Gaotu Techedu (GOTU) Surpasses Q2 Revenue Estimates, Eyes Continued Growth

Gaotu Techedu Inc. (NYSE:GOTU) is one of the must-buy penny stocks to invest in. On August 26, the company reported second-quarter revenue of RMB1.39 billion ($215.5 million), beating analyst expectations of RMB1.24 billion and marking a 37.6% year-over-year increase. Gross billings rose 36.2% to RMB2.25 billion, driving the revenue surge. Despite the strong top-line performance, the company posted a loss of RMB0.88 per share, slightly below forecasts.

Gaotu Techedu (GOTU) Surpasses Q2 Revenue Estimates, Eyes Continued Growth

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CEO Larry Xiangdong Chen attributed the company’s growth to innovation and AI, noting strong momentum in core operations. Non-GAAP net loss dropped 50.5% to RMB206.8 million, while operating cash inflow rose 52.5% to RMB588.8 million, signaling healthier finances.

Looking ahead, Gaotu expects Q3 revenue between RMB1.558 billion and RMB1.578 billion, representing up to 30.6% growth year-over-year. The company ended the quarter with a strong cash position of RMB3.82 billion, supporting its expansion and product development goals.

Gaotu Techedu Inc. (NYSE:GOTU) is a leading Chinese education technology firm offering academic and non-academic tutoring, college and adult education, and AI-powered learning tools. Its services span from primary school to adult learners, delivered through online platforms, mobile apps, and smart devices. The company is recognized for its data-driven approach and comprehensive curriculum encompassing traditional subjects and professional certifications.

While we acknowledge the potential of Gaotu Techedu Inc. (NYSE:GOTU) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOTU and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.