51Talk Online Education Group Announces First Quarter 2025 Results

Core Insights - 51Talk Online Education Group reported significant growth in its first quarter of 2025, with net revenues reaching US$18.2 million, a 93.1% increase year-over-year from US$9.4 million [7][8] - The company experienced a 74.6% increase in gross billings, totaling US$21.9 million compared to US$12.6 million in the same quarter last year [3][8] - Active students with attended lesson consumption rose to approximately 81,100, marking a 75.5% increase from 46,200 in the first quarter of 2024 [7][8] Financial Performance - Gross margin for the first quarter of 2025 was 77.0%, slightly down from 77.5% in the same quarter last year [10] - Cost of revenues increased to US$4.2 million, a 97.6% rise from US$2.1 million year-over-year, primarily due to higher service fees paid to teachers [9] - Gross profit for the quarter was US$14.0 million, reflecting a 91.8% increase from US$7.3 million in the previous year [9] Operating Expenses - Total operating expenses for the first quarter of 2025 were US$15.3 million, a 35.6% increase from US$11.3 million in the same quarter last year [11] - Sales and marketing expenses rose to US$11.1 million, a 42.7% increase from US$7.8 million year-over-year [12] - General and administrative expenses increased to US$3.2 million, a 23.8% rise from US$2.6 million in the same quarter last year [14] Loss and Net Income - The operating loss for the first quarter of 2025 was US$1.3 million, an improvement from a loss of US$4.0 million in the same quarter last year [15] - Net loss attributable to ordinary shareholders was US$1.5 million, compared to a net loss of US$4.0 million for the same period last year [16] - Basic and diluted net loss per share attributable to ordinary shareholders was US$0.004, down from US$0.01 in the same quarter last year [17] Balance Sheet - As of March 31, 2025, the company had total cash, cash equivalents, and time deposits of US$29.5 million, slightly up from US$29.2 million at the end of 2024 [21] - Advances from students increased to US$47.9 million, compared to US$45.1 million at the end of the previous year [21] Outlook - For the second quarter of 2025, the company expects net gross billings to be between US$24.5 million and US$25.5 million, representing a sequential growth of 11.7% to 16.3% and an increase of approximately 54.4% to 60.7% from the same quarter last year [23]