Elsie Sheng's questions to Gaotu Techedu (GOTU) leadership • Q2 2025
Question
Elsie Sheng of CLSA Limited inquired about the latest developments in Gaotu's offline business, asking for updates on operating metrics, ramp-up progress, and future growth targets for the segment.
Answer
CFO Shannon Shen explained that the offline business is a key growth driver, with revenue up over 20% year-over-year and contributing more than 5% to gross billings in Q2. Shen highlighted that the model leverages in-person trust-building, existing online content, strong brand recognition, and headquarters' support for digital infrastructure. She noted that established centers are seeing positive word-of-mouth referrals and improving retention rates, giving management confidence in the model's scalability and its role in enriching the company's overall product mix.