51Talk Online Education Group (COE) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 growth, surpassing guidance, with continued momentum and a positive outlook for Q3.

• Strategic investments and localization efforts improved product-market fit, customer experience, and expanded global reach.

• Expansion focuses on global markets, leveraging AI and local needs.

Financial highlights

• Q2 net revenues reached $11.0 million, up 75.1% year-over-year from $6.3 million, driven by increased active students and lesson consumption.

• Gross margin was 78.1% for Q2 2024, slightly down from 78.4% a year ago.

• Gross billings grew 61.3% year-over-year to $15.9 million.

• Q2 operating loss was $2.4 million, net loss attributable to shareholders was $1.2 million, both significantly improved year-over-year.

• Basic and diluted net loss per share was $0.004, per ADS was $0.22.

Outlook and guidance

• Q3 2024 gross billings expected between $17.0 million and $18.0 million, representing sequential growth of 7.2% to 13.5%.

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