New Oriental Education & Technology Group Inc. (NYSE:EDU) Q3 2023 Earnings Call Transcript

Please ask your question, Felix.Felix Liu Thank you management for taking my question again. I just want to have a follow-up on the market landscape of non-academic tutoring. I know we have most of our revenue coming from the top 10 cities. Do you — where do you see as the biggest growth opportunity ahead? Do you think it’s more about ramping up our market share in existing top cities or do you see a lot of opportunity in other cities, especially in lower tier cities for non-academic tutoring? Thank you.Stephen Yang I think, as I said, we are seeing the less competition for the downtime in — the children business. Actually, we are taking market share in both the top tier cities and the low tier cities. And going forward, I think, almost all the cities for the growth will be fast.

And Sisi, do you want to add?Sisi Zhao Yeah. Actually, now we are seeing the top 10 cities contributing, like, over 60%…Stephen Yang Yeah.Sisi Zhao … of overall revenue for this category and I think the growth will come from both taking continued expand and taking shares. It’s very, very early stage for this kind of new services and also the new market and where we definitely have opportunity to take market share in all the existing cities, especially these kind of major cities, top tier cities.And also our feeling is that the demand for this kind of non-academic tutoring is not only for higher tier cities, but also like all the existing cities where we are in, like, around 70, 80 cities that we still all have all the schools and learning centers and we use our existing educational infrastructure and also leveraging — keep leveraging our brand name, educational brand name.

We have the advantage to expand this kind of new business and the demand is very high.Felix Liu Okay. Got it. Thank you.Stephen Yang Thank you.Operator Thank you. [Operator Instructions] All right. Thank you. So we now approach the end of the conference call. I will now turn the call over to New Oriental’s Executive President and CFO, Stephen Yang for his closing remarks.Stephen Yang Again, thank you for joining us today. If you have any further questions, please do not hesitate to contact me or any of our Investor Relations representatives. Thank you.Operator Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.