51Talk Online Education Group (COE) Q1 2024 earnings summary

Executive summary

• Achieved strong business momentum in Q1 2024, exceeding guidance, driven by diversified international markets, branding activities, and new product launches for test preparation.

• Established an AI Research Institute to enhance user experience and operational efficiency, including AI-driven learning reports and teacher training.

• Active students with attended lesson consumption increased 83.3% year-over-year to 46,200, with robust participation in free trials.

Financial highlights

• Q1 net revenues reached $9.4 million, up 70.1% year-over-year, primarily due to increased active students and lesson consumption.

• Gross billings rose 55.6% year-over-year to $12.6 million.

• Gross margin was 77.5% for the quarter.

• Gross profit reached $7.3 million, up 69.8% year-over-year.

• Operating loss was $3.9 million, and net loss was $3.7 million, with non-GAAP net loss at $3.4 million.

Outlook and guidance

• Q2 2024 gross billings expected between $13.5 million and $14 million, representing sequential growth of 7.5% to 11.5%.