51Talk(US:COE)2025-09-03 13:02Financial Data and Key Metrics Changes - The second quarter net revenues were $20.4 million, representing an 86.1% increase from the same quarter last year, driven by an increase in active students and lesson consumption [8] - Gross billings grew by 79.7% year-over-year to $28.5 million [9] - Gross margin for the second quarter was 74.6% [9] - Operating loss for Q2 was $2.7 million, while the net loss attributable to ordinary shareholders was $3 million, a 144.7% increase from the same quarter last year [10] Business Line Data and Key Metrics Changes - Q2 sales and marketing expenses were $12.8 million, a 74.8% increase from the same quarter last year due to higher marketing and branding activities and increased sales personnel costs [10] - Product development expenses for Q2 were $1.2 million, a 45.5% increase year-over-year [10] - General and administrative expenses for Q2 were $3.9 million, a 39.1% increase from the same quarter last year [10] Market Data and Key Metrics Changes - Total cash, cash equivalents, and time deposits at the end of Q2 were $30.9 million [11] - Advances from students at the end of Q2 were $56.4 million [11] Company Strategy and Development Direction - The company is focused on enhancing user experience and service quality, which is expected to strengthen its competitive position and create long-term value for shareholders [6] - AI is integral to the company's strategy, with applications across products and processes aimed at delivering exceptional learning experiences at scale [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, expecting positive momentum to carry into 2025 [6] - The guidance for net gross billings in 2025 is projected to be between $36.5 million and $37.5 million, based on current market conditions [11] Other Important Information - The company has changed its auditing firm from Marcom to Ernst & Young to meet investor mandates, particularly from those requiring a Big Four auditor [15][16] Q&A Session Summary Question: Reason for changing the auditing firm to Ernst & Young - Management indicated that the change was made to meet investor mandates, as many investors prefer a Big Four auditor [15][16] Question: Plans to increase stock liquidity - Management acknowledged the low liquidity but stated there are no immediate plans for stock splits or other measures to increase liquidity, focusing instead on improving operations for sustainable value [19]