Stock News Recap: LAIX Inc (NYSE: LAIX)

On Wednesday, LAIX Inc (NYSE: LAIX) stock plunged -5.38% and closed at 2.11. The stock opened the session at $2.22 and touched its highest price point at $2.23. Its recent trading capacity is 22,670 shares versus to its average trading volume of 18776 shares.

LAIX Inc. (LAIX) recently reported its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Financial and Operating Highlights

Gross billings [1] for the second quarter of 2020 were RMB306.2M (US$43.3M), a 13.2% decrease from RMB352.7M for the previous quarter and a 5.5% increase from RMB290.1M for the same quarter last year.

Net revenues for the second quarter of 2020 were RMB269.4M (US$38.1M), an 18.0% increase from RMB228.3M for the previous quarter and a 2.5% decrease from RMB276.4M for the same quarter last year.

Gross margin for the second quarter of 2020 was 71.9%, contrast with 65.5% for the previous quarter and 76.5% for the same quarter last year.

Sales and marketing expenses for the second quarter of 2020 were RMB200.7M (US$28.4M), a 24.2% decrease from RMB264.7M for the previous quarter and an 8.7% decrease from RMB219.7M for the same quarter last year.

Net loss for the second quarter of 2020 was RMB92.5M (US$13.1M), contrast with RMB197.0M for the previous quarter and RMB87.8M for the same quarter last year.

Operating cash outflow for the second quarter of 2020 was RMB66.4M (US$9.4M), contrast with RMB99.8M for the previous quarter and RMB58.9M for the same quarter last year.

About 0.5M paying users purchased the Company’s courses and services for the second quarter of 2020, contrast with about 0.9M paying users for the previous quarter and about 0.9M paying users for the same quarter last year.

Total cumulative registered users were 185.6M as of June 30, 2020, contrast with 179.7M total cumulative registered users as of March 31, 2020 and 138.8M total cumulative registered users as of June 30, 2019.

Second Quarter 2020 Financial Results

Net Revenues

Net revenues for the second quarter of 2020 were RMB269.4M (US$38.1M), an 18.0% increase from RMB228.3M for the previous quarter and a 2.5% decrease from RMB276.4M for the same quarter last year. The quarter-over-quarter increase was primarily attributable to the upgrade of product mix, introducing additional courses and services with higher average selling prices.

Cost of Revenues

Cost of revenues for the second quarter of 2020 was RMB75.6M (US$10.7M), a 4.0% decrease from RMB78.8M for the previous quarter and a 16.6% increase from RMB64.9M for the same quarter last year. The quarter-over-quarter change was primarily Because of decreases in salaries and benefit expenses.

The stock was at -23.55% over one-month performance. LAIX’s shares are at -23.27% for the quarter and driving a -65.01% return over the course of the past year. The average volatility for the week at 10.62% and for month was at 6.11%. There are 49.34M shares outstanding and 99.72M shares are floated in market.

Leave a Reply

Your email address will not be published. Required fields are marked *