RISE Education Cayman Ltd (REDU) Q1 2019 Earnings Call Transcript

RISE Education Cayman Ltd (REDU) Q1 2019 Earnings Call Transcript

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Logo of jester cap with thought bubble.

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RISE Education Cayman Ltd (NASDAQ: REDU)
Q1 2019 Earnings Call
May 17, 2019, 9:00 p.m. ET

Contents:

  • Prepared Remarks

  • Questions and Answers

  • Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen thank you for standing by and welcome to the RISE Education's First Quarter 2019 Earnings Call. At this time all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.

(Operator Instructions)

I must advise you that this conference is being recorded today, Friday, 17th of May, 2019.

I would now like to hand the conference over to your first speaker today, Investor Relations Director of RISE Education; Ms. Mei Li. Thank you. Please go ahead.

Mei Li -- Investor Relations Director

Thank you, operator. Hello everyone and welcome to RISE Education's first quarter 2019 earnings conference call. Today you will hear from Mr. Sun Yiding, CEO, who will give an overview of the Company's strategy and recent developments, followed by Ms. Jiandong Lu, CFO and COO; who will go over our financial results in more detail.

Before we proceed, I would like to remind you that today's discussion may contain certain forward-looking statements, made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. This forward-looking statements are subject to risks and uncertainties, that may cause actual results to differ materially from our current expectations.

To understand the factors that could cause results to materially differ from those in the forward-looking statements, please refer to our Form 20-F, filed with SEC on April 19th, 2019. We do not assume any obligation to update any forward-looking statements, except as required in the applicable law.

At this point, I would like to turn the call over to Mr. Sun Yiding. Please go ahead.

Yiding Sun -- Chief Executive Officer

(Foreign Language)

Thank you everyone for joining us today. I will read through Mr. Sun's prepared remarks, will hear me in English.

We are pleased to see the robust growth in our top and bottom-line for quarter. Revenues came in at RMB335 million, representing an increase of 24% year-over-year. Our adjusted EBITDA margin was 24%. This strong result, demonstrated just how effective our strategy is, at generating sustainable organic growth and speaks highly of our corporate flexibility adapting (ph) to a new regulatory environment.

The adjustable market for Junior English language teaching in China, remains massive and heavily underpenetrated. Among China's population, of children between the ages of three to twelve, children from middle and upper class families, represent the fastest growing segment. The Junior ELT Market in Beijing, Shanghai, Guangzhou and Shenzhen along is expected to be worth of a RMB25 billion in 2020 and RMB36 billion by 2022.