51Talk Online Education Group Announces Second Quarter 2025 Results

Core Viewpoint - 51Talk Online Education Group reported strong financial results for the second quarter of 2025, with significant increases in net revenues and active student numbers, indicating robust demand for its online English education services [1][4]. Financial and Operating Highlights - Net revenues for Q2 2025 reached US$20.4 million, an 86.1% increase from US$11.0 million in Q2 2024 [6][11]. - Gross billings for the same period were US$28.5 million, reflecting a 79.7% growth from US$15.9 million year-over-year [11]. - The number of active students with attended lesson consumption increased to approximately 91,300, a 67.8% rise from 54,400 in the previous year [6][11]. - Gross margin decreased to 74.6% from 78.1% year-over-year, attributed to rising costs [8]. Cost and Expenses - Cost of revenues for Q2 2025 was US$5.2 million, up 115.9% from US$2.4 million in Q2 2024, primarily due to increased service fees paid to teachers [7]. - Total operating expenses rose to US$17.9 million, a 63.5% increase from US$11.0 million in the same quarter last year, driven mainly by higher sales and marketing expenses [9][10]. - Sales and marketing expenses were US$12.8 million, representing a 74.8% increase from US$7.3 million year-over-year [10]. Loss and Earnings - The operating loss for Q2 2025 was US$2.7 million, compared to a loss of US$2.4 million in Q2 2024 [14]. - Net loss attributable to ordinary shareholders was US$3.0 million, up from US$1.2 million in the same quarter last year [15]. - Basic and diluted net loss per share was US$0.01, compared to US$0.004 in Q2 2024 [16]. Balance Sheet - As of June 30, 2025, the company had total cash, cash equivalents, and time deposits of US$30.9 million, an increase from US$29.2 million at the end of 2024 [20]. - Advances from students rose to US$56.4 million, compared to US$45.1 million at the end of 2024 [20]. Outlook - For Q3 2025, the company expects net gross billings to be between US$36.5 million and US$37.5 million, indicating a sequential growth of 28.1% to 31.6% and an increase of approximately 84.6% to 89.7% from the same quarter last year [22].