Gaotu Techedu Inc. (GOTU) witnessed a remarkable 16.60% surge in pre-market trading on Wednesday, February 26, 2025. This significant rally was driven by the company's impressive fourth quarter and fiscal year 2024 financial results, as well as its strategic focus on integrating artificial intelligence (AI) technologies into its educational offerings.

In the fourth quarter, Gaotu Techedu reported an 82.5% year-over-year increase in net revenues to RMB 1.39 billion, surpassing analyst estimates. The company's gross billings also witnessed robust growth, rising 69.0% compared to the same period in 2023. Notably, Gaotu Techedu's net loss narrowed to RMB 135.8 million, reflecting the company's improving profitability and efficiency initiatives.

Adding to the positive sentiment, Gaotu Techedu provided an optimistic outlook for the first quarter of 2025, projecting net revenues to grow between 48.7% and 50.8% year-over-year. This strong guidance, coupled with the company's substantial net operating cash inflow of RMB 783.6 million in Q4 2024, indicates a solid financial position and foundation for future growth and strategic plans.

Furthermore, Gaotu Techedu is actively embracing AI technologies, including DeepSeek and other large-scale models, to enhance learning effectiveness, personalization, and operational efficiency. The company believes that AI will have a profound and far-reaching impact on the education industry, reshaping personalized and adaptive learning experiences. Gaotu Techedu's focus on leveraging AI advancements has been well-received by investors, contributing to the stock's pre-market rally.