Benzinga | Aug 13, 2021 06:09AM EDT

ATA Creativity Global Clocks 39% Jump In Q2 Revenue

* Educational services company ATA Creativity Global (NASDAQ:AACG) reported second-quarter FY21 revenue growth of 39.4% year-on-year to ?36.8 million or $5.7 million.

* The revenue increase was driven by increased contributions from portfolio training and other educational services.

* Revenues from portfolio training programs were ?29.1 million, or 79.1% of total net revenues.

* Revenues from the Overseas study counseling services, research-based learning services, and other educational services were ?7.7 million, or 20.9% of total net revenues.

* Student enrollment in the quarter increased 36.1% Y/Y to 1,051.

* The credit hours delivered for ACG's portfolio training programs grew 1.6% Y/Y to 28,445.

* Gross profit climbed 142.4% Y/Y to ?15.95 million or $2.5 million, and the profit margin expanded 1830 basis points to 43.4%.

* Operating expenses decreased 11.9% Y/Y to ?39.8 million or $6.2 million. The operating loss narrowed to ?(23.8) million or $(3.7) million.

* The company held ?91.4 million or $14.2 million in cash and equivalents as of June 30, 2021.

* It reported EPS of ?0.21 or $0.03 in the quarter. Earnings per ADS was $0.06.

* "As ACG focuses on creative arts education and experiential learning, we do not anticipate our business to be materially impacted by these Guidelines," said CEO Kevin Ma about the set of guidelines issued focused on companies providing after-school academic course tutoring services for students.

* Price Action: AACG shares closed lower by 4.76% at $2.80 on Thursday.