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TAL Education Group serves learners and their parents, with nearly all revenue coming from China. Families pay for enrichment programs, including science, programming and humanities, delivered through Xueersi Peiyou small classes, personalized services and online courses. Learning services and related offerings generate most revenue; this business also includes subscription-based software for learning institutions and other institutional customers.
Learning content products provide a substantial second source of revenue. TAL develops or licenses content and sells it as books, books paired with digital resources, learning devices and apps. Customers buy through online platforms, directly from TAL or through distributors.
The business depends on attracting learners and keeping them enrolled through teaching quality, as well as producing content families want and maintaining distribution channels. Chinese regulation limits what TAL can offer: it no longer provides academic after-school tutoring for primary and junior-secondary students in mainland China. Academic tutoring elsewhere is limited to selected age groups and locations where local law permits it, and its current services require applicable licenses and permits.
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New Oriental competes with TAL for students paying for classroom and online learning across China. Watch its education business and how it combines local classrooms with online teaching—not its East Buy retail business—to gauge the competition facing TAL’s learning services.
Gaotu competes with TAL for Chinese learners and parents paying for tutoring, enrichment courses and educational content. Its courses, books and digital learning tools are the offerings to watch for competition with TAL’s learning services and content products.
Youdao competes with TAL for Chinese families buying coding courses, digital learning content and smart learning devices. Watch its Dictionary Pens and Tutoring Pens for device competition as TAL’s learning devices and books with digital learning experiences drive growth in its learning-content business.
Four Seasons Education overlaps with TAL in China by selling science, creativity, humanities and coding enrichment programs to learners and developing learning technology and content for educational institutions. Its offerings for primary and middle schools are worth watching alongside its courses; tourism revenue is a separate business, and it does not disclose revenue contributions for these categories.
17 Education competes with TAL in personalized learning products for Chinese families and teaching solutions for educational institutions. Watch purchases of its teaching software and hardware by regional education authorities and schools: these are its main paying customers for the institutional offering, making it a useful comparison for TAL’s institutional technology business.
New Oriental Education and Technology Group, Inc. earningsEDU
New Oriental's report will show how Chinese families are paying for classroom and online teaching, offering a read on the competitive demand facing TAL Education Group's learning services.
Look at New Oriental's education revenue and classroom and online teaching, not East Buy retail. If revenue and teaching demand hold up, families are still paying for this kind of instruction, supporting the demand backdrop for TAL Education Group's learning services. If they weaken, TAL faces a tougher task attracting students through its courses or pricing.
TAL Education Group earningsThis company
TAL Education Group earns from learning services and learning-content products, and its report will show whether expanding classes and selling more devices and books can grow both businesses without eroding gross margin.
Read revenue growth in learning services and others alongside learning content solutions, then compare both with gross margin—the share of revenue left after direct costs. If both lines grow and margin holds or rises, enrollment and device and book sales are expanding without direct costs taking a larger share. If revenue grows but margin falls, delivery or product costs are absorbing more of each sales dollar.
Youdao, Inc. earningsDAO
Youdao's report will show whether families are buying learning devices and digital content, a demand signal for the product categories in TAL Education Group's learning-content business.
Read Youdao's Dictionary Pen and Tutoring Pen sales alongside its digital learning-content business. Stronger device sales would show families are still buying these tools, supporting demand for TAL Education Group's learning devices and books paired with digital experiences. Weaker sales would suggest a harder market for TAL's content products.
