China Online Education Group. (NYSE:COE) Q2 2022 Earnings Conference Call August 30, 2022 8:00 AM ET Company Participants Jack Jiajia Huang - CEO Min Xu - CFO Conference Call Participants Operator Hello, ladies and gentlemen, thank you for standing by for China Online Education Group's Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Miss. Ni Yan [ph] Investor Relations for the company. Please go ahea ...

China Online Education Group (NYSE:COE) Q1 2022 Earnings Conference Call June 24, 2022 8:00 AM ET Company Participants Jack Huang - CEO Min Xu - CFO Conference Call Participants Operator Hello, ladies and gentlemen, thank you for standing by for China Online Education Group's First Quarter 2022 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Ms. [Neon], Investor Relations for the company. Please go ahead, Ni. Unidentifi ...

China Online Education Group (NYSE:COE) Q2 2021 Earnings Conference Call September 28, 2021 8:00 AM ET Company Participants Jack Huang - CEO Min Xu - CFO Conference Call Participants Vincent Yu - Needham & Company Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output provided is partly edited and is desig ...

Financial Data and Key Metrics - Net revenues for Q1 2021 were RMB 600 million, a 23% YoY increase from RMB 487 million in Q1 2020 [9] - Gross margin for Q1 2021 was 73%, up from 70% in Q1 2020, driven by slightly higher revenue per lesson [10] - Non-GAAP net income for Q1 2021 was RMB 17 million, compared to RMB 57 million in Q1 2020 [9] - Active students in Q1 2021 were 393,000, a 37% YoY increase from 287,000 in Q1 2020 [9] - Gross billings for Q1 2021 were RMB 685 million, a 15% YoY increase, driven by a 43% YoY growth in order numbers, partially offset by a 20% YoY decline in order size [13] Business Line Data and Key Metrics - Net revenues from K-12 one-on-one mass market offerings grew 36% YoY in Q1 2021, driven by a 37% YoY increase in active students [6] - One-on-one gross margin for Q1 2021 was 74%, while small class gross margin was 66% [10] - The acquisition of Koala Reading is expected to enhance the company's English reading skill evaluation system and expand its curriculum portfolio [7] Market Data and Key Metrics - The company's K-12 mass market English education strategy focuses on improving student satisfaction and investing in research and course offerings [8] - The appointment of Maine Mendoza as a brand ambassador strengthens the company's brand recognition in the Philippines [8] Company Strategy and Industry Competition - The company is leveraging Koala Reading's expertise in Chinese reading assessments to improve its English-learning products and expand its curriculum offerings [7] - The company is focused on ramping up market efforts and improving student satisfaction in the K-12 mass market English education sector [8] - The company is investing in AI-powered robotic tutors and optimizing curriculums to enhance the learning experience [7] Management Commentary on Operating Environment and Future Outlook - The company expects Q2 2021 net revenues to be between RMB 597 million and RMB 603 million, representing a 21% to 22% YoY increase [14] - The company anticipates a 10% decline in ARPU for Q1 and Q2 2021, with ARPU expected to remain flat in Q3 and Q4 2021 [24] - The company is cautiously optimistic about the regulatory environment, expecting detailed regulations for after-school training to be issued soon [17] Other Important Information - The company had a total cash balance of RMB 1.73 billion at the end of Q1 2021, flat compared to the end of 2020 [13] - Advances from students at the end of Q1 2021 were RMB 2.76 billion, slightly up from RMB 2.72 billion at the end of 2020 [13] Summary of Q&A Session Question: Impact of Private Education Sector Development Guidelines - The guidelines are mostly focused on private schools rather than after-school training, and the company expects detailed regulations for after-school training to be issued soon [17] - The guidelines are generally positive for vocational education and training, and slightly positive for private high school education [17] Question: Strategy for Koala Reading Acquisition - The company plans to leverage Koala's expertise in AI and machine learning to develop an English assessment system that improves the learning experience for existing students [26] - The company will continue to operate the Koala brand in 2021 and decide on its future branding strategy later [26] Question: Q2 2021 Guidance and Outlook for 2021 - The Q2 2021 revenue guidance reflects a 10% decline in ARPU and a comparison to a strong base in 2020 due to COVID-19 [22] - The company expects active student growth in 2021 to be between 2019 and 2020 levels, with ARPU declining by roughly 10% in Q1 and Q2, and remaining flat in Q3 and Q4 [24] Question: Resource Allocation and Koala Reading Integration - The company's priority for 2021 is to develop an English assessment system using Koala's expertise, while continuing to support Koala's Chinese-reading product [26] - The company plans to allocate resources to improve the learning experience and customer acquisition through the Koala acquisition [26] Question: Revenue Contribution from Koala Reading - The revenue contribution from Koala Reading is expected to be insignificant in the near term, as its ASP is relatively small compared to the company's current ASP [30] Question: Cash Flow and Regulatory Impact on Q2 Guidance - Q1 2021 operating cash flow was RMB 39 million, impacted by annual payments and bonuses, as well as the GKid acquisition [34] - The Q2 2021 guidance partially accounts for potential regulatory changes, with the company expecting some slowdown due to regulatory overhang [35]