Within a week, the stock market of Meten is continuously declining from its previous close of $0.4325 to $0.3723 by losing 13% in the pre-market trading session. The Company announced its financial results for the third quarter while its market cap composed $147 million. Third-quarter results for Meten over the last three months haven’t been particularly impressive. A look at past results shows that the Company typically has much more than the third quarter of 2021. This quarter, however, its revenue significantly decreased by 36.9% to $29.2 million.
In accordance, the gross profit has equaled to $9.9 million, decreasing 49.1%. For the nine months, gross profit decreased 7.0% year-on-year to $31.2 million. At the same time, the gross profit margin improved 1.2% points year-on-year to 33.5%. It says that it had considerably reduced the number of its offline learning centers in the third quarter of 2021. The reason for the cuts is to effectively reduce the impact of the revival of the Covid-19 pandemic on autonomous business operations. It had about 64 learning centers in operation. To optimize the layout of offline centers, the Company closed another 38 offline learning centers by the end of the third quarter of 2021. Finally, the adjusted net loss for the third quarter of 2021 climbed 364.8% year on year to $26.5 million.