51Talk Reports Q3 Revenue of $26.3M, Active Students Surpass 112,600

Written by Emily J. Thompson, Senior Investment Analyst

COE.A+0.07%

Source: PRnewswire

Updated: 1 hour ago

0mins

Source: PRnewswire

Significant Revenue Growth: 51Talk reported net revenues of $26.3 million for Q3, an 87.5% increase from $14.0 million in the same quarter last year, demonstrating strong performance in the global online education market and solidifying its market position.
Milestone in Student Enrollment: The active student base reached 112,600, a 71.4% increase from 65,700 a year ago, marking a successful execution of the company's global expansion strategy and enhancing future growth potential.
Gross Margin Fluctuation: While gross profit was $19.3 million, up 74.4%, the gross margin decreased to 73.3%, reflecting increased service costs that may impact future profitability.
Widening Operating Loss: The operating loss for Q3 was $4.2 million, significantly up from $0.8 million in the prior year, although the company maintained positive net operating cash flow, indicating cost pressures faced during expansion.

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51Talk Online Education Group operates an online education platform with core expertise in English education. The Company's online and mobile education platforms enable students to take live interactive English lessons, on demand. The Company connects its students with a large pool of teachers that it assembled using a shared economy approach and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students. It provides English course offerings in Hong Kong, Malaysia, and certain other countries and regions. It mainly conducts one-on-one online live English courses taught by teachers from the countries and regions outside mainland China, targeting children aged five to 12.

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Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.