NEW YORK, Dec. 18, 2020 /PRNewswire/ -- The pandemic has caused major shifts in lifestyles across the board. One of the most impactful changes is the transition to online education, as millions of pupils and students around the world are now taking classes, courses and entire curriculums online. Besides the more traditional education avenues, such as universities and colleges, other alternative education service providers have also emerged in recent years like Skillshare, Lynda, Udemy, and their popularity boomed this year. As a result, discussions on taking these online education services public have been reported. For example, Coursera Inc. is considering an initial public offering in 2021 that could give the online education provider a valuation of around USD 5 Billion, according to a report by Bloomberg. Meten EdtechX Education Group Ltd. (NASDAQ: METX), 2U, Inc. (NASDAQ: TWOU), American Public Education, Inc. (NASDAQ: APEI), TAL Education Group (NYSE: TAL), GSX Techedu Inc. (NYSE: GSX).
The online education market is not just diverse but is influenced by many factors besides the pandemic. In recent years, the major factors driving the growth of this market size include the growing demand to reduce the cost of education, increasing government initiatives promoting online education, and increasing smartphone penetration and the Internet around the world. Overall, the global online education market size is projected to reach USD 245.9 Billion by 2026, from USD 153.18 Billion in 2020 while witnessing a CAGR of 8.2% during 2021-2026, according to data provided by Valuates Reports.
Meten EdtechX Education Group Ltd. (NASDAQ: METX) announced breaking news yesterday that, "it expects to increase prices of its products under the impact of the COVID-19 pandemic this year.
As a key player in the Chinese ELT market, Meten EdtechX has further strengthened its pricing power. The Company intends to increase the prices of its products by approximately 5%. This move is expected to increase the Company's gross billings by approximately RMB80 million, net profit by approximately RMB60 million, and earnings per share by 50% in 2021. The net profit of Meten EdtechX will likely rapidly increase after hitting bottom during the COVID-19 pandemic in 2020.
In addition, Meten EdtechX is building more high-end SVIP courses for China's high-net-worth students/users. The price of the new SVIP courses is expected to be approximately RMB200,000 per student per year. Meten EdtechX will provide students/users with door-to-door teaching classes and a three-for-one attentive teaching services. The new SVIP courses will be offered in more than 20 cities across China to extend the Company's high-end business.
As of September 30, 2020, Meten EdtechX had 123 learning centers (including 110 self-operated learning centers and 13 franchised learning centers). The Company believes that Meten EdtechX has become the only choice for adults in most cities in China to learn English offline. Based on this competitive advantage, Meten EdtechX has also continued to accelerate the development of junior and online ELT businesses to build a comprehensive education and training platforms.
About Meten EdtechX: Meten EdtechX is a leading ELT service provider in China, delivering English language and future skills training for Chinese students and professionals. Through a sophisticated digital platform and nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). It offers superior teaching quality and student satisfaction, which are underpinned by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time.
The Company is committed to improving the overall English language competence and competitiveness of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.
For more information, please visit: https://investor.metenedu-edtechx.com
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2U, Inc. (NASDAQ: TWOU) reported last month that it will deliver an expanded portfolio of 10 new professional online short courses in Health and Wellness, Leadership and Management, Digital Transformation in Healthcare, and Innovation and Research developed by the Stanford Center for Health Education (SCHE). These courses will be available to global learners through GetSmarter, 2U's short course brand. "Health and wellness has never been more relevant to families, organizations, and society as a whole," said Andrew Hermalyn, President of Global Partnerships at 2U. "We're excited to expand our agreement with Stanford Center for Health Education and offer a broader portfolio of online short courses covering timely and important topics in healthcare."
American Public Education, Inc. (NASDAQ: APEI), parent company of online learning provider American Public University System, announced back in October hat it has entered into a definitive agreement to acquire Rasmussen University ("Rasmussen"), a nursing- and health sciences-focused institution serving over 18,000 students at its 24 campuses across six states and online. Rasmussen offers both traditional and competency-based programs online and through its 24 on-ground campuses in six states. With over 8,200 nursing students, Rasmussen is one of the largest providers of pre-licensure nursing programs in the United States.
TAL Education Group (NYSE: TAL) is K-12 after-school tutoring services provider in China. Back in October the Company announced unaudited financial results for the second quarter of fiscal year 2021 ended August 31st, 2020. Net revenues increased by 20.8% year-over-year to USD 1,103.3 Million from USD 913.2 Million in the same period of the prior year. "TAL's financial results of the second fiscal quarter reflected a combination of the continued strong growth momentum of our online courses and the lingering pressure on our offline business in this period. Although the second fiscal quarter was marked by the extended impact of the COVID-19 outbreak, we are encouraged to see that the public health situation and general economy began to improve in China, and offline teaching and tutoring gradually resumed during the summer months," said Rong Luo, TAL's Chief Financial Officer.
GSX Techedu Inc. (NYSE: GSX) an online K-12 large-class after-school tutoring service provider in China, announced back in November its unaudited financial results for the third quarter ended September 30th, 2020. Net revenues was RMB 4,913.7 Million, a 316.5% year-over-year increase. Net revenues of online K-12 increased 356.5% year-over-year to RMB 4,262.2 Million. Larry Xiangdong Chen, GSX's founder, Chairman and CEO, commented, "We achieved another robust quarter, with net revenues hitting an all-time-high of RMB 1.966 Billion, which is 3.5 times that of the same quarter of last year. These outstanding results speak to our continued focus of providing the highest quality services to our students and parents, our consistent training to frontline employees and our unwavering efforts to improve the operational efficiencies and organizational capabilities."
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