China Distance Education Holdings announced the company’s Q2 2020 financial results on Friday. According to the financial details released by the company, the net revenue of the company increased 8.1% and reached at $41.9 million from the $38.8 million from the previous year quarter.
The gross profit of the company reached at $21.4 million from $15.5 million in the previous quarter. The company has a record operating loss of $4.1 million and the company’s operating income reached at $1.3 million. The total cash flow of the company reached $11.7 million from $16.5 million in the previous second quarter.
Chief Executive Officer and Chairman of China Distance Education Holding, Mr. Zhengdong Zhu said, “In the second quarter of fiscal 2020, we delivered year-over-year revenue growth of 8.1%, within our guidance range. The second quarter revenue growth was driven primarily by the healthy revenue growth of our industry-leading accounting vertical.”
“In concert with our responsive measures to support our students across China during the Coronavirus Disease 2019 or COVID-19 epidemic, we offered free online courses to students in Hubei province, and significant discounts for certain online exam preparation courses to students outside Hubei, providing students with convenient access to high-quality online professional education at a time when offline classes were restricted,” Mr. Zhu further added.
“This initiative quickly attracted students across China to our online learning platform. As a result, our paid enrollments nearly doubled year-over-year in the second quarter, dramatically expanding our student base. While our efforts to support students during the COVID-19 outbreak negatively impacted our second quarter revenue and cash receipts growth, they underscore our commitment to social responsibility, our vision to cultivate online learning as a lifestyle, and our aim to be our students’ life-long education partner of choice,” Mr. Zhu continued.