' application ability and practical skills. Such cooperation with the NCSDP will further enhance Tarena's reputation and brand influence among universities and college students."

Joint Venture

Fri, 22 Dec 2017 14:20:12 GMT

BEIJING, Dec. 22, 2017 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a strategic partnership agreement with 9F Inc to provide financing services for Tarena students.

"9F Inc is one of the first leading internet financial services companies in China to provide comprehensive installment payment services for students of all ages," said Shaoyun Han, Founder, CEO and Chairman of Tarena. "The cooperation with 9F Inc will further diversify payment options and increase financing flexibility for our students. We are confident that by seeking more and more such opportunities to cooperate with various well-known financial institutions, Tarena will continue to improve education experience for our students with high quality services and customized education solutions in the future."

Comments & Business Outlook

Wed, 15 Nov 2017 14:11:19 GMT

BEIJING, Nov. 15, 2017 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a strategic partnership agreement with Zhejiang E-Commerce Bank Co. Ltd ("MYbank"), an affiliate of Ant Financial Services Group, to provide financing services for Tarena students.

Pursuant to the agreement, MYbank will offer student loans to Tarena students to assist them in paying for tuition fees. Tarena and MYbank will work together in developing the internet "finance + education" business and providing student customers with the best service experience.

"We welcome MYbank in becoming one of Tarena's financing partners for providing student loans to our students," said Shaoyun Han, Founder, CEO and Chairman of Tarena. "Tarena has formed cooperative relationship with a number of outstanding financing institutions in China. The participation of MYbank further diversified payment options and increased financing flexibility for our students. We look forward to a long term cooperation with MYbank."

Joint Venture

Wed, 27 Sep 2017 13:01:11 GMT

BEIJING, Sept. 27, 2017 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a strategic partnership agreement with Ping An Property & Casualty Insurance Company of China, Ltd., Beijing Branch ("Ping An") to provide Ping An Safe Employment Education Insurance to Tarena's students.

Pursuant to the partnership agreement, Tarena will cooperate with Ping An to offer to Tarena's eligible students nationwide Ping An Safe Employment Education Insurance. The insurance premium is RMB280 per student. According to the insurance provisions, during the 12-months insurance period, in the event an insured student (i) has finished a full-time course with Tarena, (ii) reached certain qualifying score on the exit exam, (iii) has not been able to find a job within approximately three months after graduation, and (iv) has re-enrolled in such course for at least 50 consecutive days, such student can file an insurance claim with Ping An for up to RMB 12,000 in compensation to cover the tuition costs related to the re-enrollment in such course.

"Ping An Safe Employment Education Insurance is an innovative solution to lower the financial risks for our students," said Shaoyun Han, Founder, CEO and Chairman of Tarena." Through our strategic partnership with Ping An, we seek to enable our students to receive professional training with lower risk and find their ideal jobs in a more secured way. Looking ahead, Tarena will continue to explore effective teaching models, introduce creative education methods and promote job placement services to help Chinese youngsters achieve better employment prospects and career development."

"Ping An is very pleased to cooperate with Tarena, a leading brand in China with best in class professional education services," said Jiangtao Wang, Deputy General Manager at Ping An Property & Casualty Insurance Company of China, Ltd., Beijing Branch. "During the past 15 years, Tarena has helped more than 438,000 students achieve their career dream. Based on its innovative dual teacher model and outstanding career services, Tarena students' six months post-graduation job placement rate is above 90%. We are confident in Tarena's teaching quality and students' strong competitiveness in the job market."

Regular Dividend News

Wed, 31 May 2017 13:33:27 GMT

BEIJING, May 30, 2017 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that the record date for its cash dividend of US$0.16 per ordinary share (the "Cash Dividend"), including both Class A ordinary shares and Class B ordinary shares, will be changed from previously announced March 27, 2017 to June 9, 2017. The Company will make the payment of the Cash Dividend on or about June 16, 2017, which payment was previously scheduled to be made on or about May 30, 2017.

Comments & Business Outlook

Tue, 23 May 2017 12:52:25 GMT

First Quarter 2017 Financial Results

Net revenues increased by 23.5% year-over-year to RMB332.7 million from RMB269.5 million in the same period in 2016.
Basic and diluted loss per ADS were RMB0.44 in the first quarter of 2017. Non-GAAP basic and non-GAAP diluted loss per ADS, which excluded share-based compensation expenses, were RMB0.24.

"We are very pleased to start fiscal year 2017 by delivering strong financial and operational results. Top line growth for the first quarter was 23.5%, exceeding the high end of our expected range and driven largely by a healthy 20.6% increase in student enrollments. Our professional education business continued its strong momentum during the quarter, despite the seasonal fluctuations created by Chinese New Year. We are especially proud that we continued to deliver excellent education quality and outcomes, achieving once again the 6-month post-course job placement rate of above 95%. Our new collaborations recently with globally renowned IT companies such as Microsoft, HP and Intel will also help build our brand recognition and solidify our leading position in China's professional education industry. Such results are strong validation of the market demand for our high quality professional education services in both IT and non-IT verticals," said Mr. Shaoyun Han, Tarena's Chairman and Chief Executive Officer.

"As we look ahead, well-paced expansion of our learning center network will remain a key strategic way to drive long term growth. In the first quarter, we entered into 5 new cities and added a net of 15 learning centers, achieving a total of 52,822 seat capacity which represents 20.0% year-over-year growth. We are also committed to investing in new courses and contents development in existing courses to advance curriculum system. Our new initiatives in kid education programs has started to bear fruit and we successfully enrolled 994 students in our kid education programs in the first quarter. We believe solid business execution in the first quarter 2017 lays good foundation for us to continue performance and deliver long-term value for all our shareholders," Mr. Han concluded.

Mr.Yuduo Yang, Tarena's Chief Financial Officer, said, "As we mentioned before, we experienced seasonal fluctuation due to Chinese New Year in the first quarter of each year. Our costs associated with the new centers and new courses were incurred ahead of the enrollment and revenue ramp, which contributed to the net loss of RMB24.6 million in the first quarter 2017, compared with a net loss of RMB 24.5 million in the same period last year. However, given the strong enrollment result in the first quarter and the healthy business fundamentals, we are confident in our overall revenue growth outlook for the full year of 2017."

Business Outlook

Based on the Company's current estimates, total net revenues for the second quarter of 2017 are expected to be between RMB443.5 million and RMB 456.5 million, representing an increase of 21.4% to 25.0% on a year-over-year basis.

The Company also expects its total net revenues for the full year of 2017 to be between RMB1,990.0 million and RMB2,070.0 million, representing an increase of 26.0% to 31.0% on a year-over-year basis.

This guidance is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions, which are subject to change.

Joint Venture

Thu, 20 Apr 2017 13:11:59 GMT

BEIJING, April 20, 2017 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a multi-project cooperation agreement with Microsoft Corp. ("Microsoft") and will become Microsoft's strategic partner to provide a wide range of education and certification services to universities, adult students and kid students in China.

Pursuant to the partnership agreement, Tarena and Microsoft will work together to provide .Net and H5 technical skills training and certification services to college students, graduates and other individuals. By combining with Microsoft's latest technology and original learning materials, Tarena will further upgrade .Net and Web front end development course to suit different needs of students at all levels. Moreover, the strategic alliance with Microsoft enables Tarena to design and develop the major in data science and artificial intelligence as joint major programs with hundreds of universities and colleges in China. In addition, Tarena invited Microsoft, who is the key founder and donor of a global educational campaign "Hour of Code", to jointly launch and operate "Discovery Cup" National Young People Coding Competition in China. Winners or the graduates who finish Tarena's kid programming course and pass relevant examinations can be awarded the official MTA certificates from Microsoft.

"Microsoft is the world's authority in software, services, devices and solutions," said Shaoyun Han, Founder, CEO and Chairman of Tarena. "Tarena is proud to partner with organizations such as Microsoft, in bringing international tutorial resources and best-in-class IT solutions to universities, driving the university-enterprise cooperation and introducing job skills and opportunities to students. We believe this outstanding cooperation will greatly enhance global competitiveness of Chinese IT professionals and create better career path for youth."

"At Microsoft, we're committed to transforming IT skills required to support social and economic opportunity around the world. We are pleased to work closely with Tarena, who are a leader in the delivery of IT training in China," said Kyle Uphoff, Senior Director, Worldwide Customer & Partner Sales, Microsoft Learning & Readiness. " We are confident that the partnership will support universities in their development of computer science skills for youth in China."

Comments & Business Outlook

Tue, 22 Nov 2016 13:54:22 GMT

Third Quarter 2016 Financial Results

Net revenues increased by 29.4% year-over-year to RMB481.0 (US$72.0) from RMB371.6 in the same period in 2015.
Non-GAAP basic and Non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were RMB2.40 (US$0.36) and RMB2.28 (US$0.34), respectively.

"We are pleased to report another strong quarter in terms of both growth and profitability," said Mr. Shaoyun Han, Tarena's Chairman and Chief Executive Officer. "For the third quarter of 2016, we continued to make solid progress on all fronts, given better course selections for our students, positive job market dynamics and improved operational efficiency. Our student enrollments for both IT and non-IT courses grew strongly at 28.0% year over year to reach 30,818, which marks a record high. This can be attributable to the execution of our core strategy to penetrate additional verticals and extend our reach into new geographical areas and new consumer segments. In the third quarter of 2016, we commenced our inaugural class in Beijing, Guangzhou and Hangzhou for our new course in Virtual Reality /Augmented Reality and opened 5 new learning centers in 5 cities, including Huhhot, a second tier city we newly entered. Going forward, we will continue to diversify our course offerings and revenues."

"More importantly, we began to implement a series of initiatives to further strengthen our position as a leading professional education services provider. In the third quarter of 2016, we have successfully cooperated with China Higher Education Publishing House to launch textbooks in Java, Digital arts and Android and forged joint major programs with Beijing Open University to deepen the cooperation with universities and colleges in China. Also in the third quarter, we continued to improve our employee productivity and operational efficiency by streamlining our organizational structure, upgrading IT facilities to promote communication and learning process, as well as continuing to optimize our advertising spending. As the number of college graduates in China has risen to a record high of 7.7 in 2016, Tarena has been well positioned to capture the opportunities presented by this favorable market environment to drive future growth." Mr. Han continued.

Mr. YuduoYang, Tarena's Chief Financial Officer, added, "despite the business expansion, both of our gross profit margin and operating margin stabilized at high level and we again delivered a strong growth in operating profit. Operating profits in the third quarter of 2016 increased by 25.1% year-over-year while operating profits for the first nine months of 2016 increased by 91.8% year-over-year. We will continue to manage our business with a passion for driving efficiency and bringing value to more students."

Business Outlook

Based on the Company's current estimates, total net revenues for the fourth quarter of 2016 are expected to be between RMB450.0 and RMB469.0, representing an increase of 18.3% to 23.3% on a year-over-year basis.

The Company also expects its total net revenues for the full year of 2016 to be between RMB1,566.0 and RMB1,585.0 , representing an increase of 32.9% to 34.6% on a year-over-year basis. The latest net revenues projection is higher than the original recasted full year 2016 net revenues projection of between RMB1,528.0 and RMB1,568.0 , representing an increase of 29.7% and 33.1% on a year-over-year basis, which was issued in August 2016.

Joint Venture

Tue, 25 Oct 2016 12:51:05 GMT

BEIJING, Oct. 25, 2016 /PRNewswire/ -- Tarena International, Inc. (TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a cooperation agreement with Beijing Open University ("BJOU"), to offer joint-major programs in digital art and software engineering.

Pursuant to the cooperation agreement, Tarena and BJOU will work together in the student recruitment, course development and certificate granting. First, BJOU will include Tarena's selected courses in their standard curriculum. Moreover, students at Tarena that enroll in joint-major programs with BJOU can earn certain percentage of academic credits toward these programs upon the completion of the Tarena courses without further exam requirements. Tarena students are eligible to receive graduation certificates within 2.5 years from BJOU, after finishing the remaining courses of these joint-major programs. BJOU will offer Tarena students in software engineering program the option to upgrade diploma from junior college to undergraduate, or students in digital arts program the option to upgrade diploma from high school to junior college, upon the passing of the relevant thesis and examination requirements of BJOU. Furthermore, BJOU also provides scholarships to elite students in joint-major programs.

"We are very excited to announce the partnership with Beijing Open University. This marks another milestone for Tarena to deliver the best-in-class professional training services to students and speed up the development of modern professional education," said Mr. Shaoyun Han, founder, CEO and chairman of Tarena. "As the Chinese government continues to accelerate the promotion of vocational education system and encourage higher education institutions in China to incorporate practical training courses into their curricula, by now Tarena has successfully forged joint major cooperation with more than 50 universities and colleges, such as Yangzhou University, Jiangsu Normal University, Huaihai Institute of Technology in recent years. Students at Tarena can not only learn practical skills but also earn college degrees, which opens up even more opportunities for them in the job market. Tarena is confident in cooperating with Beijing Open University and has been well positioned to explore and establish more in-depth partnerships with universities and colleges."

Research

Mon, 08 Feb 2016 15:56:04 GMT

Covered Our Short Position

On October 21, 2015 we released our article, “Aging Receivables and the Potential Loss of Legitimate Banking Partner May Teach TEDU Investors a Hard Lesson”. The stock was trading at $9.85 at the time of our article. On Friday, we closed out the remainder of our short position locking in roughly 11%.

Joint Venture

Tue, 12 Jan 2016 13:38:44 GMT

BEIJING, Jan. 12, 2016 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a strategic partnership agreement with Alibaba Cloud Computing Co., Ltd. ("Aliyun"), a global leader in big data and cloud computing technology, and Tarena is now an authorized partner to provide Aliyun's training and certification services to individuals and universities.

Pursuant to the partnership agreement, Tarena and Aliyun will jointly cultivate talents in cloud computing and big data processing by working together to develop the Aliyun learning module, which will be embedded into Tarena's current curriculum, including Java, PHP, Android, iOS, Big data, Web front, C++, Linux, etc. Aliyun will provide two opportunities to take the ACF(Ali Cloud Foundation) certification exams to each Tarena student, as well as supports in areas of financing, incubator and cloud services to Tarena students in their future entrepreneurship efforts.

"Aliyun is a global leader in cloud technology and certification. Currently more than 200,000 Chinese companies use its cloud solution," said Mr. Shaoyun Han, Founder, CEO and Chairman of Tarena. "Through our strategic partnership with Aliyun, we will continue to promote and upgrade our IT courses by providing elite students with the high quality big data training and certification validation from global leaders to help them achieve better employment prospects and career advancement."

"Aliyun is confident in this close official cooperation with Tarena, who has continued introducing best-in-class education and certification programs from worldwide first-tier technology companies such as Oracle, Adobe and RedHat," said Song Liu, General Manager of Aliyun. "I hope that Aliyun can help Tarena further promote a technology and certification integrated lifelong professional education system and benefit more individuals and companies in China."

Research

Tue, 24 Nov 2015 16:30:16 GMT

TEDU ($10.13, marked up) announced its Q3 2015 financial results:

Revenue of $59.70 million vs $40.27 million in the same period last year
Non-GAAP EPS of $0.26 vs $0.20 in the same period last year

On October 21, 2015, we published our bearish report named “Aging Receivables and the Potential Loss of Legitimate Banking Partner May Teach TEDU Investors a Hard Lesson.” We noticed that in the most recent quarter, accounts receivable as of September 30, 2015 are substantially the same as they were in December 31, 2014. We look forward to hearing the details regarding TEDU’s A/R in the next 10-K, especially the age of A/R and the amount of receivables that are past due. As we stated in our report, we feel this is a longer term short thesis.

“While the risks we highlight may not pose an immediate threat to TEDU’s growth profile, we think it’s prudent for longer-term bullish investors to be aware of the factors that already appear to be in motion. We feel these factors could result in TEDU being a much smaller company than it is today, operating at a loss. Likewise, those who choose to short TEDU should be aware that the company has a buyback program in place and involvement from a couple of well known institutional investors. We are short.”

Comments & Business Outlook

Tue, 24 Nov 2015 14:32:11 GMT

Third Quarter 2015 Financial Results

Net revenues increased by 48.2% year-over-year to US$59.7 million from US$40.3 million in the same period in 2014, exceeding the high end of the Company's previous guidance of US$52.5 million to US$53.5 million.
Non-GAAP basic and Non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were US$0.28 and US$0.26, respectively.

"We achieved an excellent third quarter with record top and bottom line results," said Mr. Shaoyun Han, Tarena's Chairman and Chief Executive Officer. "Driven by the strong student enrollments in the first and second quarters of 2015 and as reflected by the course enrollment data, our third quarter revenues exceeded guidance and grew more than 48% year-over-year to reach US$59.7 million. Despite of the US$3.4 million in foreign exchange loss as a result of the RMB depreciation, we still delivered a record non-GAAP profit of US$15.2 million."

"In the third quarter, both IT and non-IT courses kept strong growth momentum. Total student enrollments for the eleven IT courses grew by 32% year-over-year while enrollments for the three non-IT courses grew by 46% year-over-year. As a result, the composition between the IT and non-IT courses in terms of total student enrollments in the third quarter were about 59% vs. 41%," Mr. Han continued.

"More recently, we also launched two new courses in computer programming and digital arts for primary to high school students aged between 8 and 18 under the brand name of Tongcheng and Tongmei, respectively. This is another exciting initiative to leverage our core competency and resources to expand our course offerings. We believe that, together with our online learning platform, TMOOC.CN, which currently already has a registered user base of over 140,000, Tongcheng and Tongmei have further extended our target customer base and will bring additional growth opportunities for our company," Mr. Han concluded.

Mr. Suhai Ji, Tarena's Chief Financial Officer, added, "although we did not add new learning centers in the third quarter on a net basis, we increased our seat capacity by 31% year-over-year mostly through enlarging the existing centers. With the center utilization rate at 80% in the third quarter, we achieved an all-time high gross margin of 75.3%, an increase of 130 basis points year-over-year. We are also pleased to see our non-GAAP operating margin to be back at the level of 27%, an increase of more than 20 percentage points on a sequential basis, and the strong operating cash flow of US$23.8 million in the third quarter. The continued strong student enrollment is expected to largely offset the impact on our reported revenue figures in US dollars from the RMB depreciation, and we have further revised our revenue guidance upwards to reflect such positive trends."

Business Outlook

Based on the Company's current estimates, total net revenues for the fourth quarter of 2015 are expected to be between US$54.0 million and US$56.0 million, representing an increase of 36.0% to 41.1% on a year-over-year basis. For the full year of 2015, the Company raises its guidance from the previous range of US$172.0 million and US$177.5 million to US$183.2 million and US$185.2 million, representing an increase of 34.5% to 36.0% on a year-over-year basis.

Comments & Business Outlook

Mon, 10 Aug 2015 13:20:55 GMT

BEIJING, Aug. 10, 2015 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a strategic partnership agreement with Oracle (China) Software Systems Co., Ltd. ("Oracle") and will become Oracle's strategic partner to provide a wide range of education services to universities, governmental agencies and individuals in China.

Pursuant to the partnership agreement, Tarena will become an official partner of Oracle in China to provide Java training and certification services to college students, graduates and other individuals. Tarena will integrate Oracle's latest technology and original learning materials into Tarena's Java course curriculum, and Tarena graduates can be awarded the official international certificates from Oracle upon passing the relevant examinations. Tarena and Oracle will also work together to research and develop an integrated solution for university curriculum reform and major design in software engineering, as well as providing relevant governmental personnel training services.

"Oracle is the world's authority in Java language standardization and certification," said Shaoyun Han, Founder, CEO and Chairman of Tarena." Through our strategic partnership with Oracle, we will continue to refine and optimize our Java course to provide the best in class Java training to our students who can in turn receive the official validation from the global leader to help achieve better employment prospects and career development."

"Oracle is very pleased to cooperate with Tarena, a leader in China with high quality IT education and respected brand," said Minxiong He, President of Oracle University China. "Through the official close cooperation between the two partners, I hope that Oracle can help further enhance Tarena students' technical skills and benefit many more Chinese IT companies."

Notable Share Transactions

Tue, 23 Jun 2015 04:00:00 GMT

BEIJING, June 22, 2015 /PRNewswire/ -- Tarena International, Inc. (NASDAQ: TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that KKR, a leading global investment firm, and Mr. Shaoyun Han, founder, chairman and CEO of Tarena, had entered into definitive agreements to purchase an aggregate of US$90.5 million of ordinary shares in the Company from existing pre-IPO shareholders, which are funds managed by affiliates of Goldman Sachs and IDG Technology Venture Investments, LLC (the "selling shareholders").

Pursuant to these agreements, KKR has agreed to purchase 6,826,263 Class A ordinary shares, representing an approximately 13% stake in the Company, from the selling shareholders for US$70.0 million, and Mr. Shaoyun Han has agreed to purchase 2,000,000 Class A ordinary shares, representing an approximately 3.8% stake in the Company, from the selling shareholders for US$20.5 million, in private transactions. Mr. Han intends to fund the purchase through the issuance by an entity wholly owned by Mr. Han of a convertible bond to KKR.

"Tarena's mission is to improve careers and change the lives of our students by delivering high quality professional education services. We believe that KKR's rich experience in the education sector can help Tarena in its efforts to further strengthen its market leadership and achieve its vision of becoming the world's leading and most innovative professional education service provider. We welcome KKR as a significant new shareholder and the extensive experience that it brings to our company," said Mr. Shaoyun Han.

Julian Wolhardt, Member of KKR, said, "Tarena is a great company and a leader in its field with an excellent management team. We are very impressed with the Company's strong track record and its potential for future growth. We look forward to leveraging our global network and local experience to help Tarena capture new market opportunities."

The share purchase and sale transactions are expected to close on various dates in July 2015, subject to the satisfaction of customary closing conditions.

Research

Mon, 22 Jun 2015 15:46:28 GMT

We are adding to our TEDU Long Position based on our belief that the odds of a going private transaction have increased.

We believe the fact that Chairman and CEO of the company is also acquiring the shares is a clue that the management might consider a go-private deal in the future. In addition, KKR is an entity which has a history for participating in this type of the deal.

Our decision is based on the following news announcment:

TEDU ($13.57) announced that KRR and Mr. Shaoyun Han, founder, chairman and CEO of the company, entered into definitive agreements with pre-IPO shareholders, Goldman Sachs and IDG Technology Venture Investments, LLC, to purchase an aggregate of $90.5 million of the shares, with KRR acquiring approximately 13% of the company and Mr. Shaoyun Han acquiring about 3.8%. The average purchasing price is around $10.25 per ADS.

Comments & Business Outlook

Tue, 20 May 2014 04:00:00 GMT

First Quarter 2014 Financial Results

Net revenues increased by 60.7% year-over-year to US$24.3 million from US$15.1 million in the same period in 2013.
Net income (loss) Per share Basic and diluted was 0.01 vs. last years same net loss of (0.04)

"We are pleased to report our first quarterly results as a public company," said Mr. Shaoyun Han, Tarena's Chairman and Chief Executive Officer. "We started 2014 on a very positive note, delivering record first quarter revenue and profit. We saw continued strong growth in student enrollments in both IT and non-IT courses. We also continue to further diversify our course offerings and revenues by expanding into other high growth disciplines. For example, our digital art course, which was only launched in the first quarter of 2013, has grown tremendously to become our second largest course by student enrollments in the first quarter of 2014. While we expect to see increased enrollments for our Java course in 2014, it accounted for less than 42% of total student enrollments in the first quarter of 2014, compared to more than 60% in the same period in 2013. In addition, our student enrollments from the retail channel increased to 87% of the total student enrollments, compared to 80% in the same period in 2013, which resulted in higher average revenue per student."

"Leveraging our hybrid learning model, we expanded significantly in 2013 by opening 35 new learning centers to accommodate the growing demand for our courses. While maintaining our strong top line growth, we set a key objective and priority for 2014 in improving our center efficiency and utilization, especially for newly opened centers. We already saw encouraging and tangible results in our first quarter 2014 financial numbers in terms of significant gross margin and operating margin growth. In the quarters ahead, we are confident that we will continue to grow our student enrollments and at the same time further increase our margins to drive both top- and bottom-line growth," continued Mr. Han.

"Tarena's clear leading position in the large and growing professional education services market in China and our innovative and proven hybrid learning model present us with huge growth potential over both near and long term. Our high quality education services and strong track record of graduates' success provide a compelling value proposition to students, employers and universities in today's increasingly competitive job market in China. Over the coming quarters and years, we will continue to focus on delivering high quality education services and enhancing students' learning experiences and outcomes. With our recent NASDAQ IPO, we have further enhanced our market visibility and brand and are now even better positioned to grow our business and deliver long-term shareholder value," Mr. Han concluded.

Mr. Suhai Ji, Tarena's Chief Financial Officer, added, "we are very pleased with our record top- and bottom-line financial results as the first quarter is typically our seasonally slowest period for student enrollment due to the Chinese New Year holiday period. The impact of the Chinese New Year in 2014 was more profound because it fell at the end of the month on January 31 when we typically commence new classes for our courses. As a result, we only had new students starting classes at the end of February and March in the first quarter this year instead of having new students at the end of each month in the first quarter of 2013 because the Chinese New Year fell on February 10 in 2013. In this respect, we are very pleased with our year-over-year revenue growth of 61% and student enrollment growth of 30% in the first quarter of 2014. In addition, we improved our gross margin by 440 basis points year-over-year to 65% in the first quarter of 2014 and for the first time had an operating profit in the first quarter. This type of positive momentum and our relentless focus on execution give us more confidence to deliver even stronger results in the quarters ahead for 2014 and beyond."

Business Outlook

Based on the Company's current estimates, total net revenues for the second quarter of 2014 are expected to be between US$30.5 million and US$31.5 million, representing an increase of 47% to 51% on a year-over-year basis.

Joint Venture

Mon, 21 Apr 2014 04:00:00 GMT

BEIJING, April 21, 2014 (GLOBE NEWSWIRE) -- Tarena International, Inc. (Nasdaq:TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has signed a cooperation agreement with Bank of China Consumer Finance Co., Ltd. (BOCCFC) to provide financing services for Tarena students. Pursuant to the agreement, BOCCFC will offer student loans to Tarena students to assist them in paying for tuition fees. BOCCFC, in addition to Bank of Beijing Consumer Finance Company and CreditEase, becomes another third-party financing institution that has formed a cooperative relationship with Tarena.

- See more at: http://globenewswire.com/news-release/2014/04/21/628203/10077415/en/Tarena-International-Inc-Signs-Cooperation-Agreement-With-Bank-of-China-Consumer-Finance-Co-Ltd.html?f=22&fvtc=9&fvtv=China#sthash.KMipuWaI.dpuf

"We welcome BOCCFC in becoming one of Tarena's financing partners for providing student loans to our students," said Shaoyun Han, Founder, CEO and Chairman of Tarena. "The participation of BOCCFC further diversified payment options and increased financing flexibility for our students. We look forward to a long term cooperation with BOCCFC."
- See more at: http://globenewswire.com/news-release/2014/04/21/628203/10077415/en/Tarena-International-Inc-Signs-Cooperation-Agreement-With-Bank-of-China-Consumer-Finance-Co-Ltd.html?f=22&fvtc=9&fvtv=China#sthash.KMipuWaI.dpuf

Notable Share Transactions

Thu, 03 Apr 2014 04:00:00 GMT

BEIJING, April 3, 2014 (GLOBE NEWSWIRE) -- Tarena International, Inc. (Nasdaq:TEDU) ("Tarena" or the "Company"), a leading provider of professional education services in China, today announced that it has priced its initial public offering of 15,300,000 American Depositary Shares ("ADSs") at US$9.00 per ADS, for a total offering size of US$137.7 million, assuming the underwriters do not exercise their option to purchase additional ADSs. Each ADS represents one Class A ordinary share of the Company. The Company's ADSs are expected to begin trading on the NASDAQ Global Select Market on April 3, 2014 under the ticker symbol "TEDU." Of the 15,300,000 ADSs being offered, 11,500,000 ADSs are offered by Tarena and 3,800,000 ADSs are being offered by the selling shareholders. One of the selling shareholders has granted the underwriters an over-allotment option to purchase up to 2,295,000 additional ADSs at the initial public offering price within 30 days from the date of final prospectus.