SINGAPORE, April 26, 2023 -- 51Talk Online Education Group (“51Talk” or the “Company”) (NYSE: COE), a global online education platform with core expertise in English education, announced its unaudited results for the first quarter ended March 31, 2023.
Financial and Operating Highlights: Net revenues for the first quarter of 2023 were US$5.6 million, a 195.6% increase from US$1.9 million for the same quarter last year. The number of active students with attended lesson consumption was approximately 25,200 in the first quarter of 2023, a 171.0% increase from 9,300 for the same quarter last year. Cost of revenues for the first quarter of 2023 increased by 199.3% leading to gross profit increase of 194.6% from the same quarter of last year. For the second quarter of 2023, the Company currently expects net gross billings to be between $8.8 million and $9.5 million, which would represent a sequential growth of 9.1% to 17.7%.
“We have seen growth momentum picking up sequentially in the first quarter as more markets have started to produce returns following our investments last and early this year. Our guidance for the second quarter reflects our continued confidence in our growth trajectory.” said Mr. Jack Jiajia Huang, Founder, Chairman and Chief Executive Officer of 51Talk.
“In fact, as we continue to deepen our understanding of the international markets, we are growing increasingly confident that our products can meet the needs of students and parents in many geographies. We apply a multi-step approach to fully unlock the potential of each market and have seen encouraging signs that some early-stage markets have been developing at a faster pace than the existing markets when they were at a similar stage.
During this quarter, we continued to intensify our localization efforts, especially in products, sales, marketing, and support functions. Specifically, we have plans for more online and offline branding activities throughout 2023. We have been able to achieve this progress while maintaining positive operating cash flow during this quarter.” Mr. Huang concluded.
About 51Talk Online Education Group
Founded in 2011, 51Talk is a global Edtech leader. The company went public on the New York Stock Exchange in 2016, and has been providing English teaching services to children and young learners aged 3-18 worldwide through its 1-on-1 immersive online teaching method with real foreign teachers.
To stimulate interest in English and achieve better learning outcomes, 51Talk has created a comprehensive library of gamified courses. The "short and frequent" teaching method, with a lesson length of 25 minutes, combined with pre-class preparation, post-class review, testing, and additional reading exercises, ensures unprecedented study success.
With its self-developed Air Class teaching application and scientific "learn-practice-test-support" closed-loop teaching system, 51Talk has created an interactive and engaging English classroom for global students. 51Talk is leveraging technology to empower the global education industry and steadily realizing its mission to enable everyone to speak confidently with the world.
The company's commitment to quality education and innovative teaching methods has made it a leader in the online English education industry.