51Talk Online Education Group Announces Second Quarter 2024 Results

Core Viewpoint - 51Talk Online Education Group reported strong financial growth in the second quarter of 2024, with significant increases in gross billings, net revenues, and active student numbers, indicating a positive trajectory for the company's operations and market position [2][3][6]. Financial Performance - Gross billings for Q2 2024 were US$15.9 million, reflecting a 61.3% increase from US$9.8 million in Q2 2023 [3][6]. - Net revenues reached US$11.0 million, a 75.1% increase from US$6.3 million in the same quarter last year [2][3]. - The number of active students with attended lesson consumption was approximately 54,400, representing an 83.2% increase from approximately 29,700 in Q2 2023 [2][3]. Profitability Metrics - Gross profit for Q2 2024 was US$8.6 million, a 74.5% increase from US$4.9 million in Q2 2023 [7]. - Gross margin for Q2 2024 was 78.1%, slightly down from 78.4% in the same quarter last year [3][7]. Operating Expenses - Total operating expenses for Q2 2024 were US$11.0 million, a 39.7% increase from US$7.9 million in Q2 2023, primarily due to increased sales and marketing expenses [8]. - Sales and marketing expenses rose to US$7.3 million, a 43.6% increase from US$5.1 million in the same quarter last year [8]. Loss from Operations - The operating loss for Q2 2024 was US$2.4 million, an improvement from the operating loss of US$3.0 million in Q2 2023 [10]. - Net loss attributable to the Company's ordinary shareholders for Q2 2024 was US$1.2 million, compared to a net loss of US$2.9 million in the same quarter last year [10][11]. Balance Sheet Highlights - As of June 30, 2024, the Company had total cash, cash equivalents, and time deposits of US$21.0 million, down from US$23.4 million as of December 31, 2023 [13]. - Advances from students increased to US$34.5 million as of June 30, 2024, compared to US$27.2 million as of December 31, 2023 [14]. Future Outlook - For Q3 2024, the Company expects net gross billings to be between US$17.0 million and US$18.0 million, indicating a sequential growth of 7.2% to 13.5% [15].