PresentationI will now turn the call over to your host, Mr. David Chung, Investor Relations for the company. Please go ahead, David.Hello, ladies and gentlemen. Thank you for standing by for 51Talk Online Education Group's Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded.David ChungInvestor Relations Vice President Thank you. Hello, everyone, and welcome to the Third Quarter 2025 Earnings Conference Call of 51Talk. The company's results were issu ...

Financial Data and Key Metrics Changes - Gross billings reached $40.5 million, showing a quarter-over-quarter growth of 42.1% and a year-over-year growth of 104.6% [4] - Net revenues for the third quarter were $26.3 million, an increase of 87.5% from the same quarter last year [6] - Gross margin for the third quarter was 73.3% [6] - Operating loss for Q3 was $4.2 million, with a net loss attributable to ordinary shareholders of $4.8 million, reflecting increases of 428.9% and 669.4% year-over-year, respectively [8] - Total cash equivalents and time deposits were $36.6 million at the end of Q3 [8] - Advances from students amounted to $70.7 million at the end of Q3 [8] - Expected net gross billings for Q4 2025 are projected to be between $35 million and $38 million [8] Business Line Data and Key Metrics Changes - Active student base reached 112,600, marking a significant milestone in the company's global expansion strategy [4] - Q3 operating expenses were $23.4 million, a 97.9% increase compared to the same quarter last year, driven by sales and marketing expenses [7] - Sales and marketing expenses were $17.5 million, reflecting a 114.7% increase year-over-year [7] - Product development expenses were $1.6 million, an 87.8% increase from the same quarter last year [8] - General and administrative expenses were $4.3 million, a 52.5% increase year-over-year [8] Market Data and Key Metrics Changes - The company demonstrated successful reach into new markets, as evidenced by participation in COP30 in Brazil with students from five countries [5] Company Strategy and Development Direction - The company remains focused on executing strategic priorities while maintaining disciplined capital allocation to drive long-term shareholder value [5] - There is confidence in the substantial opportunity presented by the global market and the team's ability to execute the strategic vision [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to consolidate recent rapid growth and expand business momentum with existing and new clients [5] - The outlook for Q4 2025 reflects current market conditions and preliminary estimates of market and operating conditions, which are subject to change [9] Other Important Information - The discussion included forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, highlighting inherent risks and uncertainties [2][3] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries from participants [11]

Financial Data and Key Metrics Changes - Gross billings reached $40.5 million, a quarter-over-quarter growth of 42.1% and a year-over-year growth of 104.6% [4] - Net revenues for Q3 were $26.3 million, an increase of 87.5% from the same quarter last year [6] - Gross margin for Q3 was 73.3% [6] - Operating loss for Q3 was $4.2 million, with a net loss attributable to ordinary shareholders of $4.8 million, reflecting increases of 428.9% and 669.4% respectively from the same quarter last year [8] - Total cash equivalents and time deposits were $36.6 million at the end of Q3 [8] - Advances from students amounted to $70.7 million at the end of Q3 [8] - Expected net gross billings for Q4 are projected to be between $35 million and $38 million [8] Business Line Data and Key Metrics Changes - Active student base reached 112,600, marking a significant milestone in the company's global expansion strategy [4] - Q3 operating expenses were $23.4 million, a 97.9% increase compared to the same quarter last year, driven by sales and marketing expenses [6][8] - Sales and marketing expenses were $17.5 million, a 114.7% increase from the same quarter last year [6] Market Data and Key Metrics Changes - The company demonstrated robust growth in gross billings and active student enrollment, indicating a successful reach into new markets [4][5] Company Strategy and Development Direction - The company remains focused on executing strategic priorities while maintaining disciplined capital allocation to drive long-term shareholder value [5] - Participation in COP30 in Brazil highlighted the company's commitment to global engagement and diversification of its student portfolio [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the substantial opportunities presented by the global market and the team's ability to execute the strategic vision [5] - The outlook for Q4 reflects current market conditions and customer demand, which are subject to change [8] Other Important Information - The discussion included forward-looking statements under the Safe Harbor provisions, indicating inherent risks and uncertainties [2][3] Q&A Session Summary - There were no questions during the Q&A session [10]

Core Viewpoint - 51Talk Online Education Group has announced a new share repurchase program, allowing the company to buy back up to US$10 million worth of its shares over the next 12 months, ending on December 7, 2026 [1]. Group 1: Share Repurchase Program - The share repurchases may occur on the open market at prevailing market prices, in privately negotiated transactions, in block trades, or through other legally permissible means, depending on market conditions [2]. - The company plans to fund the repurchases from its existing cash balance [2]. Group 2: Company Overview - 51Talk is a global online education platform specializing in English education, aiming to make quality education accessible and affordable [4]. - The company's online and mobile platforms enable students to take live interactive English lessons on demand, connecting them with highly qualified teachers through a shared economy approach [4]. - 51Talk utilizes student and teacher feedback along with data analytics to provide a personalized learning experience [4].

SINGAPORE, Dec. 8, 2025 /PRNewswire/ -- 51Talk Online Education Group ("51Talk" or the "Company") (NYSE American: COE), a global online education platform with core expertise in English education, announced its unaudited results for the third quarter ended September 30, 2025. Third Quarter 2025 Financial and Operating Highlights [1]Gross billings for the third quarter of 2025 were US$40.5 million, a 104.6% growth from US$19.8 for the third quarter of 2024. Net revenues for the third quarter of 2025 were U ...

Core Viewpoint - 51Talk Online Education Group will report its unaudited financial results for Q3 2025 on December 8, 2025, before U.S. market opens [1] Group 1: Earnings Call Details - The earnings conference call is scheduled for 8:00 a.m. U.S. Eastern Time on December 8, 2025 [1] - Dial-in details for the call include: - United States Toll: 1-888-346-8982 - International: 1-412-902-4272 - Singapore (toll free): 800-120-6157 - Mainland China (toll free): 4001-201203 - Hong Kong (toll free): 800-905945 [1] - A live and archived webcast will be available on the company's investor relations website [1] Group 2: Company Overview - 51Talk is a global online education platform specializing in English education [1] - The company's mission is to make quality education accessible and affordable [1] - 51Talk connects students with qualified teachers through a shared economy approach and utilizes feedback and data analytics for personalized learning experiences [1]

Core Insights - The "2025 National Consumption Conference" held in Beijing focused on innovative practices and trends in the consumption sector, with 51Talk's "Koala AI Teacher" winning the "2025 National Consumption Innovation Case" award, highlighting the shift towards intelligent and personalized education in the internet education sector [1][3][4] Group 1: Industry Trends - The conference emphasized the rapid rise of service consumption and the significant shift in consumer demand towards quality and personalization [3] - The recognition of 51Talk's product aligns with the new consumption trends, showcasing the integration of AI in education to enhance personalized learning experiences [4][9] Group 2: Product Innovation - The "Koala AI Teacher" is positioned as the world's first super-human-like AI teacher, aiming to provide efficient language learning services globally while integrating language skills training with core knowledge systems [6][8] - The product utilizes proprietary algorithms and a large model, incorporating 120 million course data points and insights from over 3,000 top educators, enabling it to adapt to students' learning states and emotional fluctuations in real-time [8] Group 3: Future Outlook - The award signifies broad recognition of 51Talk's exploration in the "AI + Education" sector, demonstrating that AI serves as a powerful educational tool rather than a replacement for teachers [9] - The company plans to continue investing in cutting-edge technologies, focusing on global business expansion, scientific education systems, and personalized learning paths to enhance its products and services [9]

Core Insights - 51Talk Online Education Group is focusing on global expansion and the integration of artificial intelligence in education delivery [1][2][3] Group 1: Global Expansion Strategy - The company has established a comprehensive international presence through localized education services tailored to regional needs [2][3] - 51Talk's strategic approach includes building on-the-ground operations that enhance educational delivery in various markets [2][3] Group 2: Role of Artificial Intelligence - The integration of AI capabilities into 51Talk's platform has allowed for the scaling of personalized learning solutions while ensuring quality and cultural relevance [3] - AI technologies are being leveraged to improve learning outcomes and operational efficiency within the company's educational services [2][3] Group 3: Market Position and Growth Opportunities - 51Talk has identified significant growth opportunities across its operational regions, positioning itself strategically in the evolving global education technology sector [3]

Core Points - The presentation is part of the Deutsche Bank Virtual Investor Conference, highlighting 51Talk from China [1] Company Overview - 51Talk is being introduced as a key participant in the conference, indicating its relevance in the current market [1]

Summary of 51Talk Online Education Conference Call Company Overview - **Company**: 51Talk Online Education (NYSEAM:COE) - **Industry**: EdTech, focusing on online English education for K-12 students globally - **Headquarters**: Singapore, with a focus on international markets following the divestment from China [2][5] Core Business Model - **AI-Driven Platform**: 51Talk combines localization, technology, and human resources to create an integrated adaptive learning experience [2][3] - **Curriculum**: Over 500 hours of proprietary, animated, and interactive content aligned with CEFR global standards [3] - **Tutor Recruitment**: A rigorous AI-enhanced process ensures high-quality tutors, supported by ongoing training and AI tools [3][4] - **Technology**: Investment of $100 million in proprietary technology, featuring low-latency videos and gamified classrooms [3][4] - **Support Model**: A 360-degree support system for students and parents, ensuring personalized learning paths [3][4] Market Strategy - **Global Presence**: Focus on local adaptation of curriculum and marketing strategies to fit cultural expectations in various regions [4][10] - **Key Markets**: Currently operating in Southeast Asia (Thailand, Malaysia), exploring Vietnam, Indonesia, and Arabic markets, with potential expansion into Spanish-speaking regions [9][10] - **Market Selection Criteria**: Targeting regions with a large middle-class population of children and low customer acquisition costs [9][10] Financial Performance - **Revenue Growth**: Despite accounting net losses, revenues are growing, with margins consistently exceeding 70% [5][13] - **Cash Position**: Strong cash position due to higher billings than recognized revenues, indicating healthy cash flow management [13][15] - **Future Growth Funding**: Plans to grow using cash received from students rather than relying on investor capital [16] AI Integration - **AI Applications**: AI is utilized in tutor recruitment, lesson personalization, and sales optimization, enhancing engagement and efficiency [4][5][8] - **Future Developments**: Ongoing soft launches of products without human teachers to further explore AI's potential in education [8] Competitive Advantage - **Local Expertise**: Building local teams and adapting products to meet specific market needs, making it difficult for local competitors to replicate [10][11] - **Continuous Improvement**: Commitment to enhancing existing products based on student needs and market demands [11][12] Conclusion - **Long-Term Value**: 51Talk is positioned to unlock long-term value in the edtech sector through a combination of global reach, local expertise, and advanced AI applications [5][6]