Boston, MA 06/19/2014 (wallstreetpr) – Tarena International Inc (ADR) (NASDAQ:TEDU) recently scored good grades on its maiden financial reporting since IPO. The professional education services provider saw its revenue up 61 percent to $24.3 million, therefore, surpassing the consensus estimate of $23.1 million.
The company also saw its student enrollment up significantly in the quarter. On a year-over-year basis, the company noted 30 percent surge in student enrollments, which helped it to hit about 11,000. The gain in student numbers also happened on the back of the increase in the average revenue per student, which was up 24 percent from a year earlier to more than $2,200.
The company managed to turn tables on its own past performance. While it suffered an operating loss of $61,000 in the year ago quarter, the latest quarter ended with $580,000 in operating income. It earned a penny per share in the latest quarter, a far cry for the loss of $0.02 per share a year earlier. The improvement in the company’s earnings could be traced to such factors as the increase in courses, number training centers and quality teaching.
Expanding market share
Tarena International Inc (ADR) (NASDAQ:TEDU) observes a business model that enables it to expand its service reach while keeping quality at the highest level. As of the latest, market research reports indicate that the company controls 8.3 percent of the Chinese Web-based professional training market. The company’s dominance in the information technology courses is not only admirable but also keeps expanding as it adds new centers and improve the quality of service.
Talk about quality services and the company broadcasts lectures live to its many learning centers so that students taking same courses have the same teacher regardless of their location.
The model allows Tarena (NASDAQ:TEDU) to expand its centers rapidly without diluting the quality of its services. It had 92 learning centers and operations in 33 major cities in China as of the end of 2013.
Revenue sharing collaboration
In addition to its in-house growth initiatives, the company is also reaching out to universities and colleges in China with a revenue sharing strategy, which has the potential of boosting its top line significantly in the coming years. Tarena International Inc (ADR) (NASDAQ:TEDU) recently announced the addition of six colleges to the program.
