51Talk Online Education Group Announces Third Quarter 2024 Results

Core Insights - 51Talk Online Education Group reported strong financial performance for Q3 2024, with gross billings of US$19.8 million, reflecting an 80.7% year-over-year growth, and net revenues of US$14.0 million, a 79.4% increase from the previous year [2][6][8]. Financial Performance - Gross billings for Q3 2024 were US$19.8 million, an increase of 80.7% compared to US$10.9 million in Q3 2023 [3]. - Net revenues reached US$14.0 million, up from US$7.8 million in the same quarter last year, marking a 79.4% growth [3][6]. - The number of active students with attended lesson consumption was approximately 65,700, representing an 82.5% increase from 36,000 in Q3 2023 [3][6]. Profitability Metrics - Gross profit for Q3 2024 was US$11.1 million, an 85.3% increase from US$6.0 million in Q3 2023 [8]. - Gross margin improved to 78.7% in Q3 2024, compared to 76.3% in the same quarter last year [9]. Operating Expenses - Total operating expenses for Q3 2024 were US$11.8 million, a 20.6% increase from US$9.8 million in Q3 2023, primarily driven by higher sales and marketing expenses [10]. - Sales and marketing expenses rose to US$8.2 million, an 18.3% increase from US$6.9 million in the same quarter last year [11]. Loss Metrics - The operating loss for Q3 2024 was US$0.8 million, significantly improved from an operating loss of US$3.9 million in Q3 2023 [14]. - Net loss attributable to ordinary shareholders was US$0.6 million, compared to a net loss of US$3.9 million in the same quarter last year [15]. Cash Flow and Balance Sheet - As of September 30, 2024, the company had total cash, cash equivalents, and time deposits of US$25.6 million, up from US$23.4 million at the end of 2023 [20]. - Advances from students increased to US$39.7 million as of September 30, 2024, compared to US$27.2 million at the end of 2023 [20]. Future Outlook - For Q4 2024, the company expects net gross billings to be between US$20.5 million and US$21.0 million, indicating a sequential growth of 3.7% to 6.2% [21].