17 Education & Technology Group Inc-ADR (NASDAQ:YQ) stock fell 4.72% (As on June 15, 11:44:46 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 23 has reported the net revenues of RMB9.3 million (US$1.4 million), representing a year-over-year decrease of 96.0% from RMB233.4 million in the first quarter of 2022, mainly due to the significant delays in the bidding and delivery processes of major projects which affected revenue recognition in the quarter. Gross profit for the first quarter of 2023 was RMB2.3 million (US$0.3 million), representing a year-over-year decrease of 98.4% from RMB141.7 million in the first quarter of 2022. Gross margin for the first quarter of 2023 was 24.4%, compared with 60.7% in the first quarter of 2022. Loss from operations for the first quarter of 2023 was RMB104.0 million (US$15.1 million), compared with RMB29.1 million in the first quarter of 2022. Loss from operations as a percentage of net revenues for the first quarter of 2023 was negative 1,121.8%, compared with negative 12.5% in the first quarter of 2022. Net loss for the first quarter of 2023 was RMB92.5 million (US$13.5 million), compared with net loss of RMB24.8 million in the first quarter of 2022. Net loss as a percentage of net revenues was negative 997.9% in the first quarter of 2023, compared with negative 10.6% in the first quarter of 2022. Cash and cash equivalents, restricted cash, and short-term investments were RMB639.5 million (US$93.1 million) as of March 31, 2023, compared with RMB737.7 million as of December 31, 2022.

Moreover, Total operating expenses for the first quarter of 2023 were RMB106.3 million (US$15.5 million), including RMB28.5 million (US$4.1 million) of share-based compensation expenses, representing a year-over-year decrease of 37.8% from RMB170.8 million in the first quarter of 2022. Sales and marketing expenses for the first quarter of 2023 were RMB21.8 million (US$3.2 million), including RMB5.1 million (US$0.7 million) of share-based compensation expenses, representing a year-over-year decrease of 0.8% from RMB22.0 million in the first quarter of 2022. Research and development expenses for the first quarter of 2023 were RMB44.3 million (US$6.4 million), including RMB7.0 million (US$1.0 million) of share-based compensation expenses, representing a year-over-year decrease of 54.6% from RMB97.5 million in the first quarter of 2022. The decrease was primarily attributable to workforce optimization in line with business adjustment and continuous expenses management.