51Talk Online Education Group (COE) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 reached $18.2 million, up 93.1% year-over-year; gross billings rose 74.6% to $21.9 million.

• Active students with attended lesson consumption increased 75.5% to approximately 81,100 compared to Q1 2024.

• Organizational optimization, accelerated AI adoption, and strategic expansion into new and existing markets supported growth and deeper user engagement.

• Management highlighted robust business model, market leadership, and ongoing expansion into new regions.

Financial highlights

• Gross margin was 77% for Q1 2025.

• Operating loss narrowed to $1.3 million from $4.0 million year-over-year; net loss attributable to ordinary shareholders was $1.5 million, both significantly reduced year-over-year.

• Sales and marketing expenses rose 42.7% year-over-year to $11.1 million; operating expenses totaled $15.3 million.

• Cash, cash equivalents, and time deposits stood at $29.5 million at quarter end; advances from students were $47.9 million.

• Basic and diluted net loss per share was $0.004; non-GAAP net loss per share was $0.003.

Outlook and guidance

• Q2 2025 gross billings are expected to be between $24.5 million and $25.5 million, representing sequential growth of 11.7%–16.3% and year-over-year growth of 54.4%–60.7%.

• Guidance reflects current market and operating conditions and is subject to change.