The chart below shows how COE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, COE sees a -8.95% change in stock price 10 days leading up to the earnings, and a +23.73% change 10 days following the report. On the earnings day itself, the stock moves by +1.85%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Quarterly Revenue Surge: Third quarter net revenues were US$14 million, a 79.4% increase from the same quarter last year, largely driven by the increase of active students with attended lesson consumption.
Gross Billings Surge: Gross billings grew by 80.7% from the same quarter last year to US$19.8 million.
Third Quarter Gross Margin: Gross margin for the third quarter was 78.7%.
Operating Cash Flow Improvement: The company successfully maintained an upward trajectory in operating cash flow over the past two quarters, evidenced by the improvement in cash balance over the quarter.
AI Adoption Acceleration: The acceleration of AI adoption across the group has become a significant driver this quarter, with observed improvements in lead conversion rates, tutor management, and student classroom experiences.
Negative
Quarterly Revenue Surge: Third quarter net revenues were US$14 million, a 79.4% increase from the same quarter last year, largely driven by the increase of active students with attended lesson consumption.
Third Quarter Gross Margin: Gross margin for the third quarter was 78.7%.
Operating Expenses Increase: Q3 operating expenses were US$11.8 million, an increase of 20.6% compared to the same quarter last year.
Operating Loss Decrease: Overall, Q3 operating loss was US$0.8 million, while net loss attributable to the company's ordinary shareholders was US$0.6 million, a 79.6% and 83.6% decrease from the same quarter last year, respectively.
Earnings Per ADS Analysis: Q3 GAAP and non-GAAP earnings per ADS were negative US$0.11 and US$0.07, respectively.
51Talk Online Education Group (COE) Q3 2024 Earnings Call Transcript
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