51Talk(COE) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Gross billings reached $40.5 million, showing a quarter-over-quarter growth of 42.1% and a year-over-year growth of 104.6% [4] - Net revenues for the third quarter were $26.3 million, an increase of 87.5% from the same quarter last year [6] - Gross margin for the third quarter was 73.3% [6] - Operating loss for Q3 was $4.2 million, with a net loss attributable to ordinary shareholders of $4.8 million, reflecting increases of 428.9% and 669.4% year-over-year, respectively [8] - Total cash equivalents and time deposits were $36.6 million at the end of Q3 [8] - Advances from students amounted to $70.7 million at the end of Q3 [8] - Expected net gross billings for Q4 2025 are projected to be between $35 million and $38 million [8] Business Line Data and Key Metrics Changes - Active student base reached 112,600, marking a significant milestone in the company's global expansion strategy [4] - Q3 operating expenses were $23.4 million, a 97.9% increase compared to the same quarter last year, driven by sales and marketing expenses [7] - Sales and marketing expenses were $17.5 million, reflecting a 114.7% increase year-over-year [7] - Product development expenses were $1.6 million, an 87.8% increase from the same quarter last year [8] - General and administrative expenses were $4.3 million, a 52.5% increase year-over-year [8] Market Data and Key Metrics Changes - The company demonstrated successful reach into new markets, as evidenced by participation in COP30 in Brazil with students from five countries [5] Company Strategy and Development Direction - The company remains focused on executing strategic priorities while maintaining disciplined capital allocation to drive long-term shareholder value [5] - There is confidence in the substantial opportunity presented by the global market and the team's ability to execute the strategic vision [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to consolidate recent rapid growth and expand business momentum with existing and new clients [5] - The outlook for Q4 2025 reflects current market conditions and preliminary estimates of market and operating conditions, which are subject to change [9] Other Important Information - The discussion included forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, highlighting inherent risks and uncertainties [2][3] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries from participants [11]