ATA Creativity Global (AACG) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenues rose 20.7% year-over-year to RMB 100.9 million, with net income up 54.9% to RMB 13.3 million.

• FY 2024 net revenues increased 21% to RMB 268.1 million, exceeding guidance, with gross profit up 23.2%.

• Student enrollment increased 15.8% year-over-year, with total credit hours delivered up 30.8%.

• Portfolio training services remained the main revenue driver, accounting for 73.6% of Q4 revenues.

• Discontinued Junior Art Service to improve operational efficiency.

Financial highlights

• Q4 2024 gross profit increased 21.6% to RMB 63.7 million; gross margin improved to 63.1%.

• Q4 2024 operating income was RMB 17 million, up from RMB 9.1 million in Q4 2023.

• FY 2024 net loss was RMB 36.1 million, compared to RMB 33.7 million in 2023.

• Cash and cash equivalents at year-end were RMB 36.5 million, down from RMB 60.2 million a year earlier.

• FY 2024 gross margin was 52.7%, up from 51.7% in 2023.

Outlook and guidance

• FY 2025 net revenues are expected between RMB 276 million and RMB 281 million, a 3–5% year-over-year increase.

• Growth in 2025 is anticipated to normalize after post-pandemic recovery, driven by portfolio training and higher enrollment.

• Expansion of new offerings and adoption of AI technologies planned for 2025.