51Talk Online Education Group Announces Second Quarter 2024 Results
51Talk Online Education Group (NYSE American: COE) reported strong Q2 2024 results, with gross billings up 61.3% to $15.9 million and net revenues increasing 75.1% to $11.0 million year-over-year. The company saw an 83.2% increase in active students to 54,400. Despite growth, 51Talk reported an operating loss of $2.4 million, improved from $3.0 million in Q2 2023. The company's gross margin slightly decreased to 78.1% from 78.4% last year. 51Talk's CEO highlighted strategic investments in diverse markets and localization efforts as key drivers of growth. For Q3 2024, the company expects net gross billings between $17.0-$18.0 million, representing 7.2% to 13.5% sequential growth.
51Talk Online Education Group (NYSE American: COE) ha riportato risultati solidi per il secondo trimestre del 2024, con fatturato lordo in aumento del 61,3% a 15,9 milioni di dollari e entrate nette in aumento del 75,1% a 11,0 milioni di dollari rispetto all'anno precedente. L'azienda ha registrato un aumento dell'83,2% nel numero di studenti attivi, raggiungendo 54.400. Nonostante la crescita, 51Talk ha riportato una perdita operativa di 2,4 milioni di dollari, migliorata rispetto ai 3,0 milioni di dollari del secondo trimestre del 2023. Il margine lordo dell'azienda è leggermente diminuito al 78,1% rispetto al 78,4% dell'anno scorso. Il CEO di 51Talk ha evidenziato gli investimenti strategici in mercati diversi e gli sforzi di localizzazione come motori chiave di crescita. Per il terzo trimestre del 2024, l'azienda prevede fatturato lordo netto tra 17,0 e 18,0 milioni di dollari, che rappresenta una crescita sequenziale dal 7,2% al 13,5%.
51Talk Online Education Group (NYSE American: COE) reportó resultados sólidos para el segundo trimestre de 2024, con facturación bruta aumentada en un 61,3% a 15,9 millones de dólares y ingresos netos incrementándose un 75,1% a 11,0 millones de dólares con respecto al año anterior. La compañía vio un aumento del 83,2% en estudiantes activos, alcanzando los 54,400. A pesar del crecimiento, 51Talk reportó una pérdida operativa de 2,4 millones de dólares, mejorando desde 3,0 millones de dólares en el segundo trimestre de 2023. El margen bruto de la empresa disminuyó ligeramente al 78,1% desde el 78,4% del año pasado. El CEO de 51Talk destacó las inversiones estratégicas en diversos mercados y los esfuerzos de localización como impulsores clave del crecimiento. Para el tercer trimestre de 2024, la compañía espera facturación bruta neta entre 17,0 y 18,0 millones de dólares, representando un crecimiento secuencial del 7,2% al 13,5%.
51Talk 온라인 교육 그룹 (NYSE American: COE)은 2024년 2분기 강력한 실적을 발표했으며, 총 청구액이 61.3% 증가하여 1,590만 달러에 달했고 순수익이 75.1% 증가하여 1,100만 달러에 도달했습니다. 이 회사는 활성 학생 수가 83.2% 증가하여 54,400명에 도달했습니다. 성장에도 불구하고 51Talk은 240만 달러의 운영 손실을 기록했습니다, 이는 2023년 2분기의 300만 달러에서 개선된 수치입니다. 회사의 총 마진은 지난해 78.4%에서 78.1%로 약간 감소했습니다. 51Talk의 CEO는 다양한 시장에 대한 전략적 투자와 현지화 노력을 성장의 주요 원인으로 강조했습니다. 2024년 3분기를 위해, 이 회사는 순 총 청구액을 1,700만 달러에서 1,800만 달러 사이로 예상합니다, 이는 7.2%에서 13.5%의 세분기 성장률을 나타냅니다.
Le groupe d'éducation en ligne 51Talk (NYSE American: COE) a annoncé de solides résultats pour le deuxième trimestre de 2024, avec des recettes brutes en hausse de 61,3 % à 15,9 millions de dollars et des revenus nets en augmentation de 75,1 % à 11,0 millions de dollars par rapport à l'année précédente. L'entreprise a enregistré une augmentation de 83,2 % du nombre d'étudiants actifs, atteignant 54 400. Malgré cette croissance, 51Talk a déclaré une perte opérationnelle de 2,4 millions de dollars, améliorée par rapport à 3,0 millions de dollars au deuxième trimestre 2023. La marge brute de l'entreprise a légèrement diminué à 78,1% contre 78,4 % l'année dernière. Le PDG de 51Talk a souligné que des investissements stratégiques sur divers marchés et des efforts de localisation étaient des moteurs clés de la croissance. Pour le troisième trimestre de 2024, l'entreprise s'attend à des recettes brutes nettes entre 17,0 et 18,0 millions de dollars, représentant une croissance séquentielle de 7,2 % à 13,5 %.
Die 51Talk Online Education Group (NYSE American: COE) hat starke Ergebnisse für das 2. Quartal 2024 veröffentlicht, mit einem Anstieg der Bruttobuchungen um 61,3% auf 15,9 Millionen US-Dollar und einem Anstieg der Nettoumsätze um 75,1% auf 11,0 Millionen US-Dollar im Vergleich zum Vorjahr. Das Unternehmen verzeichnete einen Anstieg der aktiven Studenten um 83,2% auf 54.400. Trotz des Wachstums meldete 51Talk einen Betriebsverlust von 2,4 Millionen US-Dollar, besser als die 3,0 Millionen US-Dollar im 2. Quartal 2023. Die Bruttomarge des Unternehmens sank leicht auf 78,1% gegenüber 78,4% im Vorjahr. Der CEO von 51Talk hob strategische Investitionen in verschiedene Märkte und Lokalisierungsanstrengungen als wichtige Treiber des Wachstums hervor. Für das 3. Quartal 2024 erwartet das Unternehmen nettobuchungen zwischen 17,0 und 18,0 Millionen US-Dollar, was einem sequenziellen Wachstum von 7,2% bis 13,5% entspricht.
- Gross billings increased 61.3% year-over-year to $15.9 million
- Net revenues grew 75.1% year-over-year to $11.0 million
- Active students with attended lesson consumption increased 83.2% to 54,400
- Operating loss improved to $2.4 million from $3.0 million in Q2 2023
- Q3 2024 guidance projects continued growth with net gross billings between $17.0-$18.0 million
- Operating loss of $2.4 million, despite improvement from previous year
- Slight decrease in gross margin to 78.1% from 78.4% in Q2 2023
- Total operating expenses increased 39.7% year-over-year to $11.0 million
- Cash, cash equivalents, and time deposits decreased to $21.0 million from $23.4 million at end of 2023
Insights
51Talk's Q2 2024 results show impressive growth across key metrics. Gross billings increased by
Despite the revenue growth, 51Talk still reported an operating loss of
The Q3 2024 outlook of
51Talk's strategic focus on AI-enabled platform strength and localization is a smart move in the competitive EdTech landscape. By tailoring their offerings to specific market needs, they're likely to see improved customer retention and organic growth through referrals.
The
The company's emphasis on exploring new market opportunities aligned with their existing offerings could lead to efficient expansion. As they continue to leverage AI for efficiency, we might see improvements in their cost structure and eventual profitability.
Second Quarter 2024 Financial and Operating Highlights
- Gross billings1 for the second quarter of 2024 were
US , a$15.9 million 61.3% growth from the second quarter of 2023. - Net revenues were
US for the second quarter of 2024, a$11.0 million 75.1% increase fromUS for the second quarter of 2023.$6.3 million - The number of quarterly active students with attended lesson consumption was approximately 54,400 in the second quarter of 2024, representing a
83.2% increase from approximately 29,700 for the second quarter of 2023.
Key Financial and Operating Data | For the three months ended | ||||
June 30, | June 30, | Y-o-Y | |||
2023 | 2024 | Change | |||
Net Revenues (in US$ millions) | 6.3 | 11.0 | 75.1 % | ||
Gross Margin | 78.4 % | 78.1 % | -0.3ppt | ||
Gross Billings (in US$ millions) | 9.8 | 15.9 | 61.3 % | ||
Active students with attended lesson consumption2 | 29.7 | 54.4 | 83.2 % | ||
"We have achieved strong growth in Q2, exceeding our Q2 guidance, and anticipate sustained momentum in the foreseeable future, as reflected in our Q3 guidance. Our strategic investments across a diverse portfolio of markets are yielding positive results, propelling us towards our objective of becoming a globally leading EdTech company." stated Jack Jiajia Huang, Founder, Chairman, and Chief Executive Officer of 51Talk.
"Through our localization efforts, we have gained a deeper understanding of individual markets, allowing us to meet specific local needs. This approach has improved our product market fit. Additionally, we actively explore new market opportunities that align with our strategic direction and existing product offerings."
"Our strategy hinges on global expansion based on local needs and platform strength enabled by AI. We make targeted investments to enhance team efficiency and local customer experience, aiming to drive higher retention rates and more customer referrals." Jack Jiajia Huang concluded.
1 Gross billings for a specific period, which is one of the Company's key operating data, is defined as the total amount of cash received and receivable from third party payment platforms for the sale of course packages and services in such period, net of the total amount of refunds in such period. The gross billings data included herein was from the Company's business system and converted with quarterly corresponding exchange rate, which may lead to differences with bank records |
2 An "active student with attended lesson consumption" for a given period refers to a student who attended at least one paid lesson, excluding those students who only attended paid live broadcasting lessons or trial lessons. |
Second Quarter 2024 Financial Results
Net Revenues and Gross Margin
Net revenues for the second quarter of 2024 were
Cost of revenues for the second quarter of 2024 was
Gross profit for the second quarter of 2024 was
Gross margin for the second quarter of 2024 was
Operating Expenses
Total operating expenses for the second quarter of 2024 were
Sales and marketing expenses for the second quarter of 2024 were
Product development expenses for the second quarter of 2024 were
General and administrative expenses for the second quarter of 2024 were
Loss from Operations
Operating loss for the second quarter of 2024 was
Non-GAAP operating loss for the second quarter of 2024 was
Net loss attributable to the Company's ordinary shareholders
Net loss attributable to the Company's ordinary shareholders for the second quarter of 2024 was
Excluding share-based compensation expenses of
Basic and diluted net loss per share attributable to ordinary shareholders for the second quarter of 2024 was
Excluding share-based compensation expenses of
Basic and diluted net loss per American depositary share ("ADS") attributable to ordinary shareholders for the second quarter of 2024 was
Excluding share-based compensation expenses of
Balance Sheet
As of June 30, 2024, the Company had total cash, cash equivalents and time deposits of
The Company had advances from students3 of
3 "Advances from students" is defined as the amount of obligation to transfer goods or service to students or business partners for which consideration has been received from students in advance. The deposits from students are also presented in the total amount of "advances from students" |
Outlook
For the third quarter of 2024, the Company currently expects net gross billings to be between
The foregoing outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM
Dial-in details for the earnings conference call are as follows:
1-888-346-8982 | |
International: | 1-412-902-4272 |
800-120-6157 | |
Mainland | 4001-201203 |
800-905945 | |
852-301-84992 |
Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "51Talk Online Education Group."
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.51talk.com.
A replay of the conference call will be accessible until August 30, 2024, by dialing the following telephone numbers:
1-877-344-7529 | |
International: | 1-412-317-0088 |
Replay Access Code: | 1167367 |
About 51Talk Online Education Group
51Talk Online Education Group (NYSE American: COE) is a global online education platform with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students to take live interactive English lessons, on demand. The Company connects its students with a large pool of highly qualified teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.
Use of Non-GAAP Financial Measures
In evaluating its business, 51Talk considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP sales and marketing expenses, non-GAAP product development expenses, non-GAAP general and administrative expenses, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) attributable to ordinary shareholders, and non-GAAP net income/(loss) attributable to ordinary shareholders per share and per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this press release.
51Talk believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. 51Talk believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to 51Talk's historical performance. 51Talk computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. 51Talk believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in the 51Talk's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this press release provides more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the
51TALK ONLINE EDUCATION GROUP | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands) | |||||||
As of | |||||||
Dec. 31, | Jun. 30, | ||||||
2023 | 2024 | ||||||
US$ | US$ | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | 21,298 | 16,686 | |||||
Time deposits | 2,091 | 4,311 | |||||
Inventory | - | 29 | |||||
Prepaid expenses and other current | 6,394 | 10,424 | |||||
Total current assets | 29,783 | 31,450 | |||||
Non-current assets | |||||||
Property and equipment, net | 138 | 181 | |||||
Intangible assets, net | 92 | 86 | |||||
Right-of-use assets | 723 | 1,413 | |||||
Deferred tax assets | 72 | 69 | |||||
Other non-current assets | 348 | 340 | |||||
Total non-current assets | 1,373 | 2,089 | |||||
Total assets | 31,156 | 33,539 | |||||
LIABILITIES AND SHAREHOLDERS' | |||||||
Current liabilities | |||||||
Advances from students | 27,214 | 34,497 | |||||
Accrued expenses and other current | 6,189 | 6,353 | |||||
Amounts due to related parties | 4,077 | 3,620 | |||||
Lease liabilities | 590 | 820 | |||||
Taxes payable | 1,060 | 741 | |||||
Total current liabilities | 39,130 | 46,031 | |||||
Non-current liabilities | |||||||
Lease liabilities | 41 | 519 | |||||
Other non-current liabilities | 176 | 274 | |||||
Total non-current liabilities | 217 | 793 | |||||
Total liabilities | 39,347 | 46,824 | |||||
Total shareholders' deficits | (8,340) | (13,617) | |||||
Noncontrolling interests | 149 | 332 | |||||
Total deficits | (8,191) | (13,285) | |||||
Total liabilities and shareholders' | 31,156 | 33,539 |
51TALK ONLINE EDUCATION GROUP | ||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||
(In thousands except for number of shares and per share data) | ||||||||||
For the three months ended | For the six months ended | |||||||||
Jun. 30, | Mar. 31, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||
2023 | 2024 | 2024 | 2023 | 2024 | ||||||
US$ | US$ | US$ | US$ | US$ | ||||||
Net revenues | 6,260 | 9,446 | 10,960 | 11,812 | 20,406 | |||||
Cost of revenues | (1,354) | (2,128) | (2,400) | (2,596) | (4,528) | |||||
Gross profit | 4,906 | 7,318 | 8,560 | 9,216 | 15,878 | |||||
Operating expenses | ||||||||||
Sales and marketing expenses | (5,109) | (7,728) | (7,335) | (9,550) | (15,063) | |||||
Product development expenses | (694) | (945) | (851) | (1,356) | (1,796) | |||||
General and administrative expenses | (2,053) | (2,589) | (2,789) | (3,812) | (5,378) | |||||
Total operating expenses | (7,856) | (11,262) | (10,975) | (14,718) | (22,237) | |||||
Loss from operations | (2,950) | (3,944) | (2,415) | (5,502) | (6,359) | |||||
Interest income | 36 | 82 | 63 | 69 | 145 | |||||
Other (expenses)/income, net | (45) | 141 | 1,131 | (120) | 1,272 | |||||
Loss before income tax benefit/(expenses) | (2,959) | (3,721) | (1,221) | (5,553) | (4,942) | |||||
Income tax benefit/(expenses) | 61 | (22) | (41) | 52 | (63) | |||||
Net loss | (2,898) | (3,743) | (1,262) | (5,501) | (5,005) | |||||
Net loss attributable to noncontrolling | - | (19) | (15) | - | (34) | |||||
Net loss attributable to the Company's | (2,898) | (3,724) | (1,247) | (5,501) | (4,971) | |||||
Weighted average number of ordinary shares | 340,329,892 | 345,124,338 | 346,701,530 | 339,836,750 | 345,913,731 | |||||
51TALK ONLINE EDUCATION GROUP | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||
(In thousands except for number of shares and per share data) | |||||||||||
For the three months ended | For the six months ended | ||||||||||
Jun. 30, | Mar. 31, | Jun. 30, | Jun. 30, | Jun. 30, | |||||||
2023 | 2024 | 2024 | 2023 | 2024 | |||||||
US$ | US$ | US$ | US$ | US$ | |||||||
Net loss per share attributable to ordinary shareholders | |||||||||||
Basic and diluted | (0.01) | (0.01) | (0.00) | (0.02) | (0.01) | ||||||
Net loss per ADS attributable to ordinary shareholders | |||||||||||
Basic and diluted | (0.51) | (0.65) | (0.22) | (0.97) | (0.86) | ||||||
Share-based compensation expenses are included in the operating expenses as follows: | |||||||||||
Sales and marketing expenses | (37) | (29) | (31) | (85) | (60) | ||||||
Product development expenses | (36) | (33) | (24) | (90) | (57) | ||||||
General and administrative expenses | (126) | (225) | (180) | (246) | (405) |
51TALK ONLINE EDUCATION GROUP | ||||||||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures | ||||||||||||
(In thousands except for number of shares and per share data) | ||||||||||||
For the three months ended | For the six months ended | |||||||||||
Jun. 30, | Mar. 31, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||||
2023 | 2024 | 2024 | 2023 | 2024 | ||||||||
US$ | US$ | US$ | US$ | US$ | ||||||||
Sales and marketing expenses | (5,109) | (7,728) | (7,335) | (9,550) | (15,063) | |||||||
Less: Share-based compensation expenses | (37) | (29) | (31) | (85) | (60) | |||||||
Non-GAAP sales and marketing expenses | (5,072) | (7,699) | (7,304) | (9,465) | (15,003) | |||||||
Product development expenses | (694) | (945) | (851) | (1,356) | (1,796) | |||||||
Less: Share-based compensation expenses | (36) | (33) | (24) | (90) | (57) | |||||||
Non-GAAP product development | (658) | (912) | (827) | (1,266) | (1,739) | |||||||
General and administrative expenses | (2,053) | (2,589) | (2,789) | (3,812) | (5,378) | |||||||
Less: Share-based compensation expenses | (126) | (225) | (180) | (246) | (405) | |||||||
Non-GAAP general and administrative | (1,927) | (2,364) | (2,609) | (3,566) | (4,973) | |||||||
Operating expenses | (7,856) | (11,262) | (10,975) | (14,718) | (22,237) | |||||||
Less: Share-based compensation expenses | (199) | (287) | (235) | (421) | (522) | |||||||
Non-GAAP operating expenses | (7,657) | (10,975) | (10,740) | (14,297) | (21,715) | |||||||
Loss from operations | (2,950) | (3,944) | (2,415) | (5,502) | (6,359) | |||||||
Less: Share-based compensation expenses | (199) | (287) | (235) | (421) | (522) | |||||||
Non-GAAP loss from operations | (2,751) | (3,657) | (2,180) | (5,081) | (5,837) |
51TALK ONLINE EDUCATION GROUP | |||||||||||
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures | |||||||||||
(In thousands except for number of shares and per share data) | |||||||||||
For the three months ended | For the six months ended | ||||||||||
Jun. 30, | Mar. 31, | Jun. 30, | Jun. 30, | Jun. 30, | |||||||
2023 | 2024 | 2024 | 2023 | 2024 | |||||||
US$ | US$ | US$ | US$ | US$ | |||||||
Income tax benefit/(expenses) | 61 | (22) | (41) | 52 | (63) | ||||||
Less: Tax impact of Share-based compensation | - | - | - | - | - | ||||||
Non-GAAP income tax benefit/(expenses) | 61 | (22) | (41) | 52 | (63) | ||||||
Net loss attributable to the Company's ordinary | (2,898) | (3,724) | (1,247) | (5,501) | (4,971) | ||||||
Less: Share-based compensation expenses | (199) | (287) | (235) | (421) | (522) | ||||||
Non-GAAP net loss attributable to the | (2,699) | (3,437) | (1,012) | (5,080) | (4,449) | ||||||
Weighted average number of ordinary shares used | 340,329,892 | 345,124,338 | 346,701,530 | 339,836,750 |
345,913,731 | ||||||
Non-GAAP net loss per share attributable to ordinary shareholders | |||||||||||
Basic and Diluted | (0.01) | (0.01) | (0.00) | (0.01) | (0.01) | ||||||
Non-GAAP net loss per ADS attributable to ordinary shareholders | |||||||||||
Basic and Diluted | (0.48) | (0.60) | (0.18) | (0.90) | (0.77) |
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SOURCE 51Talk Online Education Group
FAQ
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