New Oriental Education & Technology (EDU) Q3 2023 Earnings Call Transcript

For the period ending February 28, 2023

April 19, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good evening and thank you for standing by for New Oriental’s FY 2023 Third Quarter Results Earnings Conference Call. At this time, all participants are in a listen-only mode. After managements’ prepared remarks, there will be a question-and-answer session. Today’s conference is being recorded. If you have any objections, you may disconnect at this time.

I’d now like to turn the meeting over to your host for today’s conference, Ms. Sisi Zhao. Thank you. Please go ahead.

Sisi Zhao

Hello, everyone. And welcome to New Oriental’s third fiscal quarter 2023 earnings conference call. Our financial results for the period were released earlier today and are available on the company’s website, as well as on Newswire services.

Today, Stephen Yang, Executive President and Chief Financial Officer and I will share New Oriental’s latest earnings results and business updates in detail with you. After that, Stephen and I will be available to answer your questions.

Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the view expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. New Oriental does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on New Oriental’s Investor Relations website at investor.neworiental.org.

I will now first turn the call over to Mr. Yang. Stephen, please go ahead.

Stephen Yang

Thank you, Sisi. Hello, everyone and thank you for joining us on the call. It’s our great pleasure to announce that upon the completion of the restructuring process and the introduction of our new businesses, we have managed to deliver a set of remarkable financial result this quarter, with both topline and bottomline beating the expectations.

These results also bolstered by the macro trends of economy recovery as the pandemic subsides, business activities resuming and people [Technical Difficulty] their confidence in consumption, while we observe the demand for our products and services is gradually increasing. We have also achieved a GAAP operating margin and non-GAAP operating margin of 8.8% and 11.7%, respectively, for this year.