New Oriental Q2 Profit Soars on Efficiency as Revenue Climbs 14.7%

Overview

• Total net revenue rose to $1.19 billion, with non-GAAP operating income up 206.9% to $89.1 million and non-GAAP net income reaching $72.9 million, up 6,068.6% year over year.
• Non-GAAP operating margin improved by roughly 470 basis points, aided by better utilization, cost control, and East Buy’s profit contribution; excluding East Buy, margin expanded about 300 basis points.
• K–9 and high-school tutoring posted faster year-over-year growth than in the prior quarter, as core operations held steady and newer initiatives gained traction.
• Overseas businesses were mixed but resilient, with test preparation revenue up about 4% year over year and study consulting down about 3%.
• Management raised full-year revenue guidance to $5.29–$5.49 billion (up 8%–12% year over year), paid a first dividend installment, and reported $86.3 million used under a $300 million buyback authorization.